Patrick Torrekens, Head of the Enterprise Ireland BeNeLux

Market Watch – Benelux

 

Overview

  • The BeNeLux countries (Netherlands, Belgium and Luxembourg) are working hard to return to normal business practise.

  • Health and safety remain a prime concern so remote working and virtual meetings will continue to be in place for some time to come.

  • Continued communication with clients is vital.

  • Opportunities are available in the biopharma, digital connectivity, and biotech sectors.

Like the rest of Europe, the BeNeLux countries are working hard to return to some level of normality after Covid-19. And Patrick Torrekens, Head of the Enterprise Ireland BeNeLux team, says despite the fact that remote working remains in place, business is beginning to pick up in the region.

“Just like many people across the world, I have been working from home for the past few months and here in the BeNeLux countries, remote working, particularly for the services industry, is still the recommended norm as part of the three countries’ re-entry strategy,” he says.

“However, more and more production facilities, construction sites, engineering plants and office buildings are gearing towards full capacity and the ports of Antwerp and Rotterdam are fully operational with authorities doing everything to maintain the flow of goods in and out of the three countries.”

Torrekens says health and safety remain the prime concern and the necessary measures have been taken to ensure social distancing on the work floor, on public transport and in public places. While industry heads and Government are doing everything they can to get everything up and running once more.

“Things are not back to normal as yet, but the Dutch, Belgians and Luxemburgish, are keen to see business pick up again as quickly as possible,” he says. “When we are talking to buyers in our markets, we still hear that their focus is on adapting to the new reality on making their supply chain, and other critical processes, Covid compliant.

“So any solution which helps them to achieve Covid compliance gets their full attention and that is why it’s so important to stay closely connected to your clients as they are also turning to their existing client base for inspiration and support at the moment. But BeNeLux decision makers are not currently looking at new investment projects so expect a delay in the sales cycle, be patient and stay connected with your in-market contacts.”

But despite the delay in returning to normal, he says business is definitely moving in certain sectors and some markets remain buoyant.

“There are opportunities and exceptions to be found, particularly in the sectors of high relevance for trade with Ireland,” says Torrekens. “The BeNeLux region is a hot spot for pharma and biotech research and innovation and it is expected that multinationals such as Johnson and Johnson, with research facilities in the Antwerp region, will invest in new laboratories for vaccine production and other virus related research.

“So it is encouraging to see that some Irish companies are already preparing to play a part in this by strengthening their teams in markets.”

The past few months have clearly pointed at the strategic need for digital infrastructure and the Netherlands, in particular, is a frontrunner in digital connectivity and continues to invest in its infrastructure.

The Enterprise Ireland regional manager says communication is vital during these strange times, so Irish companies must do all they can to stay in touch with their clients.

“An interesting fact to mention is that the Netherlands has witnessed the highest global growth rate of virtual meetings held over digital platforms in the past weeks,” he says.
“So rest assured that if your contacts are not available for face to face meetings, they are definitely open, and accustomed, to online sessions. And please remember that the travel restrictions which are currently in place in the Netherlands, Belgium and Luxemburg should not prevent you from reaching out to existing clients and new prospects.

“Finally Belgians and Dutch and Luxemburgish people have massively turned to online commerce and businesses have adapted their sales channels to accommodate this. This has given an extra boost to businesses in IT, and professional service but also in transport and logistics.

“Ultimately, your solution will stand out if you have a strong value proposition which gives you a good chance to win more business in this region. And our teams stand ready to support you with advice and hands on support, so do get in touch, virtually for now, but hopefully face to face soon.”

Get key insights on doing business in BeNeLux and the supports available from Enterprise Ireland.

Garrett Murray

Horizon 2020 – An unmissable opportunity for ambitious Irish innovators

Significant levels of grant support and equity investment are up for grabs under the Horizon 2020 European Innovation Council (EIC) Accelerator Pilot, and Ireland’s recent success shows that Irish companies have what it takes to win.

The EIC Accelerator Pilot supports high risk, high potential SMEs and innovators to help them develop and bring to market innovative products, services and business models that could drive economic growth.

In the most recent call, eight Irish companies secured a total of more than €31m placing Ireland second, jointly with France and Denmark, in terms of the number of companies awarded funding.

“The March call results have been particularly good for Irish companies,” says Garrett Murray, National Director for Horizon 2020 at Enterprise Ireland. “The success is a testament to the research and innovation capability of Irish companies and the vibrancy of our high potential start-up and commercialisation eco-system.”

Among the successful Irish companies were five whose innovations related to coronavirus. One of these, Aquila Bioscience, has developed revolutionary decontamination technology that helps protect people from dangerous pathogens and other viral infections.

“We are delighted to receive funding from EIC which allows us to substantially scale up production and deliver this technology more quickly to workers in Ireland and across the globe,” says Lokesh Joshi.

 

Support for applicants

With multiple EIC calls during the year there are ongoing opportunities for companies to pitch for a slice of the lucrative support, but, says Murray, it’s important for companies to realise that it is a very competitive process.

“We recommend that companies considering applying for EIC Accelerator support contact Enterprise Ireland first. Our team of National Contact Points are experts on the programme and work with companies to bring them through the process step by step including reviewing drafts of their application before submission.

