What are the financial resources of a company?

Do I have the financial resources to start my business?

Faced with the doubts and uncertainties of starting a business, knowing that you have the financial resources to ensure the peaceful development of your business is a reassuring element. In this blog post, Koï Coaching offers you a strategy that allows you to take stock of your available financial resources and your cash flow needs.

The reflection path we propose is available in 5 steps :

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  • Take stock of your personal situation;
  • Consider different possible scenarios to start your business
  • Take stock of the financial assistance you are entitled to, including your Employ Pole support;
  • If applicable, establish the business plan for your company;
  • Define your financing strategy.

Step 1: What is your personal situation?

The first step concerns your personal life. Indeed, we invite you to draw up your personal financial balance sheet in order to take stock of your available financial resources and your financial needs. Suppose your new self-employment does not generate immediate income. In these circumstances, it seems essential that you know your room for manoeuvre and your personal budget .

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This first step raises two main questions:

What resources do you need to live?

This question invites you to take stock of your current financial resources needs:

  • What are your fixed fees?

Loans to repay, rents at pay, average food budget, electricity, telephony, taxes, etc.

  • What is the cost of living for your family?

It depends on the number of dependent children, the activities to be financed (sports for example), your personal needs (leisure, restaurants, outings, etc.), health expenses, etc.

  • What aspects of your personal life can generate other expenses?

These reflections allow you to define your monthly budget needed to live. This is compared to your disposable income.

What resources do you have?

This section allows you to list all the financial resources you will retain during the creation of your business.


  • Do you have passive sources of income (rental of property, activity secondary)?
  • Do you have talent that would allow you to generate additional income (teaching courses, small services, etc.)?
  • Do you keep a part-time job while you start your business? (We detail the subject of employment when creating the business in the next section)
  • Does your spouse have enough income to meet the main household needs?
  • Do you maintain your support Pole Jobs ? (We detail this topic in the rest of the article)

The goal here is to list and sum up all your potential cash inflows.

The difference between your cash inflows and your living costs corresponds to your rest to live . This concept allows you to determine your personal budget, leeway, minimum income to generate. This is an important concept for defining a funding strategy that is both consistent and consistent with your personal needs.

Step 2: Under what conditions do you start your business?

After reviewing your monthly budget, leeway or financial needs, it may be interesting to ask yourself about the conditions under which you want to start your business .

Several questions come into play about your current position:

Are you going to work part-time while starting your business?

Do you know that it is possible to ask your employer for part-time work to start a business ?

To be eligible, you must complete several conditions:

  • have a period of service of at least 24 months , whether consecutive or not, with the undertaking or other undertakings of the same group;
  • If your company has fewer than 300 employees, has not been granted leave or part-time for creation in the last three years;

part-time for the creation of a business is renewable once (except collective agreement or collective agreement) for a maximum period of one year Le).

This allows you to keep a monthly salary while giving you time to work on your project . However, your employer may refuse to grant it to you.



Taking a sabbatical leave to start your business?

Another possibility to keep your job while taking a break during starting your business is sabbatical .

The conditions to be eligible for this scheme are as follows:

  • Have at least 36 months of consecutive or unconsecutive service in the enterprise or in any other undertaking within the same group;
  • Have a minimum of 6 years of professional activity ;
  • Not having received this type of leave in the previous six years.

Please note that taking sabbatical leave does not require you to disclose to your employer the nature of your project.

The duration of such leave shall be a minimum of six months and a maximum of eleven months, without possible renewal.

Sabbatical leave allows you to devote yourself full-time to the creation of your business. At the end of Your sabbatical period, you have two choices: terminate your employment contract with the company in question or return to the company. However, you do not receive any salary during this period On.

If you would like more information on part-time employment or sabbatical leave, you can refer to the article Contractor of Agence France.

Are you leaving your job and dedicating yourself to starting your business?

You may prefer to leave your job permanently and devote yourself entirely to your new business project.

As you know, there are three ways to terminate your employment contract:

  • The resignation:

The resignation is a break at your initiative. It has the disadvantage, not negligible, of depriving you of all the unemployment assistance .

  • Conventional Break:

The breach of contract is the result of a joint agreement between you and your employer. This type of dismissal offers two advantages: you receive an employment contract and you are eligible for unemployment benefits .

  • Dismissal:

Dismissal is a form of dismissal at the initiative of the employer. Like a conventional interruption, dismissal allows you to benefit from unemployment benefits, even in case of serious misconduct.

The conditions under which you start your business (e.g. part-time, sabbatical leave, after a conventional resignation or interruption) necessarily affect your future revenue streams. It seems more comfortable to start your business with a minimum of cash inflows (income or benefits) than starting without “safety net”.

Step 3: Get Pole Job Help?

We have written a blog post detailing the Employment Centre for Entrepreneurs (AER, ARCE and ACCRE) scholarships, which we advise you to read. Here we take the main ideas.

