1.3. What are business plans needed for?

1.3.1. Business Plans for setting up a Company

Business start-ups should be defined as start-up, business start-up or new business start-up. The start-up typically begins with an "open" situation. The founder must and can define all the conditions for his business himself. The start-up is characterised by starting "from scratch". The start-up is also associated with the claim of wanting to make a personal living with it. It is usually aimed at being able to secure one's personal existence in the long term. A start-up can also include a business that is run "on the side". This would be a self-employed secondary activity. Every newly founded company has to find its market. The start-up must be designed in such a way that it can conquer a certain position in the market. In the start-up, it is important to develop the business idea in such a way that the start-up has a real chance. The product and the service must be clearly defined. The service offered must find customers who are willing to pay a certain amount of money for it. The service must be able to hold its own in competition. An organisation must be set up for the start-up. Goods and supplies must be purchased, processed and sold with an added service. A marketing plan must show how customers are to be won. The founder must be convinced of his business idea in order to find employees who will build up the company with him. Financing must be found. Finally, the turnover, minus expenses, should lead to a profit. Every start-up has a start-up phase. During this time, the crucial business relationships must be developed. A business start-up involves opportunities and risks. These must be convincingly presented in a business plan.

A start-up can be founded in any legal form. If a start-up wants to operate a trade, it is a good idea to run the company as a sole trader. However, a contractual agreement is always necessary so that the "internal" legal relationships are clarified. This will be necessary at the latest if the parties involved are in dispute. Finally, "freelance activity" is a possible legal form for the liberal professions (doctors, lawyers, consultants, etc.). It can be started without delay and registration. In the case of commercial activity, a business registration is required. In any case, the founder of a business must apply for a tax number for the preparation of invoices at the tax office.