Under the principle of freedom of trade, anyone who is of legal age can become self-employed. Anyone who wants to start their own business initially has all options open to them. When first considering this step, you should analyze your own situation. Essentially, you should assess your professional qualifications, your financial situation, and the market conditions in your desired industry. The next step is to write down all your ideas for self-employment and identify the requirements—in terms of time, finances, space, and personnel.
Requirements for Self-Employment
A self-employed person is an owner, manager, and skilled worker all at once. In addition to making strategic decisions, you must also keep financial planning in mind. Important personal qualities for self-employment include perseverance, discipline, ambition, and self-confidence. As a self-employed entrepreneur, you should be able to think long-term and motivate yourself. Having a strong network and an authentic, self-assured demeanor are advantages in today’s business world.
How strong is my professional expertise? Strong professional expertise and work experience are essential for building a reputation as a self-employed professional in your field. This can serve as a unique selling point that sets you apart from the competition in the market.
How strong is my interdisciplinary knowledge? In addition, self-employed individuals face a range of interdisciplinary tasks that aren’t necessarily required in an employee role.
Ideas for a Strong Start in Self-Employment
A good business idea for starting your own business doesn’t necessarily have to be brand-new. Further developing existing products and services on the market has good prospects. Your positioning in the market should be clearly defined. At least one unique selling point should be highlighted. A good way to start your own business can also be taking over an existing company or becoming self-employed through a franchise.
Financing Self-Employment
Financial support is available in the form of a bridge loan from the employment office for the first 6 months. For aspiring master craftsmen who are starting their own business, there are special support programs offered by the Chamber of Industry and Commerce (IHK) and the Chambers of Crafts. Every federal state has guarantee banks, the KfW, and development banks offering a variety of financing options. A guarantee bank can assume the risk associated with loan transactions. Specifically, the institution would step in if the entrepreneur can no longer service their loans and other collateral has already been used. Prospective self-employed individuals should definitely also inquire about funding opportunities through the so-called funding database of the Federal Ministry for Economic Affairs. It provides an up-to-date overview of programs offered by the federal government, the states, and the European Union.
Advantages of Self-Employment:
flexible work schedule
working independently
Self-determination
Meaningful work & realizing your own vision
Challenge & adventure
Your own efforts pay off for you.
Lifelong learning
Disadvantages of self-employment:
You must pay the full cost of social security and mandatory insurance.
You must make your own retirement provisions.
You must build up savings for a rainy day.
There is no vacation pay and no continued pay in the event of illness.
All responsibility rests with you.
High psychological stress
Loneliness
