newsletter

issue 3 • 2017

in this issue...

EU FUNDING FORINTERNATIONAL GROWTH

EU funding for international growth page 2 • tax briefs page 3digital marketing strategy/hotdesking in New York page 4

business briefs page 5 • international connections for Irish SME’s page 6 legal briefs page 7 • top 3 investment criteria page 8

If you are an SME1 with an innovative ideayou may want to consider applying to theEU for funding for your business idea.

In recent years hundreds of Irishorganisations have received fundingranging in amounts from €50,000 toseveral million euros. The EU fund, knownas Horizon2020, has a budget of €75billion of which Ireland is targeting €1.25billion. Many successful Irish applicationshave come from the medical sciences areabut it is noteworthy that sectors such asagri-food and renewable energy have alsohad success – there has even been aproject about the levels of bacteria in beer.

There are many aspects to a successfulapplication but two key themes are absolutelyvital – innovation and scalability. Your businessidea must be bringing some new product orservice or combination of product & service tothe market and you need to be able todemonstrate an ability to scale your businessinternationally – the EU wants global winners!

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Continued

As a self-check guide you might want to see how you answerthe following questions

Have we identified a significant problem in the market1and/or a significant market opportunity?

Have we identified a credible solution to the problem? 2

Is there real innovation in our solution? 3

Are the end user benefits of our solution clear and4measurable?

As a company, are we ambitious enough and capable of5taking our idea internationally, globally?

Is the potential market big enough?6

You should be answering strong “Yes” to each of the abovequestions. The application process is highly competitive soanything less than a very high quality submission will likelybe unsuccessful.

There are 2 key phases to keep in mind.

In phase 1 projects can attract a grant of up to €50,000(projects are funded up to a level of 70% up to maximum of€50,000) – the focus here is about exploring and assessingthe technical feasibility and commercial potential of abreakthrough innovation that a company wants to exploit andcommercialize e.g. a market analysis. The ultimate objectiveis to put a new product, service or process in the market andthis could be a first or very early step. Note the innovation canbe a new service or process and not necessarily a productthat comes from a traditional laboratory.

Phase 2 funding is available for innovation projectsunderpinned by a sound and strategic business plan and theEU has indicated levels of funding €500,000 – € 2.5 million(covering up to 70% of eligible costs, or in exceptional, specificcases up to 100%).

The activities which might be eligible are scaling-up orvalidation for market replication aimed at bringing theinnovation to investment readiness and maturity for markettake-up.

The outcomes from phase 2 funding should be

j a new product, process or service that is ready to facemarket competition and

j a business innovation plan incorporating a detailedcommercialisation strategy and a financing plan in viewof market launch

It is worth mentioning here the importance of having andcommunicating your capacity as a management team todeliver on your plans. Many applications focus on innovationas if a new idea alone will bring success. It is useful toremember the example of the now forgotten Sony Walkman– the idea originated with Phillips in Netherlands but Sony’simplementation was far better!

For more detailed information and excellent support andadvice contact your local Enterprise Ireland office who havea dedicated and experienced team.

With EU support maybe the next Google or iPhone will startin a small Irish start up – best of luck!

1(note: the EU definition of SME is less than 250 employees and

less than €50m turnover so the vast majority of companies in

Ireland qualify)

EU FUNDING FORINTERNATIONAL GROWTH

tax briefs j

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VIES RETURNS

VAT Information Exchange System (VIES) returns areusually filed on a quarterly or monthly basis. Where anIrish Company supplies services, the VIES return can befiled every quarter. With regard to goods, VIES returnsmust be filed on a monthly basis where the value ofgoods exceed €50,000 per quarter. VIES returns must be submitted electronically on ROSby 23rd day of the month following the relevant VIESperiod. In recent times Revenue are delaying therepayment of VAT refunds untilVIES returns and Return ofTrading Detail returns aresubmitted up to date. Revenuemay also impose penalties forfailure to file VIES returns on time.

PAYE MODERNISATIONRevenue has announced that they are planning a majoroverhaul of the PAYE system and are working towardsrolling out a new real time system by 1st January 2019. Thisreal time system will enable Revenue to ensure thatemployees are receiving their correct cutoffs and credits. To that end the incidences of year end over or underpayments for employees should be minimal. The mainchanges to the current system will be:

Employees will be able to log on to their Revenue1account and view the information that employers havesubmitted for themPayroll software will automatically submit the2periodic file to Revenue without the need to physicallyupload the file on the ROS website.Payroll software will automatically update for3changes to P2c files regarding tax credits and cutoffThe correct treatment of illness benefit will be4facilitated in the systemP60’s, P45’s, P30’s and P35 forms will no longer be5required.

