You are starting your own business in Austria – Here are 9 useful tips for you as a budding entrepreneur.

The decision to become self-employed is a big step and can be both challenging and extremely rewarding. In Austria, there are numerous aspects that should be considered in order to make a successful start to self-employment. In this article, we would like to give you some useful tips to help you start your business.

Here are our 9 tips:

1. develop a business idea

Before you take the first step into self-employment, you should develop a clear and viable business idea.

Think about it:

  • Market research
    What are you good at?
    Who are your potential customers?
    What are their needs?

  • Competitor analysis
    Which competitors already exist and how can you stand out?

  • USP (Unique Selling Proposition)
    What makes your offer unique?
    Why exactly should the customer come to you?

2. choose legal form

Choosing the right legal form is crucial for the legal and tax framework of your company.

There are different special features depending on the type of company chosen:

  • Sole proprietorship
    Easy to set up, but unlimited liability. Tax advantageous with low income.

  • OG (general partnership)
    Suitable for several shareholders, but also associated with personal liability. Advantageous for tax purposes if income is low.

  • GmbH (limited liability company)
    Popular because of its limited liability, but with higher formation costs and higher running costs. With higher income, more favorable tax treatment than other company forms.

  • KG (limited partnership) or GmbH & CO KG
    A combination of two company forms. You benefit from the limited liability of the GmbH and from the tax advantages also associated with personal liability

     

3. create a business plan

A detailed business plan is essential. It not only serves as a roadmap for your company, but can also help when applying for funding or loans.

Your business plan should include the following points:

  • Business description

  • Market analysis

  • Financial planning (costs, revenue forecasts, liquidity planning)

  • Marketing and sales strategies

4. secure financing

The financial basis is crucial to the success of your company.

Think about different financing options:

  • Equity
    Use savings or support from friends and family.

  • Bank loans
    Make sure your business plan is solid to increase your chances of getting a loan.

  • Funding and subsidies
    Find out about state funding for start-ups in Austria.

5. business registration and legal aspects

In Austria, most activities are subject to the Trade Regulation Act. In this case, you must register a trade.

The process varies depending on the industry, but in general you will need:

  • Business registration
    This is done at the responsible municipal or district authority.

  • Tax number
    You must register with the tax office.

  • Social security
    Find out about your social security obligations (SVS).

  • Insurance
    Find out about insurance policies that cover the most important risks. Make sure you find out in advance which specific claims are covered by the insurance and how high your deductible would be in the event of an insured event.

6. marketing and customer acquisition

To make your company known, you should develop a marketing strategy. Use different channels:

  • Marketing
    Whether online or offline marketing, make sure your company has a professional external image. Nowadays, a professional website and social media presence are just as indispensable as business stationery with a high-quality feel and look.

  • Network
    Build up contacts in your industry. Networking events or industry associations can provide valuable contacts.

  • Customer service
    Satisfied customers are the best advertisement. Make sure you provide excellent service and collect feedback from your customers/clients.

7th business partner

Talk to other entrepreneurs. Especially those in your sector. What are their secrets of success?

The experience and mistakes of other companies can be an enormous asset for you.
Choose your advisors and business partners with the utmost care.

8. further training

The market and the legal framework are constantly changing. Keep up to date with the latest developments.

Keep an eye on trends, changes and important court decisions. Invest in ongoing training to stay competitive.

9. collateral

You should always calculate investments, fixed costs and liabilities more generously than your income. Unplanned costs can arise at any time (e.g. value protection for current contracts, material costs, liabilities, non-billable services, etc.).

You should always calculate your income defensively. Many entrepreneurs do not know that in the event of the debtor’s insolvency, their payments to the company can even be reversed.

As an entrepreneur, therefore, make sure that you always have a nest egg on the high side.

Our conclusion

The road to self-employment can be rocky, but with solid planning, the right support and a clear focus on your goals, you can be successful.

As a law firm specializing in commercial law, we will be happy to assist you with any questions you may have regarding legal aspects or setting up a company.

We wish you every success with your self-employment!