5 Insider Tips for Launching a Successful Business in Luxembourg

Luxembourg Business Tips: Five Key Insights from a Local Expert Starting a business in a new country can be daunting, but Luxembourg-based realtor Michel Kmi-o-tek (@michelkmiotek) offers some valuable advice for aspiring entrepreneurs. In a recent video, Kmi-o-tek shared five essential things to consider before launching a business in the Grand Duchy. First, he cautions against the allure of the low-cost "SARL-S" company structure, explaining that many banks are hesitant to open accounts for these entities. "Banks no longer want to open bank accounts for the Sarl-s, the €1 company," he explains. He recommends opting for a SARL, acknowledging the higher initial costs but highlighting the long-term benefits. Second, Kmi-o-tek emphasizes the relative ease of hiring staff in Luxembourg, but also notes the difficulty of firing them due to strong employee protections. This leads him to advise choosing an industry that allows for minimal staffing. Third, he suggests avoiding overly innovative business models in Luxembourg, recommending instead to focus on established business models and services that can be executed to a higher standard than competitors. Fourth, the video stresses the importance of market research to ensure the business has a sufficiently large customer base within Luxembourg's smaller market to sustain itself. "Luxembourg is a small country," Kmi-o-tek points out, "make sure the total amount of customers that you can acquire in Luxembourg is big enough to sustain your business." Finally, he advises against diversifying too early. He advises becoming an expert in your core business before expanding into new areas. "Don't do it in the beginning," he says, "first make sure that you become an absolute expert in your field and then diversify." Kmi-o-tek's insights offer a realistic and practical guide for anyone considering starting a business in Luxembourg, emphasizing the importance of careful planning and strategic decision-making.