Center for Start-up-Management

The lack of experience in how to build and manage a company paired with the small margin for error a start-up is allowed to, is a dilemma many start-ups and their founders are faced with. The reason for this low tolerance for mistakes are mainly scarce resources, particularly capital. Through a structured and focused approach, and with the help of experienced specialists, you can take determined and condensed actions in important areas such as:

Market Analysis
Is there actually a market for your products or services? Especially for disruptive business models, this question is not always easy to answer. But even if a market exists or can be created, the introduction often takes much longer than planned or secretly hoped. Furthermore, time-to-market is always delayed and devours much more resources than planned. In recent years, this situation has even intensified. The markets have become more transparent, trade barriers have been reduced, and the increasing global networking has lead to a qiucker diminishing of competitive advantage. Also, the world has not been waiting for most of the new business ideas.

Strategy and Business Model
A clear strategy and a business model focusing on customer benefit are key - they need to be clear, simple and comprehensible. When planning to enter a market with a new product or service, there are usually not plenty of options to choose from. It is therefore necessary to extract, define and implement the best option available.

Business Plan
Formulating and implementing a business plan is a matter of significant importance. Too often, this instrument is only seen as a way to raise capital, which is only part of the truth. The business plan should be the red thread and a constant guidance for everything that happens on the business front. Also, it is primarily created for the company and not for others. Understandably, the plan is often drafted with the rose-colored glasses on - and with that same optimism, many expect a positive outcome in no time. But most of the time it turns out differently than expected and many are not prepared for this and are caught on the wrong foot. In this context, thinking in scenarios becomes indispensable – unfortunately, it is often neglected in practice.

Financing
Adequate financing is key. What is more important for a young company? Having the right people on board or being adequately financed? The best case would probably be to have both. The main drivers of start-ups are clearly the founders, who are pushing the project inspired by an idea or vision. But without sufficient funding, this project will always remain an idea or vision. Therefore, structuring the appropriate financing solution is a key factor in the development of a start-up company. The following are to be defined:

• Defining the amount to be financed with particular attention to elements such as: working capital, quantification of free cash flow, setting the financing period
• Selecting the appropriate financing instrument (equity, borrowed capital, mezzanine financing), if there is a choice at all and the instruments are not stipulated beforehand
• Valuating the company and the transfered shares. This can be difficult for a company without assets and/or turnover.

Human Resources and Compensation
Rather sooner than later, the founders will need personnel support, i.e. other employees and managers. Besides their technical qualifications, these new employees should also bring entrepreneurial spirit and personality. Working in a start-up is intensive and demanding, which requires a corresponding employee profile - otherwise it will not work out in the long run. Especially people who can not work with uncertainty and pressure should not be hired for such an undertaking. For those who are suitable, compensation must be adequate and attractive and these employees and managers must be allowed to share in success. To find the best solution, it is best to test different models.