Starting a Business in Berlin

54 55 Starting a Business in Berlin A Beginner’s Guide CHAPTER 5 Anyone planning to enter self-employment with their own business concept generally intends to be in it for the long haul. If you are actually going to succeed in this, you will need to do some careful financial planning before starting up in business. Beware if you are planning to apply for a loan: don’t sign any binding contracts in connection with your new business and don’t enter into any other financial commitments (such as a rental agreement or ordering goods) before your financing has been approved! Questions relating to costings, profitability, financing capital requirements and liquidity protection should be clarified in advance. Which investments need to be made? How high is the expected revenue and profit in the initial years post set- up? At any given point in time, can the solvency/liquidity of the company be ensured? Financial Plan