diff --git a/packages/create-twenty-app/src/constants/base-application/tsconfig.json b/packages/create-twenty-app/src/constants/base-application/tsconfig.json
index 07fd3e1d2d6..3816867c053 100644
--- a/packages/create-twenty-app/src/constants/base-application/tsconfig.json
+++ b/packages/create-twenty-app/src/constants/base-application/tsconfig.json
@@ -22,6 +22,10 @@
     "skipLibCheck": true,
     "skipDefaultLibCheck": true,
     "resolveJsonModule": true,
+    "paths": {
+      "src/*": ["./src/*"],
+      "~/*": ["./*"]
+    }
   },
   "exclude": ["node_modules", "dist", "**/*.test.ts", "**/*.spec.ts"]
 }
diff --git a/packages/create-twenty-app/src/utils/__tests__/app-template.spec.ts b/packages/create-twenty-app/src/utils/__tests__/app-template.spec.ts
index 4bd1d24fa4a..1f5cae81179 100644
--- a/packages/create-twenty-app/src/utils/__tests__/app-template.spec.ts
+++ b/packages/create-twenty-app/src/utils/__tests__/app-template.spec.ts
@@ -41,7 +41,7 @@ describe('copyBaseApplicationProject', () => {
     });
 
     // Verify src/app/ folder exists
-    const srcAppPath = join(testAppDirectory, 'src', 'app');
+    const srcAppPath = join(testAppDirectory, 'src');
     expect(await fs.pathExists(srcAppPath)).toBe(true);
 
     // Verify application.config.ts exists in src/app/
@@ -114,7 +114,6 @@ describe('copyBaseApplicationProject', () => {
     const appConfigPath = join(
       testAppDirectory,
       'src',
-      'app',
       'application.config.ts',
     );
     const appConfigContent = await fs.readFile(appConfigPath, 'utf8');
@@ -127,7 +126,7 @@ describe('copyBaseApplicationProject', () => {
 
     // Verify it imports the role identifier
     expect(appConfigContent).toContain(
-      "import { DEFAULT_FUNCTION_ROLE_UNIVERSAL_IDENTIFIER } from './default-function.role'",
+      "import { DEFAULT_FUNCTION_ROLE_UNIVERSAL_IDENTIFIER } from 'src/default-function.role'",
     );
 
     // Verify display name and description
@@ -156,7 +155,6 @@ describe('copyBaseApplicationProject', () => {
     const roleConfigPath = join(
       testAppDirectory,
       'src',
-      'app',
       'default-function.role.ts',
     );
     const roleConfigContent = await fs.readFile(roleConfigPath, 'utf8');
@@ -216,7 +214,6 @@ describe('copyBaseApplicationProject', () => {
     const appConfigPath = join(
       testAppDirectory,
       'src',
-      'app',
       'application.config.ts',
     );
     const appConfigContent = await fs.readFile(appConfigPath, 'utf8');
@@ -247,11 +244,11 @@ describe('copyBaseApplicationProject', () => {
 
     // Read both app configs
     const firstAppConfig = await fs.readFile(
-      join(firstAppDir, 'src', 'app', 'application.config.ts'),
+      join(firstAppDir, 'src', 'application.config.ts'),
       'utf8',
     );
     const secondAppConfig = await fs.readFile(
-      join(secondAppDir, 'src', 'app', 'application.config.ts'),
+      join(secondAppDir, 'src', 'application.config.ts'),
       'utf8',
     );
 
@@ -289,11 +286,11 @@ describe('copyBaseApplicationProject', () => {
 
     // Read both role configs
     const firstRoleConfig = await fs.readFile(
-      join(firstAppDir, 'src', 'app', 'default-function.role.ts'),
+      join(firstAppDir, 'src', 'default-function.role.ts'),
       'utf8',
     );
     const secondRoleConfig = await fs.readFile(
-      join(secondAppDir, 'src', 'app', 'default-function.role.ts'),
+      join(secondAppDir, 'src', 'default-function.role.ts'),
       'utf8',
     );
 
diff --git a/packages/create-twenty-app/src/utils/app-template.ts b/packages/create-twenty-app/src/utils/app-template.ts
index a563df1ee1b..4e2223c2862 100644
--- a/packages/create-twenty-app/src/utils/app-template.ts
+++ b/packages/create-twenty-app/src/utils/app-template.ts
@@ -2,7 +2,7 @@ import * as fs from 'fs-extra';
 import { join } from 'path';
 import { v4 } from 'uuid';
 
-const APP_FOLDER = 'src/app';
+const APP_FOLDER = 'src';
 
 export const copyBaseApplicationProject = async ({
   appName,
@@ -36,6 +36,10 @@ export const copyBaseApplicationProject = async ({
     appDirectory: appFolderPath,
   });
 
+  await createDefaultFunction({
+    appDirectory: appFolderPath,
+  });
+
   await createApplicationConfig({
     displayName: appDisplayName,
     description: appDescription,
@@ -67,6 +71,7 @@ generated
 
 # dev
 /dist/
+.twenty
 
 # production
 /build
@@ -139,7 +144,7 @@ export const HelloWorld = () => {
 
 export default defineFrontComponent({
   universalIdentifier: '${universalIdentifier}',
-  name: 'hello-world',
+  name: 'hello-world-front-component',
   description: 'A sample front component',
   component: HelloWorld,
 });
@@ -151,6 +156,41 @@ export default defineFrontComponent({
   );
 };
 
