Frequently asked questions about starting a business
Frequently asked questions about starting a business
A good way of planning a business start-up is to make a business plan. The business plan is a structured presentation of your thoughts on the product/service, market, competitors, strategies, business concept, income, costs and budget. A business plan will show you whether your concept can work and how to proceed in the next stage.
Start by making a current status analysis. Have a close look at your market and try to determine whether there are any new trends or other factors that may affect your company in the future. Analyse competitors and your own company. Consider threats, opportunities, strengths and weaknesses.
Also describe your business concept and define the company's target group in the marketing plan. Where possible, examine what potential customers might think of your concept. This may help when you consider pricing, potential and goals.
There are many ways of finding customers and customer potential. Using different categories, start by dividing up your market and finding your own target group. You can consider factors such as age, gender, customers' social or economic situation and their interests or characteristics. You may want to compare your concept with your competitors to see what their clientele looks like.
As a rule, you must be 18 years of age to start a business, but there are some exceptions depending on the type of company.
- Sole trader - If you are between 16 and 18 years of age, you must have the consent of your guardian and senior guardian.
- Limited company - You must be 18 years old to start a limited company or be a board member.
- Trading company and limited partnership - You who have turned 16 but not 18 may be a partner in a trading company if your guardian and senior guardian give their permission.
- Branch - You must be 18 years old to start a branch or be CEO.
There are no restrictions on how much you can earn from a hobby activity. The difference between hobby activity and business activity is that hobby activity is not operating for gain. It is something you do in your leisure time and is not your main livelihood.
A hobby activity is normally taxed as earned income under the category employment income in the tax return. In principle, all income is taxable and all expenses are deductible. If you pursue business activity for gain, you must apply for F-tax and declare the profit under business income.
In the Find advice and financing service, you can find different types of support for those who run a business or are considering starting one. You can find everything from seminars and training, to offers for financing.
In addition, there are contact details for both advisers and organizations that can help you in your business.
