Do you know a successful small business

Be successful as a small business: achieve your goal with a system

To a Run small businesses successfully, both well-designed self-management and a high level of determination is required. Because the status of small business owner is not the primary goal for many founders, but merely a stop on the way to a high-turnover company. As a result, many founders aim to grow and expand their business. In doing so, they not only want to achieve economic stability for themselves, but also create jobs for others.

  1. Being a small business owner in the long term - what are the benefits?
  2. What distinguishes small business owners?
  3. How can you make your small business successful?
  4. How can you market yourself successfully? - Marketing tips

Being a small business owner in the long term - what are the benefits?

In contrast to the temporary use of the small business regulation as a simplified entry into the start-up, many small business owners want to keep their status in the long term. Because if the small business is successful and fits well into the existing economic situation, the status also brings long-term advantages. For example, those who are self-employed part-time or who are not a sole earner benefit from the advantages of VAT exemption and want to remain a small business owner in the long term. Self-employed people who still have other forms of income or who use the status of small business owners because they have advantages in health insurance will also apply long-term to small business owners a. There are many reasons why small business owners want to maintain their status in the long term.

What distinguishes small business owners?

Small business owner perform the same in the basics of their commercial and economic activities as all other regularly taxed companies. If you want to position your small business successfully in the market, you need not only an entrepreneurial mindset, but also a structured working style, the ability to make decisions and carry them through as well as a lot of discipline and perseverance. Small business owners must therefore have the same characteristics as all other entrepreneurs.

What is the difference between small business owners and companies that are subject to VAT?

Apart from the amount of sales, which are below a legally stipulated maximum amount for small business owners, the small business owner differs from a normal company in particular in terms of tax status. Because unlike companies that are subject to VAT, small business owners have to no sales tax pay.

What does the VAT exemption mean?

If regularly taxed companies have to collect VAT from their customers and pay it to the tax office in the form of VAT, small businesses do not charge their customers any tax. This means that small businesses do not have to pay sales tax to the tax office. As a result, small business owners have significantly simplified accounting and administration. In contrast to their taxable competitors, they do not have to declare advance sales tax returns to the tax office. In addition, you do not have to create double bookkeeping with a balance sheet, but can use the simple bookkeeping and determine your profits with the much simpler income surplus calculation (EÜR).

What are the consequences of the VAT exemption?

If you use the small business regulation, then you are not allowed to charge or show VAT on your invoices. Rather, you only invoice the net amount of your delivery or service. You have to put a note on your invoice that you are exempt from sales tax according to $ 19 UStG and therefore do not charge any sales tax. Since you do not collect any sales tax and do not have to pay any to the tax office, you cannot claim any input tax that has been paid. You pay this as VAT to your suppliers for their deliveries of goods or services. Unlike entrepreneurs who are subject to VAT, you cannot claim the tax paid for tax purposes. Since the small business regulation not only has advantages, but also disadvantages with the waiver of input tax deduction, it is important to carefully consider whether the small business status is suitable for your company.

Planning Tips - How Can You Make Your Small Business Successful?

To your Run small businesses successfully It is important to determine precise goals and develop a system with which you can achieve them. The size of a company does not determine its long-term success. Rather, your company is successful when it achieves the goals set. So that you can implement your goals and run your small business successfully, you should pay particular attention to the following criteria.

Eight criteria for successful small businesses:

  1. Clear structure of the work: Define your task areas and organize them by separating them from each other. Set priorities for completing tasks.
  2. Organize time management and strictly adhere to deadlines: Start your working day punctually at a given time and define your daily tasks in advance.
  3. Control of profitability: Make sure you keep your bookkeeping carefully. The best way to do this is with an accounting program like Billomat. Send your bills promptly and regularly. Then check incoming payments and organize regular appointments to settle incoming invoices.
  4. Control of the status as a small business owner: Always pay attention to your sales in order not to unknowingly exceed the legally applicable sales limit for small business owners. The annual turnover limit is 22,000 euros. If you generate more sales in one year, you will lose your status as a small business owner and will have to apply regular taxation in the new calendar year.
  5. Keep an eye on expenses: Like every entrepreneur, you have to make sure to keep your costs as low as possible and at the same time invest sensibly. Since small businesses usually cannot afford high investments, it is worth knowing whether you can join cooperations, for example to jointly finance machines or to rent equipment. There are many other ways in which you can reduce costs, especially as a startup.
  6. Delegate tasks: Even as a small business owner, you should transfer tasks for which you have no specialist knowledge, which are too complex or which cost too much time, to other service providers. But not only service providers, also other aids, such as accounting software for bookkeeping, can noticeably relieve your work as a small business owner.
  7. Further education: In our technically highly developed world of work, job profiles are constantly changing. It is therefore important to continue to train yourself as a self-employed person. You don't necessarily have to attend expensive seminars for this. Specialist literature, webinars or specialist journals and magazines also offer valuable information that will expand your professional knowledge. In addition, in some federal states you can receive funding for the further training of the self-employed.
  8. Ensure balance: Even as a self-employed person who bears sole responsibility for a successful small business, life should not consist exclusively of work. Many small business owners also have families that offer support, but also require attention and energy. Therefore, you should make sure that you take enough free time in addition to your work, which you actively shape.