“Applicants need to think clearly about how they are going to articulate three things in their application: the excellence of their innovation; how their product or service is going to impact in the market; and how they are going to implement their strategy to scale their business. These are the three major criteria on which the applications are judged,” explains Murray.

If companies are successful at stage 1 they are called to interview in Brussels (currently via digital communications).

“Our team do mock interviews with the companies, putting them through their paces in exactly the same way as they will experience in Brussels, to give them the opportunity to refine their pitch.”

Companies can apply for grant support only, a mix of grant and equity, or initially a grant with the option for later discussion with the Commission in relation to equity.

“We always advise ambitious companies to seriously consider applying for equity particularly in the current environment where the availability of venture capital is reduced,” says Murray. “Getting equity from the Commission provides leverage to get more private sector funding.”

 

More than financial support

As well as financial support, successful EIC Accelerator applicants get coaching and mentoring, provided through the Enterprise Ireland team.

“The Commission regards that as a very important part of the process. It’s not just about awarding a grant or investing by way of equity but also helping companies develop their strategy.”

Kite Medical was awarded a grant in the most recent call. The company has developed a system for the detection of kidney reflux.

“This funding from the European Commission will allow Kite Medical to further develop the KITE system to progress into a clinical study. The funding will also support an additional six jobs at the company and establish our market launch strategy. The project outcomes will facilitate fund raising to support our commercialisation plan,” says Joan Fitzpatrick, Kite Medical’s CEO.

 

Future calls

There continues to be many opportunities for Irish enterprises and researchers under the EIC and across the Horizon 2020 Programme, including calls for proposals under the European Green Deal, worth around €1bn that will be issued in the autumn.

The next EIC Accelerator call for applications will be in October and will have a focus on female entrepreneurship where, should the first-round evaluation show that a minimum of 25 per cent of companies selected for the final-stage interviews are not led by women, additional interviews will be planned.

“We are particularly encouraging female-led companies to apply for the call in October. There are a lot of great female entrepreneurs in Ireland and this is a great opportunity for female-led companies to get additional funding,” says Murray.

SMEs of all sizes are eligible to apply for EIC Accelerator funding including start-ups, which tend to form the majority of applicants.

“There’s no disadvantage to being a very small company. The Commission considers how quickly a company is going to scale and whether EIC support will help accelerate that and get the innovation to market faster,” says Murray. 

“The only disadvantage that companies can have is if they’re not ambitious enough.”

 

For more information about support under Horizon 2020 please contact h2020support@enterprise-ireland.com

 

 

Ciara O'Toole, Country Manager, Italy

Market Watch – Italy

Overview

  • Italy was severely impacted by Covid-19 and had no protocol to follow as it was the first to experience a total lockdown.

  • It has started to recover and has begun to open up its borders

  • Construction sites are open and medical device companies are in production mode.

  • Opportunities are also available in the health, ICT agriculture and energy sectors.

    Europe and the rest of the world watched in horror as Italy succumbed to the ravages of Covid-19 and tried to figure out a way to keep its citizens safe and its economy from collapse.

    And while the effects of the pandemic definitely left its mark on the country, it has started to open up and the recovery plan has been put into action.

    Country manager, Ciara O’Toole says it was a very difficult period for Italy, but the situation now seems to be under control and while there are still some challenges ahead, plans are underway to open up the country in stages.

    “Italy was the original global epicentre of the pandemic and it quickly became a country of unwelcome firsts,” she says. “As Italians saw the healthcare emergency escalate, they also had to process the shock of being the first country in the world to be put on a full lockdown.

    “There was no frame of reference to follow so Italy quickly became the global frame of reference. However, after a couple of months of hardship, it is now preparing to open its borders to the rest of Europe and from June 3rd, entry into Europe from the countries of the European Union, including countries in the Schengen region and Switzerland, will be permissible without a two week quarantine.

    “And the plan is to open borders fully to global travel from 15th of June with flight and medical protocols in place.”

    O’Toole, who is responsible for leading the Milan based Enterprise Ireland team to support sales activities for Irish companies in Italy, says although the country is still working within in some restrictions, it is beginning to open up and there are opportunities to be had.

    “Remote working will remain in place in the country for the foreseeable future across sectors which have this possibility,” she says. “But with respect to logistics, the supply chain to Italy was not severely interrupted.”

    “Construction sites have been open since early May and medical device companies are back to work. Tourism is also starting to open up, including in the hard hit north and airlines are returning to flight with medical protocols being adapted by EU airlines.”

    “Also the ecommerce sector is extremely active and there are many exciting opportunities on the horizon in various sectors including construction, health, ICT agriculture and energy.”

    Like the rest of the world, remote working is still on the agenda for the foreseeable future, but O’Toole says there is plenty of business happening in Italy and things will continue to improve in the coming weeks and months.

    “Virtual client meetings are the modus operandi at the moment which will ensure progression of business,” she says. “But we have had many positive news stories in recent weeks from client companies.”

    “Italy is a world leader in the construction of major infrastructures, and it is home to leading aerospace technologies as well as being a leading producer in many significant global sectors.”

    “So, although the country has endured a lot of trauma in the last few months, it is a resilient nation with an indomitable spirit and while commerce has undoubtedly been interrupted, there is a real determination to get back to business.”

