Business Start-Up Properly Financed

To start self-employment and to progress successfully, a lot of preparatory work, time investment and possibly some external support is required. This complex undertaking must be well thought out and planned to rule out failure right from the start. What many do not consider is that you need a decent start-up capital to be able to implement your business idea effectively and professionally right from the start and generate sales. The start of the company is also much easier if you have generated the catchy business names for your company as a figurehead. This later plays an especially important role when creating the website and finding the domain name and should be well thought out. We recommend thecompany name generator that presents you with many different suggestions to find the right name for your company.

Advice from experts

Start your own business successfully with a professional start-up coach. Together he plans your way to realize your entrepreneurial project.

Before founding the company, the focus is usually on the following consulting services:

– the development of the business idea

– the market analysis

– business plan

– funding

There are also government grants for start-up coaching. There are numerous funding programs that are available to you. You only pay a certain percentage of the consulting costs. Before the establishment (a distinction must be made between before the business registration or after the business registration), up to 80% are funded by the state, depending on the federal state.

Business start-up advice is funded differently by the state. With grants of up to 80%, if you have not yet registered a business, you can apply for funding from the respective federal state. The funding programs also differ in terms of the amount of the subsidy, so start-up coaching can be subsidized up to 80%.

BAFA’s promotion of entrepreneurial know-how then only takes effect after the establishment. In the first two years of operation, 50% of the costs related to start-up advice are funded in the old federal states and up to 80% in the new federal states. The consultation fee is limited to a maximum of 4,000 euros. A maximum of 3,000 euros are then still eligible from the third year of operation.

It is important to find the right consulting services for your individual start-up advice and to select the right start-up coach. The consultant must be approved by the institution of the respective federal state so that you can successfully apply for the start-up coaching grant and a certain portion of the consultant’s fee is covered. As the founder, you then bear a smaller contribution.

Debt financing options

Anyone who switches from unemployment to self-employment is entitled to financial support in the initial phase with a start-up grant. Since you as a recipient of ALG I certainly do not have much to spare, the Employment Agency subsidizes the founder for up to 15 months with € 300 for social security. This is not the yellow of the egg, but it should be enough for the health insurance contributions. Recipients of ALG II can also apply for the entry fee. This grant is paid for a maximum of 24 months and the amount of the additional payment is calculated individually.

However, those who do not receive unemployment benefits can fall back on subsidized loans, EXIST start-up grants or private investors. Kfw-Bank, for example, offers subsidized loans that are explicitly tailored to the needs of the respective founder. These loans have significantly lower interest rates than normal bank loans, some are granted without equity capital and have an amortization-free start-up phase.

What many do not consider is that a lot must be invested to ultimately be successful in order to guarantee one’s income from self-employment.