Do you have a clever business idea? You think you can inspire the market with new ideas? Then the temptation to found a start-up is certainly quite strong. But being your own boss does not only bring increased responsibility, more flexibility and decision-making power. In the end, there is also more financial outlay for the entrepreneur. But of course it is a long road to success and not every good idea pays off in the end. Only a quarter of company founders make it out of the initial phase and into the profit zone.
At the end of the process, the goal is to make money with the developed concept and to survive in the market. Good planning and a lot of forethought are indispensable for this. Hasty start-ups without long-term planning are rarely crowned with success. Consistent and permanent reflection on one’s own behaviour and personal decisions is indispensable. A start-up is a principle that is flexible and subject to continuous change.
Basically, you should be convinced of your idea and have the necessary amount of passion. Should you only want to found the company to earn a quick euro, then it is best to leave it alone right away. Your drive should be an inner conviction, based on a relatively simple basic idea at the beginning. You can build the rest of the idea on this. The following ten tips will help ensure that you, as an entrepreneur, come out a winner in the end if possible.
10 Tips for Entrepreneurs
Tip 1: Adapt to the role of the entrepreneur
Tip 2: Keep the business idea simple and concept-oriented
Tip 3: Nothing without a good business plan
Tip 4: Be flexible
Tip 5: The right way to get start-up capital
Tip 6: Insure yourself well
Tip 7: Choose the right legal form
Tip 8: Organise yourself well and outsource work if necessary
Tip 9: Create good marketing and brand identity
Tip 10: Find suitable and motivated staff
Tip 1: Adapt to the role of the entrepreneur
Great words are quickly spoken, but the actions that follow are the ones that matter. Self-employment is very different from being an employee. As the founder of a company, you hold all the strings in your hands. You take care of planning, appointments, bookkeeping, order acquisition and maintaining contacts, to name just a few aspects. A high degree of self-discipline and organisation is required of you. You should also not be very susceptible to stress, as a lot is demanded of you, especially in the initial phase. Working weeks of 60 and 70 hours are no exception.
Nevertheless, you should make sure that your private life does not suffer too much. Always allow yourself rest periods and bear in mind that setting up a business is not a sprint, but rather an endurance race in which you should have the necessary stamina to succeed for several years to come. The level of frustration can also be quite high from time to time. It is important to endure this and not be discouraged by setbacks. And these will come in any case, so be prepared for them. Business founders must be resilient and have a high degree of patience.
Tip 2: Keep the business idea simple and concept-oriented
A good idea is half the battle. Many euphoric company founders make the mistake at the beginning of complicating the idea unnecessarily. First and foremost, the idea should be quite simple. Don’t overload the initial concept at the end with unnecessary little ideas that come to you in addition. Make sure that the initial concept is simple and understandable, and build the business plan around it. However, the idea should not only be simple, but also realistic to a high degree, so that it actually leads to success in the end.
The idea should always be seen in the context of your personal skills. Are you an expert in the sector you are aiming for? Do you have the relevant education, as well as the appropriate qualifications. Only if you have good knowledge of the sector can you keep up and lead the start-up to success.
It is important that you distinguish your idea from the competition and find your own niche. The latter is not possible without the appropriate market knowledge. It is also important that your idea is not a financial bottomless pit. You also need to understand whether your business idea can be financially self-sustaining. Refinancing (for refinancing definition) should be possible without much effort and after a foreseeable period of time.
10 tips for business founders
Tip 1: Adapt to the role of the entrepreneur
Tip 2: Keep the business idea simple and concept-oriented
Tip 3: Nothing without a good business plan
Tip 4: Be flexible
Tip 5: The right way to get start-up capital
Tip 6: Insure yourself well
Tip 7: Choose the right legal form
Tip 8: Organise yourself well and outsource work if necessary
Tip 9: Create good marketing and brand identity
Tip 10: Find suitable and motivated staff
Tip 3: Nothing without a good business plan
Starting a business without a business plan is almost impossible. Not only does it act as a kind of written roadmap for your start-up, it is also an unbeatable argument when it comes to winning over potential financiers for your project. In a detailed plan, you break down what your future business plans are, where you plan to take the business in the near future and what the funding options are. Keep the following points in mind when writing the business plan:
Write the plan in as neutral a language as possible
Concrete and realistic statements are in the foreground. Facts are more important, so to speak, than emotions
Look for evidence and statistics to support your views.
Problems and obstacles should certainly be taken into account and integrated, but always in connection with concrete proposals for solutions.
