Business plan

Are you from an EU member state and do you hold a German degree? Then you can become self-employed or run a business and do so on either a full- or part-time basis. Producing a business plan is not a formal necessity! However, we strongly recommend that you draw up a business plan. You can read why here. If you want to become self-employed on a part-time basis, you do not need to draw up a comprehensive business plan. Here you will find the answers to the following questions:

What is a business plan?

Why do we recommend writing a business plan?

What does a business plan include?

What income and expenditure are you expecting?

What is a business plan?

• The business plan – sometimes referred to as a corporate or business concept – is the written expression of the idea behind your decision to become self-employed. In the business plan you describe how you wish to turn this idea into a reality for your business, and what you hope to achieve once you have established your company. Besides describing your idea, you also present your expected income and expenditure.

Why do we recommend writing a business plan?

• The business plan illustrates the opportunities and risks concerning your business; provides a roadmap containing all of the necessary steps in the initial stages; and presents the requirements that you must fulfil. You can use your business plan both before and after you have set up your business to check to see if you can achieve the goals that you have set and implement your idea, and whether your goals or steps required for implementation need to be changed.
• You need a business plan if you require funding from a third-party, for example a bank loan; a professional opinion from a Chamber of Commerce; or some other form of professional support.
• You can use your business plan to present your business idea to other interested parties (potential business partners, investors or stakeholders) who you wish to engage as colleagues or supporters.

What does a business plan include?

• Your business plan should describe your business concept and the stages of implementation precisely, clearly and concisely, in such a way that it can be easily understood by others. Your business plan should explain the following things: Why do you want to become self-employed? What are your skills (e.g. skills that you have acquired through your job, your hobby or your life experience)? Why is your idea a good one? Who are your potential customers? How will you reach your customers? What is your pricing strategy? Why are you better than the competition? What do you hope to earn? How will you finance your business?
• There are no fixed rules regarding the format, structure and scope of a business plan. You decide how your business plan looks. The most important thing is that it matches your business concept. We hope that our questions will help you to write your business plan. Simply answer the questions and you will have a basic structure for your business plan. You can then supplement your plan with additional questions and chapters that you feel are important. Simply modify the questions that are not relevant to your business. You should definitely answer the questions marked in red. The other questions are there to help you add further detail to your business plan.
• If your business plan will serve as the basis for discussions and negotiations with others, you should write it in German. You can download a German template to help you with this. The English and Spanish versions are there to help you with the language. The guide, which is available in several languages, is there to help you to write your business plan.

What income and expenditure are you expecting?

Once you have written the description, you need to create a table showing your initial financial calculations. This table should include the following parts:

• Your living expenses: How much money do you need to live?
• A capital requirements plan: What do you need to buy for your business?
• A financing plan: Where will you get the money?
• A break-even analysis: What income and expenditure are you expecting for your business?
• A cash budget: What additional income and expenditure do you need to consider for your livelihood.