Why Should you Open your Own Business?
If you can't see yourself working for anyone else, and you value independence, flexibility, and autonomy, setting up your own business could be just the thing for you. If you spot a need in the market, this could be your chance to make a bigger profit than if you stayed an employee.
Before you Start
Starting a business is no easy task, especially at the beginning, but it can be very interesting depending on the goals you wish to achieve professionally-speaking.
First of all, you'll need to :
- Make sure you have enough money to keep you afloat until you make your first sales.
- Be prepared to invest a lot of time in your business, especially in the early stages.
- Be aware of the risks associated with starting a business (insecurity, bankruptcy, etc.).
If all this doesn't scare you, you're ready to try your hand at entrepreneurship!
Legal Form
When setting up your company, you will also need to decide which legal form to adopt. Each has its advantages and disadvantages, so you'll need to think carefully. For a clearer picture, take a look at our comparison of legal forms.
Available Aid
With a 1st profit which usually occurs during the 3nd year of activity. In the first year of setting up a business, many entrepreneurs need help to get started, particularly in financial terms. Several factors influence the assistance you may receive, such as :
- Your company's field of activity
- The location of your head office
- If your company is looking for technological innovation
- Whether your company is newer or older
Help Available to Set Up your Business
Setting up your own business can be a daunting task. That's why there are specific services designed to support you for every step of the creation of your company.
The cantonal economic development initiatives, for example, can help you find the service best suited to your specific needs. The service Innosuisse also helps you get in touch with a mentor, who can pass on his or her knowledge to you.
Financial Aid
Although the Swiss government doesn't have any funds specifically earmarked to help budding companies, there are a number of financial assistance available through various organizations. Through them, you may receive subsidiary financing, loans, or even material assistance.
Fondetec
The communal foundation for job and economic development in Geneva (Fondetec) helps you to finance the beginnings of your business by offering material and financial assistance. In particular, it offers direct loans, so you don't need a traditional bank.
However, there are a number of conditions to be met before you can benefit from these grants. Your company must :
- Be headquartered and operate in the city of Geneva
- Demonstrate its ability to create or maintain jobs in the region
- Prove your economic viability with a solid business plan
Financing Companies Differently (FAE)
In a similar way to Fondetec, FAE offers financial assistance for the creation of your company such as :
- A cash advance of CHF 250,000
- This organization also offers to guarantee the bank's full repayment of the loan granted to set up the company, up to a maximum of CHF 4,000,000.
However, this offer is subject to the same conditions as Fondetec offers. In addition, there is another condition. Contractors will be required to have started their business and face payment delays from customers.
The Geneva Foundation for Technological Innovation (Fongit)
Fongit not only offers financial assistance such as the Innovation Fund FIF but also other services such as targeted coaching, legal support, workshops and a wide range of events.
Once again, you must be based in the canton of Geneva and operate in one or more of the following sectors:
- Information and Communication Technologies (ICT)
- Advanced engineering
- Life sciences and sustainable development
Genilem
Although this organization does not directly offer financial assistance such as loans or grants, it does offer the opportunity to participate in events or contests which can give access to these special aids.
In addition, Genilem offers support and guidance to entrepreneurs in the cantons of Vaud and Geneva. More specifically, these are geared towards entrepreneurs wishing to set up innovative and sustainable companies.
Services include training and workshops on the basics of entrepreneurship, as well as personalized coaching. To benefit from these services, the company must be based in French-speaking Switzerland and be innovative, whether in terms of business model, product/service, or social/environmental issues.
Eurostars
Outside Switzerland, there are also programs at the level of European such as Eurostars, which offers financing for innovative SMEs. The great advantage of this organization is also its ability to collaborate with a whole network of European companies and institutions.
One of the conditions to be met concerns the development and marketing. The 1era must not exceed 3 years, while the 2nd must be scheduled within 2 years of the end of the project in question.
Withdrawing your 2nd Pillar
Withdrawing your 2nd pillar can also be a way of financing your business start-up. The advantages of this method are that you are free to spend it as you wish.
However, you should bear in mind that you will significantly reduce your future retirement. In addition, your activity must be recognized as self-employed by the AVS or SUVA. If your self-employed status is not validated, you risk losing access to these funds.
In addition, the amounts withdrawn will be subject to taxes, which could reduce the total amount available to you.
How Can I Get Help to Set Up my Own Business?
For more information, you can contact the organization which offers financing and assistance. In most cases, you'll need to submit an application, which will be examined by the organization in question to determine whether your company qualifies for the assistance on offer.
Frequently Asked Questions
What organizations offer financial assistance to SMEs?
Organizations such as Genilem, FEA, Fondetec and Eurostars offer financial assistance and events related to entrepreneurship.
Is there any help for setting up a business outside Switzerland?
Yes, organizations like Eurostars, for example, offer financial assistance on a European scale.
How can I obtain financial aid?
You'll need to get in touch with the organization you're interested in, and in many cases you'll need to put together a file and apply to them.
