Starting a Company – The 18 Questions And Challenges When Starting Your Own Company

Starting a Company

Starting a Company

Setting up your own company is an attractive but also challenging goal. A good idea is often the basis. For the implementation, however, a well-planned approach and a lot of perseverance are required.

The questions explained below provide important information for anyone wishing to starting a company.

1. Do you as a Person Meet the Basic Requirements for a Successful Company?

On the one hand, it is important that you are convinced of your founding idea. On the other hand, certain personal characteristics are also a prerequisite for success if you start your own company.

Perseverance and the ability to motivate you are very important. Because success will not come immediately and you should not be discouraged by setbacks. In addition, every independence is associated with challenges that you should not shy away from. It is also advantageous if you bring along sales talent and leadership strength.

When you start a company in a team, it is very important that the chemistry between the founding partners is right. This is a prerequisite for open communication, in which constructive criticism is not a problem.

It is beneficial if the individual team members bring different skills and abilities that complement each other. For example, one founder may be more concerned with technical matters and another with business matters.

2. Do you Have a Working Business Idea for Your Own Company?

Starting a company is based on a business idea. Check this full article before you create your business plan or take further steps.

Create a Business Plan online or offline. It is about determining whether the idea can work. You divide a sheet of paper into several fields or use an appropriate online tool. Each field represents an area that needs to be considered when starting up a business. Examples of this are the special customer benefit of the product, the sources of income or the resources. In these fields you and your co-founders, if applicable, record ideas and plans.

3. Have you Thought About Alternatives to Starting up with Your Own Business Idea?

You may be in the situation that you would like to starting a company, but do not have your own business idea. In this case, too, you don’t have to give up your dream of becoming self-employed.

There are basically two options for starting your own business idea: company succession and franchise.

With a company succession, you do not have to found your own company – at least not from scratch. You take over the business that someone else has successfully built.

These are often entrepreneurs who want to retire or are looking for a successor for other reasons, such as health. In most cases, the prerequisites for company succession are knowledge of the industry and sufficient capital.

Franchise means that you use an existing and established business model for a fee and set it up in one or more new locations. Although you are self-employed, you benefit from the familiarity of the brand, tried and tested processes and structures as well as the support of the franchiser.

4. Have you Invested Enough Time in Planning to Starting a Company?

Take enough time to start your own business. Careful planning is a prerequisite for sustainable success if you want to start a company.

Unfortunately, many good ideas fail because the founders have not dealt with them sufficiently. Allow several months for the preparation phase.

5. Start your Own Company: Do you Have a Financing Plan?

Sometimes the most important part of the business plan is the financial plan. Based on forecasts, you work with concrete values. You plan your sales figures for the first months and years and compare them with the expected costs. This shows whether the company can work profitably at all.

If you have not enough invest for starting a company, then apply for loan. The first point of contact for a loan for the self-employed is your house bank or another commercial bank. This also supports you when applying for a subsidized loan.

6. Do You Have All the Permits You Need When Starting a Company?

In certain situations, you need special permits, if you want to start your own company. If you are not sure whether you need permits and what they are, please contact the single point of contact in your state.

7. Do you Have the Right Legal Form for Your Company Foundation?

If you found your own company, you have to choose a legal form that suits you. Each has its own peculiarities, advantages and disadvantages. The following table provides an overview of the most important legal forms in Germany as well as their distinguishing features.

8. What Should Your Company be Called?

In this question, a distinction must first be made between the business name and the company name. The business name applies to all companies that are not entered in the commercial register.

It is an addition to the personal name of the owner or the partners. A company name for companies registered in the commercial register, on the other hand, can contain the name of a person, but does not have to. The legal form is mandatory in every case.

The following tips will help you find a good name for your company:

  • Use the name to convey the benefits your company offers.
  • Use the language of your target group (e.g. serious, youthful or creative).
  • Use creativity techniques such as association chains or mind mapping to find ideas.

When searching for a name, consider that the name should ideally match the domain for your website. Therefore, check whether the desired domain is still free. Also research whether the name already exists so that you do not infringe any property rights when you set up a company.

9. Have you Thought of All Aspects of Trademark Law?

There is a risk that you infringe property rights, both in the company name and in connection with your products and your external appearance. On the other hand, you can also have your own rights protected.

There are various industrial property rights. When it comes to technical functions of an invention, these are often protected by a patent or a utility model. The difference is that the patent is examined thoroughly, which is why a patent application can take a long time.

The design, however, is about protecting a design. Brands are also usually protected, whereby this protection can include the logo, certain words, product shapes or colors combinations.

Secure a domain for your website in good time when you start a company. There are also some restrictions here. For example, no city, celebrity, or movie name may be included.

10. To Which Offices do You Have to Start Your Company?

For corporations, the first is authority’s transitional registration in the commercial register, if starting a company.

