Many people harbour the dream of self-employment, but are afraid to take the decisive step.
Did you know that the self-employment rate in Germany was only 8.7 per cent of total employment in Germany in 2022?
This contrasts with other countries, which have a significantly higher rate. For example:
• At around 30 per cent, the self-employment rate in Greece is one of the highest in Europe.
• The average self-employment rate of all OECD countries is around 15 per cent.
The final step towards self-employment is associated with uncertainty for many people. It can be absolutely worthwhile to take this step: self-employment offers the unique opportunity to realise your own ideas and grow personally and professionally.
However, becoming self-employed also requires thorough preparation and a comprehensive understanding of the market. It is crucial to proceed with solid planning and a clear understanding of the necessary steps.
The following 11 steps to self-employment are an important basis for successfully realising your business idea.
Your guide to self-employment: 11 essential steps
1. Start with a solid business idea
What is your passion? What can you do better than others? What problems can you solve? Your path to self-employment starts with an innovative idea.
Let’s assume you are a talented baker: why not open a bakery that specialises in healthy, gluten-free products? To develop and crystallise your business idea, start with a thorough market analysis. Identify potential customer needs and consider how your product or service can address them. Create prototypes or concepts and test them on a small scale to gather feedback and make improvements. Also consider working with advisors or mentors who can offer you new perspectives and expertise.
2. Develop your business plan
A detailed business plan gives you structure and a goal. Your business plan should definitely cover the following aspects: pricing, market analysis and assessing the strengths and weaknesses of your business idea.
Example: you’re planning an online shop for handmade jewellery. In addition to the production costs, your business plan should also include a strategy for customer acquisition via social media. You can find templates for business plans online that you can follow with just a few clicks.
3. Choose the right company name and design your logo
A memorable name and a professional logo are crucial to stand out from the crowd. Ideally, your name already reveals the essence of your business idea.
Example: the name “EcoClean” combined with a green logo effectively emphasises the environmental awareness of a cleaning company. This branding directly and clearly communicates the focus on sustainability.
Create mind maps to find names, or brainstorm with mentors or business partners. If you can’t get any further yourself, contact a PR agency. For a professional public image, it pays to rely on professionals!
4. Secure authorisations and choose the legal form
Depending on your business field, you will need certain authorisations. An example of this would be opening a drone flying service, for which you need special flying licences and insurance. The same applies here: know your way around your market segment and research thoroughly which requirements you need to fulfil and which insurance policies make sense.
You can find detailed information on choosing the right legal form and the small business regulation option in this article.
5. Business registration and legal basis
Before you can officially start your business, you need to register it. If you want to open a café, for example, you not only need a business licence, but also a catering permit, and you will also need to adhere to hygiene regulations.
Tip: to master the process of business registration and compliance with legal requirements, you can make use of various free or low-threshold advice options. In Germany, for example, the Chambers of Industry and Commerce (IHK) or Chambers of Crafts offer advice services that can guide you through the entire application process. These institutions often also offer seminars and workshops on topics such as the choice of legal form, taxes and hygiene regulations.
6. Build a website and online presence
Your website is your digital shop window. For a café, this could mean designing an attractive homepage, putting the menu online and integrating a reservation function. The same applies here: how do your competitors do it? How can you make your homepage stand out? Carry out a thorough market analysis, let yourself be inspired and give your own online presence a personal touch.
If you want to take care of the core tasks of your business, the support of a PR agency can be helpful. This is especially true when it comes to managing your company’s social media presence.
7. Set up your business account
It may sound trivial, but many people don’t have this on their radar when they start their own business: a separate business account not only helps with bookkeeping, but also improves the professionalism of your company for customers and business partners. It facilitates the monitoring of cash flows and the preparation of financial reports, which can be advantageous when applying for loans or investments. With a business account, you’ll always have a clear overview of your business finances.
8. Develop and implement marketing strategies
Well thought-out marketing is essential in order to position yourself successfully in today’s competitive landscape and attract customers. Going back to the café example: an effective marketing strategy could include highlighting the special features of your café, such as unique specialities or regular events like poetry slams or live music evenings.
Tip: include customer reviews and experiences on your website and social media to gain the trust of prospective customers.
9. Master bookkeeping and invoicing
As a newly self-employed person, you will soon be confronted with bookkeeping and invoicing. Decide whether you want to do this yourself or commission a service provider.
Bear in mind that although managing these tasks yourself saves costs, it can also take up a lot of time that you could invest elsewhere in your business. On the other hand, investing in professional accounting services can not only minimise errors, but also help to optimise financial overviews and maximise tax benefits.
10. Rent a business address
The right choice of location is crucial for the success of your company. Would you like to achieve a professional image without incurring high rental costs? Rent your business address from Office Club. With us, you can rent a prestigious business address and, depending on your needs, access well-equipped offices, meeting and conference rooms as well as flexible workspaces in prime locations throughout Europe.
If you do not want to enter your private address in the commercial register when setting up your company, you can use the ‘Virtual Office’ service ‘ at Office Club. This is particularly useful to protect your privacy and at the same time provide a reputable address to authorities and business partners.
While renting a business address includes the address itself, our virtual office offers additional inclusive services, such as included hours for the use of conference rooms or working in the booked Office Club location on site – so you can concentrate fully on your core business.
11. Build networks and forge partnerships
Networking is essential to be successful in the business world. Establish connections with other entrepreneurs and look for opportunities for cooperation.
Example: as a start-up in the field of sustainable fashion, you could seek partnerships with established fashion houses or influencers who share your vision. Attend industry events, take part in relevant workshops and use social media to expand your network and drive your business forward.
Conclusion: the path to self-employment involves numerous steps and important decisions. From developing a solid business idea to drawing up a detailed business plan and registering your business – every step is crucial.
In combination with consulting services and in-depth market analyses, you can use our eleven steps to plan your very own path to self-employment. Good luck!