Business Support and Grant Applications in Marbella Province on the Costa del Sol Andalucia

Unidad Territorial de Empleo, Desarollo Local y Tecnológico (UTEDLT) (Office of Employment and Local Development)

Since its inception UTEDLT has helped more than 10,000 businesses in Casares, Estepona, Manilva, Marbella and San Pedro de Alcantara. It has directly created more than 1,500 jobs and is currently looking at 633 projects. With a budget of 18,450,000 Euros the help and advice available from UTEDLT is there for every legitimate business to take advantage of.

UTEDLT is very flexible. Each application for assistance is treated as a separate project and may qualify for different grants and support to another, similar, project. So who should apply?

Broadly speaking if you are considering establishing a new business in the qualifying area then UTEDLT should be your first point of contact with your project outline. They will assess the viability of your proposed business. More importantly they will guide you in areas such as employing staff, training staff and providing products and services that are needed in the area. Meeting their criteria will help with any grant application. You do not have to be an S.L. or an S.C., sole traders are just as eligible.

Similarly if you are an established business UTEDLT may be able to help you take on more staff, train staff, introduce new products and services and expand your trading zone. Again sole traders are as eligible for assistance as larger businesses.

You are most likely to be able to take full advantage of their assistance if your project meets one or more of the following criteria:

The list is by no means exhaustive. Your project may meet other criteria looked upon with favour by UTEDLT.

The initial contact point is: Consorcio UTEDLT Sierra Bermeja, C/ Huerta Nueva 14-16, 29680 Estepona. Tel: 951 316 630. Fax: 951 316 631 email:sierrabermeja.utedlt@juntadeandalucia.es

The information relating to UTEDLT was kindly supplied by Jesus Plaza Benitez (director).

Next month: We will examine what a project for submission should look like.

The Project Outline

Last month we looked at the types of assistance available through UTEDLT and the types of business that could apply. This month we look at the first stage of an application, the Project Outline. Some people consider this a waste of time and prefer to move straight on to the full Business Plan. However, consider that only a proportion of project applications receive assistance, why put in hours of work until you have some indication that your project will secure assistance?

Anybody familiar with the UK system of submitting applications to Business Links, Training and Enterprise Councils, Department of Trade and Industry or for European Funds will be very familiar with the project outline, its purpose and content.

Purpose first.

The purpose of the Project Outline is to give the reader a broad-brush overview of the project, who is submitting the project and why. It should be written in such a way that it immediately attracts the attention of the reader, reveals to the reader the purpose of the project, briefly takes the reader through the project, explains why the project needs financial support and then stops. Do not blather on. Short, eight pages maximum, and sweet is what is required. If you have given enough information for UTEDLT to decide whether or not the project is worth further consideration then the Project Outline has served its purpose. UTEDLT will use the Project Outline to determine the type and level of support that could be available for that project.

Project Outline Content

Frontsheet:

This should be one sheet of paper with the Project Title, Names of the Project Initiators and Contact numbers and email and a Postal Address.

Purpose of the Project Outline:

Why are you taking the time to put together the Project Outline and who is it aimed at?

Project Description:

Keep it brief and pertinent.

CVs:

Brief CVs of the Project Initiators. Answer the question; What is this person bringing to the project?

Measurable Objectives:

Answer the question; How will I measure the success or otherwise of the project?

Unique Selling Point:

Why is your project or the results of your project unique as compared to your competitors?

Research and Development:

What led to the project? What research has gone into making sure the project is viable?

Project Grant Application and Timescale:

How much money are you looking for? What will it be spent on? When will you need the money? How much are you and/or project partners contributing?

Job Creation:

Will the project create jobs and if so how many and when?

Conclusion:

Bullet points as to why you think your project should receive assistance.

Tips.

If you are considering applying for assistance, do not start the project before doing so. That will be seen as an indication that no assistance is required in the first place.

If you can show that you and/or your project partners are prepared to make a substantial percentage contribution in terms of cash and time then you will be showing you believe in your project and accept the risks.

Conversely you do need to show that the project will not go ahead without funding.

Project partners are not essential but if a project can involve other businesses and individuals then that is seen as a plus.

Job creation is important but so is the type of person you can employ. At the risk of sounding sexist and discriminatory creating jobs for females and the disabled will earn you some points particularly if you can take them off the unemployment register and even more so if you can provide staff training in any skill.

The Business Plan.

A Business Plan is a document that can help you spot potential problems before they happen, helps structure the financial side of your business efficiently, focuses initiatives and helps you measure your success. It is useful to have an in house business plan and essential if you are applying for investment or loans, hoping to attract partners or selling your business. Having created a business plan bear in mind it is almost a living organism, changing as your business changes and grows.

A Business Plan should contain the following:

An Executive Summary:

This is an overview of the business you want to start or the business at the end of a project. Many lenders and investors judge the entire business plan on this essential item. A précis of the Project Outline described last month should make an executive summary.

Description of Your Business its Products and Services:

This section contains who you are, what you plan to sell or offer, why and to whom. If applicable then you should also include your vision for your new business.

Marketing and Sales Strategy:

Why do you think people will buy what you sell? How do you plan to sell it to them? How many customers are there for your product or service? Who are your competitors and what share of the market do they have? Most business plans fall over at this point. It is easy to be too optimistic. Just having a vague notion that you have a good idea based on conversations with friends will not hack it.

Management Team and Personnel:

This section is basically a CV for each person involved in the business and for those you plan to bring into the business. You need to prove you have the skills available to operate the business or project and that you know how to obtain those skills identified as missing.

Your Operations:

Describe your premises and location, production facilities, management information systems and I.T. systems. Will any investment be required in this area to complete the project or planned expansion?

Financial Forecasts:

This section translates what you have said about your business into numbers. You should consider how much capital you need if you are seeking external funding, the security you can offer lenders, how you plan to repay borrowings and sources of revenue and income. Forecasts should run at least three years hence although the later years will be less well defined. Include an explanation of the assumptions behind your projections. You should be able to show Cash Flow statements that show your business has enough working capital to survive, Profit and Loss forecasts that show the level of profit you expect given your projected sales and the costs of providing goods and services and your overheads, and finally Sales Forecasts, the amount of money you expect to raise from sales. Financial Spreadsheets

Ideally you should also prepare ‘worst case scenario’ forecasts based on sales being significantly less than forecast.

Risk Analysis:

Here you consider how you would cope in the face of threats to your business from competitors, commercial issues such as sudden price rises of supplies, technology or production failure, staff problems and acts of God. Many risks can be insured against, many others can be actively managed.

The initial contact point is: Consorcio UTEDLT Sierra Bermeja, C/ Huerta Nueva 14-16, 29680 Estepona. Tel: 951 316 630. Fax: 951 316 631 email:sierrabermeja.utedlt@juntadeandalucia.es.

Professional translations can be performed by TTT Estepona. Telephone 952 796 295. Email info@tttestepona.com

The information required for this article was extracted from data supplied by the Centro de Apoyo al Desarrollo Empresarial de Marbella (CADE).