How can you market yourself successfully? - Marketing Tips for Successful Small Businesses

Successful small business mostly have well-thought-out marketing. Because in every company, the external impact of the company ensures that not only satisfied existing customers but also new customers are constantly drawn to the company's offer. In addition, well-used marketing tools ensure that the company is in constant contact with its customers and interested parties. In addition to medium-sized and large companies, many marketing instruments also have positive effects for small businesses. The following recommendations also cause few costs and can be implemented by every entrepreneur himself.

Unusual placement of the company name

In addition to the classic advertising media such as flyers, handouts or posters, the name of your company can also find a place in unusual public places. Vehicles or walls of clearly visible buildings, for example, are suitable for this. But the name of your company can also stand out from the mass of usual advertising on pens, notepads or on cloth bags. Your company name can also appear, for example, on announcements or program cards for concerts and events through cooperations. For example, you can get involved financially or through a work assignment for certain projects that coincide with your company's offer in order to get your name in the external communication of the project on the appropriate advertising medium.

Local trade organizations

In a network with other tradespeople, you will experience strengthening, ideas and, above all, an effective public perception for your company. In many regions there are commercial organizations that organize joint events and appear in public. Such an association can exist in a local trade association, but also in social networks such as Xing or Facebook. If you get involved there, you will benefit from the dynamic that comes with publicly appearing groups. Within a local association, however, you also present your company to the other members so that you can win new customers among them or benefit from recommendations. But the exchange of information between the traders also brings noticeable advantages, new ideas and valuable impulses for everyone involved, which will help you if you want to position your small business successfully on the market.

Regional commitment

There are numerous opportunities for personal commitment in every city, town or municipality. Whether you work in the parents 'council, in municipal museums or in the cultural center, in the youth center, in the settlers' association or in the music association, depends on your life situation, your involvement as well as your interests and abilities. However, it is important that you as an entrepreneur are personally committed to the public. In this way you not only get to know a lot of people who perceive you and your small business, get to know you personally and thus also become aware of your offer. You can also gain valuable information yourself from your involvement in clubs, which will give your small business new impetus.

Press work

In addition to the classic advertisement in the daily newspaper, the press release has long been a matter of course as an instrument for successful marketing. Even as a small business owner, you can use this tool for yourself. Whenever you can share interesting news in the course of your business activity, you should therefore write a press release and send it to your regional newspaper. You should find out exactly which editor is responsible for your topic in advance. Then send your press release to the right place so that you have a better chance of being included in the next issue.

Offer free workshops

If you have already participated in a workshop yourself, then you will know the effect that working together on a topic within a group creates. Because a workshop promotes not only information but also ongoing communication. As the leader of a workshop, you not only present your expertise, but also arouse interest in certain topics in the participants. In this way you strengthen your good reputation as a specialist, you introduce a group of interested parties to a topic and thus establish a connection to your offer. In addition, you make many valuable and lasting contacts.

Write technical articles

There are numerous magazines, blogs and forums on the Internet that publish specialist articles. With a technical article, you are not just bringing a certain topic to the public. Because the published article will also be linked to your name and the name of your company, so that these will also be publicly mentioned. In this way, you not only influence certain and freely selectable subject areas in terms of content. You are also bringing the name of your company to a thematically related public. In addition, you show your specialist knowledge through specialist articles and in this way recommend your expertise to an interested readership. Well-founded articles also promote credibility more than any advertisement, which is why you can use this tool very effectively for the public presentation of your small business.