Why does an entrepreneur need money

Start your own company

If you want to start your own company, you have to be prepared for an adventure with ups and downs and you need one thing above all: entrepreneurship. A high degree of initiative and responsibility form the basis of a successful business start-up. However, having a clear strategy and advisors can help you start your own business.

 

The company - what is behind the term

When one is planning to found a company and about the development of a company, one often speaks colloquially of the fact that one would like to “start a company”. Purely in terms of definition, this is not entirely correct - and yet it will be discussed further in the following. The term company simply describes the name under which a merchant conducts his business and under which the legally binding signatures for the company are made. It should be noted that most companies must be entered in the commercial register.

Find the right legal form to set up a company

Founding your own company - this presents you, the founder, with many tasks, some of which are certainly new to you. In general, starting a business brings you a lot of new things that you first have to deal with in depth. You are certainly very familiar with the field in which you would like to work professionally in the future and you already have a promising business idea. Perhaps you, as a founder, still lack know-how at one point or another, but those who know their weaknesses can easily get help. Many people who want to start a company lack the necessary legal knowledge on the way to self-employment, for example, which is necessary to set up a company. However, the choice of the right legal form, which is part of every business start-up, has to be made with a lot of expertise if you want to start your own company. A central question here is the liability regulation, which is fundamental for the future of your company, but also for you as a private person. If necessary, you can consult an expert - for example an advisor from the Chamber of Industry and Commerce (IHK) or the Chamber of Crafts and you can always ask your notary or a tax advisor for support. A good tax advisor in particular is an important companion before and during the foundation. He can not only help a founder to save taxes, but also ensures flawless bookkeeping from the start and prepares the annual financial statements. In addition, he can advise you better on the choice of legal form because he already has all of your financial documents and knows your company structure. However, the legal form of your company is linked to many other legal and tax provisions that apply to the company. There are different types of societies, first and foremost

 

When you start a company, the first four groups are of particular relevance to you as the founder. Each type of company differs from the other in terms of liability and taxation. As the founder, this can directly affect you financially and therefore the choice of the legal form must be carefully considered before setting up a company. Depending on the chosen legal form and type of activity, you will also have to think about the business registration. This is important so that you can legally do business right after starting your business. In addition, depending on the type of activity with which you want to start your own business, you may have to prove certain qualifications or have certain permits. You can look for advice on starting a business from a wide variety of positions and receive valuable tips there for a successful start as a founder; In any case, all the necessary questions should be answered before the company is founded.

 

Find a suitable name for your company

If you are starting a business, then you should think twice about the name of your company. You also have to take legal requirements into account, because not every company name is allowed for every type of company.

  • The company name of the GbR must contain at least the names of two shareholders
  • The surname of a partner must be given in the company name of the OHG
  • Freelancers must include your last name in the company name
  • Small business owners must include their first and last name in their company name

 

When giving the name, it should also be noted that in some companies, such as AG, GmbH, GbR, OHG and UG, the legal form must also be specified after the company name. Merchants who are registered in the commercial register must add the name e.K. to their company name. or e.Kfr. complete. However, when starting a business, it is also important that your name is unique and unique. This is an advantage so that you stand out clearly from other companies. To achieve this, you can add original, imaginative elements to the name you want to give your company. However, you should ensure that the company name is easy to pronounce and, at best, attracts direct attention. In addition, you can always state in the name of your company what your field of activity is (e.g. Meier Spielhallen GbR). You must check in advance that you are not violating any industrial property rights when giving the name. In the course of this, you can also ensure that the name of your company is protected in the future by, for example, also registering it as a trademark. When naming your company, however, you should also think about a powerful marketability of the name. When setting up a company, it would be an advantage when choosing a name, for example, if there is still a free and suitable URL, i.e. a good Internet address, which can then be reserved before the company is founded. It would also be good if you come up with a corresponding slogan or claim that matches the name of your company. This allows you to stand out from your competitors once again and also enables your potential customers to see what your company stands for. If you take these tips into account when naming your company, you have already mastered the first step to successfully starting your own business.

 

Establish a company without risk

You should be aware that there are certain risks associated with starting a business, both operational and personal, that should be avoided. Since this cannot always be influenced, it makes sense to protect yourself as quickly as possible against risks that could threaten your existence as a founder. It is important to know that you are also subject to compulsory health insurance as a self-employed person. You have the choice between membership in a statutory health insurance company or in a private health insurance company. However, for many self-employed people there is no compulsory pension insurance. As a founder, you must therefore take responsibility for your retirement provisions as early as possible. Other useful insurances that you should consider taking out are:

  • Supplementary health insurance
  • The personal liability insurance
  • Occupational disability insurance
  • Legal protection insurance

 

In addition to the private risks that you as the founder of a company bear when setting up a company, you should of course also take out insurance to protect against operational risks. In some professions, such as lawyer, doctor, architect or tax consultant, professional liability insurance is already required by law. But even if you do not belong to this professional group, it makes sense to take out public liability insurance when you set up a company. This also covers damage caused by an employee. If you are setting up your own company, you should also consider a company legal protection insurance in addition to private legal protection insurance in order to be covered in the event of a legal dispute.

 

Capital for corporate finance

Regardless of whether you want to set up a service company as a founder or open your first mom and pop shop - it is usually associated with capital investment when you start a company. Of course, it is easiest if you have enough share capital of your own to secure the financing of your self-employment right from the start. However, this ideal case is rare and most founders do not have enough money to finance the start-up of a company on their own. Before you start looking for ways to get the money you need, you should first calculate your capital requirements. You should always allow for enough money as a buffer for unforeseen events. In addition, you have to expect that you will make losses in the first few months after setting up your company and plan enough capital to bridge this period. You must not ignore investments planned in the future, which are often pending at the beginning of a start-up, when calculating the capital requirement. The creation of the website, the marketing, the purchase of the business equipment and any pending renovations must be included in the calculation of the capital requirement. When you know how much money you need, the next step is to find a way to get the money you need. There are a variety of means of promoting business start-ups that you can obtain from the state or from development banks. Promotional loans can be a good way to obtain at least partial financing. These development loans usually have very low interest rates and are therefore ideal for starting a business. In addition, before founding a company, you can check whether you will receive a start-up grant that you do not have to repay. Otherwise, banks and financial advisors are the people you should talk to about further debt financing when setting up a company. They usually give you comprehensive advice so that you can set up your own company without taking too great a risk. In addition, depending on the legal form, the establishment of a business is usually associated with the opening of a business account. As a sole proprietorship, a separate business account is not absolutely necessary, for example, but it is still advisable to separate private and business accounts when setting up a company. The separation of the accounts helps you to differentiate your personal and professional finances, which will make your bookkeeping easier.

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