Make sure you are understandable and do not get lost in unnecessary technical terms and difficult-to-understand phrases.
Also waste enough time on the layout of the business plan. Here, too, the first impression is the decisive one.
Avoid repetition and make sure it is easy to read.
Then have the plan proofread by a suitably qualified person.
A business plan contains different sections, such as a financial plan, marketing plan or personnel plan. It is important to deal with all topics as evenly as possible. If you have little knowledge of certain areas, especially in the financial sector, it is advisable to seek appropriate advice in advance. It is particularly helpful to get someone on board who is knowledgeable in this area.
Tip 4: Be flexible
Even the best business plan and the most precise preliminary considerations are worth far less in the end than originally thought when it comes to implementing it in reality. Theory is theory, practice is usually more unplanned. Therefore, do not have blinkers on, but always approach new ideas with an open mind. It is important to keep your stubbornness and conviction for the project. There will always be people who will advise you against it. The important thing here is to maintain a balance. Don’t let them talk you down, as long as you are convinced.
On the other hand, listen carefully to feedback from people you know or even customers. There is always room for improvement, and just because an idea is well conceived does not mean that it can always be implemented without problems in everyday business. So don’t be afraid to leave existing paths and try out new ways of thinking. Adaptable entrepreneurs are usually the ones who end up on the winning track.
10 tips for entrepreneurs
Tip 1: Adapt to the role of the entrepreneur
Tip 2: Keep the business idea simple and concept-oriented
Tip 3: Nothing without a good business plan
Tip 4: Be flexible
Tip 5: The right way to get start-up capital
Tip 6: Insure yourself well
Tip 7: Choose the right legal form
Tip 8: Organise yourself well and outsource work if necessary
Tip 9: Create good marketing and brand identity
Tip 10: Find suitable and motivated staff
Tip 5: The right way to get start-up capital
No matter how ambitious your plans are and where you want to go with the company – KfW-Mittelstandsbank, which grants loans to small businesses. But state development institutes are also a place to start. The Federal Employment Agency also offers financial support within the framework of the start-up grant, which you can also use as start-up capital. And even your own bank is a good place to start. Please note, however, that each institution attaches different conditions to the granting of loans. You should be especially careful with interest rates and repayment conditions and choose the option that is best for your business.
Tip 6: Insure yourself well
Something can always go wrong, and setting up a business without taking out appropriate insurance is truly negligent. A major obstacle is often that, especially in the early days, you don’t have the financial means to afford appropriate insurance. However, self-employed people in particular are exposed to an increased risk, as they have more responsibility than a normal employee. A breakdown can have relatively far-reaching consequences. However, you can insure yourself against illness and serious accidents in good time, so that in the event of a breakdown, the entire company is not immediately faced with an existential crisis.
It is important that you have insurance cover in the right areas of your company. Compare the costs, include them in your financial calculations and, if necessary, seek advice from an insurance specialist. There are various forms of insurance for start-ups. The most relevant include:
Health insurance
Public liability insurance
Occupational disability insurance, especially for start-ups
Old-age provision
As soon as you add employees to your staff, accident insurance is also advisable. Product liability insurance for damage caused by defective goods is also advisable. The insurance models should always be considered with regard to your start-up’s own cost planning.
10 tips for start-ups
Tip 1: Adapt to the role of the entrepreneur
Tip 2: Keep the business idea simple and concept-oriented
Tip 3: Nothing without a good business plan
Tip 4: Be flexible
Tip 5: The right way to get start-up capital
Tip 6: Insure yourself well
Tip 7: Choose the right legal form
Tip 8: Organise yourself well and outsource work if necessary
Tip 9: Create good marketing and brand identity
Tip 10: Find suitable and motivated staff
Tip 7: Choose the right legal form
When it comes to actively setting up your business, you should decide early on which legal form you want to use. There are many different forms, from micro-enterprise to public limited company (find out how to set up a public limited company here). If you plan to set up the company in your name alone, then choose from one of the following variants:
Sole proprietorship
One-person limited company
One-person company
One-person limited company
Sole proprietorships are certainly the most convenient start-up for entrepreneurs working alone. They do not require any minimum capital, and the formation process is relatively uncomplicated and informal. However, this also makes the entrepreneur fully liable and raising capital is somewhat more complicated than with an AG.