    Get key insights on doing business in Italy and the supports available from Enterprise Ireland.

    Resetting your business model

    Resetting your business model in response to Covid-19

    In preparing for tomorrow’s world, businesses need to reset their business model to remain relevant to their customers in the new environment

    The Covid-19 pandemic has changed the world and transformed the environment and operating rules for business. Last year’s winning formulas have become failed propositions almost overnight, and many of yesterday’s compelling products and services are obsolete in the context of tomorrow’s needs.

    This requires businesses to take a long, hard look at their business models in order to remain relevant to their customers in the new environment. They will need to reassess what they sell, who they sell it to, and how they make money from that. They will also have to examine why people buy from them and how that translates into profitability.

    According to Business Financial Consultant Brendan Binchy, companies need to focus on four key areas when seeking to reset their business models:

    • Their current product offering and how can it be developed, changed, or delivered differently
    • Who their customers will be in future, both current and new, and if there is a need to drop some existing ones
    • The reasons customers buy from them, their new value proposition, and how they will do something unique; and
    • How they will make money – lower input costs, production efficiencies, premium price or volume increases.

    When looking at the product offering, Binchy advises companies to ask the hard questions. “Have you got any inherent future proofing protection for your product or service? What is unique about it? What is its lifecycle in the market? How much of your revenue is dependent on it? What are most profitable products?”

    The answers to these questions will help decide what products to retain or drop, as well as inform new product development efforts.

    Customers should be subject to a similar analysis, he advises. “Who uses your products? What are their demographics? Who are your most profitable customers? Where are they? What defines your ideal customer and where can you find more of them? Why are you still dealing with unprofitable customers?”

    This will assist in defining target customers. “Businesses should categorise customers into groups according to their profitability and different attributes, and then select which ones they want to deal with in future. This may lead them to stop dealing with some of them. Companies shouldn’t be afraid to fire customers who don’t value what you do.”

    The next step is to establish why these customers will buy from the business. “Go out and ask your customers,” Binchy advises. “Bring them in and talk to them about it. Find out the defining attributes of your most important customers and find ways of meeting their expectations. This will help you pick the right people to work for; people who value what you do. If a multinational has been buying from you for the past 10 years, you must be doing something right. Find out what that is and build on it.”

    Making money is the other and perhaps most critically important part of the jigsaw. This will require the business to look at the key business model drivers of products and services, marketing and sales, and finance, in terms of profitability, cashflow and return on investment. “They are the what, the who and the how of the business model,” Binchy explains. 

    “The enablers are your people and systems and processes that support the business. You can’t grow a business without all three drivers, being robust and in balance with each other. You can have great customers and products, but you won’t have a business if you’re not making money.” says Binchy

    An analysis of those drivers, along with the enablers, will give you a clear view of the revenue and cost bases of the business, and will help identify how the pathway to profitability can be bridged. “A business might look at reducing materials, labour or other operational costs. It can also look at production efficiencies or seek to increase prices if it can be positioned in a premium segment of the market.”

    The remaining question is how to finance the transition between the old and the reset business models. “The money and support are there to help companies bridge between the two. We just have to hope the transition period between them is going to be as short as possible,” Binchy adds. “The Enterprise Ireland Covid-19 Business Financial Planning Grant is there to help businesses start the journey. It offers a 100% grant up to the value of €5,000 to fund the cost of a financial consultant to prepare a financial plan that shows exactly how the company intends to reset and adapt its business model as it emerges from lockdown. The Lean Business Continuity scheme offers vouchers worth up to €2,500 to fund the cost of training and advisory services.”

    He points to the €450 million Covid-19 Working Capital Loan scheme and the €200 million Future Growth Loan Scheme available through the Strategic Banking Corporation of Ireland as potential sources of loan finance for companies.

    In addition, there are the Enterprise Ireland Sustaining Enterprise Funds which offer funding up to €800,000 to fund the implementation of stabilisation and viability plans. Smaller businesses can also apply for funding of up to €25,000 or €50,000, depending on the size of the business.

    Both schemes feature repayment moratoriums for the first three years, a very important consideration according to Binchy. “That is very attractive when the company doesn’t have repayment capacity for the moment. They can’t go to the banks if they are in that position. Businesses have to dance very carefully when seeking funding, and these schemes certainly help with that.”

    Learn more about the Enterprise Ireland supports available in our Accessing Liquidity & Managing Cashflow webinar

    Adapting your business model

    Adapting your business operations in response to Covid-19

    As businesses reset and recover, every aspect of a business’s operations should be examined and analysed to identify efficiencies and better ways of doing things

    Having identified a pathway out of the crisis, made required changes to the business model and developed a cash conservation strategy, businesses need to turn their attention to operational matters if they are to adapt quickly to the changed environment.

    Every aspect of a business’s operations should be examined and analysed to identify efficiencies, better ways of doing things, or things which shouldn’t be done at all. Companies around the world are already engaged in this process and those that delay will find themselves at a competitive disadvantage, according to Business Transition Consultant Brendan Binchy.

    He points to a survey of 3,000 CEOs carried out by the Economist Intelligence Unit which found that almost all of them are going to implement operational agility measures as a result of the Covid-19 crisis. “That train has already left the station as far as they are concerned,” he says. “Every company should take a quick and hard look through the whole functional side of its business.”