To that end payroll will have to be updated every weekor month as the file will be automatically uploaded toRevenue. Therefore in the event of an error in the payroll,the file will have to be corrected and resent to Revenue.Continuous errors or late submissions may cause Revenueinterventions. For most businesses that have a good payrolldepartment or bookkeeper the new system will lead togreater efficiencies. However for businesses who do thingsafter the fact, i.e. pay staff first and put the paymentthrough payroll software at a later date the changes maybe problematic. To that end a major change in theemployers mindset will need to occur over the next 12months to ensure that they are ready for the change.

TAX RESIDENCY OF IRISHINCORPORATED COMPANIES

A company is broadly regarded as resident in Ireland fortax purposes either by being incorporated in Ireland, or byvirtue of it being centrally managed and controlled inIreland (irrespective of where it is incorporated).   It ispermissible under Irish tax legislation for an Irishincorporated company to migrate its residence to a foreignjurisdiction. In order to become foreign tax resident, theIrish company would have to transfer the location of thecompany’s effective management from Ireland to theforeign jurisdiction. To that end all the board meetings,strategic decisions and negotiation of contracts shouldtake place outside of Ireland. Foreign tax residentdirectors may also need to be appointed to the board. The company will be required to do a corporation taxreturn until the date of cessation of operations in Ireland.An important point to note is that an exit tax is imposed oncompanies that cease to be Irish tax resident in the formof a charge to capital gains tax on the market value ofcompany assets at the date of cessation. It may be possibleto defer the charge where the company becomes taxresident in another EU/EEA jurisdiction. The exit chargewill not apply where –j The assets continue to be used in Ireland for the

purposes of a trade carried on by a branch or agency,or

j At least 90% of the Irish company’s issued sharecapital is held by a non- Irish tax resident companywhich is ultimately controlled by residents of acountry with which Ireland has a tax treaty.

The residency rules are also pertinent for companieslooking to relocate to Ireland following Brexit. To that endit is important when considering moving your companyto engage your advisors early to ensure all angles arecovered. PAY AND FILE SUMMARY

The following is a summary of upcoming pay and file dates:

INCOME TAXFiling date of 2016 return of income (self-assessed individuals) 31 October 2017Pay preliminary income tax for 2017 (self-assessed individuals) 31 October 2017On-Line pay and file date for 2016 return of income 14 November 2017

CAPITAL GAINS TAXPayment of Capital Gains Tax for the disposal of assets made from1 January 2017 to 30 November 2017 15 December 2017

CORPORATION TAXFiling date for Corporation Tax returns for accounting periods ending in November 2016 21 August 2017Balancing payment of Corporation Taxfor accounting periods ending in November 2016 21 August 2017

So you want toincrease your webpresence but you’re

not sure how to make themost of your businessonline? The first step is totake the time to develop adigital marketing strategythat is able to take yourbusiness to the next level,addressing the crucialareas of online advertisingand creating aprofessional and effectiveplatform for your brand. Studies show thatbusinesses with a clearlydefined digital marketingstrategy outperform thosewho do not have a strategyin place, so you can see that it’s well worth getting to grips withthe options.1. SET YOUR OBJECTIVES.A successful strategy is much more likely if you’re very clearabout what you want to achieve. Define your KPIs (KeyPerformance Indicators) clearly, and set specific targets for thesethat can be measured by a tool such as Google Analytics. If a KPIis that you want more leads from your site, for example, a goalsuch as getting ten leads per month by month six makes thistarget measurable and specific.2. UNDERSTAND YOUR STARTING POINT.You should aim to learn from past mistakes by looking at your ownbusiness history, the competitive market and the context of theindustry. It’s important to consider any changes in technology,products or customer expectations that are relevant to you, and tolook at what your competitors are doing. Carrying out a competitiveaudit can provide significant information on theindustry/competitive dynamics, and also gives you a baseline touse for comparison as you go forward.