Partnerships, on the other hand, are the better choice when it comes to founding companies with more than just one person. Two people are sufficient to found a company together. In most cases, the persons concerned do not have to raise any minimum capital, but they are liable for it with their own assets. The GbR is the most frequently chosen form of entry. The forms include:
Civil law partnership (GbR)
General partnership (OHG)
Partnership (PartG)
GmbH & Co. KG
The corporations represent the third sector. Their most important advantage is that the partners (partner definition) are only liable to the extent of their contribution and they can only be held liable for business activities. A certain minimum capital is a basic requirement for formation. The forms include:
Limited liability company (GmbH)
Unternehmergesellschaft, a limited liability GmbH variant
Public limited company (AG)
The right legal form must be chosen carefully. Above all, the liability criteria and the basic financial requirements play an important role. You should also consult comparative examples when deciding which form to choose. Take your cue from other start-ups in your segment.
Tip 8: Organise yourself well and hand over work if necessary.
Not everyone is a born natural when it comes to organisation, but this point is indispensable for the functioning of a start-up. Invoices have to be written and paid, appointments have to be prepared, phone calls have to be made. And the success of your business stands and falls with your level of organisation and motivation. While normal employees can afford to work ineffectively and do less than required, as a company manager you have much more responsibility. As a self-employed person, organisation and discipline are cornerstones of your way of working.
It is best to make daily, weekly and monthly plans for yourself. Organise your day as best you can. Also important is the effective division of labour for your tasks, especially if you are not working alone. Everyone has their strengths and weaknesses. Some are brilliant analysts and can plan well, others are more outgoing and communicative. And maybe other people can give you a helping hand with organisation and marketing. Especially because of the heavy workload that a start-up company entails, effective time management is an important tool in organising the company’s day-to-day life. Delegate responsibility for certain areas and don’t burden yourself with more responsibility than you can handle.
10 tips for company founders
Tip 1: Adjust to the role of entrepreneur
Tip 2: Keep the business idea simple and concept-oriented
Tip 3: Nothing without a good business plan
Tip 4: Be flexible
Tip 5: The right way to get start-up capital
Tip 6: Insure yourself well
Tip 7: Choose the right legal form
Tip 8: Organise yourself well and outsource work if necessary
Tip 9: Create good marketing and brand identity
Tip 10: Find suitable and motivated staff
Tip 9: Create good marketing and brand identity
A good idea and an exciting unique selling proposition may be all well and good, but as long as no one notices, that alone will not be enough for you. Although simple advertising measures can certainly still be managed reasonably well, this becomes much more difficult as the size of the company and its ambitions increase. You therefore need strong marketing and advertising skills. Greater reach and better distribution require much more complex marketing measures. Look for cooperation partners in your segment and do not shy away from ambitious requests.
A helpful magic word in this context is always the so-called ” Corporate Identity .” A public image that is as striking as possible is indispensable and important. This includes factors such as corporate culture, design and also external and internal communication. A public opinion about a company is formed relatively quickly. It is then up to you to change this if necessary and to establish it from the outset. A good image creates trust, and this does not only apply to the external image. Dealing with customers and staff also falls into this area. A good reputation can be beneficial, a bad one makes it very difficult to successfully gain a foothold in the industry later on. From the very beginning, you should therefore make sure that you present a unified and cohesive image as an entrepreneur.
Tip 10: Find suitable and motivated staff
Good staff are notoriously rare and hard to find. However, it will probably not be possible in the long term without them. You should therefore think about personnel planning at an early stage, ideally already when you are formulating the corresponding business plan. Sooner or later, you should think about investing in appropriate personnel. No matter whether it is marketing, controlling (what is controlling?), accounting or sales. If you start as a sole trader, you will first need fundamental knowledge in these areas.
In the beginning it is possible to outsource certain tasks, but in the longer term you should try to find the right staff for your business idea. For employees who start in a start-up, very specific criteria apply. They have to be more self-motivated than normal employees and are usually expected to do more at the beginning. In the initial phase, this is often accompanied by a payment that is not yet very generous.
10 tips for business founders
Tip 1: Adapt to the role of the entrepreneur
Tip 2: Keep the business idea simple and concept-oriented
Tip 3: Nothing without a good business plan
Tip 4: Be flexible
Tip 5: The right way to get start-up capital
Tip 6: Insure yourself well
Tip 7: Choose the right legal form
Tip 8: Organise yourself well and outsource work if necessary
Tip 9: Create good marketing and brand identity
Tip 10: Find suitable and motivated staff
Therefore, plan for additional staff at an early stage; in many sectors of the economy they are even indispensable for success. So select them primarily for the right reasons and see whether the staff also offer special features beyond the stated skills. However, always consider the additional costs that arise for you as an employer.