    He offers a checklist of the five core functional areas of the business which require attention – products and services, marketing and sales, finance, people, and systems and processes.

    “They need to take a walk through that checklist and identify areas where they can improve effectiveness and efficiency,” he adds. “For example, when looking at the operational model they should ask if it is possible to morph to online, or if product and service delivery modes can be changed.”

    On products and services, he advises careful management of stock levels as a starting point. 

    “New product development should also be reviewed, you have to look at the cost to bring it to market and how quickly it can generate new revenues streams or if you need to do it at all at the moment.” says Binchy

    Similarly, expansion plans should be subject to reappraisal and put on hold if not justified by a clear payback. Supplier relationships are also important, and discussions should be held with a view to reducing costs and achieving efficiencies.

    “With international supply chains, some companies are moving away from “just in time” policies to making sure there is “enough in time” to meet demand,” Binchy adds. “There is risk associated with internationalisation, and companies could consider moving to a portfolio of multiple suppliers to deal with this.”

    Other considerations relate to the production process itself. “If the company is starting up again, what needs to happen in the production flow? Does everyone need protective screening measures? Will you sub-contract some things out which had been done internally?”

    Turning to marketing and sales, he recommends a selective appraisal of investment, but with targeted reductions based on return on investment rather than wholesale cuts which could cut off the market cycle.

    Another area to look at is pricing strategy and the potential impact of discounting. Care should be taken to avoid a situation where discounts lead to volume increases which in turn may cause problems in the production process and perhaps divert resources from more profitable lines. It’s a classic case of weighing up the price volume trade off.

    The finance function should become more fully integrated into the management of the business, he advises. “The finance team should be a core part of the overall management team. This means you will know all the things you need to know about the business and its finances as they happen, rather than find out about them in a report two or three months later.”

    Binchy says communication is vital when dealing with people in your business. “You have to remember that you’re dealing with human beings and you should support them in the same way as you support your customers. When you are faced with implementing inevitable pay rationalisation measures you should segment your employees carefully to ensure that those people who are adding most value are rewarded appropriately.”

    The final item on the checklist is systems and processes. Along with people, these are the underlying enablers of the business and every element should be assessed to ensure it is delivering value to the business either in terms of revenue generation, service improvement, or efficiency and productivity gains. Regardless of how good a process can appear there is always a better way, Binchy notes.

    Businesses seeking to adapt and modify their operations to meet the changed environment created in the wake of the Covid-19 pandemic can avail of support in the form of Enterprise Ireland Lean Business Continuity Voucher and the Covid-19 Business Financial Planning Grant.

    The Financial Planning Grant is worth up to €5,000 to pay up to 100% of the costs of an approved financial  consultant to work with the company on the development of a business and financial  plan, while the Lean Business Continuity Voucher is worth €2,500 and can be used for training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate during the current period.

    Where additional finance is required to fund new initiatives Binchy points to the Enterprise Ireland Sustaining Enterprise Fund which offers funding of up to €800,000 to eligible companies. There is also a fund for smaller companies which offers funding of up to €25,000 and €50,000 depending on the size of the business.

    Learn more about the Enterprise Ireland supports available in our Accessing Liquidity & Managing Cashflow webinar

    Market Watch – Spain

    Overview

    • Spain has begun to officially open up again, but some restrictions will remain in place for the coming weeks.

    • Challenges around transportation and quarantine still exist, but supply chains are moving.

    • Irish businesses should continue to communicate with their existing clients as the country is very much open for business.

    Like the rest of Europe, Spain was badly impacted by the global pandemic but Alberto Cisterna from the Enterprise Ireland office in Madrid, says restrictions have begun to be lifted and businesses are easing towards a new normality.

    “The Spanish healthcare system was overwhelmed by Covid-19 and Spain was one of the first countries to enact a total lockdown,” he says. “But we are very happy to see that the number of cases has fallen sharply, and this has enabled the government to start easing some of the measures which have been in place since March.

    “This plan for a Transition Towards a New Normality was announced at the end of April and consists of four phases which are intended to relax the restrictions in a gradual, flexible and adaptive way. And although it started officially on the 4th of May and will last for eight weeks until the end of June, we are still in a state of alarm.”

     

    Challenges and opportunities

    Cisterna says while businesses in Spain are getting back to normal, some challenges do lie head.

    “Firstly the challenge exists regarding transportation options and border restrictions as Spain’s air, land and sea borders have been closed for entry from May 15th and remain so – with limited exceptions,” he says. “And until the 30th of June, passengers arriving in Spain from other countries will be required to quarantine in their place of accommodation for the first 14 days immediately following their arrival.

    “It is also important to highlight the fact that the supply chain in the country is fully operational as these measures do not apply to the transport of goods.” Alberto Cisterna, country manager Spain and Portugal

    “And also teleworking, or video conferencing, is still the main priority for businesses across the country in response to the pandemic and this will continue to be the same for at least one more month.”

    But despite the hurdles which need to be overcome, he is quick to point out that there are also some opportunities to be had, providing clients continue to engage with their counterparts in Spain.