As described above, find out whether you need to obtain permits. The next step is to register the business with the commercial office in your city or municipality. However, this only applies if you set up your own company that has a commercial character.

As a freelancer or in a primary production company (e.g. agriculture), register your company directly with the tax office. You fill out the questionnaire for tax registration. This is the next official route for commercial companies. The same applies if you register a small business.

11. Starting a Company: Are You Well Secured?

When you start a company, you also clarify your own insurance policies as an entrepreneur. Since health insurance is compulsory, you have to choose between voluntary statutory and private health insurance.

With regard to old-age provision, in addition to the various private insurance offers, there is also the option of taking out statutory insurance. Some professions, for example many craftsmen, are compulsorily insured in the statutory pension insurance.

You need different types of insurance for your company. Liability and business content insurance are definitely recommended. Both must be based on specific needs.

Vehicle and building insurance are indispensable for many companies and legal protection is also often useful. A company insurance comparison will help you determine your needs and find suitable offers when starting a company.

12. Which Business Account is Right for You?

All business income and expenses are booked via your business account. Even if it is not required by law for every legal form, opening a business account is recommended if you are starting your own company.

This is not a problem either, because there are very inexpensive accounts for companies.

But don’t just let the basic fees guide you. Compare the costs for individual bookings as well as for card usage. Consider what you will probably need in everyday business life.

Online banks are often inexpensive. But a branch bank that is also located near you is suitable for cash transactions, especially deposits.

If you often travel abroad, you will use your credit card more often. In this context, note the costs for card transactions.

A business account comparison helps you to decide on a suitable offer. Also pay attention to the legal form for which the individual account models are suitable.

13. Has the Location Question for Your Own Company Been Clarified?

When looking for a suitable location, the first task is to formulate the requirements. What is particularly important for your company?

From the accessibility for customers to the infrastructure to the rental or property prices, many factors can influence the decision.

Good transport links are important if you regularly receive material and goods deliveries. If you are dependent on walk-in customers, the branch should be where many representatives of your target group come by. Since different requirements can compete with each other, you have to set preferences.

14. Have you Thought of Everything When it Comes to Your External Appearance?

The external appearance determines how potential customers perceive and remember your company. Therefore, place value on a corporate design with which you address your target group when you set up your company.

In this area, it makes sense to work with specialized service providers such as advertising specialists or graphic designers.

Corporate design means that you use the same design for your entire corporate identity. It is characterized by certain colors, fonts and shapes.

A company logo is also included. They use the design on the website, in business correspondence, on invoices and in connection with all advertising materials.

A corporate design means that customers and business partners quickly recognize your company. It is therefore an important contribution to customer loyalty.

15. How do You Win Your Customers Over to Your Business?

Attracting and retaining customers is essential for the success of your company. The focus is on the task of recognizing and satisfying the needs of customers.

It is important to establish customer orientation in all corporate processes.

A marketing plan helps to achieve this goal. You first analyze the current situation of your own company and that of the competition.

You then determine the marketing goals, derive the marketing strategies and determine the use of marketing instruments. Check the achievement of goals regularly.

The design of customer relationships succeeds better on the basis of CRM, a customer relationship management.

The focus here is on communication with customers and the right approach. There is special CRM software that supports marketing.

16. Do you Have an Eye on Accounting?

If you are starting your own company, you should have a basic knowledge of accounting or acquire this.

However, modern accounting software offers a lot of support, so you don’t have to be an expert in this area. There are free and paid programs.

17. Starting a Company – Maybe Better as a Sideline?

If you start your own company, you don’t necessarily have to give up your current job. Many entrepreneurs start with a part-time business, which is either permanently set up as such or later to be expanded into a full-time job.

Sideline start-ups offer several advantages, for example:

  • Lower risk as the main job does not disappear.
  • Possibility to gain experience, test ideas and let a company grow slowly without pressure.
  • Can also be viewed as additional money earned or a paid hobby.

The advantages are offset by disadvantages:

  • Not suitable for every business idea.
  • Reduced time expenditure may reduce the chances of success compared to the competition.
  • There may be conflicts with the main job.

18. How do You Reduce the Risk of Failure When Starting a Business?

The risk of economic failure when you start a business can never be completely eliminated. There are too many factors that influence this. With good preparation and thorough planning, however, you can reduce it.

Therefore, get professional advice if you want to start your own company. There are various funding options for both the phase before and after starting your own business. I advice you to hire a business consulting agency.

Conclusion: Start Your Own Company with Good Planning and Advice:

When you starting a company, there are many details to consider. The steps mentioned in the article By Trend Of Week give you useful suggestions.

Plan carefully and take enough time to start your own business. In this context, it is definitely advisable to take advantage of the offer from a consultant, especially at the start.

This helps you to better assess the risks associated with starting up.

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