You finally want to get out of unemployment? Tired of working in the same company all your life without any opportunities for advancement? Or do you have an innovative, new business idea? – Then you should take the step into self-employment and start your own company.
But before you can really get started, you have to plan and prepare thoroughly and carefully. However, this often turns out to be an extremely difficult, lengthy, bureaucratic undertaking. The following tips and advice are intended to make it easier for you to start your own business and to keep you from becoming disoriented amidst guidelines and bureaucratic necessities.
To establish an existence you need a well-structured business plan. This includes all planning components for the foundation of a company. This includes marketing, sales, production, personnel, procurement and investment planning, as well as the precise formulation of a concept. Two of the most essential points here are financial planning and concept and therefore require special attention.
The business concept
The concept is the core of every company. Everything depends on this. It is therefore particularly important that this has been worked out down to the last detail. The focus should be on these questions: What is my concept? (A precise formulation of the idea) How does my business “work” in detail? How exactly do I want to achieve success? With this in mind, you should define and formulate your concept precisely. Because: you build your entire company on the basis of this idea.
The financing plan (or investment plan)
With the financing plan, an accurate calculation of all costs is essential. Since starting a business always involves a financial burden and a certain risk, you need financial support at the beginning. The state financially supports the self-employed, but this is usually not enough to fully cover the costs of setting up a business. For this reason, you usually have to take out an additional loan. Please note that prospective self-employed people or unemployed people at banks are usually considered to be “poorly creditworthy”, ie not particularly trustworthy. Therefore, you usually have very little chance of getting a loan from conventional banks. In any case, you should therefore set aside and save money a long time before the company is actually founded. If you still need a loan and none of them are granted through the bank, there are two other options: The first and more solid is the so-called private to private loan brokerage. Here loans from private individuals to private individuals are brokered via a platform on the Internet. The advantage of this is that you do not have to provide proof of creditworthiness, such as Credit Bureau information, since it is not a bank that provides the money, but private individuals.
In the United States, this principle of brokering credit has already become established as a result of the economic crisis. In Germany, too, this loan option has become increasingly popular. One of the German providers of such personal loans is the online platform auxmoney.com. The other loan option is a direct personal loan from people you know or your family. However, this option is not particularly recommended for one reason: money spoils friendship, every child knows that. Because: nobody likes to lend or lend money, especially when it comes to larger sums. If in any case you cannot pay for your debts, you may lose someone close to you. Always beware of the offers of so-called “loan sharks”, as these often lure with only seemingly good credit options, which usually turn out to be debt traps if interest rates are too high.
These were just the most important points about starting a business, but as a self-employed person you have to do a lot more things. In order to help you not to lose track of the wild jungle of starting a business, here is a checklist with all the points to be considered:
- Business Plan
- foundation concept
- market analysis
- Investment plan / financial plan
- Profitability forecast (how much can I earn from my company?)
- Advice (e.g. from a financial planner)
- Maintain and build relationships with customers
- Organize suppliers
- “Landing” orders
- Registration at the city’s trade office
- Entry in the handicraft role (of course, only if it is a craft business)
- Approval by the building law
- Approval from the Labor Inspectorate
- Concessions (official permits to operate a business requiring a license)
- Entry in the commercial register
- Tax number of the tax office with sales tax identification number
- business insurance
- Personal insurance such as health, pension, accident and disability insurance
- Legal protection
- Appearance and logo
- advertising concept
So you see that the path to independence is a long and rocky road. But this path is worthwhile. With self-employment you will have a freedom you never imagined and at the same time a high level of responsibility. This is a new challenge in life that has to be overcome on the road to success!