    “I would like to remind our client companies that Enterprise Ireland in Madrid is open for business and we are conducting as many engagements as possible,” he says. “In fact we are very happy to say that we have seen some deals confirmed even during the worst phase of the pandemic.

    “One important recommendation for our client companies is to stay in touch or to reconnect with their agents, distributors or business partners and also to plan ahead for the Covid-19 post new normality – it really is very important to keep communicating.

    “In addition, I would like to remind people that Spain is the fourth biggest economy in the Eurozone, and it represents a great opportunity because of its market size, particularly in sectors such as ICT or digital technologies.

    “So my key message today is that we are looking forward to continue working with our Irish client companies as Spain is definitely open for business – and as sale cycles in this country have historically been very long, let’s use this time to plan for the future as Spain is a big economy with a lot more room for new opportunities.”

     

    Get key insights on doing business in Spain and the supports available from Enterprise Ireland.

    businesswoman

    Covid-19 Business Supports

    From 5,000 to 800,000, Enterprise Ireland has a range of funding supports to help you recover

    Enterprise Ireland has put in place a suite of funding supports to help Irish companies adjust to the immediate and future challenges presented by the Covid-19 pandemic. These supports are designed to help businesses stabilise and adapt to the evolving situation, in preparation for getting back on the road to recovery.

     

    The Business Financial Planning Grant

    The Covid-19 Business Financial Planning Grant is designed to help companies develop a robust financial plan and secure their viability in the short to medium term. The grant, worth up to €5,000, can be used by companies to pay up to 100% of the cost of engaging an approved financial consultant to prepare a plan which can encompass the documentation required to support applications for finance from banks or other providers such as Enterprise Ireland.

    The plan will establish the company’s current financial position; examine the negative Covid-19 impacts on the business; establish where the company wants to be in three years’ time; identify a series of actions to be undertaken by the company to mitigate the effects of the current crisis; provide a framework to manage costs and identify funding gaps; and enable management to identify the finance required to sustain the business through the crisis and beyond.

    The plan should also include a complete set of financial forecasts for three years.

    Eligibility: The grant is open to all Enterprise Ireland clients as well as companies employing 10 or more in the manufacturing and internationally traded services sectors.

    How to apply: Contact our  Covid-19 Business Response Unit at businessresponse@enterprise-ireland.com or your Enterprise Ireland Development Advisor.

     

    Sustaining Enterprise Fund – funding of up to €800,000

    Aimed at giving manufacturing and internationally traded businesses the liquidity and cash resources required to make it through the Covid-19 crisis, the Sustaining Enterprise Fund offers funding of up to €800,000 to eligible companies.

    The purpose of the funding is to support the implementation of a Sustaining Enterprise Project Plan which will lead to the eventual stabilisation of the business and a return to viability. The Sustaining Enterprise Project Plan must outline the company’s liquidity needs and explain how the funding will remedy its immediate problems.

    Businesses can use the Covid-19 Business Financial Planning Grant to pay for the development of the Sustaining Enterprise Project Plan.

    Subject to an annual administration fee of 4% (with 0% fee for the first six months) there is a three-year grace period for repayments on funding, which must be repaid in full by the end of year 5, and the achievement of the objectives originally set by the company

    Eligibility: To be eligible for the fund, companies must have experienced a reduction in actual or projected turnover or profit of 15% or more, and/or a significant increase in costs as a result of the Covid-19 outbreak.

    In addition, eligible applicants must be unable to raise sufficient capital from the market (or other sources) to meet the funding needs of a Sustaining Enterprise Project Plan.

    Companies are not eligible if they were already in financial difficulty on 31 December 2019 or were experiencing difficulties for reasons not related to Covid-19.

    How to apply: For further information, contact your Enterprise Ireland Development Advisor or the Covid-19 Business Response Unit at businessresponse@enterprise-ireland.com

     

    Sustaining Enterprise Fund – Small enterprise

    Similar to the main Sustaining Enterprise Fund, this scheme provides financial assistance to smaller manufacturing or internationally traded services companies for a three to six-month period to support business continuity. Eligibility criteria are the same as for the Sustaining Enterprise Fund, and the assistance is to be used to support the implementation of a Business Continuity Project Plan. Companies eligible for this scheme are also eligible for the larger scheme.

    Companies can avail of the Business Financial Planning Grant to pay for the development of their Business Continuity Project Plan.

    The scheme offers repayable funding of up to €25,000 to companies with turnover of less than €1.5m and up to €50,000 to companies with annual turnover of €1.5m–€5m.

    As with the main scheme, there is a 4% annual administration fee and a three-year grace period on repayment. No administration charges are levied for the first 6 months and the advance can be repaid early if the company prefers to do that. Funding must be repaid in full by the end of year 5, subject to the achievement of the objectives set out in the Continuity Plan.

    Eligibility: Companies are not eligible if they were already in financial difficulty on 31 December 2019 or were experiencing difficulties for reasons not related to Covid-19.

    To discuss eligibility criteria or any other aspect of the scheme, contact your Enterprise Ireland Development Advisor.

    If you are not an Enterprise Ireland client or do not know who your Development Advisor is, you should first contact the Business Response Unit at businessresponse@enterprise-ireland.com

    How to apply: You can apply via the Enterprise Ireland Online Application System.

