There’s a lot to think about before you embark on your journey to become an entrepreneur. The best thing to do is to sit down and really think about it. There’s no better way than to come up with a business plan. Coming with a business plan in Switzerland can also be quite intimidating in itself. Here are some points to consider about a business plan.
Why a business plan
A business plan in Switzerland puts your thoughts onto paper. It’s a good way of organizing all the ideas that you have for starting a business. Once it’s on paper, it’s easier to see your ideas and plan what needs to be done on a step by step basis.
If you need funds to start your business, you can either use your own funds, share with a partner or borrow the money that you need either from a bank or venture capitalist (VC). If you’re borrowing the money, the VC or the bank will definitely need to have a look at your business plan to decide the viability of your business.
What should a business plan have
First and foremost, your business plan should show and explain what type of business that you want to venture into. You would definitely have done some research on the business so your business plan should have some information on competitors, if any or if it’s a green field project and company formation in Switzerland. If it’s a green field project or product then your business plan must show proof that the business can succeed. If it’s products, you can include a test report on the product and reviews from experts.
Your business plan must also include your management team. You would need to provide detailed background information relating to your directors and upper managements experience. The more experience you have the better it will be for your company.
The business plan should also include a Strength, Weakness, Opportunities and Threat (SWOT) analysis. This part of the business plan must be well researched and backed with the relevant data.
How will you market your product? Your business plan must definitely include a sales strategy. If your business is product driven, sales will be an integral part of your business plan. However as always, the sales projections must also be reasonable. If you have done some market testing, you can include these results in the business plan.
From the sales strategies and your projections, this data must be included in you cash flow projections. Again, the projections must be realistic. You can do some sensitivity analysis on the cash flow to test if there’s a drop in your sales and how it will affect the company.
As part of your cash flow projections, you must also include the sources and usage of funds. This can show how conservative or aggressive your attitude towards the business is.
Another point that you can include in your business plan is the location of your business. Location is always important for the survival of your company. You would definitely would want the best location for your type of business. It’s also important in Switzerland due to the different incentives and tax rates that are charged according to the canton (state) and municipal that your business is located.
The next step
So after you have prepared your business plan in Switzerland and you have already submitted and obtained approval from banks for the funding of your business, you are now ready to incorporate your company. There are a few choices of the structure of the company. The more common ones are –
|The stock corporation||1.-This is a well-known company structure in Switzerland. This type of company requires that at least one shareholder and one director stays in Switzerland. It must have a minimum paid up capital of 100,000 Swiss francs (CHF). This type of company takes about 2 to 3 weeks to incorporate.|
|Limited liability company||2.– For this type of company structure, there must be a minimum of 2 shareholders. It’s more suited for a smaller corporation as it requires a minimum paid up capital of only 20,000 CHF.|
|Partnerships||3. – There are basically 3 types of partnerships that can be incorporated in Switzerland. They are the sole proprietorship, the general partnership and the limited partnership.|
|sole proprietorship||a) As the name implies, a sole proprietorship is owned by a single person which has total control over his/her business. However for this type of company, the annual turnover of the company must be 100,000 CHF. The disadvantage of this business structure is that the owner is fully liable if the business fails.|
|General partnership||b) The general partnership is formed when two or more partners come together to start a business. All the partners will be liable for the debts of the company.|
|Limited partnership||c) Limited partnership – For this type of partnership, there is one major shareholder and partner which will assume all rights and responsibilities of running the company. There will also be a silent partner. The major partner will have unlimited liability in the company while the silent partner will have a limited liability.|
After the incorporation, you are now ready to start your journey as an entrepreneur in Switzerland. You may want to know about small business ideas in Switzerland.