Meaning of Startup Part 3

Consulting should therefore not be neglected in any startup phase and is generally always beneficial as your company and business model continue to develop. For young entrepreneurs in the startup phase, the tax advisor is also an important point of contact in order to comply with legal conditions and tax regulations.

Obtaining grants for counseling

Under no circumstances should you forego these consultations. Consulting is certainly associated with costs. But funding is also available for this. Depending on the federal state, there are various funding programs that are purely geared towards advising startups . For more detailed information, contact the funding institutes or the chambers of industry and commerce.

For advice after the start-up, you can take advantage of the advice program “ Gründercoaching Deutschland ”. This program is financed by the European Social Fund. There are special funding rates for the first five years after the company was founded.

What are incubators for startups?

In incubators, also called incubators according to Topbbacolleges, there are bodies that support a startup. They provide you with various services. These services are partly financed by public funds, by private investors or by cooperation between private investors and public donors. Incubators have some offers for you. The most famous of these are:

• Technical infrastructure and offices for a startup
• Contacts and networks to possible investors
• Advice on economic and legal issues
• Training, seminars or coaching on topics related to business administration

What are the risks of founding a startup?

One of the biggest risks when starting a startup is the inexperience of the founders. Many, like you, are still very young and have little or no experience in business management. Another risk is that it is often impossible to estimate how successful you can be in the market. This leads to a high rate of startups that fail with their project. Most often, this has to do with three reasons.

Why do startups go bankrupt?

Why startups fail cannot be identified at a single point. Many factors play a role here. It is important that you give enough thought in advance, i.e. when planning. Here are the most common reasons that lead to a startup failing or going bankrupt.

1. You shouldn’t just convince your investors with a business plan. It is important that the business plan is so detailed that you can use it to give yourself an outlook as to whether you can really be successful with your business idea. The plan is a kind of companion for you in the first few years. Therefore it has to be designed in great detail. You should also have it checked regularly by a start-up advisor and constantly question it together with the advisor.
2. The founding team just doesn’t fit together because opinions about the direction differ too widely. The necessary know-how is simply missing for many important areas, for example marketing, bookkeeping, etc. It is of no use if there are only experts in one subject area. If the necessary know-how in the economic field is missing, no planning errors can be taken into account and this then turns out to be fatal for many.
3. The business idea is about a product or service that is not in sufficient demand on the market or is not sufficiently well known. In many cases, a plan B does not exist. Here there is often a lack of the right understanding and implementation of marketing. Marketing is not just about advertising. You need a well thought-out plan of how you will publicize your company or your product. It is therefore essential to carry out a precise analysis of the market, customer and competition before founding a company. This is the only way you can find out in which niche you can best place your product or service.
4. The capital is used up too quickly and no new capital can be found. Many startups plan completely wrong at the beginning. It is just not enough that you have capital to start the startup. You also have to plan that you have enough capital to make ends meet yourself. In the first few months in particular, enough equity must be available to enable you to pay for your food, bills, etc. To look only at the investment costs is the wrong approach.

Conclusion

It is not an easy endeavor to found a startup. Nevertheless, it is a possibility to make the dream of independence and personal fulfillment possible with a good business idea. In order to be really successful, not only the question of the right legal form and adequate funding is important. You also have to be ready to get good advice at all stages of the formation. There are some funding programs available to you as an option.