Professional Qualification as a Foundation
After completing a vocational training (Ausbildung), aspiring entrepreneurs already bring solid technical knowledge and practical experience. Especially in skilled trades, additional qualifications, such as a master craftsman certificate, are necessary for starting a business. In commercial and other vocational training professions, the vocational training (Ausbildung) is often sufficient to register a business.
Legal Requirements for Business Start-up
Depending on the industry, different legal regulations apply. Skilled trades listed in the Crafts Code often require a master title to open a business. Alternatively, work experience or a practice permit can facilitate the start-up. The choice of legal form – such as sole proprietorship, partnership, or limited liability company (GmbH) – determines the liability and tax obligations of the business. Registration in the commercial register is mandatory for partnerships and corporations.
Business Registration and Contacts with Authorities
To commence self-employment, registration with the relevant trade office is required. In addition, craft businesses need to be registered in the crafts register at the chamber of crafts. Depending on the business sector, further permits, such as a restaurant license, may be necessary. The business must also be registered with the employers’ liability insurance association to ensure occupational safety.
Creating a Business Plan
A business plan forms the foundation of a business start-up. It includes the business idea, a market analysis, target audience identification, and marketing strategy. Additionally, the business plan records financial planning: start-up costs, ongoing operating expenses, and revenue expectations. This plan is important not only for the founder but also for potential investors or banks to obtain financing.
Funding Opportunities for Founders
The financing of a business start-up after completing a vocational training (Ausbildung) can be achieved through equity, loans, grants, or investments. KfW Bank offers special start-up loans that have particularly favorable conditions. Founders emerging from unemployment can also claim the start-up grant from the Federal Employment Agency. Additionally, the Chamber of Crafts starter grants or micro-loans are options for smaller start-up projects.
Insurance and Security
The protection of the business and the individual is an important factor. In addition to business liability insurance, professional liability, equipment breakdown, or content insurance are relevant depending on the industry. Entrepreneurs should also plan for private provisions like health insurance, disability insurance, and retirement plans to ensure long-term security.
Marketing and Customer Acquisition
A solid marketing concept is crucial for the success of the business. In addition to designing a professional website and utilizing social media, traditional advertising methods such as flyers or ads in local newspapers are important. Referral marketing and networking, for example in regional business associations, can also help attract new customers and establish a foothold in the industry.
Bookkeeping and Tax Obligations
Entrepreneurs are required to ensure accurate bookkeeping. The obligation for double-entry accounting depends on the chosen legal form and annual revenue. For small businesses, an income-surplus calculation (EÜR) is often sufficient. Sales tax, trade tax, and income tax must be regularly paid to the tax office. External tax advisors can assist with fulfilling these obligations.
Support Services for Founders
New entrepreneurs can benefit from various advisory and funding programs. The chambers of commerce and industry (IHK) and chambers of crafts regularly offer start-up seminars and personal consultations. The Federal Ministry for Economic Affairs and Energy (BMWi) also provides extensive information through the “EXIST” program and start-up platforms. The “Gründerregion” network offers regional support tailored to the needs of young entrepreneurs.
Promotion Through Further Education
Further education can significantly enhance the chances of success for founders after completing a vocational training (Ausbildung). Specialized courses on business management, financing, and business control convey business knowledge. Additionally, many chambers of crafts offer specific master courses and entrepreneurial training. A focus on digital skills, such as e-commerce or online marketing, is also recommended.