Starting a business is an exciting adventure, but having the right starting capital can be crucial. So how much money do you need to realise your dream of self-employment?
Basics of starting capital for different types of companies
If you decide to found a company, it is important to have the right starting capital. The amount of capital required depends on the type of company you choose. There are three common forms: Sole proprietorship, LLC and Ltd.
For the foundation of a sole proprietorship with Foundera, you need capital of CHF 349 (excl. VAT). For an LLC or Ltd, the foundation costs are CHF 649 (excl. VAT). In addition, you need nominal capital of CHF 20,000 for an LLC and share capital of CHF 100,000 for a Ltd.
In addition to the formation costs, however, there are other initial expenses that you should take into account - these include, for example, the costs for registration with the commercial register (approx. CHF 200-400 depending on the legal form and initial situation).
It is important to note that these amounts only cover the start-up costs and not the entire starting capital for the company launch. The costs can vary greatly depending on the type of business model.
Partial capitalisation of the share capital explained
When founding an LLC, you must pay in the nominal capital of CHF 20,000 in full. This means that you must have the entire capital available before you can found the company.
Partial capitalisation, on the other hand, is possible with a Ltd. This means that you only have to pay in part of the share capital of CHF 100,000 to found the company. Specifically, this is at least CHF 50,000 or 20% of the share capital, whichever is higher.
Partial capitalisation of the share capital offers a certain degree of flexibility and allows you to divide up the starting capital. Note, however, that founders are liable for the outstanding amount and subsequent liberalisation is again associated with costs.
Adjusting the capital requirement to the business model
The capital required to start a business depends heavily on your business model. Depending on the industry and type of company, the starting capital requirements can vary greatly.
If you have a business model that allows you to do this, it may be advisable to start as small as possible and minimise the financial risk. For example, you can start with a home office or initially offer your services on a part-time basis to keep costs low.
On the other hand, it can also make sense to have more capital available from the outset in order to survive on the market. If you are developing an innovative product or entering a high-growth sector, it may be necessary to make larger investments right from the start, for example in software development or marketing.
Tips to minimise the financial risk when starting a business
Starting your own business can be associated with financial risks. There are a few tips you can follow to minimise the risk:
- Create a realistic business plan and calculate costs and income carefully.
- Carry out a precise calculation of the start-up costs and plan a financial cushion.
- Check whether there are any funding opportunities or financial support, for example from government programmes or investors.
- Start part-time and keep your main job for the time being in order to have a constant income.
By minimising the financial risk and planning carefully, you can increase the chances of a successful business launch.
This article was translated from German using Deepl.
