Business Start-Up (All information for 2019)

 

Business Start-Up – All Important Information about Subsidies, Grants and the Business Plan

 

Business Start-Up - All Important Information about Subsidies, Grants and the Business Plan

 

Starting up a business is a big step, either as an uninterrupted position as an employee, after an apprenticeship or a degree , sometimes even before or during it, or out of unemployment . Similarly different are the motives for starting a business. In principle, however, it should be noted that starting a business is a long-term project – even if the actual start-up process usually takes the least amount of time.

For a start-up to be successful in the long term, ie to ensure its existence, a more or less complex preparation is necessary depending on the type and scope of a trade. The recommendation of many experts to create a business plan should always be followed.

Actually, a business plan serves as information for potential investors and summarizes ideas, services, market and competitive situation and financial key figures in a compact way. If no outside capital is needed for start-up, this reduces the effort, but founders should not refrain from drawing up such a plan.

 

Why Always Create a Business Plan?

 

Why Always Create a Business Plan?

 

If no leverage is needed, that does not mean that founders should forego creating a business plan. Even though they are in a good position not to have to convince potential investors of an idea, they should clearly, compactly and unambiguously record their plans – ideally in the spirit of a business plan.

Also, the preparation of a business plan provides a good guide , because hardly a founder thinks at the beginning of the entire scope of his project. Thus, important questions can be answered and in case of emergency, an informed decision can be made as to whether it is worthwhile to consistently implement an idea or reject it. In addition, a business plan is not a static element. If new potentials arise, these can be added and included in further planning. Many founders still use the plan after its founding as a kind of manual , which can be used if necessary.

 

When does the Employment Agency / Job Center Support Start-Up?

 

 

When does the employment agency / job center support start-up?

 

Many founders are still the broad promotion of business start-ups from the 2000s known. At that time, the unemployed received relatively easy funding for starting a business. However, this policy has been cut back ever further. Since 2011, unemployed persons have no legal entitlement to grant a start-up grant. It is a discretionary performance. For the recipients of ALG-II can apply for an entry fee to start a business.

There is no legal entitlement to support in both cases, even if an applicant complies with the general conditions. Therefore, setting up a business must be discussed with the responsible intermediary and, similarly to other types of start-up, appear equally viable. The following general requirements play a role:

  • Sustainability of starting a business : Self-employment should be accompanied by a long-term and sufficiently high-paid job. Professional and material requirements must be substantiated by founders, such as the IHK or the house bank. An opinion requires a business plan.
  • Professional and personal suitability : It must also be proven to what extent an applicant has the required specialist and personal qualifications. If these are missing, they can be acquired retrospectively, for example, by participating in business start-up seminars.

If the promotion of a start-up is granted, a start-up grant will be granted for a total of 15 months. It is important to distinguish between two phases. In the first phase, which lasts six months, founders continue to receive unemployment benefits in the amount that was also granted before starting a business. In addition, a subsidy of € 300 per month is granted for social security, for example through voluntary membership in statutory health insurance or pension and long-term care insurance . Following Phase 1, funding can be granted for a further nine months.

In Phase 2 founders will continue to receive € 300 per month as a general support. However, this promotion is by no means guaranteed. Whether it is granted depends on whether the developments described above in the conversation and in the business plan have proven to be realistic and the start-up project is economically viable.

 

Business Start-Up Loan and Other Promotions.

 

Business start-up loan and other promotions

 

In many cases, start-up companies have special loans available, for example from promotional banks. These usually offer attractive interest rates and thus make it possible to lower the financing costs of starting a business.

In addition, there are various support programs that grant subsidies depending on the industry or region, which do not have to be repaid. Whether a start-up is qualified for certain loans or subsidies is to be seen by looking at the respective conditions. However, many funding programs are limited to specific measures, most of which involve investment. A classic example is the investment in energy-efficient buildings or production facilities.

To find out more about loans and subsidies, it is worthwhile to inquire with the local IHK or Wirtschaftsförderung . These jobs usually know exactly what loans and programs are available regionally or industry-specific.

 

Checklist Business Start-Up: Note the Following Points

 

Checklist Business start-up: Note the following points

 

Each start-up is individual and characterized by very special factors. Accordingly, it is difficult to provide a complete checklist that should be considered in the business startup process. Below, therefore, only basic points are listed, which should be taken into account when setting up a business:

  • Is there a concrete business idea and has this been comprehensively examined as part of a business plan regarding its strengths, weaknesses, earning power and competitive position?
  • Do you have sufficient knowledge in all relevant areas? In addition to specialist knowledge , this also includes business management knowledge , for example with regard to the preparation of tax returns or the consideration of specific laws!
  • Is there sufficient equity capital for the foundation or is borrowing required?
  • If borrowed capital is needed: what is the amount required and who qualifies as the lender?
  • Is there a willingness to work day by day to build up your own business and to survive financial hardships ?