What are the conditions to be eligible for employment?

Recall the conditions to benefit from Pole Employment aid:

  • have worked at least 4 months in the last 28 months if you are under 53 years of age, in the last 36 months if you are over 53 years of age;
  • Involuntary loss of employment : cases of contractual breakdown and dismissal, but not resignation;
  • Being physically fit for work;
  • Resident in France;
  • Register or re-register with the Employment Centre within 12 months of the loss of employment;
  • Not having contributed enough to qualify for full-time retirement.

These are cumulative conditions , which means that they must be met at the same time.

If you are entitled to unemployment benefits, you can benefit from two alternative aid in case of start-up or takeover: AER and ARCE.

How to choose between AER and ARCE?

Return to Employment Assistance (AER) corresponds to the maintenance of your unemployment benefits, despite the development of a self-employment activity.

The ARCE (Assistance in recovering or creating a business) is a capital payment that corresponds to 45% of your Unemployment Insurance balance .

To choose between these two grants, the main questions to ask are: “ Do I need significant funding from the very beginning of my business? Do I prefer to maintain financial security over time?

If you need a lot of financing right from the start of your business , we recommend you opt for ARCE. This solution allows you to benefit from a first cash flow.

If you don’t need that money right from the start of your business, it may be better to opt for AER. This help ensures you an entry of money every month.

Remember that in the case of an option for AER, choosing the legal status of your company is paramount. Unemployment benefits paid to you during self-employment are subject to a discount calculated on the basis of the income you receive from this activity:

  • If you set up a micro-enterprise , Pôle Emploi considers that you pay yourself a salary as soon as you make a turnover. As a result, your benefits decrease rapidly as you earn income;
  • If you create a business (SARL, EURL, SAS, SASU), then, regardless of the turnover of your company, as long as you do not pay a salary yourself, there is no discount applied to the unemployment benefits you receive.

Thus, the Employment Cluster aid constitutes an important financial aid for a project manager.

Step 4: Do you need to establish your business plan?

The drafting of a business plan is not systematic. To fully understand when it is necessary to write it, it seems important to understand its purpose.

What is the business plan for?

The company is a document in two parts, a written part and a digital part , presenting the company, its manager and the financial perspective of the planned activity.

The business plan has several objectives, the two main objectives that we believe to be:

  1. Learn about the viability of your project…
  2. … and then be able to convince your future partners of the opportunities identified and the coherence of your strategy global.

Thus, the business plan is both a strategic tool and a communication tool.

It is usually composed of:

  • a written part comprising:
    • A summary of your project ;
    • Your presentation as a creator and that of your team;
    • The findings of your market research ;
    • a presentation of the product or service;
    • A definition of your vision,goals,overall strategyandoperational strategies.
  • an encrypted part comprising:
    • forecast statement of results: which sets out the business activity of the enterprise over three or five years;
    • The forward-looking plan of Funding: explains the link between the identified funding needs and the funding requested or obtained;
    • The cash budget: which presents the planned monthly bank balances for the coming year.

Writing a business plan can be a relatively long exercise. This seems to us to be relevant when the proposed activity generates significant financial needs or requires cash flows from external partners.

What is the link to your funding strategy?

The business plan is at the heart of your thinking about your financing strategy. It allows youto identify potential costs and revenues for your project . Only this knowledge of your future income and expenses can help you determine the amount of funding you need.



Step 5: What sources of funding should I turn to?

We wrote a free e-book on “What funding strategy should we adopt? , which we invite you to download.

This eBook presents key grants and grants to project creators or takeovers, including:

  • The Honor Loan :
    • variable financing: between EUR 2 000 and 30 000;
    • at zero rate;
    • lasting from 2 to 7 years;
    • usually with a postponement of the settlement;
    • not requiring personal guarantees on the part of the creator.
  • The business angel :
    • Individuals wishing to invest in your business
    • In exchange for a stake in the share capital;
    • Useful when you want to raise a large amount of money.
  • Grants :
    • Granting by Europe, the State or a local authority;
    • Please note that the granting of each grant is subject to compliance with specific conditions.

  • Crowdfunding :
    • Crowdfunding via a digital platform;
    • Counterparties differ depending on the type of crowdfunding chosen by the company’s management team (crowdfunding by donations, loans or capital).
  • Bank loan:
    • remains the most common source of funding;
    • Institutions remain cautious about their lending arrangements. Hence the need to take care of your business plan to prove the consistency and potential of your project.

It should be noted that women entrepreneurs can benefit from special support. If you want to go further on this topic, you can read our article on financial support for business creators.

In conclusion, prior to engaging in self-employment, prudence requires a review of its cash inflows and cash needs, both personally and socially. At the same time, the creation of part-time enterprises, sabbatical leave and assistance to the Employment Centre are all measures aimed at limiting start-up risks.

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