3. FOCUS ON THECUSTOMER.Remember that your digitalstrategy should be centred onyour customer, not on you.Your research should considerwhat your customers arelooking for, what sort ofterminology they are using,and how they want to interactwith you. You can find out moreabout your demographic byusing Audience Reports (inGoogle Analytics) to identify keyinformation about your targetconsumers.4. STICK TO YOUR BUDGET.You should clearly define yourbudget and your resource

commitment from the outset, and be clear about whereresources and budget will be applied, considering what returnyou are expecting from each. For example, you may run an emailcampaign that aims to deliver leads and a Facebook campaignthat is expected to grow your audience. These are both validactivities, but they have very different objectives.5. REVIEW CONSTANTLY.Digital marketing is easily measured online, and you can reviewyour strategy and make adjustments frequently. If you have beenclear with your KPIs and targets, you can set up systems tomeasure conversions and track your performance compared toyour plan. Don’t be afraid to make changes quickly if somethingisn’t working: updating your plan, adjusting your tactics andregularly reviewing your strategy allows you to make the mostof your digital marketing and web presence.

If you don’t already have a clear Digital Marketing Strategy, thebest time to start is now!

john@epresence.ie

TOP 5 T IPS FOR AN EFFECTIVEDIGITAL MARKETING STRATEGY

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GET A “HOTDESK” IN A HOT LOCATION

Enterprise Ireland areworking to help Irish SME’sto get their first taste of

expansion by offering threeavailable private office spaces intheir business incubationfacility. The location ofEnterprise Ireland’s New Yorkoffice is the much sought afterarea of Midtown Manhattan andhas been known to help opendoors for start-up companies.Providing facilities such as

internet, printing, kitchen, andboardroom for participatingcompanies, it is an opportunitythat rarely comes along. Whilethe facility has ten privateoffices, all have been almostalways occupied until now. The business incubation facilityalso offers ‘Hotdesk’ spacewhere you can avail of a deskand the facility for up to 12 daysof usage per month. There isalso business support in the

form of development sessionsand networking lunches withother clients as well as salesdevelopment, legal and HRsessions. Intended to be a soft landingfirst step into the New York orNorth American market,Enterprise Ireland hopes thatthe support available at thefacility will enable a business toexpand and move to their ownspace after the first year.

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STANDARDS FOR RENTED HOUSINGREGULATIONS 2017

All landlords are now required by law to fully comply with thestandards for rented housing. In this regard, all landlordsshould ensure that their properties are fully compliant withfire safety standards and regulations for rented properties.

The new Standards for Rented Houses came into effecton 1st of July 2017 and are set out in the Housing(Standards for Rented Houses) Regulations 2017. Someof the main requirements are:

j In houses, that there should be a suitable self-contained fire detection and alarm system as well asa suitably located fire blanket.

j In multi-unit buildings (i.e. buildings that contain twoor more dwellings that share a common access), eachself-contained dwelling shall contain a fire detectionand alarm system, an emergency evacuation plan andemergency lighting in the common areas.

j For all properties, installations for supply of gas, oiland electricity should be maintained in good workingrepair and safe working order.

If you require any further advice on safety information orthe standards, please contact your local authority. 150,000 TO BENEFIT FROM INCREASE

IN MINIMUM WAGE

Minimum wage workers are set to see their payincrease by up to €12 a week in January as theminimum wage is increased by 30c an hour. Only thoseon full-time hours will benefit, as the lower rate isincreased to €9.55 an hour.

In the midst of economic uncer-tainty prior toBrexit negotiation,some feel that therise in costs onceagain puts unduepressure on Irishbusiness owners.

BENEFICIAL OWNERSHIP REGISTER

From November 2016, any corporate or legal entityregistered in Ireland is obliged to comply with the Fourth EUAnti-Money Laundering Directive with regard to thebeneficial ownership of the entity. There are two steps acompany must take in order to comply with this directive:

Step One: Obtain and hold “adequate, accurate andcurrent” information on their beneficial owner(s) in abeneficial ownership registrar.

Step Two: File this information with a central beneficialownership register. This register is in the process of beingestablished and legislation in relation to this was expectedto be in place from June 2017, however CRO have nowrevised the timeline for this to Quarter 4 of 2017.

GOOGLE DOCSEdit, export and view documents efficiently whileyou are on the go. Create new documents or editexisting files on an easy to use app that alsoallows you to collaborate with colleagues in thesame document at the same time. You can evenwork offline if you need to.

SLACKCreate teams and message each other, assigntasks and create deadlines. Helpful formanaging multiple projects with differentgroups of people.

