95% of all start-ups become self-employed in traditional companies and conventional business areas. Accordingly, 5% of all start-ups are based on innovative business ideas in less exploited business fields. However, the number of newly founded companies that pursue an innovative business idea is steadily increasing. These young companies are referred to as start-ups. A founder who sets up his own business with a new product or an innovative service will in all likelihood have a certain competitive advantage over potential, but also over existing and competing business enterprises on the market. The prerequisite for this competitive advantage is, of course, that the product or service offered is mature and free of defects. In addition, the product or service must have a unique selling proposition. However, it is also true for innovative start-ups that the product or service must be tailored to the needs of the market.
Ways into a business
Basic informations
The following three options are available for becoming self-employed:
-A start up as a new foundation of a business;
-A company succession as a great challenge for entrepreneurs;
-A Start up as a Franchising partner like “MC Donald’s, Burger King, Subway, Die Rollenden Friseure”.
New foundation
Start-ups are particularly popular among entrepreneurs because they can design and align the company according to their ideas from the beginning and start new business models without ballast. In addition, there may not be a suitable company on the market with which the business idea (innovation) can be efficiently realised or the founder may not have the financial means to acquire one.
In turn, the founder must master the entire start-up process with all its challenges independently. The business idea, the founder's know-how and an elaborated business plan with estimates and forecasts of turnover, costs, capital requirements are very important prerequisites for success and for support/subsidies also from financial support from banks with regard to a successful business start-up. In order to cope with the above-mentioned tasks, it is often expedient not to start alone, but with one or more partners. Partners who complement each other's complement each other's skills. This is especially true in the case of distributed technical and commercial knowledge and talents.
Table of Contents
- 1 Introduction -What makes a start up?-
- 2 Ways into a business
- 2.1 Basic informations
- 2.2 New foundation
- 2.3 Company succession
- 2.4 Franchising
- 3 Legal forms for a business
- 4 The business plan
- 4.1 Content of a business plan
- 4.2 SWOT-analysis
- 5 Success factors for self-employment
Objectives and Key Themes
This term paper aims to explore the various pathways to starting a business, encompassing new foundations, company successions, and franchising. It further examines the legal structures available to businesses and the crucial role of a comprehensive business plan, including SWOT analysis. Finally, it outlines key success factors for self-employment.
- Different avenues for business start-ups (new foundation, succession, franchising)
- Legal structures and their implications for businesses
- The importance of a well-structured business plan
- Strategic planning using SWOT analysis
- Essential success factors for self-employment
Chapter Summaries
1 Introduction -What makes a start up?-: This introductory chapter defines the characteristics of a start-up, distinguishing it from traditional businesses. It highlights the increasing number of innovative start-ups and emphasizes the competitive advantage derived from offering a mature, unique, and market-tailored product or service. The chapter also presents key characteristics of start-ups, including innovation, growth aspirations, and initial challenges such as lack of market awareness and capital. Statistical data on German start-up turnover and employment are provided, illustrating the current landscape.
2 Ways into a business: This chapter explores three primary routes to self-employment: establishing a new business, acquiring an existing company, and operating under a franchise agreement. Each option presents distinct advantages and disadvantages, including the level of control, risk involved, and required resources. The chapter emphasizes the unique challenges and opportunities associated with each path, from building a business from the ground up to leveraging existing market presence and infrastructure.
2.2 New foundation: This section delves into the specifics of starting a new business from scratch. It underscores the importance of a robust business plan, including financial projections and strategic planning. Collaboration with partners, leveraging complementary skills, is presented as a strategic advantage. The section highlights the need for a legally sound partnership agreement to mitigate potential conflicts and ensure clarity regarding responsibilities and profit sharing.
2.3 Company succession: This section focuses on acquiring an existing business. It contrasts the advantages of a shorter start-up process and existing market presence with the challenges of inheriting existing weaknesses and navigating complex legal and financial considerations. The section emphasizes the importance of assessing the suitability of the company to the founder's business goals and highlights the varying complexities across different business types (crafts, commerce, freelance services).