+const createDefaultFunction = async ({
+  appDirectory,
+}: {
+  appDirectory: string;
+}) => {
+  const universalIdentifier = v4();
+  const triggerUniversalIdentifier = v4();
+
+  const content = `import { defineFunction } from 'twenty-sdk';
+
+const handler = async (): Promise<{ message: string }> => {
+  return { message: 'Hello, World!' };
+};
+
+export default defineFunction({
+  universalIdentifier: '${universalIdentifier}',
+  name: 'hello-world-function',
+  description: 'A sample serverless function',
+  timeoutSeconds: 5,
+  handler,
+  triggers: [
+    {
+      universalIdentifier: '${triggerUniversalIdentifier}',
+      type: 'route',
+      path: '/hello-world-function',
+      httpMethod: 'GET',
+      isAuthRequired: false,
+    },
+  ],
+});
+`;
+
+  await fs.writeFile(join(appDirectory, 'hello-world.function.ts'), content);
+};
+
 const createApplicationConfig = async ({
   displayName,
   description,
@@ -161,7 +201,7 @@ const createApplicationConfig = async ({
   appDirectory: string;
 }) => {
   const content = `import { defineApp } from 'twenty-sdk';
-import { DEFAULT_FUNCTION_ROLE_UNIVERSAL_IDENTIFIER } from './default-function.role';
+import { DEFAULT_FUNCTION_ROLE_UNIVERSAL_IDENTIFIER } from 'src/default-function.role';
 
 export default defineApp({
   universalIdentifier: '${v4()}',
diff --git a/packages/twenty-sdk/src/cli/utilities/entity/utils/__tests__/get-front-component-base-file.spec.ts b/packages/twenty-sdk/src/cli/utilities/entity/utils/__tests__/get-front-component-base-file.spec.ts
index 05984e693c3..aca1faa8a8c 100644
--- a/packages/twenty-sdk/src/cli/utilities/entity/utils/__tests__/get-front-component-base-file.spec.ts
+++ b/packages/twenty-sdk/src/cli/utilities/entity/utils/__tests__/get-front-component-base-file.spec.ts
@@ -16,9 +16,9 @@ describe('getFrontComponentBaseFile', () => {
       "universalIdentifier: '71e45a58-41da-4ae4-8b73-a543c0a9d3d4'",
     );
     expect(result).toContain("name: 'my-component'");
-    expect(result).toContain('component: HelloWorld,');
+    expect(result).toContain('component: Component,');
 
-    expect(result).toContain('export const HelloWorld = () => {');
+    expect(result).toContain('const Component = () => {');
 
     expect(result).toContain(
       "description: 'Add a description for your front component'",
@@ -49,7 +49,7 @@ describe('getFrontComponentBaseFile', () => {
     });
 
     expect(result).toContain('<div');
-    expect(result).toContain('<h1>Hello, World!</h1>');
+    expect(result).toContain('<h1>My new component!</h1>');
     expect(result).toContain('</div>');
   });
 });
diff --git a/packages/twenty-sdk/src/cli/utilities/entity/utils/__tests__/get-function-base-file.spec.ts b/packages/twenty-sdk/src/cli/utilities/entity/utils/__tests__/get-function-base-file.spec.ts
index 54604a2fbd2..c901d7790f0 100644
--- a/packages/twenty-sdk/src/cli/utilities/entity/utils/__tests__/get-function-base-file.spec.ts
+++ b/packages/twenty-sdk/src/cli/utilities/entity/utils/__tests__/get-function-base-file.spec.ts
@@ -18,7 +18,7 @@ describe('getFunctionBaseFile', () => {
     expect(result).toContain('handler,');
     expect(result).toContain('triggers: [');
 
-    expect(result).toContain('export const handler = async');
+    expect(result).toContain('const handler = async');
 
     expect(result).toContain(
       "description: 'Add a description for your function'",
diff --git a/packages/twenty-sdk/src/cli/utilities/entity/utils/entity-front-component-template.ts b/packages/twenty-sdk/src/cli/utilities/entity/utils/entity-front-component-template.ts
index b872db8bdea..7e62be4aaaa 100644
--- a/packages/twenty-sdk/src/cli/utilities/entity/utils/entity-front-component-template.ts
+++ b/packages/twenty-sdk/src/cli/utilities/entity/utils/entity-front-component-template.ts
@@ -13,10 +13,10 @@ export const getFrontComponentBaseFile = ({
   return `import { defineFrontComponent } from 'twenty-sdk';
 
 // React component - implement your UI here
-export const HelloWorld = () => {
+const Component = () => {
   return (
     <div style={{ padding: '20px', fontFamily: 'sans-serif' }}>
-      <h1>Hello, World!</h1>
+      <h1>My new component!</h1>
       <p>This is your front component: ${kebabCaseName}</p>
     </div>
   );
@@ -26,7 +26,7 @@ export default defineFrontComponent({
   universalIdentifier: '${universalIdentifier}',
   name: '${kebabCaseName}',
   description: 'Add a description for your front component',
-  component: HelloWorld,
+  component: Component,
 });
 `;
 };
diff --git a/packages/twenty-sdk/src/cli/utilities/entity/utils/entity-function-template.ts b/packages/twenty-sdk/src/cli/utilities/entity/utils/entity-function-template.ts
index b2dcf00c824..a6d8695f1de 100644
--- a/packages/twenty-sdk/src/cli/utilities/entity/utils/entity-function-template.ts
+++ b/packages/twenty-sdk/src/cli/utilities/entity/utils/entity-function-template.ts
@@ -14,7 +14,7 @@ export const getFunctionBaseFile = ({
   return `import { defineFunction } from 'twenty-sdk';
 
 // Handler function - rename and implement your logic
-export const handler = async (params: {
+const handler = async (params: {
   a: string;
   b: number;
 }): Promise<{ message: string }> => {