REVAPPEasy and secure access to Revenue’s services tohelp you manage your Irish tax affairs, on the go.This also gives you access to Receipts Tracker –the easy way to record and manage receipts foryour expenses.

FLIPBOARDThis app brings together news, popular storiesand conversations around any interest orpassion. Download the app, select your interestsand Flipboard will create a magazine just for you.

Tiny Scanner – PDF Scanner AppYou will never have to worry about not being neara scanner again. Use this app to turn yoursmartphone into a scanner. This app also turnsthe scanned documents into PDF’s for safedistribution.

business briefs jDO YOU QUALIFY AS A MICROCOMPANY?The Companies (Accounting) Act 2017 introduced achange to the Companies Act 2014 where there is a new‘micro’ category of company. Small sized companies maybe exempted from the full extent of the requirementsrelating to annual Financial Statements in respect of anyfinancial year. The exemption applies to financial yearsbeginning 1st January 2015. To qualify as a microcompany you must satisfy two of the following conditionsfor a financial year and the financial year immediatelypreceding that year (i.e. 2014 and 2015):

Balance Sheet total not exceeding €350,000

Turnover not exceeding €700,000

Employees not exceeding 10

Note: An investment undertaking, a financial holding undertaking, a holdingcompany that prepares group financial statements or a subsidiary that is includedin the consolidated financial statements of a higher holding undertaking may notqualify as a micro company.

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To aid SMEs in their bid to grow amidst this period ofuncertainty, Bank of Ireland has partnered with WebPort Globalto offer free access to the global online portal, which isdesigned to support SME growth through international trade.WebPort Global is simply a trusted online hub for business whowant to grow internationally while having support in the formof readily compiled research and guided connections. It is aplace where you can:

j Connect with ready buyers for your products and servicesj Analyse new market data to grow your business rapidlyj Source materials and services to support your business

expansionj Access experts and information who can fuel your growthj Reach a global network of trusted international contacts

Bank of Ireland SME clients that register for the service willhave free access to the portal for 12 months, with the directgoal of helping them to connect with international customers.They will also have 6 months access to a concierge servicewhich builds critical information on foreign trade.

SMEs can go online and build a profile describing theirbusiness and what they do. This element operates verymuch like social media platforms. A representative ofWebPort Global will then touch base with the SME to

establish their business objectives and export history andgoals as part of the concierge service. WebPort Global willthen use this information to research potential exportmarkets for each SME before returning with online tradeleads. These leads will already have been informed of theSMEs business and will as such be a ‘warm lead’, havingalready shown interest in what the SME has to offer. Theconcierge service is researched by trade experts usingdirect connections to world trade centres. There arecurrently 90 world trade centres in 60 different countriesand it is through such centres that the relevant informationis mined.

WebPort also offers SMEs the opportunity to participate in theirGlobal Trade Export Network which offers trade reports andcase studies relating to their export fields. SMEs may also joinin or create interest groups in order to allow them to creatediscussions and learn from each other online.

Membership of the WebPort Global community will exposeSMEs to a back catalogue of over 4 million pages of traderesearch as well as direct concierge advice and the online toolsand marketplace to promote products and services.

Post-Brexit fears are still very real for many Irish companies. Given the prospect of the UK leaving theEU, the focus of Irish businesses working in new export markets has arguably become more intensethan ever before.

legal briefs j

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The recent Supreme Court case of David Walsh .v. JonesLang Lasalle (‘JLL’) Limited concerned a material errorin a sales brochure in respect of a property at 77 UpperGardiner Street, Dublin 1 (‘the Property’) and thedisclaimer contained therein. The length of time it tookfor the Supreme Court appeal to be heard is concerning,given the sale of the Property closed in September 2000,the High Court decision was given in 2007 and theappeal was not heard until 2017. JLL produced a sale brochure for the Property whichcontained the following disclaimer “Whilst every carehas been taken in the preparation of these particulars,and they are believed to be correct, they are notwarranted and intending buyers/lessees should satisfythemselves as to the correctness of the informationgiven.” The brochure described the area of the first flooras 972m2 (10,463 square feet) but the true area was8,573.5 square feet. Mr. Walsh did not check themeasurement and purchased the property assuming thebrochure was correct. When the error in themeasurement came to light JLL admitted it but soughtto rely on their disclaimer to avoid any liability to Mr.Walsh. The High Court concluded that JLL was liable andthat the disclaimer did not operate to protect them. Mr.Walsh was awarded compensation of €350,000 whichwas the amount by which it could be said that Mr. Walshoverpaid for the property in reliance on the mistakenfloor area. JLL appealed to the Supreme Court whooverturned the High Court’s decision and found that theHigh Court was wrong in finding a duty of care was owedby JLL to Mr. Walsh. The Supreme Court analysed therelevant case law in detail and concluded that thedisclaimer was important evidence in establishing thatthe agent (retained by the seller) assumed noresponsibility to the buyer for the accuracy ofstatements contained in the brochure. Arising from the decision, it is clear that SalesAgents should of course ensure that all promotionalmaterial is accurate, but equally they should ensure thata clear disclaimer is included. Also, purchasers shouldcarry out a detailed inspection and measure all floorareas before buying property. The judgment providesclarification of the law on negligent misstatement andthe legal significance and importance of disclaimers inbrochures and other promotional material.

