Founding a business: From an idea to success

The journey begins with a brilliant business idea. The business model determines how your business creates value and generates profits. The first step to success. Thorough market research helps you to understand the needs of your customers, discover gaps in the market and design your business model accordingly.

Tips for developing the right business model: 

• Be creative and courageous: Think outside the box. Look at your market from different perspectives and try to find unconventional solutions.
• Focus on your customers: Put the needs and wishes of your customers at the center of your business model.
• Test your ideas: Carry out pilot projects or start with a small market segment before making large investments.
• Think in ecosystems: Work with other companies to exploit synergies .
• Structure your business model using the Business Model Canvas method: This tool helps you to visualize and validate the business model.

Platforms such as Coursera or edX offer courses on business model and strategy development. 

Next stop: Business plan. It breaks down the business model into key aspects such as the business idea, strategy, objectives, financial forecasts, marketing plan and growth targets. This will keep you focused and convince potential investors and partners.

If you stick to this structure, nothing will get forgotten. 

• Executive summary: Concise summary with business idea, key strategies, main objectives and financial highlights
• Business description: Description of the business, the market and the unique selling points
• Market analysis: Detailed analysis of the target market, customers and competitors
• Organization and management: Presentation of the company structure and the management team
• Products and services: Description of offers and their customer benefits
• Marketing and distribution strategy: Strategies for customer acquisition and sales promotion
• Financial planning: Detailed financial forecasts, including income statement, cash flow and balance sheet
• Financing requirements: Overview of required capital
• Annexes: CVs of the management team, technical specifications, marketing materials and other relevant documents.
  For startups and small companies, 20–30 pages are usually sufficient, while larger projects may require more space.

Tips for a sound business plan:

• Take inspiration from existing templates and patterns: Seco's SME portal offers a wide range of templates and examples free of charge. 
• Write clearly and precisely: Get to the heart of your business idea. 
• Focus on the reader: Adapt the business plan to the individual information needs of the audience. 
• Hit all the right notes with data Support your statements with meaningful market data and statistics. 

In Switzerland, there are various legal forms that influence liability, tax aspects and capital procurement. 

The most common legal forms are

• Sole proprietorship: Suitable for sole traders where there is no distinction between business and private assets, which results in unlimited liability.
• Limited liability company (GmbH): Liability limited to the company's assets. Minimum capital: CHF 20,000. This is the most popular legal form for Swiss founders. 40% of newly founded companies are limited liability companies. 
• Joint stock company (AG): Liability limited to the company's assets, minimum capital: CHF 100,000, of which 50% must be paid in at the time of formation. Suitable for larger companies.
• Limited partnership (KG): A partnership in which at least one partner has unlimited liability.
  General partnership: A partnership for two or more persons who jointly manage a company, with all partners having unlimited liability.

Weigh up the various options carefully. The following considerations may help in the decision-making process: 

• Risk affinity: How much personal risk do you want to take? Sole proprietor companies and general partnerships are subject to unlimited liability, while limited liability companies and joint stock companies offer limited liability.
• Startup capital: Assess how much capital you need and how much of it must be immediately available.
• Tax considerations: Sole proprietor companies and partnerships are taxed at owner level, while corporations (GmbH, AG) are taxable themselves as legal entities.
• Flexibility and growth potential: Corporations (GmbH, AG) often offer more flexibility for future growth and access to external capital.
  Regulatory requirements and bureaucracy: Corporations are often subject to stricter requirements and must keep more detailed records.

Take enough time to consider your capital requirements and financing. There are two basic types of financing: 

• Equity financing: Entrepreneurs use their own assets or investments from external investors. No regular interest payments, but investors receive ownership shares.
• Debt financing: Credit or loans from banks or other lenders. Regular repayments with interest, no ownership shares for lenders.

In Switzerland, there are also various subsidies that support companies and startups. Check the specific requirements and criteria of the respective offerings carefully. Many grants are linked to certain conditions, such as proof of an innovative project, the potential for economic growth or the creation of jobs. Applying for funding usually requires detailed project descriptions, business plans and financial forecasts.

There are various contact points for financial support in Switzerland:

• Innosuisse: The Innosuisse Guide will help you find the right funding offer. 
• Funding programs offered by the cantons: The cantonal economic development agencies advise startups in their search for cantonal funding instruments or suitable business premises. 
• Foundations and private funding programs: They offer grants, competition prizes or mentoring programs for young entrepreneurs. 
• Zurich also supports Swiss startups: As part of the global Zurich Innovation Championship program, promising startups are supported and assisted every year.