     

    Lean Business Continuity Voucher

    The new Lean Business Continuity Voucher helps enterprises to identify and implement the measures needed to ensure that they can continue to operate safely during the Covid-19 pandemic.

    It offers eligible companies up to €2,500 in training or advisory services from approved providers. The services may take the form of management advice or training of management or staff within the company and must be related to the continued operation of the businesses during the current pandemic. It is expected that the services will be delivered online in most cases.

    Project should focus on one or more of these categories;

    • Review of business strategy in light of changing marketplace/supply-chains & customer needs;
    • Introduction of new business practices in order to increase productivity (especially LEAN/Flow);
    • Development of processes for risk assessment and analysis for Business Continuity;
    • Development of working practices for staff safety based on government guidelines;
    • Development of strategy for or investigation of feasibility of doing business online (excluding website development or online marketing costs)

    A listing of approved service providers can be found in the Enterprise Ireland Service Provider Directory.

    Eligibility: The Lean Business Continuity Voucher is open to small, medium or large client companies of Enterprise Ireland or Údarás na Gaeltachta.

    For more information, contact your development advisor or email the Lean & Operational Excellence team in Enterprise Ireland at: businesscontinuityvoucher@enterprise-ireland.com

    How to apply: Companies can apply for the Lean Business Continuity Voucher scheme via the Enterprise Ireland Online Application System.

      Watch financial expert, Brendan Binchy and Enterprise Ireland’s finance team in our Accessing Liquidity & Managing Cashflow webinar.

      Managing Cashflow

      Managing Cashflow in a Crisis

      As managers reset the business for recovery, companies need to adopt a lean culture where expenditure is minimised and every cost is questioned.

      One of the greatest risks facing many businesses in the current environment is running out of cash. A company that can’t pay its bills, regardless of how profitable it is, will quickly go out of business. Cash conservation is therefore key to survival.

      While in the medium to longer term companies will have to look at reengineering their business and operational models in order to meet challenges presented by the post-Covid-19 world, the short term is going to see a focus on cash according to Business Financial Consultant Brendan Binchy.

      “There is much more urgency relating to cash now,” he says. “And there are many things a business can do to manage its cash. Almost everyone out there is availing of debt payment deferrals, for example. They are trying to hit the pause button on cash going out wherever they can so that they can preserve the status quo as much as possible. They are also looking at other areas like aged debtors. You almost have to look at it like a company threatened in a pre-receivership condition.”

      Binchy recommends a structured approach to cash conservation and this starts with the balance sheet. “The profit and loss account is a record of a business over a period of time, but the balance sheet gives a snapshot of the business at a particular moment in time.”

      Companies should pay particular attention to their gearing, he advises. This is the ratio of debt to equity on the balance sheet. “The lower it is the better, but losses will erode equity and increase the gearing ratio,” Binchy continues.

      A healthy gearing ratio will allow companies to borrow judiciously in order to bolster their cash position. “This can be very helpful, but companies need to be aware of the associated debt service costs.”

      The next step is to look at asset funding, where they may be scope for some reverse engineering. “Businesses frequently purchase assets for cash during good times,” Binchy notes. “They could be re-financed now with bank debt and this will improve the cash position. Generally speaking, the asset lifetime and the funding cycle should be the same. It is important to remember that trade debt, like invoice financing, is for working capital not capital expenditure.”

      The sales lead to cash cycle is the next area for examining.

      “It takes time for marketing effort to translate into sales leads, buying decisions, billing, and cash collection”, Binchy explains.

       “This can be quite protracted, and companies need to look for ways to get to close sales quickly and speed up invoicing.”

      The supply chain should also come in for attention to slow the outward flow of cash. “Companies should identify strategic supplier relationships, tighten stock management overall, improve workflows, and negotiate new arrangements such as stockholding facilities with key suppliers. Talking to key suppliers and developing strategic partnerships is a very good ongoing strategy for companies. The more they do it the better.”

      And then there are what Binchy calls the common-sense measures.

      “Defer capital expenditure and other spending decisions wherever possible,” he advises. “Companies need to adopt a mean and lean culture where expenditure is minimised, and every cost is questioned. But this must come from the top down and everyone must share the pain and to be seen to share it.” 

      Once those actions have been taken, it is time to put together a budget plan. “Having these measures in place means you already have your fingers on the pulse and you can make a budget plan to take you from where the business was before the crisis to what’s likely to happen afterwards. The most important thing about the plan is that it should be iterative. You’re not going to get everything right first time around. The plan gives you a framework to forecast and plan for what might happen. You can adjust it weekly and monthly rather than having to build new plans all the time.”

      And businesses don’t have to do this on their own. Binchy recommends the Enterprise Ireland Lean Business Continuity Voucher as a good starting point. This offers eligible companies up to €2,500 in training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate during the Covid-19 pandemic.

      There is also the Covid-19 Business Financial Planning Grant, which is worth up to €5,000, and can be used by companies to pay up to 100% of the cost of engaging an approved financial consultant to assist them prepare a financial plan, understand their immediate financial position, manage costs and identify their funding requirement.

      When it comes to cash for the business, Binchy points to the Temporary Covid-19 Wage Subsidy which he says has been very helpful to businesses throughout the country.

