Starting as an entrepreneur - the ultimate guide
Starting a business is an exciting adventure that comes with countless opportunities and challenges, after all, being self-employed is not that easy. It is like diving into unknown deep waters. Starting a business cannot be done overnight, for this you need a good business plan.
In this article, we explore how you should start your own business and what the financial implications may be. We also explore the essential steps you need to undergo. Prepare to realise your entrepreneurial dream.
For the quick deciders:
Can you just start your own business?
Starting a business (entrepreneurship) sounds appealing, but there is more to it than just a good idea. You cannot just start a business without fulfilling some important steps and conditions. First of all, you need to register your company with the Crossroads Bank for Enterprises (CBE). This gives you a unique company number / VAT number, which is essential for your business to operate legally.
Financial management is another crucial factor. You need to open a business bank account and have a clear financial plan. This not only helps manage your income and expenses, but is also necessary for tax purposes.
So while you cannot just start a business without following these steps, the process is well manageable with the right preparation and advice. By preparing properly and meeting all legal and administrative requirements, you can lay a strong foundation for a successful business.
How do I start as an entrepreneur?
Starting an independent activity is a challenging and exciting process.
Below are the things needed for this.
Starting to do business
Starting a business starts with a realistic business plan and a good idea. You also need to choose which legal form suits you best. This involves a sole proprietorship or a company, and you need to arrange registration with the Crossroads Bank for Enterprises (CBE).
Don't forget your social security too; join a social insurance fund for the self-employed to meet social contributions and be insured against illness and disability.
1. Develop an idea
Starting your own business starts with an idea and plan.
Tries to solve a problem or find a gap in the market.
2. Do market research
Research your market thoroughly to understand who your competitors are and what your potential customers want. Make a SWOT analysis for this purpose. This will give you a better understanding.
3. Write a business plan
A good business plan is essential. It should include your business goals, strategies, market analysis, and financial projections.
4. Choose a business structure
Choose an appropriate legal form (legal form) for your business, such as a sole proprietorship, general partnership (vof), or private limited company (bv). Each structure has its own legal and tax implications. Explanations of these different legal forms can be found in our other articles.
It is also important to determine whether you will be starting out as self-employed as a main or secondary occupation.
Not sure which shape suits you?
5. Register your company
Register your enterprise with the Crossroads Bank for Enterprises (CBE) and obtain a unique enterprise number (VAT number). This is an essential step to get started.
6. Arrange finances
Open a business bank account and ensure clear financial management.
7. Complying with laws and regulations
Make sure you meet all legal requirements, such as obtaining the necessary licences and complying with tax obligations. For some sectors, you need specific licences or certificates.
How much money do I need to start a business?
Business start-up costs vary depending on the sector and business structure. For a sole proprietorship, costs are often low, while a partnership has higher incorporation and administrative costs. For a partnership, you need to consider costs such as notary fees, registrations and an initial capital contribution. A rough estimate can range from a few hundred to thousands of euros.
As an entrepreneur, how do you get funding?
Bank loans: Traditional loans from banks.
Investors: Capital from angel investors or venture capitalists.
Grants: Government support and grants for specific projects.
Crowdfunding: Funding through online platforms from many small investors.
How much can you borrow as a start-up?
As a start-up entrepreneur, you can usually borrow up to 70-80% of your start-up costs from banks, depending on your business plan and guarantees. The exact amount varies by lender and your self-employed financial situation.
Do you opt for a sole proprietorship or a partnership?
When starting your own business, you have to choose between a sole proprietorship or a partnership.
Sole proprietorship
A sole proprietorship is easy to set up, with fewer administrative formalities and lower costs. This makes it an attractive option for budding entrepreneurs who want to get started quickly. As the owner, you have direct control over all decisions.
However, a major disadvantage of a sole proprietorship is its unlimited liability. This means that your private assets are not protected against business debts. If your business runs into financial difficulties, creditors can lay claim to your personal assets. In addition, profits from a sole proprietorship are taxed at the progressive personal income tax rate, which can be disadvantageous at higher profits.
Company (bv)
A limited liability company (BV), on the other hand, has limited liability. This ensures that your private assets remain separate from company assets, so your personal assets are better protected against business risks. This is especially important if you plan to make larger investments or operate in a high-risk sector.
Tax advantages are another plus of a PLC. Profits are taxed at the flat corporate tax rate (20%-25%), which is often more favourable for higher profits compared to personal income tax.
On the other hand, setting up and managing a private limited company is more complex and expensive than a sole proprietorship. There are more administrative requirements (financial plan), such as drafting articles of association and engaging a notary. There are also stricter legal and accounting obligations that must be complied with.
Before choosing a company, it is crucial to think carefully about your choice. The most appropriate form of company depends on your personal situation, goals and risks. Make an informed choice that suits your needs and long-term plans.
How much turnover do I need to make for a partnership?
What are the pros and cons of a sole proprietorship versus a partnership?
UNIQUE
Less red tape and lower costs.
All decisions lie with you as the entrepreneur.
No profit sharing with other shareholders.
Private assets are not protected against business debts.
Profits are taxed at progressive personal income tax rates.
COMPANY
Private assets are separated from company assets.
Fixed corporation tax may be more advantageous for higher profits.
May appear more trustworthy to customers and investors.
More administrative requirements and higher costs.
More legal and accounting obligations
Ready to set up?
What government support can start-ups count on?
In Belgium, start-ups can rely on various forms of government support. Grants are an important source of financial support. They can range from innovation subsidies to support for training and investment. The availability and conditions of subsidies can vary by region and sector.
In addition, the government offers tax breaks for start-ups. These can be in the form of tax breaks or tax credits, especially for specific investments or innovative projects. These benefits help reduce the tax burden and ease the financial burden.
Credit guarantees are another important form of support. The government provides guarantees for loans applied for by start-ups. This facilitates access to finance by reducing the risk for lenders.
How much does a budding entrepreneur earn?
The income of a budding entrepreneur varies widely and depends on the sector, location and success of the business. In the early stages, it is often low because much of the profit is reinvested in the business. It can take several months to years before the income is stable and sufficient.
How much pay can I give myself?
As an entrepreneur, you set your own salary, but it should fit the financial situation of your business. In a company, you can pay yourself a salary that meets tax and social security requirements.
In a secondary occupation, you usually receive additional income alongside a main occupation. Remuneration may vary, but it must also be in line with income and tax obligations. In main occupation, you receive your income mainly from the business and have to take into account all business and personal tax obligations.
Read this one yet? Relevant content for start-ups
Wat zet je in het voorwerp van je vennootschap?
Je staat op het punt om je eigen zaak op te richten, maar in de documenten stoot je plots op de term ‘het voorwerp’.
Haal meer uit je BV: hoe binnenlandse dag- en nachtvergoedingen je netto-inkomen verhogen
Je bent voor je opdrachten vaak op de baan, wat betekent dat snelle broodjes en koffies tussendoor al snel een flinke hap uit je budget nemen.
Een bedrijfswagen als lichte vracht in je vennootschap: kan dat nog?
Als startende freelancer droom je misschien van een stoere pick-up of ruime SUV als ultieme fiscale optimalisatie voor je nieuwe vennootschap.
EN 
NL 
FR