PROPERTY BUYER BEWARE

The Companies (Accounting) Act 2017 (the “2017 Act”)came into force on the 09 June 2017 and it substantiallyamends, updates and supplements the Companies Act2014 (the “Companies Act”). It should be noted that themajority of the provisions of the 2017 Act came into forceon that date with the new accounting requirementsapplying in respect of financial years which commence onor after 1 January 2017. The 2017 Act results in a number of key changes forunlimited liability companies (“ULCs”). There is a changeto the filing obligation. Under the Companies Act only“designated ULCs” are obliged to file financial statementsin the Companies Registration Office (“CRO”) however the2017 Act widens the parameters for classification as a“designated ULC”, as a result bringing significantly moreULCs within the filing regime. Prior to the 2017 Act, manyULCs were able to rely on an exemption from filing financialstatements where their membership included either anunlimited liability entity incorporated in a jurisdictionoutside the EEA or a natural person. As a result “non-disclosure structures” were often designed using an IrishULC. The revised criteria for a “designated ULC” will meanthat ULCs which are owned or controlled (directly orindirectly) by a limited liability company will now fall withinscope for filing obligations. ULCs who do not fall within thecriteria of a “designated ULC” will continue to remainoutside the filing regime. The 2017 Act provides that unlimited companies whichare holding companies of undertakings whose membershave limited liability are “designated ULCs” but thisprovision will only take effect for financial yearscommencing on or after 1 January 2022. The Companies Act requires that the registered nameof all unlimited companies must end in “unlimitedcompany” or “UC” (or the Irish equivalent). Previously,ULCs could apply for an exemption from the name changerequirement. The Minister will no longer be able to grantsuch exemptions. ULCs currently availing of the exemptionwill remain unaffected, but will not be able to renew theexemption on expiry of the 5-year exempt period.Under the Companies Act a foreign limited liability bodycorporate is required to register with the CRO where it hasan operation in Ireland which would constitute a “branch”.The 2017 Act extends this obligation to any foreignunlimited liability entity that is a subsidiary of a limitedliability body corporate. This provision of the 2017 Act hasnot yet come into force, but once it does it will have theeffect of bringing more foreign companies within thebranch filing regime.

THE COMPANIES (ACCOUNTING) ACT

WILL I OR WON’T I?....A Will is an instrument whereby a person’s assets aredistributed on his/her death, pursuant to his/her wishes(subject to certain conditions). However a relatively largeproportion of us have not made a Will. This may be to do witha person’s fear of death and feeling overwhelmed by the factthat a document pertains to ones wishes following death, itmay be that a person hasn’t considered death or maybe thecost of getting a Will drafted is thought to be prohibitive. However, overcoming these notions and making a Willnot only ensures that your wishes will be fulfilled withrespect to distribution of your property but also makessettling your affairs easier on family and friends. A person is said to die intestate if they die withoutleaving a Will, which results in your estate not beingdivided in accordance with your wishes and a higher cost

of probate thus reducing the amount of wealth transferredto loved ones. There are many benefits to making a Will and very fewdrawbacks. Perhaps the biggest benefit is that it allowsyou to dictate, via a clear legal document, how you wantyour assets distributed following your death. Further itallows you to provide for the special needs of familymembers and gives you to opportunity to ensure theminimum tax is paid on death. The making of a Will should not be done last minute oronly by elderly people. Alot of thought and planning shouldgo into it and, in many instance, a Will should be regularlyrevisited to take account of your current circumstances(family, financial etc.) and in line with changes to thetaxation regime.

