How to start a business

Starting your own business is a dream for many people. For some, that dream grows out of a passion. For others, it stems from frustration at work or the ambition to finally work for themselves. However different these stories may be, almost every new entrepreneur goes through the same process. First comes the excitement of a new idea. Then come the questions. Where do you begin? Which legal structure should you choose? Is it better to start as a main occupation or as a secondary occupation? How much does it actually cost to start a business? And which administrative steps should you not forget?

Anyone searching online for answers will usually be presented with a list of formalities. Applying for a company number, activating a VAT number, joining a social insurance fund, opening a business bank account and finding an accountant. These are all necessary steps, but they represent only a small part of entrepreneurship. Setting up a business is no longer a particularly complicated process today. The real challenge begins afterwards: building a financially healthy business that can grow sustainably and withstand the economic turbulence of tomorrow.

A good idea is not the same as a good business

Before taking the first administrative step, it is worth considering the foundations of the business. Many entrepreneurs start from their professional expertise. They may be excellent electricians, graphic designers, consultants or physiotherapists. But professional expertise alone is not enough to build a successful business. Ultimately, customers do not pay for your knowledge. They pay for the solution you provide.

That is why every strong business starts with a number of simple but fundamental questions. Which problem do you solve? Why should a customer choose you? How large is the market? What price can you charge? How many customers do you need to operate profitably? And how much financial breathing room do you have if the first few months are more difficult than expected?

A surprising number of new entrepreneurs cannot provide a concrete answer to those final questions. Yet those answers are precisely what determine whether a business will still exist several years later.

Make a conscious choice between a main and secondary occupation

One of the first choices a new entrepreneur must make concerns their social status. This decision affects not only their social security contributions, but also the financial risks involved during the start-up phase.

Someone who chooses to work as a self-employed person as a secondary occupation retains their social protection through their salaried employment. For many people, a secondary occupation therefore offers a safer way to build a business without immediately becoming dependent on the income from their self-employed activity. Social security contributions are calculated on the net taxable income generated by the secondary activity. If that income remains below the statutory threshold, an exemption from social security contributions may even be requested.

A self-employed person working as their main occupation builds their entire social protection through their business activity. This also involves higher social security contributions. In 2026, the minimum provisional social security contribution amounts to approximately €925 per quarter. This amount forms the basis for pension rights, healthcare coverage and other social entitlements. The choice between a main and secondary occupation is therefore much more than an administrative formality. It helps determine how much financial risk you are willing to take during the first years of entrepreneurship.

The right legal structure is not always the cheapest one

For many new entrepreneurs, a sole proprietorship remains the most logical choice. It is easy to set up, the administrative obligations are limited and accounting costs are generally lower than those of a company. This makes a sole proprietorship particularly suitable for entrepreneurs who want to test their activity or who do not yet know how quickly their business will grow.

However, simplicity is not always the best long-term strategy. Once profits increase, investments become larger or the business is exposed to greater liability risks, a company structure may become more attractive. This is not only for tax reasons, but also because a company creates a clearer separation between private assets and business assets. The choice between a sole proprietorship and a company therefore depends on much more than expected turnover alone. Profit levels, planned investments, the risks associated with the activity and the entrepreneur’s future plans all play an important role.

The administrative start-up process step by step

Once the major strategic choices have been made, the formal establishment of the business can begin. For most entrepreneurs, this follows a standard process.

The first step is to register the business with the Crossroads Bank for Enterprises, or CBE, through a recognised business counter. In 2026, the statutory registration fee amounts to €111.50 per establishment unit.

If the activity is subject to VAT, the company number must then be activated as a VAT number. Business counters generally charge an administrative fee of approximately €70 to €90 for this service, depending on the provider selected.

Every self-employed person must also join a recognised social insurance fund. This registration is legally required but is free of charge in itself. From the start of the activity, social security contributions become payable according to the chosen social status. Later changes, such as adding an establishment unit, updating activities or modifying information in the Crossroads Bank for Enterprises, may also result in statutory registration fees.

Entrepreneurs who intend to employ staff will also face additional obligations, such as joining an external prevention service, taking out occupational accident insurance and working with a social secretariat.

A company number does not make someone an entrepreneur

For many new entrepreneurs, the day on which their company number is activated feels like an important milestone. The business officially exists, the first invoices can be sent and the administrative start-up process has been completed. Yet this is not the end of the process. It is the beginning of the real challenge. From that moment onwards, the business must prove that it is economically viable.

The first few months are often decisive for future success. New customers must be convinced, quotations must be negotiated, suppliers expect to be paid on time and the first VAT return usually follows quickly. It soon becomes clear that strong turnover does not necessarily mean that a business is financially healthy. Entrepreneurs who fail to take sufficient account of taxes, social security contributions, late payments or unexpected investments may experience cash flow problems despite having a full order book. Entrepreneurship is therefore ultimately much less about administration than it is about financial insight. Turnover, margins, fixed costs, investments, taxation and cash flows constantly influence one another and together determine the financial health of the business.

Good preparation is the least expensive investment

Public authorities, business counters and social insurance funds provide excellent support to new entrepreneurs with the statutory formalities. They ensure that a business is established correctly from a legal perspective and complies with all administrative requirements. However, none of these organisations will assess whether your pricing is realistic, how much turnover you need to generate to pay yourself an income or how an investment will affect your cash flow. That remains the entrepreneur’s responsibility.

This is precisely why a strong business starts long before the first invoice is sent. A well-considered business plan, realistic financial projections and a clear understanding of future cash flows are not administrative obligations, but strategic tools. Entrepreneurs who calculate different scenarios in advance create greater certainty, make better decisions and can adjust more quickly when reality deviates from the original plan.

Starting a business therefore involves much more than applying for a company number. It means making conscious decisions, identifying risks and gradually building a business that is not only able to start today, but can also remain healthy and future-oriented tomorrow, in five years and in ten years. That is ultimately the difference between establishing a business and building one.