Are new business startups by default

Career & Salary

In one of the most renowned incubators for startups in Germany, two startup managing directors sit opposite each other in a meeting room. However, the space is called "Innovation Thinking Space" here. They share their experiences during the first phase of their establishment. Stefan is the founder of an online shop for energy bars based on organic peas. Joshua is developing an app for linking applicants with job advertisers for the special segment of software developers.

Both take part in the “Booster” program of the Incubator, in which they are accompanied during the various phases of their business activities by mentors, workshops, but above all by the hope of finding a large investor. You have a tight program because you regularly need to present your business idea in a professional and crisp manner to important committees. All of this takes place in a relaxed atmosphere, everyone says "you" to each other, people meet regularly for "brunches" and "coffees" and "booster nights", the opportunities for "networking" are unlimited.

Stefan: "Do you like the booster program?"

Markus: "Yes, it's a lot of fun!"

"Are you going to be part of the pitch night next week?"

"Of course I'll be there. I hope I find a suitable investor! If it works, we'll celebrate!"

"If it doesn't work, we'll celebrate at the Fuck up Night!" Both laugh.

"I have an appointment with the mentor for tax advice tomorrow, it will definitely be interesting"

"I'm taking part in the presentation skills workshop, I'm looking forward to it."

"Have you heard? Anna from 'IT Wonder' raised € 500,000 last week, that's great!"

"Yes, that is it! She will now have her own office for herself and two other employees, now things really get going!"

"That's great. I wish I could rent my own office soon. The open space is cool, but it's also quite loud. Gradually, I don't want to feel like a student on campus, but more like a real one Managing Director!" Both laugh again.

Classic company formation or startup?

Two streets away, Angelo puts down the brush and proudly looks at his work. The walls look great. The tables and chairs will be delivered tomorrow, and the decorations have already been prepared. Angelo is opening his own Italian eatery next week. The specialty: The pizza will be of particularly high quality, with dough not only based on wheat, but also with spelled, amaranth and chickpeas. He tried out his recipes for a long time and is now ready to present them to the market. After much back and forth, the bank granted him the necessary credit, so if in doubt, Angelo has the house of his uncle on his conscience, who has vouched for him. Angelo got 100,000 euros to make his fortune and he is firmly convinced that it will work.

Both stories are fictitious and thus exemplify the distinction between startup and company formation. What exactly is the difference between a startup and a "regularly" founded company? Why is the opening of an Italian restaurant not a start-up, but the establishment of a new internet portal for job placement or the sale of protein bars? Why is it a business start-up, uninteresting for pitches, when a student slowly builds up and develops a beverage trade over ten years, from the first water crates in the trunk of his small car to a fleet of 20 vehicles and 2000 crates delivered per day? And why is the same model a startup just because 10 or 20 million euros are made available immediately for a beverage trade, so that - overnight - a fleet of 50 vehicles can be on the road? Why is the shipping of fruit and vegetable boxes with recipes a startup, but not the home delivery of the supermarket around the corner?

So what do you have to do in order to be able to be a "startup" as a company founder in order to have a lot of money available relatively quickly? If we look for a definition, it explains that a startup is always associated with great growth potential. The point is to make as much profit as possible with the new business idea in the shortest possible time. The goal is then to sell the business on with the same profit. The founders therefore do not necessarily see their own "baby" in their business idea, which they nurture and care for in order to slowly grow it.

First and foremost, it is about a good idea that promises quick money and quick growth. In order to accelerate, and to be able to implement the growth potential at all, large amounts of money are required in the early phase of business activity in order to achieve the necessary growth rate. The funding by an "incubator", which provides a whole staff of mentors, information, network, information, exchange, workshops, business angels, pitches, etc., provides the framework for the necessary funding towards the maximum benefit of the new business idea. Startup founders learn to present their own business idea as well as possible in order to collect as much money as possible in a "pitch".

It is no longer even a question of advancing something independently, letting an idea grow or carefully developing it. It's all about the idea and about presenting it as well as possible with the aim of selling it to an investor at the highest bidder. The startup is thus already in a certain dependency from day one of existence, which goes far beyond the extent of the dependency of a "regular" founder. In addition, startup founders often find their first home in the incubators, which approach them with a pre-existing culture, accept them and accompany them to success, like a parental home in which everything is still taken care of and you only have the good idea has to develop further, with some hope that someone else will also find it good, ideally someone with a wallet in which one million euros is easily available.