You are thinking about starting a Business in Germany?
Find out what you need to watch out for to avoid the most common mistakes right from the start.
1. Vision
The vision of your business should be clear to everyone from the beginning.
Where do you want to go and what inspires you on this long road to a successful company?
These points represent the pillars for your joint success and cooperation for the following reasons:
- the company vision is the heart of your start-up and shows you the way for your daily activities and motivation. If they fall ill, your business can also fall ill. Therefore, do not lose sight of your goal, because this is also the reason why economic success will fail and that costs money.
- Your corporate vision determines the cornerstones of your business action. Without concrete agreements and structures, everyone will pursue their own goals and the potential for conflict will increase within the team. The resulting discussion does not only cost an unnecessary amount of time, but also valuable resources and energy that can be used more effectively.
- In the process of finding your co-founders, it becomes clear who they really are, what makes them tick and what similarities and differences they have. If you have known your partners mainly „from business“, you will now get to know them on a human level as well. You will be amazed at how much you learn about your fellow founders.
2. Choosing the right Corporate Form
GbR, UG or a GmbH? No idea which form to choose. Do not worry. Find out in this article which corporatiopn Form exists in Germany and how to choose the right one (Link Corporate Form) It is essential from the beginning that you agree on the corporate form. Otherwise your best business ideas may fail due to this organizational hurdle.
3. Ability to work as a Team
Opening your own business or start-up together with your best friends and be successful together. This is the vision that many new entrepreneurs pursue. As friends or family members, you know each other inside out and know what makes each other tick. Nevertheless, caution is advised here. Never establish exclusively based on sympathy. Ask yourself if your friend has the right skills and competence. Are your friends reliable and punctual? Can your brother handle money? Is your partner capable of criticism? If you can answer these or similar questions with „yes“ without reservation, then nothing stands in the way of a joint foundation. However, deficits in this area can lead to difficulties in business Think about this before you start, to avoid a nasty surprise at the end. Clear announcements and structures are essential. Never start a business with someone just because you want to help them out of a difficult time. Remember: you want to start a start-up, which requires a lot of energy, know-how and commitment. This requires an undisguised view of the competencies of your co-founder, regardless of his or her life situation
4. Clear Structures between Partners
You can save yourself a lot of trouble if you make sure from the beginning that everyone knows exactly what they are doing. Therefore determine as early as possible who has what tasks and where the limits are.
The most important conflict issue in teams is the question of who is responsible for what and what needs to be done. No wonder, because most founding teams start with flat hierarchies and unclear task assignments. Tasks are only developing; the dynamic of the foundation creates new areas of responsibility. The structure is not formulated and firmly written, but must first be created. Therefore, there is easily overlap in the allocation of responsibilities or areas of responsibility for which nobody feels responsible. A common approach must always be worked out again and again.
Regulate everyones relationship and their Area of responsibility in the initial phase in writing. A partnership agreement that truly reflects what the individuals want to contribute and achieve creates a kind of basic law for the company and thus a binding basis with everyone involved. There is no longer any need to argue – everyone knows what can and cannot be done. Profit distribution, external representation and decision-making powers are clearly regulated and approved by everyone. Provided that everyone was able to contribute their own interests sufficiently and nobody was ripped off. Unfair regulations will sooner or later lead to conflicts or to the departure of the partner.
5. Clear Communication
Start-Ups constantly meet new challenges, while not everything can be thought of and planned in advance. A company is flexible and capable of acting when it is possible to react to external requirements.
This requires that internal discussions and negotiations can take place and decisions can be made. Therefore, decision-making structures and regulations are needed.
Functioning communication and conflict culture is needed, especially when there are different ideas. If respect can be maintained in HOW people talk to each other, harm can be avoided and differences can be fruitful for the success of the company. Because usually one person does not see everything the same way as the others. Having someone with a different viewpoint and perspective will enhance the business and the future path will be viewed from all sides and good decisions will be made. If people deal with each other in an open and appreciative manner, conflicts can usually be resolved at the factual level.
Want to Find a Partner to Build a Business? Join the International Entrepreneurship Program
International Entrepreneurship offers the platform to get to know international partners and to found a team. The internationality provides the advantage to market your service or product internationally at a stroke. There is insider knowledge about what works or doesn’t work in the respective markets without having to buy expensive products or services. You get in contact with potential partners and contacts that are hardly possible on a national level and directly open up markets that are otherwise difficult to gain a foothold. If you want to know more, please visit our webpage for International Entrepreneurship or join our Facebook Page.
