Define your business plan
Identify your project idea
Identifying your project idea is the first crucial step in starting a business. It's essential to take the time to think about your idea and define it clearly. Ask yourself questions like: What is my goal? What problem am I going to solve? Who is my target audience? What are my competitive advantages? Take notes and create a document that summarizes your project idea. This in-depth reflection will allow you to lay a solid foundation for creating your company.
Study the profitability and stability of your business creation project
Business plan and forecast
Before launching your business, you should study the profitability and financial stability of your project. The entrepreneur estimates their projected turnover. They must create two essential documents to determine the viability of their project:
- The business plan which concentrates the overall strategic vision of the company;
- The projected financial plan detailing the financial elements and profit projections.
The projected financing plan helps assess the financial resources needed for a business creation project. It details personal contributions and loans. At this stage, it's crucial to accurately evaluate your financial needs and seek suitable solutions to ensure the project's success.
Conducting market research
A market study is essential to understand your target market and validate your project idea. Collect data on your market, your competitors, and your potential customers. This will help you identify opportunities and threats, and adjust your project idea accordingly. Use tools such as surveys, interviews, and data analysis to conduct your market study. This step will allow you to better understand the environment in which you will operate and refine your strategy.
Business start-up assistance
Depending on the nature of your project and your personal situation, business creation assistance is available. France Travail offers support schemes for unemployed people wishing to create or take over a business. It is possible to continue receiving your unemployment benefits or to obtain a lump-sum payment of part of your benefits. The assistance is called:
- ACRE: Assistance for the creation or takeover of a business, offering an exemption from social security contributions for 12 months.
- ARCE: This is support for starting or taking over a business, and it means you get 60% of the remaining jobseeker's allowance (ARE) paid to you upfront.
What are the main legal statuses for starting a business?
What are legal statuses?
The legal status, also known as the legal form, provides key information on the structure of the company and the legal framework governing it. It has an impact on all areas of the company: social, tax, accounting and commercial.
To choose the legal status that best suits your profile as an entrepreneur, it is important to take several factors into account:
- The nature of the activity;
- The number of partners;
- The legal status of the partners (legal entities or individuals);
- The type of taxation you're after.
There are two main types of legal statuses for companies in France.
Sole proprietorship
A sole proprietorship (EI) is a legal structure specifically designed for entrepreneurs who want to go it alone. So, you can't have partners. There are two types of EI available:
- the sole proprietorship (EI);
- an individual business under the micro-enterprise scheme (formerly known as auto-entreprise).
Micro-entrepreneurs have revenue caps they need to stick to. They can't deduct business expenses from their revenue. They also get a VAT exemption if they meet certain criteria.
Whether you select the classic sole proprietorship or the micro-enterprise version, the formalities for declaring activity are simplified. Management procedures are made easier. This is a flexible model for entrepreneurs wishing to pursue a second professional activity, test a business concept, etc.
Single-person companies: EURL and SASU
Single-person companies are legal structures designed for entrepreneurs who want to venture out on their own. There are two types of single-person companies:
- The single-member limited liability company (EURL);
- Single-member simplified joint stock company (SASU).
The EURL and SASU have only one partner. They are legal entities with their own assets. Personal assets are separate from the company's assets. In the event of default, the entrepreneur is only liable up to the amount of the share capital contributed.
The SASU offers great freedom in organizing the company's operations. As for the EURL, the manager's remuneration involves lower social security contributions than in the case of a SASU.
Multi-person companies: SARL and SAS
There are many forms of multi-person companies:
- The Limited Liability Company (SARL);
- The simplified joint-stock company (SAS);
- The general partnership (SNC);
- Public limited company (SA).
We'll mainly focus on the two most common types: the SARL and the SAS.
The choice of legal structure depends on the nature of your project and your business plan. In an SARL, the share capital is divided into shares in several categories. In an SAS, the shares are integrated into a single category. While the SARL can be managed by several managers, the SAS has a president at its head. The latter is attached to the assimilated employee scheme, while the manager of an SARL is directly linked to the self-employed scheme (TNS).
Which registered address for your future company?
What is commercial domiciliation?
Choosing a business address for your company is a strategic move. Business domiciliation means choosing a postal address for your registered office. It's like the official address for your sole proprietorship or company, where you'll get all your important mail about taxes, legal stuff, and official notices. This is how suppliers, customers, and business partners will officially contact you by mail.
Your company's registered office address must appear on many documents:
- The K-bis Extract;
- The company's articles of association;
- Commercial documents: quotes, invoices, etc.;
- Company documents: employment contracts, communications to employees, etc.
What are the solutions for registering the address of your commercial business?
There are several solutions for registering your company's registered office. The choice depends on your company's structure and activity. Commercial premises are a great idea if you receive clients. However, it involves many operating costs: rent, energy, telephone, etc.
Individual entrepreneurs (EI, auto-entrepreneur, SASU, EURL) can opt for a coworking space in some cases. Several companies choose commercial domiciliation within a structure and use shared resources. This is a great solution for entrepreneurs looking to develop synergies.
As an extension of the coworking space, the domiciliation company offers very competitive advantages. Entrepreneurs can rent coworking spaces, offices, and meeting rooms. They get a mailbox to register their company's address and receive mail. The mail can be scanned and forwarded as needed. Lastly, the domiciliation company helps lower the amount of the Corporate Real Estate Contribution (CFE) while enjoying a prestigious address.
Finally, using the manager's address as the company's registered address is a viable option, especially for micro-entrepreneurs.
The creation steps
After studying the feasibility of your business creation project by writing your business plan and financing plan, you need to consider the legal form to adopt and the best solution for the registered office address. Once these three preparatory steps have been completed, you can proceed with the steps to launch your business:
- Drafting of articles of association;
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Deposit of share capital;
- Publication in a Journal of legal announcements (JAL);
- Declaration to the Single Window.
It's also key to know the administrative steps needed for any changes to the company's articles of association or information. This includes online procedures and the different formalities to follow when making these changes.
Micro-enterprises benefit from simplified creation formalities that do not require share capital, legal statutes or publication of an announcement in a JAL (Journal of Legal Announcements).
Before starting a business, take some time to think and analyze your project to see if it's viable. You'll need to make two strategic choices: the legal structure and the location of your registered office. Once you've thought about these things, you can start the process of setting up your business.
Implement a marketing strategy
A marketing strategy is super important for promoting your business and hitting your goals. Figure out where you stand, who you're aiming for, and how you'll chat with them. Make a marketing plan with real steps to get where you want to be. This could mean making a website, getting on social media, creating content, and doing some online advertising. A well-thought-out marketing strategy will help you stand out and snag your first customers.
Understanding the principles of financial management
Financial management is key to your company's success. Understand the basics of financial management, like creating a budget, managing cash flow, and making financial decisions. Create a business plan that includes financial forecasts and clear goals. This will help you make informed decisions and reach your financial goals. Good financial management is the key to ensuring your company's long-term survival and growth.