Founding a business

Basic questions Which product line? (simple, fancy vs. high quality, expensive, small mass) How are we going to be different? (quality vs. individuality) How do you protect your ideas? (trade mark) How much time passes until the material is used up? Are there any examples of good working, similar businesses? Investing in marketing

The business itself What are our competitors doing? → if we improve, they also will Which regulations concern our business? (hygiene regulations etc.) Plan for the business: enough resources for the first three months → what could happen? Cooperation, strategic business partners, providers of goods Need of a central theme (always the same appearance at each location) Can we expect subsidies by the administration district?

Questions concerning money How much equity are you going to contribute? It takes some time until the company has regular sales When lending money, the bank wonders, whether it will get the money back → will the company still be existing in three years? How much money needs to be paid at the beginning? Why should the bank take the full financial risk?  the higher the loan you are going to take, the better you will have to sell yourself

Things that will cost money when establishing a business goods providers of goods marketing (1500 euro) machines (25000 euro) furniture (20000 euro) initial stock (e.g. If you sell something the store needs to be full at the beginning) staff (30000 euro per year) trade mark registration clothes for employees hygiene products for cleaning taxes (profit tax, purchase tax, capital-based taxes; income tax, corporation tax, occupational tax, value tax) transportation (of goods etc.) location (purchase or rent of buildings or areas)

Insurances (crucial, more are recommended) health insurance: 15.5% of gross salary (employer: 7.3%; employee: 8.2%) old age insurance: 18.9% of gross salary (employer: 9.45%; employee: 9.45%) long time care insurance: 1.95 – 2.2% of gross salary [depends on whether the employee has children] (employee:1-1.2%) unemployment insurance: 3% of gross salary (employer: 1.5%; employee: 1.5%) accident insurance loss of earnings insurance

Thanks for listening!