Do you have a unique business idea and want to take the step into self-employment? Then choosing the right legal form is at the top of your to-do list. In most cases, a business is started as a sole proprietorship these days, which scores points for its relative simplicity and straightforwardness.

A sole proprietorship offers the great advantage of being easy and unbureaucratic to set up. There are no special founding regulations to be observed and no minimum capital is required. A business registration or, if you are self-employed, a notification of business opening to the tax office is sufficient to set up your sole proprietorship.

Despite the ease of setting up a business, thorough planning is essential. As the owner of a sole proprietorship, you are liable with all of your assets, which is why it is important to carefully examine and plan your business idea. A business plan for your sole proprietorship is the written summary of these considerations and serves as a guide for implementing your ideas.

Statistics show that young companies in particular are often affected by bankruptcies. In the first quarter of this year, 26.4 percent of insolvent companies had not been on the market for two years. Inadequate planning and capital resources, unexpected market changes, business ideas that are not in line with the market or strategically incorrect investments can lead to individual companies becoming insolvent early on.

However, an intensive examination of the business plan and professional advice from start-up consultants can help to increase the chances of success. Statistics show that four out of five start-ups who have taken advantage of start-up advice successfully survive the first five years.

A well-thought-out business plan is therefore not only a means to an end in order to obtain a loan, but also an operational tool to test the feasibility of your business idea and ensure long-term success.