Tip #1: Define and analyze your project
To know if your project can turn into a profitable and viable business in the long term, you must first identify your motivations, then identify the needs in the market as well as the feasibility of the project.
Start by doing a market study to understand the demand in your business area, analyze the competition, and figure out your positioning and added value in that field.
Next, develop a solid business plan, including a market study, a sales strategy, your company's short, medium, and long-term goals, and a financial plan (budget, expenses, projected turnover, etc.).
Thanks to your business plan, you'll have a very clear vision of your project's future and can rely on a credible document to convince the financial partners and investors you'll need to fund your business.
Tip #2: Smartly choose your registered address
The next thing to define is your company's registered office.
Entrepreneurs have three options:
- their own home,
- a rented space,
- using a business address provider.
Although it is common for entrepreneurs to start their business from home, this is not necessarily the most sensible option.
Keep in mind that your company's registered address will appear on all administrative documents and correspondence.
Renting office space is also a popular choice for many. However, commercial leases can be pricey, which can discourage small business owners who don't have the funds for such a monthly expense. Because of this, they might avoid setting up shop in major cities and instead opt for less desirable areas.
However, it is important not to neglect this notion of geographical location, as it will reflect the company's image.
The only option left is business domiciliation, which seems like the best alternative for establishing a registered office. With an affordable monthly cost, the entrepreneur benefits from an address in a prestigious business district.
This great visibility comes with personalized services, such as mail management, a telephone answering service, and access to meeting rooms. This represents great savings compared to renting an office, while still allowing you to have a renowned business address for your registered office and tailor-made services.
Tip #3: Pick the best legal structure
You now have, with your business plan and market research, a very clear idea of what your idea is worth and how viable your project is. You've also convinced and secured the necessary support to get started. Perfect!
Then comes the most complex phase, requiring the greatest reflection: choosing the legal status. The legal status is crucial and decisive for setting up your company, as it defines its operation, liability, accounting obligations, administrative formalities and tax regime. It is therefore essential to ask yourself the question: which legal status for my company? This choice will directly influence the structure and evolution of your activity.
There are many types of businesses. First, do you know if you want to create an individual entity or a company?
Choosing an individual business or a company
By opting for a sole proprietorship, you're choosing great freedom of action through simple and inexpensive management.
Since there are bound to be drawbacks, keep in mind that your personal assets will be fully merged with those of your business.
This is a significant risk because all your assets can be seized in the event of debt. However, a declaration of non-seizability can be made before a notary to avoid this.
You can also choose to create a company. You should know that a company is a legal entity, independent of its partner and the physical person that you are.
That means the manager's professional and personal assets remain separate, so their personal assets are protected if the company incurs debt. However, the manager is legally and criminally responsible for the company and, among other things, has a duty to always act in its best interest.
Do you prefer to start a company? This choice will lead to another: to partner or manage the company alone?
Don't hesitate to consult a professional to help you make these difficult decisions: a notary, lawyer, or legal expert can guide you toward the legal structure that best suits your business project and management preferences.
Tip #4: Get good support when setting up your business
Starting a business involves a lot of steps that need careful thought and preparation. Sometimes, entrepreneurs face tricky administrative or tax choices and formalities. That's why having good support at each key stage can be a real advantage for success.
We've already mentioned domiciliation companies, which can help you establish your registered address and provide tailored additional services: phone answering, mail management, meeting rooms, etc. These things will give your company a very professional image and build trust with your clients and partners.
We've also just mentioned legal professionals who can advise you on choosing your legal structure and help you complete the mandatory administrative steps, which are more extensive when setting up a company.
They will allow you to:
- understanding the complexities of your legal structure (liability, appointment of managers and partners, etc.)
- draft the articles of association,
- define and deposit the share capital,
- and then comply with all tax obligations (VAT, tax returns, social security contributions, profit taxation, etc.).
If you create a company, you are obliged to keep accounts. To ensure that these are accurate and free of errors, you can also call on another professional: an accountant or a chartered accountant. They will be there to advise you on a daily basis and will ensure optimal financial monitoring for your business.
Thus, many professionals can be involved in your decision-making, to help you make the right choices at each stage of your business creation, which will increase your chances of success.
Tip #5: Correctly handle the administrative procedures
Once you've chosen your legal status, there will be some administrative tasks to take care of.
First, you must apply to register your company via the single online business portal on the INPI website.
You will then indicate the chosen legal form and must complete the corresponding form. Be very careful when filling out this form: each decision and piece of information given will determine the future of your activity.
Next, you will be asked to provide documents and supporting documents to complete the file, and the request will be sent to all the parties concerned.
You'll get your K-Bis extract a few weeks later, which officially confirms your company's creation and market entry. This document includes key details, like your SIREN number, which you'll need to invoice clients and declare your revenue later on.
If you're setting up a company, you'll have other formalities to complete:
- the drafting of the articles of association,
- the appointment of the manager and the various partners,
- the deposit of share capital by the partners,
- Publishing a registration notice in a Journal of Legal Announcements (JAL) to formalize the creation of your company.
Aids and funding
Finally, don't overlook the funding and various aids you could get, as they will greatly facilitate the launch and success of your business creation project.
Job seekers can in particular benefit from ACRE and ARCE, via France Travail, which grant a reduction in social security contributions and the full payment of all remaining allowances to constitute start-up capital or share capital.
Entrepreneurs can also get aid from their department or region, as well as subsidies to supplement their personal contribution. Check with government organizations in your municipality, who will be able to inform you of the aid you are entitled to.
