Pre-incorporation Advice before starting a business & acquisitions

Pre-incorporation consulting for start-ups and takeovers is helpful for you if you have already prepared an initial concept and want to reflect on it in detail or revise it. This way you can start as prepared as possible and apply for further grants or loans. You can use this grant for a start-up as well as for business acquisitions. For this program you have to consider the following points:

Here are the basic requirements you must meet:

• Foundation / takeover not yet done
• Company headquarters / business premises in the Free State of Saxony
• the consulting is done by an external coach
• Part of the work also includes a review of the start-up or business concept. This includes the investment & financing concept, the market & competitive situation and the economic viability.

It is also important that economic, technical, financial, organizational, social and environmental issues of the start-up project are considered. In addition, you must receive decision-making support for the preparation and implementation of the start-up or takeover. This also includes concrete recommendations for action.

According to the funding, the consulting service must comprise more than two day’s work and also include one or more of the following topics:

• Concept revision and further development 
• Elaboration of operational goals & strategies.
• Market development (market analysis/ marketing concept/ sales).
• Securing & optimizing financing (e.g. preparing bank meetings).
• personality development, leadership
• specific consulting needs for start-ups of social entrepreneurs, by women or migrants.

Every person with main residence in the Free State of Saxony, who wants to start a business or take over an existing business, can apply for this funding from “Gründungsberatung”. If you only have a secondary residence in Saxony, an additional justification is necessary.

In addition to the usual trades, freelance activities can also be funded. However, you cannot apply if you are planning a business in the following categories:

• Auditing
• Business or economic consulting
• tax office, law office, notary’s office

In addition, you will not receive funding if you have already registered a secondary activity. Please also note that the company must not have been founded or taken over by the time of the grant. You may also only sign the consulting contract after approval.

It is also very important that you can prove that you have the appropriate previous education. You must therefore fulfill one of the following points:

• Professional experience from a previous self-employment OR from a job in a managerial position within the last 3 years prior to application

• Vocational education (training / further education, master craftsman training or completed studies with commercial / business administration content, not older than two years prior to application

• Basic knowledge relevant to founding a business (e.g. from a business start-up seminar) with 15 teaching hours or more and on at least five of the topics listed below: 
  • Opportunities and risks of self-employment,
  • Developing and evaluating a business idea,
  • Business conception and planning,
  • Start-up or take-over,
  • Choosing the right legal form,
  • Market and location analysis,
  • Capital requirements and financing,
  • Law and taxes,
  • accounting,
  • subsidies and financial aids.

In addition to the declaration of your previous education and your individual concept (including description, considerations of market / competition, planning calculations and criteria for sustainability), you also need a so-called consulting recommendation from an expert body. These include the local Chambers of Industry and Commerce (IHK), the Chambers of Crafts (HWK) and the Landesverband der Freien Berufe Sachsen e. V. (LFB).

You must therefore ask one of these bodies to assess your concept and your personal suitability. If the assessment is positive, all you need is proof of the consultant’s qualifications. 

You will receive a complete list of all the necessary documents when you submit your application on the funding portal of the Sächsiche Aufbaubank (SAB).

Here are the most important steps in the process:

• Submit application
• Receive approval
• Conclude consulting contract
• Execute, according to planned period
• Submit proof of use
• Receive money

It is important not to exceed the grant period. When we are finished with the project, a so-called proof of use must be submitted within six weeks for the consulting services performed.

The grant will then be paid out according to the proof of use, rounded down to whole or half days if necessary.

Dear Karsten,
I would like to give you a big commendation. I got to know you as a very sympathetic business coach with empathy and sensitivity. Working with you was a great pleasure. With ease and a meeting at eye level, the coaching became an event which could be implemented “hand in hand”, with enthusiasm. Thank you very much for this and all the best for you!

Source: Anja (google)