      Sources of working capital and loan finance include the €450 million Covid-19 Working Capital Loan Fund and the €200 million Future Growth Loan Scheme fund available through the Strategic Banking Corporation of Ireland. Businesses which have difficulty accessing bank finance can apply for funding of up to €800,000 from the Enterprise Ireland Sustaining Enterprise Funds. There is also a fund for smaller companies which offers funding of up to €25,000 and €50,000 depending on the size of the business.

       

        Hear from financial expert, Brendan Binchy and Enterprise Ireland’s finance team in our Accessing Liquidity & Managing Cashflow webinar.

        Market Watch Germany – Webinar – Managing and supporting channel partners

         

        Enterprise Ireland’s offices in Germany have launched a series of Webinars: Market Watch Germany. Every Wednesday at 14:00 BST/15:00 CET a new theme will be addressed to help Irish companies exporting to Germany navigate the challenges and opportunities presented by Covid 19.

        Managing and Supporting Channel Partners in the German market’ is the fourth installment of Market Watch Germany webinar series. The purpose of this webinar is to help Irish companies exporting to Germany navigate the challenges and opportunities presented by Covid-19.

        Panellists:

        Brian English an Engineer and Marketer with over 30 years international sales and routes-to-market experience.

        Dr. Andrea Seidel, with a wealth of experience in business development and strategic partnership.

        Paul Browne from Enterprise Ireland’s Client Management Development & Client Skills department.

        Financial planning to accelerate your recovery

        The global economic crisis triggered by the Covid-19 pandemic is unlike any seen before in history in terms of the rapidity of its onset and its scale. It has been variously referred to as a black swan event or as a perfect storm, and for individual businesses worldwide its effects have included state- mandated shutdowns, a near total collapse in demand and, for the lucky, an enforced shift to new ways of working and business models.

        As Ireland begins its first tentative steps towards a return to something approaching normality, businesses too must start planning their pathway to recovery and beyond. According to Business Transition Consultant Brendan Binchy, the first step for business owners is to analyse the company’s current position and develop a vision for the future.

        He advises people not to panic. “It’s not a question of asking if the crisis will impact on the business and worrying about that,” he says. “It is self-evident that it will impact. You have to be proactive, not reactive. You might know how it will affect the business this year, but what about next year? Where do you want to be then? You need a to have vision for that. And from there you can work out what to do and what not to do and what you need to change.”

        There are also actions which need to be taken immediately to stabilise the business. In Binchy’s view, these actions require businesses to examine and reset their business models, develop and implement very tight cash management strategies, and adapt and modify their operations to meet the new conditions in which they find themselves.

        “You have to look at where you are financially, ask where your customers are coming from and why they buy from you, and if it is possible to recalibrate the business, to come up with a new model which will see it through the current period,” he advises.

        That might be termed the firefighting or survival phase. The next stage is to plan for recovery and beyond. While planning in such times of massive uncertainty may seem an impossible or even futile task, Binchy believes it is worthwhile and an absolute necessity.

        But the plan must be flexible and adaptive in order to deal with sudden changes in a highly dynamic environment. “We have to accept that what we think will happen may not come about. But if you don’t have a flight plan, you have no way of getting to your destination. When you’re up in the air you need to know where you’re going. You may get knocked off course from time to time and you will need to adjust the plan in response.”

        Even the process of putting the plan together can be helpful, he notes. “It is cathartic and helps clarify things.”

        This clarity comes from the examination of the business and its environment. Questions Binchy puts include:

        • Is your industry shut down or is it still working?
        • Are there opportunities there?
        • What has been the impact of the crisis on customers?
        • Do they still have money?
        • Do they still need your products or services?
        • Are there customers you no longer need?
        • What has been the impact on competitors?

        Fortunately, there is help out there both to develop plans and implement them.

        He points to the Enterprise Ireland Covid-19 Business Financial Planning Grant as a very important support. The grant, worth up to €5,000, can be used by companies to pay up to 100% of the cost of engaging an approved financial consultant. The consultant will work with the company to prepare a robust financial and business plan that identifies the funding needs and the potential sources of this funding.  

        Another valuable support Binchy advises businesses to take note of is the Lean Business Continuity Voucher, which offers eligible companies up to €2,500 in vouchers for training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate safely during the Covid-19 pandemic.

        Support for the implementation of the plan is there in the form of the Enterprise Ireland Sustaining Enterprise Fund, which offers funding of up to €800,000. Very importantly, no repayments are required for the first three years of the five-year term of the advance and there is an annual administration fee of just 4%, making it a very attractive source of finance.

        Smaller businesses can also apply for advances of up to €50,000 depending on their size under the Sustaining Enterprise Fund – Small Enterprise scheme.

        “Businesses can also look to shareholders to put in new capital or go to the banks,”, Binchy concludes. “The important thing is to develop a plan and have the finance in place to implement it.”

         

        Watch our webinar addressing the critical challenges facing Covid-19 impacted businesses – Accessing liquidity and managing cashflow.

        Get advice from financial expert, Brendan Binchy on how best to navigate these issues and hear from Enterprise Ireland’s finance team on the financial supports available from Enterprise Ireland.

