AVGS Founder Coaching: How to receive professional start-up advice free of charge

Category: Funding & Financing | Author: Daniel Schäfer | Reading time: 6 min.

You want to become self-employed – but are worried about the risk of failure? Studies show: founders who work with a professional coach or advisor have a five times higher chance of success. And the best part: in many cases, you do not have to pay for this yourself. The legislator specifically supports this – because a successful founder is better than one who fails and returns to the Job Centre.

Contents

1. What is the AVGS – and why does it exist?
2. Who is eligible for an AVGS?
3. The right timing: When can you apply for the AVGS?
4. What is included in AVGS founder coaching?
5. How many AVGS can you receive?
6. What happens after the coaching?
7. Conclusion and next steps

What is the AVGS – and why does it exist?

AVGS stands for Activation and Placement Voucher. Originally intended for job coaching, it can now also be used for professional pre-start-up coaching – and at 100% free of charge for you.

The reason is simple: the legislator has a clear interest in ensuring that you, as a founder, are successful. A well-prepared founder does not place a burden on the social system – whereas a failed one does. That is why the Employment Agency or Job Centre invests in your preparation before you start.

Important: Founders who receive professional support are proven to have a five times higher chance of success than those without support. This is not an opinion – these are documented study results.

Who is eligible for an AVGS?

Not everyone can apply for the AVGS immediately. Your current situation is decisive:

You are still employed and have not yet resigned: In this case, there is generally no entitlement to a funded AVGS yet. You can, of course, engage a start-up advisor privately – but 100% funding is not yet possible here. Exception: If you already have a side business, programmes such as BAFA may provide partial funding.

You have already received your notice of termination: As soon as you have your notice of termination and your employment will end soon, you can already apply for an AVGS – even if you are still working. The application can therefore be submitted before you are officially unemployed.

You have received your ALG I notification: As soon as you are registered as unemployed and have received your ALG I notification, you have a clear entitlement to the AVGS for pre-start-up coaching.

You were self-employed and have completely ceased your activity: If you have completely ended your previous self-employed or freelance activity and want to start a new, different venture, you can also apply for an AVGS via ALG II.

Please note: Anyone who wishes to continue their previous self-employed activity is not entitled to an AVGS. The venture must be new and different.

The right timing: When can you apply for the AVGS?

Timing is crucial – and many founders lose valuable time here.

A concrete example from practice: A founder has already received their notice of termination, but their employment will not end for another two months. They immediately registered with the Employment Agency, applied for the AVGS – and it was already approved. Result: They can professionally prepare their start-up during their remaining period of employment.

This is also welcomed by the Employment Agency – because the shorter the period of benefit payments, the better for everyone involved.

Tip: Do not wait until your first day of unemployment. Register with the Employment Agency as soon as you receive your notice of termination – and ask for the AVGS straight away.

What is included in AVGS founder coaching?

The AVGS start-up coaching is a certified individual measure – you do not have to attend any group sessions. Depending on approval, you will receive between 30, 50 or 80 teaching units of 45 minutes each, individually tailored to your project.

Typical topics include your entrepreneurial personality and suitability as a founder, development and refinement of your business idea, marketing and sales strategy, basics of tax and law, preparation of the business plan and financial plan, preparation of the expert opinion for the Employment Agency or bank, as well as a personality test for orientation.

At the end of the coaching, you will prepare together with the advisor a written recommendation to the Employment Agency or Job Centre – an expert opinion confirming that you and your project are eligible for funding. You will also need this opinion for the start-up grant (Gründungszuschuss) and for bank financing such as KfW.

How many AVGS can you receive?

More than most people think. As a rule, an AVGS is approved – but for complex projects, significantly more is possible.

An example from our practice: For a manufacturing company with several bank meetings – house bank, development bank, guarantee bank, and KfW – the Jobcenter approved not just one, but five AVGS in succession The prerequisite was proof of concrete progress: first bank commitment, prepared pitch documents, complete paperwork.

The principle: As soon as one AVGS is completed and you can demonstrate further progress, you can apply for the next one.

 Note: An AVGS is not a one-off instrument. For complex start-up projects, it can be used multiple times – provided that progress is documented.

What happens after the coaching?

Coaching is the starting signal – not the finish line. After AVGS start-up coaching, you will usually have the following documents ready:

A complete, bank-ready business plan, a plausible three-year financial plan, an expert opinion for the employment agency or Jobcenter, all necessary documents for the start-up grant (Gründungszuschuss), as well as a solid basis for bank meetings and KfW applications.

With these documents, you are not only prepared for funding applications – but also for your first bank meeting, the KfW application, and all further steps on the path to a successful start-up.

Conclusion: Free professional advice – those who do not take advantage of it give away their head start

Professional start-up advice is not a luxury – it is the decisive difference between a well-prepared start-up and a project that fails after six months because something important was forgotten.

The old pilot’s rule applies here too: Anything that can go wrong will go wrong one day. If you realise your boat is leaking far out at sea, you have a problem. If you check beforehand, you don’t.

And the best part: With the AVGS, you often do not have to pay for this advice yourself. 100% funding, individual one-to-one coaching, certified nationwide.