2.4 Franchising: This section describes the franchising model as an alternative route to self-employment. It details the advantages of using a pre-established business model and brand recognition, alongside the associated costs (franchise fees and royalties) and operational limitations due to contractual obligations. The franchisor's support in areas like marketing and operations is discussed, contrasting this approach with the independence of establishing a new business.
3 Legal forms for business: This chapter discusses the critical decision of choosing a legal structure for a business, explaining that this choice has profound financial, tax, and legal implications. It highlights the need for legal counsel and introduces various forms, including sole proprietorships, partnerships, and corporations (GmbH and AG), comparing their liability structures, capital requirements, and tax implications. The chapter emphasizes the flexibility to alter legal structures as the business evolves.
4 The Business plan: This chapter details the importance and structure of a business plan, emphasizing its role in securing funding and providing a roadmap for the business. It outlines the key sections of a business plan: the business idea, the founder's competencies, the implementation strategy, and the financial projections. The importance of concise and clear communication in a business plan is stressed, along with the use of visual aids to improve readability.
4.2 SWOT analysis: This section explains the SWOT analysis as a tool for strategic planning, providing a framework to assess a company's internal strengths and weaknesses and external opportunities and threats. It details the process of conducting a SWOT analysis, using the example of a mobile hairdresser business to illustrate the identification and categorization of strengths, weaknesses, opportunities, and threats.
5 Success factors for self-employment: This chapter lists fifteen factors that contribute to successful self-employment, emphasizing that while not all are mandatory, a greater number increases the chances of long-term success. These factors encompass adaptability, discipline, delegation skills, professional competence, business acumen, networking ability, customer focus, willingness to learn, marketing capabilities, motivation, realistic expectations, enjoyment of the work, stable growth, and proactive planning.
Keywords
Start-up, business foundation, company succession, franchising, legal forms, business plan, SWOT analysis, self-employment, success factors, innovation, market analysis, financial planning.
Frequently asked questions
What is the main topic covered in this document?
This document provides a comprehensive language preview exploring pathways to starting a business, legal structures, the importance of business plans, SWOT analysis, and key success factors for self-employment.
What are the different ways to get into a business discussed?
The document outlines three primary routes: establishing a new business (new foundation), acquiring an existing company (company succession), and operating under a franchise agreement (franchising).
What is the importance of a business plan according to the document?
The document emphasizes that a business plan is crucial for securing funding and providing a roadmap for the business. It should include the business idea, the founder's competencies, the implementation strategy, and financial projections.
What is SWOT analysis and why is it important?
SWOT analysis is a tool for strategic planning that assesses a company's internal Strengths and Weaknesses and external Opportunities and Threats. It provides a framework for making informed business decisions.
What are some of the legal forms mentioned for a business?
The document mentions sole proprietorships, partnerships, and corporations (GmbH and AG) as possible legal forms, highlighting their different liability structures, capital requirements, and tax implications.
What are some key success factors for self-employment listed?
The document lists fifteen factors contributing to successful self-employment, including adaptability, discipline, delegation skills, professional competence, business acumen, networking ability, customer focus, willingness to learn, marketing capabilities, motivation, realistic expectations, enjoyment of the work, stable growth, and proactive planning.
What is discussed in the Introduction chapter?
The introductory chapter defines the characteristics of a start-up, distinguishing it from traditional businesses, and highlights innovation, growth aspirations, and initial challenges.
What are the pros and cons of starting a new foundation versus company succession?
New foundation involves building a business from the ground up but requires a robust business plan. Company succession offers a shorter start-up process and existing market presence but includes inheriting existing weaknesses.
What are the advantages and disadvantages of franchising?
Franchising offers a pre-established business model and brand recognition but comes with costs (franchise fees and royalties) and operational limitations due to contractual obligations.
Why is choosing the right legal form for a business important?
Choosing the correct legal structure has profound financial, tax, and legal implications for the business.
Where can I find more information about the success factors?
Chapter 5 details 15 factors that contribute to success. While not all are mandatory, the more you have, the more you increase your chances of long-term success.
- Arbeit zitieren
- Tobias Hüttig (Autor:in), 2022, Be inventive and start up now!, München, GRIN Verlag, https://www.hausarbeiten.de/document/1581745
