Independence is a dream for many people that they would like to fulfill sooner or later in life. The number of business start-ups in Germany has increased steadily in recent years. Independence, free time allocation, own customers, being your own boss, vacationing when you want – there are many advantages to being self-employed. The opportunities to earn a living are often higher than self-employment.
However, independence also harbors dangers. These are mainly on the financial side. If a company fails, the disaster is often followed by larger debts and years of payment. The basic consideration must therefore be how can I finance my self-employment, how can I survive, what security can I create that the company will be successful over a long-term period.
Since the beginning of this year, a secure entry into self-employment has practically disappeared. In the past few years, the Federal Employment Agency has generously supported every registered business start-up with unemployment benefits plus 300 USD for social security plus a huge subsidy for coaching, but this funding has now been drastically reduced. The decision on state funding is now at the discretion of the clerk. The relevant positions seem to be encouraged to promote a few cases because the positive numbers have been going to zero since the beginning of the year.
So how do you finance self-employment today without government support? If starting a business involves major investments, there is only the possibility of a loan for self-employment. But even such is not easily approved. The key to convincing a bank to grant a loan for self-employment is the business plan. And this is not only of great importance for the official creditworthiness, but also helps the founder of a business to seriously consider and plan his project.
The business plan
The first step in getting a loan for self-employment is to consider the form of self-employment – if you want to work commercially or as a freelancer. Second, it should be very clear what you want to offer, why you want to offer it and what enables you to do it. Furthermore, the market and competitive situation has to be thought through. And finally, the financial part must be clear in a clear breakdown in order to actually get a loan for self-employment.
How high are the investments, how high are your own funds – and how high is the credit for self-employment? What income can be expected, broken down for the next five years. Social security is guaranteed as to what expenses you will incur – and ultimately: What total profits can be expected. This ultimately results in the time frame and the installments in which the loan for self-employment can be paid off.
Not to forget the business knowledge of an entrepreneur as the basis for successful self-employment. Most companies fail because of disorganization, incorrect accounting and so on. If you are not fit in this, you will not receive a loan for independence. Evidence of the necessary commercial knowledge must be available. Those who have a lot of catching up to do can continue their training with free courses.