Anyone who is of legal age can take the path to self-employment. Usually just one is enough to start with Business registration out of. Nevertheless, proper planning is immensely important for successful self-employment.
Of the legal form on the Business plan and financing through to insurance, there are a lot of things to consider. In this blog post we will take a closer look at what is important on the path to self-employment.
Table of contents:
- Legal form, business plan and financing
- Definition and delimitation
- Formal requirements for self-employment
- Success with careful planning
Legal form, business plan and financing: The way forward independence at a glance
For many people, the change from a conventional employment relationship to… independence a long-cherished lifelong dream. As the driving factors for this self-employed often serve motives such as self-realization, flexibility and independence.
In fact, certain advantages of self-employment cannot be denied - the free choice of activity, working hours, place of work and way of working opens up completely new perspectives and can have an inspiring effect, especially on individualistic minds.
To the same extent that personal freedom expands, the extent of entrepreneurial responsibility and the associated risk also increases. Therefore, the jump into the independence always be preceded by a well-considered decision based on a well-developed plan.
Independence: definition and delimitation
Any considerations, yourself self-employed to do, the first question is what it actually is from a legal point of view. From a formal point of view, the term refers to: independence nothing other than the counterpart to a dependent and instruction-bound employment relationship as a worker or employee.
The most important features include the aforementioned freedom in terms of working hours and location, but also the ability to independently organize one’s own social security:
Since there is no comprehensive insurance requirement and the amounts have to be earned independently, comprehensive precautionary measures must be taken here. Also those in the context of independence Any applicable tax obligations (income tax, trade tax, sales tax) should be taken into account when setting up a business.
Before you self-employed To do this, an effective business registration is required. Depending on the activity profile and legal form, different authorities and contact points are important - for example the trade office, commercial register, chamber of industry and commerce or chamber of crafts (IHK/HWK) or the responsible professional association (the tax office must be informed in all cases).
The different job profiles that can be assigned to the collective term “self-employed” are correspondingly diverse: These range from the founder and manager of an internationally active company to the medium-sized tradesman to the so-called solo self-employed person who has no employees of his own.
We speak of self-employed people when the activity in question is not subject to trade regulations, as is the case, for example, with doctors, artists, lawyers or pharmacists (although not all of them are freelancers). self-employed employed).
Formal requirements for self-employment: permits, qualifications and choice of legal form
To one Register self-employment In some cases, certain special requirements must also be met, which is documented by relevant documents (certificates, permits, proof of qualifications, etc.).
The start of certain self-employed activities - such as the operation of private hospitals - is only permitted after the relevant official permission has been granted.
In the craft sector, a master craftsman requirement also applies to numerous professions - this means that starting a business is generally only possible after obtaining a master’s degree in the chosen profession. In some cases, knowledge tests or training courses at the Chamber of Industry and Commerce must be taken in order to obtain approval.
Freelancers are also often required to provide proof of qualifications - especially if there is a requirement for the relevant activity (such as doctors, lawyers or architects).
Since different permits have to be applied for from different offices, it is advisable to get an overview via the so-called single contact person (a federal state service point for founders).
If you choose to become self-employed, you should definitely consider the tax aspects. In our blog article “The 7 most common mistakes when filing tax returns for self-employed people” Let’s address this topic in detail.
Who one Register self-employment In addition to any approval requirements, you should also think early on about the appropriate legal form under which the company should be founded.
In simple terms, the legal form is understood to mean the legal structure of the planned independence, which in turn can have various implications with regard to tax obligations, liability issues and similar aspects.
An important distinction in this context:
While freelancers, if you have your Register self-employment, do not have to choose a legal form, this is different for traders. Self-employed people who belong to the second group can generally choose between the legal form categories sole proprietorship, partnership and corporation. The vast majority of founders initially decide on a sole proprietorship (small business, Kaufmann eK, etc.).
If the company is to be founded jointly by several people, GmbH or UG, for example, are popular solutions. There are also numerous other options.
Other important criteria when choosing a legal form include the extent of liability and the required start-up capital.
Success with careful planning: business idea and business plan
Aside from fulfilling the formal requirements self-employed In order to be able to do this, it is of course also important to realistically assess the individual’s chances of success. independence represents both an opportunity and a risk:
In order to minimize risks and avoid typical pitfalls, comprehensive planning activities in advance of founding are essential. This also includes an honest self-assessment of the extent to which your own personality and other life circumstances relate to the requirements of your life independence are compatible.
For example, you should ask yourself whether you have the necessary character and mental qualities, without which it is hardly possible to be successful in the long term self-employed close.
These include, for example, resilience, organizational talent, motivation and commitment. No less important are technical knowledge (for example in the commercial area) as well as sufficient industry-specific professional experience and qualifications.
It can also be advantageous to focus on a project independence to be able to leave a well-disposed personal environment (family, friends). If you don’t want to put all your eggs in one basket, you can also consider first part-time self-employed close.
Business idea
Among the most important preparatory activities with a view to the future independence Of course, the development and testing of a convincing business idea also counts. You shouldn’t get stuck on the idea that you have to bring a world first onto the market - adapting and improving existing business models can also lead to the desired success.
In any case, the idea should be appropriate to personal skills and competencies and tailored to economically sufficient demand (this can be determined through a detailed market analysis). Differentiation from similarly oriented competitors through attractive unique selling points also plays an important role.
The conception of the business idea is usually followed by the development of a business plan, which provides detailed written information about all important aspects of the start-up project. This includes, among other things, the identification of the target group and the (main) competitors, your own market and marketing strategy as well as the targeted sales, expenses and financing needs.
Business plan
A sophisticated business plan makes it easier to negotiate financing with your bank, to recruit investors, and also to acquire public funding (for example, in addition to general subsidy options, there are also special programs for students or job seekers).
