Becoming self-employed: A guide for founders and freelancers

Starting a business: A guide for founders and freelancers

The desire to start one's own business is growing steadily – whether driven by the wish for more freedom, flexible work, or the goal of implementing a business idea. At the same time, uncertainty and questions remain: How to get started the right way? Which steps are necessary? What distinguishes self-employment, freelance work, and founding a company? And how do you acquire clients as early as possible?

This guide provides you with all the essential answers. It explains step-by-step how founders and freelancers can successfully start their business in 2025, which mistakes are avoidable, and how to transition from an idea to a viable business model. Furthermore, you will learn how data-driven tools such as industry lists or B2B company addresses help you reach target groups faster and refine your positioning.

For a comprehensive overview of starting a business, we also recommend our article: Founders and Startups: The ultimate guide for a successful start in business.

1. Starting a business: What does it actually mean?

Self-employment means working independently, without an employer, with the goal of building your own entrepreneurial activity. This can take the form of:

• Freelancer
• Sole trader
• Business owner
• Service provider
• Creative or technical service provider

as a way of working.

Advantages of self-employment

Challenges

2. Developing a business idea: The first step into self-employment

Many founders ask themselves: Which ideas for starting a business actually work?

The best business ideas meet the following criteria:

• Clear target group
• Real problem
• Realistic willingness to pay
• Quick testability
• Low initial costs

Examples:

• Services (marketing, design, consulting)
• Coaching
• Virtual assistance service
• IT freelancing
• Trade or e-commerce
• Local services

Especially in e-commerce, it quickly becomes clear that it is not just the idea that is decisive, but also the technical implementation and conversion optimization of the shop. You can find out when it is worth using a Shopify agency or performing a migration in the Guide to Shopify Agency and Shop Migration.

The earlier you test your idea, the lower the risk. Target groups must be valid – this is where professional industry lists or company addresses help to address the right contacts directly.

3. Starting a business: Step-by-step guide

Step 1: Define the business idea

Make sure you have a clearly described offer and defined target customers.

Step 2: Analyze the target group

Questions for orientation:

• Who benefits from your offer?
• Which industry?
• What company size?
• Which role makes the decisions?

Tip: Industry lists help to realistically assess target customers.

Step 3: Choose a legal form

The most common options:

• Sole proprietorship (Einzelunternehmen)
• Freelance activity
• UG or GmbH

More on this in the article Founding a company: What you need to know in 2025 (legal form, costs, tips).

Step 4: Register with the authorities

Depending on the activity:

• Trade office (Gewerbeamt)
• Tax office (for freelancers)

Costs: usually between 20 and 60 euros.

Step 5: Set up a business bank account & accounting

Professional from the start:

• Separation of private and business finances
• Simple accounting tools
• Invoicing software

Step 6: Create a business plan

A business plan helps to create structure, test assumptions, and plan financing.

You can find a detailed guide in Free business plan template: How founders can successfully plan their business.

Step 7: Start customer acquisition

The biggest challenge for everyone starting a business. Many founders quickly hit limits here, as it is not just about choosing the right channels, but primarily about concrete implementation and optimization.

We show what services specialized agencies take on in this area in our Overview of Performance Marketing Agencies.

Important strategies:

• Online presence (website, social media)
• Targeted outreach to potential customers
• Use of B2B data for outbound contact
• Content marketing
• Initial collaborations

More on efficient customer acquisition:

Acquiring customers on a small budget: 7 smart tips

The best sales channels for startups – how to reach your first customers

4. Self-employment and funding: What support is possible?

Support for self-employment is a central component for many founders.

Typical funding options

Many founders use startup platforms or business consulting to find suitable programs.

The Federal Employment Agency also offers information on grants for starting a business.

You can find more details in the article Founding consultation & startup platforms: The best points of contact for startups.

5. Starting a business: Understand and reach target groups

Acquiring first customers quickly is crucial.

Therefore, founders must know:

• Who their target customers are
• How they make decisions
• Which channels they can be reached through

Key methods for addressing target groups:

• Email outreach
• Direct acquisition
• Using industry lists
• Local networks
• Social selling

A clear advantage is created when the target group is not described vaguely but identified concretely – right down to individual company addresses.

6. Self-employment compared to founding a company

Self-employment means:

• Independent activity
• Personal responsibility
• Flexible structures

Founding a company goes further:

• Building an organization
• Structuring processes
• Assigning roles

Many start self-employed and found a company later.

You can find an overview of this transition in the article:

Founding a sole proprietorship: Checklist for the self-employed

Conclusion

Starting your own business is a clearly structureable process that becomes significantly easier with the right preparation. A realistic business idea, a clearly defined target group, a strategic plan, and structured customer acquisition are crucial. Those who use professional data early on, such as via industry lists or company addresses, build momentum faster and reduce uncertainty.

Self-employment is not a coincidence, but the result of a well-thought-out strategy. This guide offers the framework – you shape the path yourself.

Your competitive advantage for better target group segmentation