Look for a strong name that is memorable, meaningful and differentiating. A brand includes a distinctive logo, a color palette, a brand voice and consistent marketing materials.

Tips for building a distinctive brand: 

• Conduct comprehensive brand research: Make sure that the name is not already in use. Check the commercial register, trademark offices and domain availability.
• Validate your brand with the target group: The brand name and image should resonate with your target group.
• Create an unmistakable identity: A strong logo and a consistent visual image are crucial.
• Develop your own individual brand story: This creates emotional connections.
• Standardize your brand communication: Consistent use of your brand across all communication channels ensures recognition by the target group.
• Protect your brand: Consider having your brand name and logo legally protected.
• Develop your digital presence: Secure the right domain and create profiles on the relevant social media.
• Focus on continuous branding: Brand development is an ongoing process. Stay committed and update your strategies on an ongoing basis.

Here are a few useful tools for brand development:

• Brand research: Trademarkia, WIPO Global Brand Database
• Design and branding: Canva, Adobe Express, LogoMakr
• Website and domain name search: Squarespace, Wix, Namecheap
• Social media management: Hootsuite, Buffer, Later
• Email marketing: Mailchimp, Mailjet
• Customer feedback and market analysis: SurveyMonkey, Google Forms, SEMrush, Google Trends

To officially register a company in Switzerland, the following steps are typically necessary:

1. Draw up a foundation agreement: This agreement contains important information about the founders, the purpose of the company, its capital structure and other relevant details. The foundation agreement must be signed by all founders.
2. Define articles of association: These articles of association govern the company's internal processes, including management and the capital structure. These documents must also be signed by the founders.
3. Commercial register application: This includes information such as the name, registered office, corporate purpose, founders and capital structure of the company. The commercial register application must also be signed by the founders.
4. Tax registration: Apply to the relevant tax authority for a tax identification number and registration.

Tip: Work with an experienced lawyer and accountant to meet all legal and financial requirements.

Depending on your business model, you need various types of insurance to provide comprehensive protection for your company, your employees and yourself. We offer support from day 1 with the right insurance coverage for your startup. 

• Commercial liability insurance covers losses incurred by third parties as a result of the company's business activities. It protects against the financial consequences of personal injury and property damage as well as the resulting financial losses.
• Professional indemnity insurance is particularly important for professional groups such as consultants and lawyers, architects and engineers, doctors and therapists or technology providers. It protects against claims arising from professional errors or omissions.
• Property insurance covers damage to business equipment, goods and inventories. For example, it protects against fire, mains water, storms, burglary and vandalism.
• Legal protection insurance covers the costs of legal disputes that may arise in connection with business activities. These include lawyer's fees, court costs and expert witness fees.
• Cyber insurance protects the company against the financial consequences of cyber attacks, such as data loss, business interruption or claims by third parties. It also provides support with preventive measures and a 24/7 hotline to help with security incidents.
• Insure all your vehicles with fleet insurance if you have five or more license plates. 
• Accident insurance is compulsory for employees and protects them against the financial consequences of occupational illnesses or accidents at work or on the way to and from work. As the managing director of a GmbH or AG, this also applies to you.
• Insurance for daily sickness benefits covers salary costs if employees are absent from work for an extended period due to illness or pregnancy.

Network with other entrepreneurs and use the support of business networks to promote and grow your company. There are numerous platforms and events in Switzerland that are specifically designed to make it easier for entrepreneurs and professionals to make valuable contacts.

Examples:

• Swiss Startup Association, Swisspreneur, digitalswitzerland: Regularly offer networking events, workshops and pitching events.
• Impact Hub: Community for creative and social entrepreneurs, including coworking spaces and innovation programs.
• LinkedIn: Digital networking and access to industry-specific groups.

The road to self-employment is an exciting adventure. With the right planning and support, you can turn your business idea into reality and achieve lasting success. 

Important contact points for young entrepreneurs: 

• SME portal of the State Secretariat for Economic Affairs Seco: Checklists and detailed information on setting up a company
• Gryps: Insider tips for starting a business
• Innosuisse: Promotion of innovation projects
• NewCo: Support from company formation to registration in the commercial register