Support for micro-enterprises and start-ups
We have investigated 5000 micro-enterprises and start-ups over an extended period of time. We have accompanied 200 companies with 3 to 9 employees over many years. Some of our analyses have been retrospective. We have only examined companies with the company form GmbH.
Prospects for success Startups and micro-enterprises in Germany
Data sources were IHK databases, the mandatory financial data which can be viewed at Handelsregister.de, for example, as well as the development of the marketing channels of the companies. Portals such as https://archive.org/web/ can be used to retrospectively view company websites. In order to analyse the other marketing channels of startups and micro-enterprises, we have written our own software for HighPots internally.
The most important results at a glance:
- 68% of all start-ups and micro-enterprises did not survive the first 5 years
- 17% of all start-ups and micro enterprises had to file for bankruptcy
- 22% of all founders liquidated the GmbH with debts
- 8% of the managing directors had debts with the tax office
- 3% of the managing directors had to go into private insolvency
- 82% became financially poorer after incorporation than they were before incorporation
- 74% would no longer take the step into self-employment
- 85% do not pay into the pension funds and must work into old age (inheritance situations not considered)
- 50% suffer from depression due to unsuccessfulness and lack of perspective
- 92% had imagined the step into the business world to be easier
- 12% of the successful companies were B2B (business-to-business) companies, i.e. companies whose end customers were also companies.
- 8% of the successful companies had already had an ancillary trade and customers
before they were founded, during a permanent position.
- 0.4% came to a pre-tax profit of more than EUR 1 million
So let’s take a look at the 18% of company founders who became financially successful after their foundation.
Factors for the success of start-ups and micro-enterprises
More and more of our start-up customers have read the books “The 4-hour week” by Timothy Ferriss or “The Art of The Sart” by Guy Kawasaki. These books give the impression that every company founder could be successful quickly and with little time. The above facts prove that this assumption is a fallacy.
Fresh entrepreneurs quickly tend to put together a modular website at 1&1 or Strato, have business cards printed and create company accounts on some social media channels. Then, it is believed, the customers would come by themselves.
Unfortunately, this is not the case.
90% (of the 18% who were better off financially after the foundation) of all successful start-ups and micro enterprises had a much discussed strategy concept as well as concrete marketing and sales plans with operational tasks. The success of the respective measures was permanently monitored.
It is also interesting to note that almost 80% of the companies focused exclusively on the following areas:
- the product or service in question (purpose of the company)
- IT technology
- Marketing and sales
All other areas, e.g. taxes, financial accounting, personnel or payroll accounting, were outsourced to external service providers.
But how can we help you?
Each year we advise a certain number of micro-enterprises and start-ups. We highlight the strategy, sales and marketing, and of course the technological opportunities to drive your business forward. This consulting is free of charge for a certain number of companies.
However, the following requirements should be met:
- Company form GmbH or AG
- a B2B business model
- less than 4 years since inception
Of course, all information exchanged is confidential. And of course we don’t “steal” any ideas.
Contact us simply and easily, preferably by telephone, chat or via the Webform.
Why we help free of charge?
On the one hand, we are very happy to help if we can support SMEs and if the world is not just left to the corporations. On the other hand, we want to build a relationship of trust. If your company grows, HighPots might consider it as a customer. Because at some point every company needs qualified software developers, data analysts and requisition engineers.
Start-ups and SMEs – theory and practice
If a service or product can actually close a market gap, initially perhaps only in a particular region, the hopes of success are justified. The less the service or product can be quickly copied by others, the better. The term “success” should be defined from the beginning. You should say goodbye to the idea of being able to establish a company in 2 years that makes a profit of several million euros. Large conceptions and goals are essential, but healthy realism saves many disappointments. For most of our “small” customers success means, if they have joy at the work, your living costs can be earned by sufficient money for the family, food and living space.