        Industry Bulletin – Automotive – Impact of Covid-19 on automotive technologies

         

        Jens Altmann, Market Advisor, Automotive Industry, Enterprise Ireland Germany interviewed Robert Metzger CEO and publisher at eMove360°, a trade fair and community platform for Mobility 4.0 – electric – connected – autonomous in Munich.

        eMove360° Europe is already now world’s biggest B2B trade fair for electric mobility and connected & autonomous driving.

        The video interview discusses the effects of the current Covid-19 situation on new technologies, forecasts on the industry and alternative ways of connecting with stakeholder in the market.

        • Effects of Covid-19 on technological development in the automotive industry
        • Influence on regulations and Electromobility  and its related supply chain
        • How to counteract current contact restrictions e.g. alternatives for physical trade shows

         

        Cubic Telecom car image

        Cubic Telecom’s swift response to Covid-19 strengthens its customer relationships

        When the novel coronavirus first emerged, Cubic Telecom acted fast to protect its staff and cement its customer relationships. Those moves are paying dividends now.

        The company provides global mobility solutions for IoT, automotive and mobile device companies around the world, from Germany’s Volkswagen Group to US satellite communications company Kymeta.

        The software innovator, which has received funding from Enterprise Ireland, today employs 150 people. It experienced particularly fast growth last year and was recruiting new team members right up until January, when the first inklings of the Covid-19 crisis emerged. When it did, the company acted swiftly.

        “The senior team was very focused on getting as much information in as possible early in the Covid-19 life stage. There was a focus on human impact and economic impact. We did some very detailed analysis on the impact to the company and took the right amount of time to assess the steps that needed to be taken to ensure the sustainability of the company. Once this was done the teams could be reassured and day to day work could continue as before,” says Richard Springer, the company’s Director of Commercial Strategy.

        “People have come first and this has been led from CEO level down. There have been cost reductions and tighter control of the financials but at the same time, we are still driving the business forward to make sure we come out of this period in a strong position.”

        As a technology company, it helped that remote working and the use of tools such as MS Teams and Zoom were already well established in the company.

        Once the scale of the crisis was assessed, all staff members were asked to work from home, with some international staff flying home to their native countries to work from there. The use of video and teleconferencing has ensured productivity has been maintained ever since.

        “As restrictions started coming into place, very open communication with employees was maintained and, in the background, extensive modelling work done by looking at previous events, including Spanish Flu to SARS and MERS, in order to create very good future forecasting and cash management,” explains Springer.

        Decision making was quick and efficient at the top, with the senior team participating in daily catch-ups every morning. What were previously weekly catch-ups were turned into reviews of what was happening in key markets worldwide, as well as planning for the recoveries in each.

        The key to successfully managing the crisis for the company so far has been to focus on ensuring there was “over communication” with both staff and customers as both cohorts adjusted to remote working.

        “That meant giving people more information, communicating at a more personal level about how their family is, for example, and ensuring there was more collaboration,” says Springer, who says that acknowledging the ‘human’ side of current events is vital. “It’s about making sure the team is okay and that everyone knows what is happening.”

        Being empathetic and working to safeguard employees’ physical and mental health was paramount too, with new programmes in areas such as yoga and mindfulness introduced for staff.

         

        Adapting to customers’ needs

        Cubic Telecom has customers all over the world, which means travel has always been a staple part of its customer relationship management.  Business development strategies traditionally include a presence at major international trade shows, such as CES in Las Vegas and the Mobile World Congress in Barcelona, with vital support provided by Enterprise Ireland.

        With such events no longer taking place, the company quickly predicted that customer relationships would need to be maintained and developed remotely too.

        “We spent the first few weeks of the lockdown focusing on customer relationships, talking to existing customers,” he says.

        While nothing replaces face to face meetings, he says, by again focusing on the human side of the situation, and encouraging collaboration, these relationships are successfully being strengthened remotely.

        Although a pandemic is never welcome, the fact that Cubic Telecom is by now so well recognised in its sectors internationally helps. “We are at a point where a lot of our relationships are very well established. As a business we are also still small enough to move fast, but big enough to be recognised in the industry as a player,” he explains.

         

        International recognition

        Enterprise Ireland’s backing from its earliest days led to Cubic Telecom unlocking a series of investments as it grew, including from major industry players such as Audi and Qualcomm, among others. More recent investment has come from long term backer ACT Venture Capital and the European Investment Bank.

        The connected intelligence company is now acknowledged as a pioneer in eSIM technologies and advanced data analytics, offering mobility solutions for IoT, automotive and mobile device companies across the globe.

        It has mobile operator partnerships in more than 190 countries, for example. One of the most recent, with Etisalat, a UAE telecoms company, was announced at an Enterprise Ireland trade mission to the Middle East.

        While it is not business as usual for the company right now – too much outside its walls have changed – it is business as ‘best as possible’.

        “Our employees are well informed about what is going on, our business is running as it was previously and supply chains are open and running,” he says.

        As a supplier, it is critical to understand that “everyone is experiencing different impacts to their business,” he advises.

        “It does not matter what size that business is, during this time everyone could be under pressure. That is the key when dealing with any business during this time. There needs to be a collaborative approach in how to get through the next months together and as much sharing of impacts, plans and information as possible to help each other.”