How can I best finance my start-up?
January 28, 2022 | 50,00 EUR | answered by Karl Albrecht
Dear tax advisor,
I am on the verge of starting my own business and I am unsure of the best way to finance it. My name is Ingo Ehrenbreit and I am planning to start my own IT company. I have been working as an employee so far and was able to save up some money thanks to my regular income. Now I am faced with the question of how to best cover the costs of starting my own business.
Currently, I have a starting capital of approximately 20,000 euros, which I plan to use for purchasing office supplies, developing a website, marketing activities, and covering my ongoing expenses in the first few months. Additionally, I plan to finance myself and possibly hire additional employees.
My biggest concern is that the starting capital may not be enough to cover all the costs and successfully build my company. I want to avoid running into financial difficulties right from the start and am therefore looking for an optimal financing solution.
What financing options would you recommend to best support my business start-up? Are there any government funding programs or loans suitable for entrepreneurs like me? How can I ensure that I have enough financial resources in the long term to successfully run my business?
I look forward to your expert advice and thank you in advance for your support.
Best regards,
Ingo Ehrenbreit
Dear Mr. Ehrenbreit,
Thank you for your inquiry regarding the financing of your startup in the IT sector. It is good that you already have a starting capital of 20,000 euros to cover the initial costs. However, it is understandable that you are concerned about whether this capital is sufficient to successfully establish your company.
There are various financing options that can help you start and sustain your IT company in the long term. One option is to take advantage of government funding programs for startups. These programs often offer low-interest loans or grants for the establishment and development of a business. It is worth inquiring with the relevant authorities or the Chamber of Commerce about such funding opportunities.
Another way to finance your startup could be to take out a loan from a bank. Many banks offer special loans for startups tailored to the needs of entrepreneurs. It is important to present a solid business plan that convincingly outlines your business idea and financial projections. This way, you can convince the bank of the profitability of your project and secure financing.
In addition to government funding programs and bank loans, investors could also be an option for financing your IT company. However, you should consider that you will have to give up a portion of your company's shares and therefore relinquish some control over the management of the business. It is important to carefully consider whether such a partnership is beneficial for your company.
To be financially secure in the long term, it is advisable to create a well-thought-out financial plan. In this plan, you should realistically assess your income and expenses and take possible fluctuations into account. This way, you can keep track of your financial situation and take early action in case of any financial difficulties.
I hope this information helps you with the financing of your startup. If you have any further questions or would like more detailed advice, I am happy to assist.
Best regards,
Karl Albrecht
