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There are several options how to start your own business without equity.
1. Credit: Many banks offer loans with which you can finance yourself as a founder. The conditions can vary and proof of creditworthiness may also be required.
2. Business angels: business angels are investors who help entrepreneurs with their start-up. They provide support to the business in the form of financial backing, advice and networking.
3. Crowdfunding: crowdfunding is a way to raise capital through a platform on the internet. It is used to raise money for new products, projects or businesses.
4. Government funding: There are many government funding programs that can help entrepreneurs fund their startup.
5. Business plan competitions: there are many competitions where you can submit a business plan and win cash prizes. If the business plan is convincing, you can also find investors who will give you a hand.
Founding a company is an exciting step, but it also requires tax considerations. When starting a business, founders need to consider a variety of tax issues, including VAT, income tax and trade tax. In this article, we take a closer look at these tax aspects and how they affect budding entrepreneurs.
Sales tax: when is it relevant?
Sales tax, also known as VAT, is a consumption tax levied on the sale of goods and services. In Germany, the general VAT rate is currently 19%, while the reduced rate is 7%. When setting up a company, founders must decide whether they want to be liable for VAT or not.
The VAT liability can be relevant for companies that offer goods or services that are subject to VAT. If a company is liable for VAT, it must collect VAT on its sales and pay it to the tax office. At the same time, it can claim the input tax it has paid for business expenses.
Income tax: personal tax liability
Income tax concerns the personal tax liability of the founders and owners of a company. In Germany, income from self-employment and entrepreneurial activity is generally subject to income tax. The amount of income tax depends on the income and the personal tax rates.
It is important to note that in Germany the Income Tax Act makes a distinction between tradespeople and freelancers. Freelancers, such as doctors, lawyers and engineers, are subject to different tax rules than tradespeople who produce goods or provide services.
Trade tax: For companies with commercial operations
Trade tax is a municipal tax levied on companies that operate a trade. The amount of trade tax depends on the amount of trade income and the assessment rate of the respective municipality. Founders must check whether their activity is classified as commercial and whether they are subject to trade tax.
Crowdfunding and legal provisions: Financing for start-ups
Crowdfunding has become a popular financing method for start-ups. It allows founders to raise capital from a variety of investors, often via online platforms. Despite its appeal, start-ups must observe certain legal provisions when using crowdfunding:
1. Crowdfunding platforms: Start-ups should ensure that the crowdfunding platform they select meets the legal requirements and has a valid license.
2. Type of company: The type of company can have an impact on the legal requirements for raising capital. Some forms require the publication of certain information for investors.
3. Transparency: Start-ups must be transparent about their business, financial position and risks. This is crucial to gain the trust of investors.
4. Contracts and agreements: It is advisable to seek professional legal assistance to properly draft the contracts and agreements with investors and ensure that they comply with applicable laws.
Proper advice and compliance with the law are crucial to running successful crowdfunding campaigns and avoiding legal issues.
Conclusion
Tax considerations and legal regulations are key aspects of starting a business and raising capital via crowdfunding. Founders should learn about tax obligations early on and consult legal experts to ensure that their business operations comply with applicable laws and regulations. With the right preparation and advice, founders can maintain their financial integrity and build their business successfully.
As a solo self-employed person or freelancer, acquiring orders is a key task. If you are still new in the industry and have not yet built up a large network, the acquisition of orders can be a challenge. Therefore, it is important to think about your target group and your offer in advance.
First, you should make a list of your target audience. This includes potential customers as well as partners with whom one can collaborate. It is important to be aware of the needs of the target group and to understand what kind of offer might be interesting for them.
Then, you should consider where you can best present your offer. This includes not only social media such as Facebook, Twitter and LinkedIn, but also industry forums and communities. Trade shows and events that one can attend are also a good way to present one's offering and make new contacts.
Once one has presented one's offer, one can start contacting them directly. To do this, one can send personal emails to potential customers and partners, but one can also make cold calls. It is also important to keep drawing attention to oneself and promoting one's services.
In order to be successful in the long run, it is important to keep developing and updating one's knowledge about the industry and one's clients. This way, you can always create new contacts and expand your clientele.
1. Project management software: Project management software is an essential component for successful project planning. It helps you to keep track of different tasks. Multiple projects can be tracked at the same time, so you can have an overview of all the tasks that need to be done.
2. Gantt charts: Gantt charts are one of the oldest methods of project planning. They visualize the tasks that need to be done for the project and help you keep track of all the tasks.
3. Agile project management: Agile project management is a method to manage the fulfillment of project goals. It consists of short, iterative cycles of testing, learning, and adapting to ensure that the project is on track.
4. Task lists: task lists are a simple but effective way to track what needs to get done. They help you prioritize and ensure that all tasks are completed on time.
5. Time management: time management is one of the most important skills a founder or self-employed person must have. It helps you complete your tasks more efficiently by helping you prioritize and use your time effectively.
6. Resource management: resource management is an essential part of project management. It helps you identify and manage the right resources for each project to ensure your project is on track.
Artificial intelligence (AI) today is capable of performing a wide range of tasks, such as automated authoring and editing of text, creation of images and graphics, recognition of patterns, and segmentation of data.
A particularly insightful example of the application of AI in content creation is what is known as automatic text generation. Artificial intelligence can be used here to autonomously generate text on a given topic. This text can then be reviewed and edited by a human editor to suit the client's requirements.
AI can also be used to create images and graphics. Artificial intelligence can be used to generate images and graphics using algorithms on a computer. These images can then be edited by a designer to fit the client's needs.
AI technology can also be used to recognize patterns. Artificial intelligence can be used to analyze data and look for patterns. This technology can then be used to uncover what content is best suited for a particular audience.
Finally, AI techniques can be used to segment data to ensure it is relevant to specific audiences. These techniques can also be used to customize content for different audiences.
In a nutshell, it can be said that AI is already playing a strong role in content creation. AI technology can be used to create text, images and graphics, recognize patterns and segment data. This allows content creators to work more efficiently and customize content for different audiences.