So you succeed

10 steps to a start-up grant

There are a few things to consider on the way to a start-up grant and a few pitfalls that stand in the way of a positive approval decision and that need to be overcome. In the following chapter, you can read how you can still manage to get your start-up grant in 10 steps.

Every journey begins with the first step

You want to start your own business and ideally you want financial support in the form of a start-up grant, which allows you to have a certain amount of financial security for at least the first six months. However, it takes some work and thought to apply for the start-up grant and then actually get it approved.

That is why we have put together a small “guide or manual” below, which can serve as orientation and support for you. There are certainly other ways to get a start-up grant, but the following has proven successful in 95% of cases in the past.

To step number 1
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    Bruno6

    Bruno Schäfer

    Management consultant | Self-employment COACH | Business graduate

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    Step 1:

    Register as unemployed

    The start-up subsidy is a state transfer payment that supports business founders. The start-up takes place out of unemployment.

    This means that if you want to apply for the start-up grant, you must be unemployed and not yet self-employed as your main occupation.

    While receiving unemployment benefit, it is possible to become self-employed on a part-time basis. If you decide to take this route, the following conditions apply: You may work a maximum of 14 hours and 59 minutes per week (which you charge to a client) and earn an additional €165 (profit). Anything more than this will be deducted from your unemployment benefit.

    To apply for the start-up grant, you must convert your business from a sideline to a main occupation on the day you submit your application.

    It is also important that you are entitled to unemployment benefit 1. This is the case if you have worked full-time as an employee for at least 12 months in the last 24 months. It doesn’t matter how many employers you have worked for and the 12 months do not have to have been consecutive.

    12 months then means 12 months entitlement to unemployment benefit 1.

    Tip: It is best if you have your current employer give you notice to avoid a suspension period. Experience also shows that the authorities are more willing to support you on your path to self-employment if you have been made redundant than if you have resigned yourself.

    You are entitled to 12 months of unemployment benefit 1 if you have worked full-time as an employee for at least 12 months in the last 24 months.
    Bruno Schäfer
    Step 2:

    Apply for unemployment benefit 1

    First, you register as a jobseeker and then register as unemployed. As soon as you have registered as unemployed, you must go to the unemployment office on the first day of unemployment (sometimes online) to apply for your unemployment benefit 1.

    As a rule, your details will be recorded at an appointment on site and a few days later you will receive a positive approval notice by post stating that you are entitled to unemployment benefit 1 from day X.

    Step 3:

    Interview with the employment agency

    In the meantime, you will be assigned an employment agency who will conduct an initial introductory meeting or integration interview with you.

    As a rule, you will receive an invitation by post or e-mail and the interview will then take place in another appointment on site or by telephone.

    In this interview, the employment agency wants to know the reasons why your last job ended and how they can help you get back into work.

    Now it’s your turn:

    If you are sure that you want to become self-employed, this first meeting is the right time to position yourself clearly.

    You should find good arguments as to why self-employment is currently more promising than returning to employment.

    Now is also the right time to mention that you would like to make use of funding from the Employment Agency in the form of an AVGS voucher for individual start-up coaching and then apply for a start-up grant.

    Step 4:

    Coaching voucher

    If you were able to convince your employment agency of your plans, you should usually receive the appropriate voucher in your letterbox in the next few days. You can then activate this together with the coach and start the coaching afterwards.

    Step 5:

    Application received

    As soon as the coaching has started, you can also ask your employment agency for the official application for the start-up grant to be sent to you by post. You can then complete the application together with your coach at the appropriate time.

    Step 6:

    Preparation with your coach

    Coaching is the perfect way to help you prepare for your self-employment. Together with your coach, you can create your own individual learning plan from a list of topics (topics such as taxes, registration, online marketing, creating a business plan, market research, etc.).

    This is followed by a continuous exchange and knowledge transfer on all topics that are of interest to you and your start-up in individually coordinated meetings. The coach also serves as a “sparring partner” to challenge your ideas and suggestions.

    Step 7:

    Create documents together

    Your coach will also help you prepare the documents for the start-up grant application. Whether it’s the business and financial plan, the CV or the general structure of the “application folder”, the coach will use their experience to ensure that everything is in order and the result is highly professional. The correct and properly prepared documents are decisive for the approval of the start-up grant. This is where most mistakes are usually made.

    Step 8:

    Have your business idea checked

    Once the coaching has been completed and all the documents have been prepared, they must now be checked by an expert body to ensure that they are viable. The expert body can be your tax advisor, but also another business consultant or the Chamber of Industry and Commerce. The expert body usually needs the completed business plan, the CV and two pages from the official GZ application for assessment.

    Step 9:

    Submit complete documents

    The official GZ application must be submitted in writing. You can theoretically submit all other documents later (up to three months). Experience has shown that it is usually better received if all documents are submitted together as a kind of “application folder”.

    We recommend that you put it in an A4 envelope and drop it directly into the letterbox at your employment agency or hand it to the porter (with a stamp of receipt) to make sure that everything arrives. (In the meantime, the application can often also be submitted online, depending on how digitally savvy your employment agency is).

    Day X, i.e. the day on which you decide to become self-employed full-time, should be the day on which …:

    1. The coaching is completed
    2. All documents are complete
    3. There are still at least 150 days remaining entitlement to ALG 1
    4. The trade or tax office registration (depending on whether your project is commercial or freelance) is dated on exactly this day.
    Step 10:

    Fingers crossed

    The simplest but at the same time most difficult step is to wait and see.

    Because now you’ve almost made it. With the help of your coach, you have submitted a perfect “application portfolio” and are ideally prepared for your self-employment thanks to the coaching. Now it’s time to keep your fingers crossed and hope that the start-up grant is approved.

    Ready to take the first step into self-employment?

    With the right partners at your side, the risk is much lower than it seems at the beginning – all our partners have confirmed this to us so far.

    So don’t hesitate to arrange a free initial consultation, during which we’ll look at both sides to see if it’s a good fit and we can give your project a good push forward. We are ready and looking forward to meeting you!

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