Starting as a start-up: the important steps

Do you have an idea an innovative idea that leads to a product that makes life easier or cheaper for the customer? Then it is wise to develop the idea well before you translate your idea into a product or service and enter the market with it. It is a shame if you have done a lot of work and incurred certain costs and it turns out that your idea cannot be realized for practical or financial reasons, for example. To prevent such disappointments, it is important to draw up a business plan. It is true that there is no obligation for the start-up to draw up a business plan, but by listing everything with regard to your innovative idea and product or service and by identifying any areas for improvement, you will get a good view of whether your company has sufficient viability. To this end, you can answer the following questions in the business plan:

An innovative idea as such cannot be protected with intellectual property right. Your idea can, however, be legally recorded in the i-DEPOT. In that case you can later prove that you have created, conceived or designed something to prevent someone else from taking it off. The i-DEPOT therefore serves as a means of proof that you can use for different purposes and in relation to different intellectual property rights.

Have you translated your idea into a developed product or service? Then of course you want to protect it well. You can do this, for example, by means of a patent. Do you have a patent? Then you can prohibit another person from copying, selling or entering your invention. If you want to protect your invention with a patent, then you must apply for it. Would you like to apply for a patent for your invention or do you have questions about our services? Law & More’s lawyers are ready for you with quick and personal advice!

As an entrepreneur you naturally also invest time, money and energy in your company to put your product or service on the market as well as possible. In that case you also build a brand that is a sign of recognition for the consumer and distinguishes your products or services from all other similar products or services. Of course, you do not want someone else to take advantage of it, for example by copying your product/service. It is therefore important to register your brand. After all, a brand is only protected if it is registered. Law & More is also happy to help you with this.

Before a business can be started, the legal form of the business must be considered. The options to choose from include the partnership (maatschap), general partnership (vof), foundation (stichting), cooperative (coöperatie) or a private limited company (bv). Each form has its own characteristics and conditions. Which legal form is best for your start-up depends on your situation and your wishes, such as:

Owners of a sole proprietorship (eenmanszaak) and partners of a general partnership (vof) are liable with their private assets for the debts of the company. With a legal form such as a private limited company (bv), this is usually not the case and a creditor can generally only recover his or her loss from the assets of the company. If you opt for a sole proprietorship or general partnership for your start-up, as an entrepreneur you pay income tax on the profit. Most start-up companies opt for one of these two legal forms, because they give rights to additional tax benefits, such as the self-employed deduction. In the initial phase of a company, relatively little profit is usually made, which means that it can be fiscally beneficial to opt for a sole trader or general partnership. Choosing a legal form involves customization and personal approach. Law & More lawyers are happy to advise you with their corporate law and tax knowledge in choosing the right legal form.

Once you have an answer to the question of how you expect the revenue and costs to look and after you have chosen the right legal form for your start-up, you can take the next step. It is important to ask yourself how you want to finance your business and under what conditions. There are various options for attracting financing for your start-up.

First of all, it is possible that you have your own resources to finance your start-up. In most of the cases concerned, an appeal is made to the starting entrepreneur’s own savings. There are various subsidies and regulations from the Netherlands Enterprise Agency (RVO) that can help start-ups get started. There is a subsidy for almost every type of business.

Another possibility for financing is the possibility of crowdfunding. Literally crowdfunding means bringing in money to the general public. You inform as many people as possible about your plans with your start-up and then ask them if they want to invest a (relatively low) amount in your start-up company. In this way, very useful financing can be created in an easily accessible manner. In addition to the money, crowdfunding also provides brand awareness and usually a clientele for your start-up. There are several large online platforms where crowdfunding can be started.

There is also the possibility of microfinancing. A number of large Dutch banks and the government have entered a partnership and have set up Qredits: an organization that provides credit to starting entrepreneurs. This concerns loans between 50,000 and 250,000 euros with a maximum duration of ten years. In addition, Qredits offers an advisory hand on practical matters that play a role during the establishment of a company.

Finally, some (former) entrepreneurs, as private investors, are willing to invest in a project that they think is promising. These investors usually want to pay a certain interest rate or share in the profit as compensation for this. If your search for such a private investor was in vain, you can of course take out an ordinary loan at the bank. Such a loan from the bank has the advantage that no control or shares have to be handed over. However, on the other hand, the loan plus interest must be repaid and you must meet certain conditions before the bank grants you a loan.

Do you want to know which financing method suits your start-up best or do you want advice on other possible options? Then contact Law & More lawyers. They are happy to provide you with advice regarding the financing of your start-up.