A survey amongst venture capital investors revealed the topthree criteria that are used in assessing the attractiveness of aproposition. Business angel investors are probably no different.The top three criteria arising from the survey were:

1. Management team;2. Exit opportunity; and3. Revenue potential.

Tip: make sure that every contact with a potential investor

addresses the top three investment criteria in some form.

From the above, it is worth noting that venture capital investorsare not overly focused on what the company does (the productor service is not in the top three criteria). They are interested inhow they will make money from their investment. Whilstbusiness angel investors tend to focus more on what thecompany does and aim to add their relevant domain experienceto the opportunity, the ‘sell’ is not a ‘product sell’ but a‘commercial opportunity sell’. Entrepreneurs often miss thispoint as they are passionate about their product.

1. MANAGEMENT TEAMThis is the number one, most important criterion for investors.People (investors) invest in people. Question: how well wouldyou need to know someone before you gave them €100,000 ofyour own money? Investors spend a great deal of time becomingcomfortable with the management team and the business. Theywill assess your knowledge of the market, the opportunity andyour ability to execute the business plan. The managementteam’s track record will be assessed. Using advisors and/or non-executive directors will add further credibility to yourproposition. A management team consists of more than oneperson – investors do not usually back one-man bands. Theyusually also avoid family businesses with family members(husbands, wives, brothers, sisters, etc.) being actively involvedin the management of the business. Investors do not want to addthe potential for family relationship breakdown to their list ofrisks. Investors like to see at least the core of a developedmanagement team. Early stage businesses in particular oftendo not have a full time team. Therefore your business plan needsto address how you plan to fill the gaps in the management teamas the business grows and develops.

2. EXIT POTENTIALThis is another critical criterion. It is important to recognise thatinvestors want to make as much money as possible from theirinvestment. That is the business that they are in. Typically aninvestor will seek to invest at €1 per share and sell at €7 or moreper share. Whilst that is the usual aim, outcomes can be lowerthan this. Most investors invest for a capital gain at the end ofthe investment. They do not want to be locked into a company‘forever’. Venture capital funds have a typical life of ten years sothat they must make and realise their investments in that timeframe. Business angels do not have the same constraints butthey still wish to realise their investment, typically in a five yeartime frame. Consequently investors seek capital plays ratherthan income plays (e.g. annual dividends).

There are three main investor exits. They are a share buyback,an Initial Public Offering (‘IPO’) and a trade sale.

j A share buyback is where the company or the othershareholders buy the investor’s shares. It is the mostunattractive option as it will lead to the investor and theother shareholders being in serious conflict at exit: theinvestor wants the company to be valued as high aspossible whilst the other shareholders will want thecompany valuation to be as low as possible. Sharebuybacks do happen but are not preferred at the outset byinvestors;

j An IPO is listing the company’s shares on a recognisedstock exchange and, in theory, the investor is free to sell itsshares on the open market. However, selling a significantamount of shares in a relatively young thinly-traded publiccompany is likely to have a hugely negative impact on itsshare price (it will bomb!) and is, therefore, usually not apreferred exit for investors; and

j Usually the best exit option to maximise investment saleproceeds is a trade sale for cash, where all shareholdersexit at the same time as the entire company is sold to athird party (usually another corporate). This alignment ofinterest means everyone wins and is in stark contrast tothe share buyback mentioned earlier. The business planshould mention any mergers and acquisitions (M&A)activity in your industry that would give some substance tothe trade sale aspiration.

Other exits exist (such as secondary buy-outs, managementbuy-outs (MBOs) and liquidation (both solvent and insolvent)) butthe one that maximises value for all is the trade sale.

3. REVENUE POTENTIAL This is the third most important criterion. The revenue potentialneeds to demonstrate that the business is scalable; scalableenough to yield a significant return for an investor. Anything thatyou identify that demonstrates this is important:

a. The scale of existing orders and sales funnel;

b. The size of the market – it needs to be big enough (usuallyinvolving international sales) to build a significant business; and

c. Evidence of any other business in the industry showing similargrowth to the growth that is being planned.

Tip: the revenue potential of the company must demonstrate

a scalable business that is capable of producing significant

returns for an investor.

hban.org

INVESTMENT CRITERIA

This Newsletter is intended to provide a general guide to the subject matter and is necessarilyin a condensed form. Advice should be taken before acting on information in it.

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