Our Start-up Advice for Self-employment
1. First steps towards self-employment
Take things as they come. But try to make things come as you would like to take them.Curt Goetz
You are prone to commercial thinking, like to work independently, and are motivated, profit-oriented and skilled? You possess lots of commercial skills and abilities, are able to handle stress and have family and friends who support you? If your answer to all these questions is “Yes”, you should consider starting up your own business!
2. What makes a good employer?
I don't pay good wages because I have a lot of money; I have a lot of money because I pay good wages.Robert Bosch
Just as the word “employer” says, it is the person who employs people and who therefore assumes responsibility for all employees. He/She is responsible for the employees’ well-being and determines the work ethic. The employer controls and monitors operational sequences and sees to it that corporate objectives will be achieved and that the highest possible profit is made with certain products or services.
3. In the beginning, there is the idea
The first step is said to be the hardest. That does fully apply to a company formation. An enterprise is a business depending on sales. Therefore everything should be based on an ingenious business idea that is innovative and promises high demand in the market. That could be already existing products or services as well. But those enterprises are usually successful only
- if there is no comparable provider in the same area or
- if they have really innovative marketing principles or
- if they offer products/ services for attractive prices or
- if they have already established a wide network of cooperation partners and customers.
In principle, the most important prerequisite when forming a company is the idea. There is nothing nowadays that is so good that it cannot be improved!
4. The first step is always the hardest
The advantages of starting up an enterprise are perfectly obvious. In contrast to employment, you enjoy certain liberties as an employer on the one hand. On the other hand, you take on a lot of responsibility for yourself and your employees.
The difference that is most likely to be the most striking is that a company formation bases on equity finance. That means that you as the employer finance the company on your own. You take on the manager position and there is no one above. No instructions and orders for you – you are the one who gives instructions. You establish priorities and take all managerial decisions. Sounds quite nice, doesn’t it?
But you should be well aware of the fact that the responsibility for the whole enterprise is all yours. It does not suffice to monitor only one department and assume responsibility for one field of activities. You are required to have an overview of all areas of responsibility, coordinate and develop them.
On the path to success it is essential to not be put off by starting difficulties or setbacks, but believe in your idea and efficiency. As an employer you need
- a good sense for quality
- profound business knowledge
- the ability to set clear goals
- willingness to take risks
- managerial skills
- sense of responsibility
- to be costumer-oriented
- to be in good physical and psychological shape
When starting your own business, you have to be 100 per cent in favour of the products or services that you sell.
5. Who supports me with my plans?
The most important steps towards self-employment are easy to describe, but sometimes hard to put into practice. Here are a few links that provide you with information all around your business start-up.
|www.existenzgruender.de/englisch/index.php||Business start-up portal by the German Federal Ministry of Economics and Energy (available in English)|
|www.knowhow-ev.de||Association for new employer promotion (available in German only)|
|www.existxchange.de||German network for business starters|
|www.guss-net.de||Information on business start-up provided by the “Rationalisierung- und Innovationszentrum der deutschen Wirtschaft e.V.” (German institution for rationalization and innovation), available in German only.|
|www.gruenderstadt.de||News and information on business start-up (available in German only)|
|www.erfolgreiche-firmengruendung.de||On how to start a business successfully (available in German only)|
|www.ciconsultants.de||Counselling for business start-up, marketing services for small and medium-sized businesses|
Hereby we expressly dissociate ourselves from all contents available through the linked websites. We have no influence on the current or future design and contents of these sites. Therefore we also dissociate ourselves from all contents available through the linked websites which have been altered after the links were set.