How to start an online business: 7 steps to follow

Starting a business doesn't need to be a labyrinth of complexities, but the prospect of navigating through heaps of information can indeed be overwhelming. Fear not; we're here to streamline the process and make your journey into the entrepreneurial realm as smooth as possible.

Why Opt for an Online Business? Unveiling the Steps to Success

The entrepreneurial wave has surged in France, partly due to the pandemic and an increasing desire to live life passionately, breaking free from traditional workforce constraints. In 2021 alone, a staggering 1 million companies were created in France, marking a 17.4% spike from the previous year, as per INSEE records.

The Allure of Online Business

Embarking on an online venture offers a swift and uncomplicated path to materializing your project. Whether you decide to compile your business creation documents independently or delegate to an online service provider, each method has its merits. The former is cost-effective but time-intensive, while the latter ensures a speedy setup, albeit with a budget requirement.

Regardless of your chosen method, crafting an online business demands some guidance. If you're ready to plunge into the online business world, here are seven essential steps to set you on the right path:

1. Craft a Robust Business Plan

Every entrepreneur's inaugural step should be crafting a robust business plan. This not only solidifies your venture's financial stability and sustainability but is crucial when seeking financing from banks or business angels. Download our free business plan template to tailor it to your unique project.

2. Regulatory Checkpoint

Not all business activities are subject to regulations, so it's imperative to assess whether your chosen venture falls under any regulatory frameworks. A myriad of activities are regulated, and a non-exhaustive list can be found on our website.

3. Domicile Your Business

Domiciling your business involves defining its registered office. Even if you're a home-based entrepreneur, having a designated business address is mandatory. This address will be used on all official documents, and be prepared to pay the annual CFE (business property tax) if your home address serves as your business address.

4. Choose Your Business's Legal Status

The legal structure of your business depends on factors such as your business type, projected turnover, and whether you're solo or collaborating. Consider options like:

• Self-Enterprise or Micro-Enterprise: Personal and professional assets aren't separate, but it offers advantages like VAT exemption up to a certain level.
• SASU and EURL: Ideal for solo entrepreneurs seeking a limited-risk company with the ability to deduct expenses and hire employees.
• SARL and SAS: Suited for ventures with multiple partners or shareholders, differing mainly in the social regime of the manager.

Ready to make your mark in the business world? Choose the legal status that aligns with your vision and objectives.

And that's it! Follow these steps, and you'll be well on your way to establishing a thriving online business.

Frequently Asked Questions (FAQs)

1. Why is a business plan essential for online ventures?

A solid business plan ensures financial stability and sustainability, crucial when seeking external financing.

2. How do I know if my business activity is regulated?

Explore our website for a non-exhaustive list of regulated activities to determine if your venture falls under any regulations.

3. Why is domiciling my business important?

Domiciling your business, even if home-based, is mandatory and provides a designated address for official documents.

4. How do I choose the legal status for my business?

Consider factors like business type, projected turnover, and collaboration when choosing between self-enterprise, SASU, EURL, SARL, and SAS.

5. Can I switch legal statuses later on?

Yes, legal status changes are possible, but it's crucial to assess the implications and requirements before making the switch.