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 make 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 Topics
This term paper examines the fundamental aspects of starting a business, ranging from the initial identification of innovative ideas to the strategic and legal requirements for successful self-employment. The research question focuses on defining the characteristics of modern start-ups and identifying the success factors that enable entrepreneurs to establish themselves effectively in the market.
- Fundamental characteristics and requirements of start-ups
- Various paths into self-employment, including foundation, succession, and franchising
- Legal forms suitable for new business ventures
- Strategic planning and the role of the business plan
- Application of SWOT analysis in business model assessment
Excerpt from the Book
2.2 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. But specialists also often combine their special skills in start-up teams to form a purposeful whole.
When founding a team, it is highly advisable to set down essential points such as the strategic orientation of the company, rights and duties of the individual team members, decision-making powers, distribution of profits and private withdrawals in a contract in order to have clear guidelines in case of disagreements.
Summary of Chapters
1 Introduction -What make a start up?-: Defines the core characteristics of start-ups and provides context regarding their prevalence and economic importance in Germany.
2 Ways into a business: Explores three distinct pathways for entering self-employment, specifically highlighting new foundations, company successions, and the franchising model.
3 Legal forms for a business: Outlines the importance of choosing an appropriate legal structure, discussing the differences between sole proprietorships, partnerships, and corporations.
4 The business plan: Explains the necessity of a structured business plan and demonstrates the practical application of SWOT analysis for evaluating business models.
5 Success factors for self-employment: Compiles 15 essential factors that support long-term success for individuals pursuing self-employment.
Keywords
Start-up, self-employment, business plan, SWOT analysis, foundation, franchising, company succession, legal forms, entrepreneurship, market entry, competitive advantage, innovation, business strategy, financing, risk management
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the essential principles of establishing a new business, covering the definition of start-ups, various entry modes into self-employment, legal considerations, and strategic planning.
What are the core topic areas addressed by the author?
The document covers the characteristics of start-ups, different ways to become self-employed, legal structures, the formal requirements of a business plan, and practical success factors for entrepreneurs.
What is the central research question?
The research explores what defines a start-up and which factors and strategies are necessary for an entrepreneur to successfully navigate the process of self-employment.
Which scientific methods are employed?
The paper utilizes descriptive research based on literature analysis and practical case examples, such as the SWOT analysis of a mobile hairdressing business model.
What does the main body of the work cover?
The main body covers the theoretical framework of paths into business, the legal classification of companies, the standardization of business plans, and a list of 15 success factors.
Which keywords characterize this work?
The work is characterized by terms such as start-up, business plan, SWOT analysis, entrepreneurship, and legal forms of business.
How does the author characterize a start-up?
The author defines start-ups as young, innovative companies, usually less than ten years old, that aim for significant growth and are often willing to take risks.
What advice is given regarding team formation?
The author strongly recommends drafting a contract that clearly outlines strategic orientation, rights, duties, and financial distributions to prevent future disagreements.
Why is SWOT analysis considered important in this paper?
It is presented as an essential strategic instrument for positioning, helping founders analyze their company's strengths, weaknesses, opportunities, and threats.
What are the common pitfalls in company takeovers?
Key challenges include potential psychological attachment of the previous owner, hidden legal or fiscal issues, and dependency risks which require expert consultation.
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- Tobias Hüttig (Autor:in), 2022, Be inventive and start up now!, München, GRIN Verlag, https://www.grin.com/document/1581745
