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Financing

Alongside a competent management and a good marketable idea, you need sufficient seed capital to set up a business successfully. It is easier to encounter any financial problems that occur if you have a sound financing basis. Read more about the different financing options in the following sections:

Please take note of the following when planning your financing:

Precise planning for a business start-up

Planning a business start-up also requires determining precisely the short and long-term capital requirement. This should always be based on the requirements of the founders and their plans, and also include the financing period. Initially, the available equity is the foundation for any business start-up financing. Any additional capital requirement can be covered by borrowed capital.

Seed capital

Depending on the focus of the business, you will need different amounts of seed capital. It depends amongst others on the following factors:

  • whether you want a business start-up as a main source of income or as a sideline,
  • whether you are dealing with company succession
  • how your business should be established

Depending on your plans and how much potential your idea has, there are various options to get the required capital.

Examples of mistakes made when financing a start-up

  • not enough equity capital
  • not negotiating in good time with your company's bank
  • making too much use of the overdraft facilities to finance investments
  • debts to suppliers which are too high
  • inadequate planning of the capital requirement
  • not using public financial assistance
  • indiscriminately obtaining so-called "readily accessible" and "cheap" loans

Release note

The German original version of this text was drafted in close cooperation with the relevant departments. The Wirtschaftsministerium released it on 03.06.2024. Only the German text is legally binding. The Federal State does not assume any liability for the translated texts.

In cases of doubt or if you have any questions or problems, please contact the relevant authorities directly.