1. Make a business plan
Becoming an entrepreneur requires a business plan. In addition to the business idea and company form, it forms one of the cornerstones of a new business. You should draw up your business plan as soon as you have a clear business idea because you will need it when dealing with the authorities and applying for financing.
The business plan answers three questions:
- What does your company do?
- Who does it do it for?
- How does it do it?
Together with your business plan, your business idea helps to chart your company’s chances of success. A good business idea provides an effective solution to a real need. Its essence is a product or service that people are ready to pay for. It meets a demand, challenges competitors and brings something new or extra to the market.
2. Decide your company form
An essential part of starting your own business, choosing the company form is influenced by several factors. Such as how many founders your company has and what its targeted revenue is.
Light entrepreneurship is the easiest way to start your own business operations. It is also a good fit for self-employed persons selling their own expertise.
Limited liability company is a good company form, if the company has several founders or employees, it has targeted growth or it needs a lot of financing.
Private trader is suitable for self-employed persons who are selling their own expertise, when the business is not expected to grow massively.
Comparing different company forms
3. Register your company in the Trade Register
File your company’s start-up notification. You will receive a Business ID for your company.
4. Open a corporate accoun
You will need a corporate account for your business. At the same time, you can enable other banking services that will enable you to focus on your actual business.
5. Remember to apply for subsidies for entrepreneurs
There are different subsidies available to entrepreneurs that will help your business to get started. Just remember that it is a good idea to familiarise yourself with the terms and conditions of the available subsidies well before starting your business. For example, you can't receive a start-up grant after starting your business operations.
Subsidies for founding a company:
6. Take care of your entrepreneur’s insurance
The most important entrepreneur’s insurance is the self-employed persons’ pension insurance (YEL), which is mandatory for nearly all entrepreneurs. You should also consider accident insurance to protect you in case an accident or sickness interrupts your business operations.
For starting companies, there are also solution packages, which enable the entrepreneur to receive the required banking services in addition to the insurance policies.
Check out insurance for new companies and request an offer
7. Manage your corporate finances
Entrepreneurship requires many kinds of skills – and basic skills in financial management are a vital part of an entrepreneur’s professionalism. Our professionals explain simply and understandably how you should monitor your company’s finances, how the balance and sales receivables relate to the financial standing, and what cash flow means. Once you have mastered basic financial management skills, it will be easier to run a business.
Financial coaching for entrepreneurs - ABC of financial management
8. Apply for financing
The right kind of financing protects your business. Financing enables you to reduce the risks connected to seasonal fluctuation or finance new investments once your business operations are properly off the ground.
