To establish your own company
If you want to start your own company, what should you do? Idea, business plan, legal form, financing, trademark protection, insurance, notary appointments, contracts, to name but a few. These are some of the buzzwords on the way to establish a company. For many founders, they have no clue of establishing a company. For this reason, you will find 10 important steps in setting up a company below.
The first step: planning stage
Before you officially start your company, the planning phase is pending. According to KfW Start-up monitor, from getting the idea to the actual establishment of the company, the average preparation time is seven months. However, 50% of all founders will be able start a company within three months. Many founders, of course, also play with the idea of starting a company for a long time. This is also shown by the time of intensive start-up preparation, which includes the optimization of the idea, the business plan and the administrative procedures. This lasts on average 2.5 months, but more than 50% of the founders taking less than a month.
Our tip: take your time and pay great attention to a valid business model. This is followed by the detailed preparation of your business plan, which forms the basis for a successful kick-off. Particular, make a financial plan which is as realistic as possible. It shows you how much capital is needed and whether your planned company is worth it.
The second step: a full-time job or a part-time job?
The step into self-employment is a big risk for many founders. For this reason, many start-ups first try out part-time self-employment. However, whether you start a company as a part-time job or a full-time does not play a role in the basic requirements for starting a company. However, there are still a few things to keep in mind if you are self-employed.
The third step: check and protect your brand
Many founders break new ground when they start a company. This contains tremendous meanings which should not be neglected. Finally, the company should be easily found in the Internet with a suitable Internet address. The company name should be clear and unambiguous. Brand protection for the products and services secures your position in the competition. However, you must not overlook the fact that these issues are not a one-way street. When you start a company, you also have to be careful not to violate existing intellectual property rights. We provide you further details in the section on industrial property rights.
Speaking of protection: have you thought of security?
When you start a company, it is vitally important to avoid risks, both private and commercial. For many risks, especially those you are not be able to control, there are insurance policies to make sure that financial impact does not cause an early end to self-employment.
As far as personal risks are concerned, during the first three months after the foundation you can decide whether you want to take out statutory or private health insurance. Normally, it makes sense to compare the costs and benefits of private health insurance firstly, in order to compare the best rate with statutory health insurance. Get a free and non-binding PKV comparison.
Operational risks are primarily concerned with determining insurance needs. The reason is from industry to industry, it may apply different insurance policies. Get a free-of-charge analysis.
The fourth step: secure finance for your company
Self-employment first means investment and costs. And the savings are often not enough. Many founders would consider of bank credit. However, there are many methods to raise finance. The starting point is the financial plan that you created in the business plan. The capital requirements for your company are reflected in it. Funding, equity, loans or grants can then be used to finance the company: raise sufficient capital when you start your company.
The fifth step: what permits are required?
You like to cut hair and want to open a hair salon? But it is not that simple, for this trade requires master craftsmanship. It is also not recommended to open a restaurant before you have contacted the building authority. Permissions, approvals, or certain qualifications may be required when you start a company. Get yourself well informed and create a list of necessary permits before you get into problems.
The sixth step: the form of company, bank account and contracts
From the very start, the form of the company, more specifically, the legal form of the company is associated with different requirements and this can significantly prolong the start-up process. While individual companies or partnerships such as Civil law society can be set up quickly, it takes longer for corporations such as limited company or entrepreneurial society. You need time to make appointments with the notary and the necessary commercial registrations. We have gathered important factors for the comparison of the forms of company.
The opening of a business account is also linked to the foundation. Corporations are not notified to the commercial register by the notary until the share capital has been paid in (usually transferred to a business account). For freelancers and sole proprietors, a separate business account is not absolutely necessary but advisable, because only in this way can private and professional finances be separated from each other.
The issue of contract is also closely linked to the legal aspect. However, you should not only think about the social contract or the managing director contracts. Employment contracts for potential employees or general business conditions as well as templates for customer contracts should also be ready right at the beginning.
The seventh step: the location question
If you do not start your company in your own place, but to rent an office, a shop, a workshop or a restaurant, then you have to deal with the question of the suitable location. There are many important factors that you should take into account when it comes to the question of location, so that customers can find their way to you.
The eighth step: where I should register?
Without permissions you cannot start a company. Many registrations are mandatory and without them you are in danger of getting fines. And without a tax number from the tax office, you cannot write any invoices. However, progress is being made gradually. We have listed which office to contact with and when to contact them. Trade registration and for corporations, the commercial register entry are particularly crucial.
The ninth step: the perfect first impression
When it comes to establishing a company, it is all about presentation, and you want to optimize that as best as possible. This includes, for example, the company logo or the website as well as a correctly generated invoice or legal aspects such as the imprint and the data protection declaration. The first impression counts, when you try to establish customer contact and make your first appointment. Give your best and convince them with a powerful first impression.
The tenth step: win customers
After the planning and the numerous formalities, you have been able to successfully establish your own company. And now it is about time to think about sales and make a successful entry into the market. Many people might like to buy from you, but few people know your offer. And even if you are completely convinced of your products or your service, you still have to convince your potential customers. For this purpose, we provide different paths of winning customers.
There is no question that you will advertise in order to promote your offer. However, you should design and implement a coherent marketing concept, also for budget reasons.