Be inventive and start up now!

Research Paper (undergraduate) from the year 2022 in the subject Business economics - Company formation, Business Plans, grade: 1,8, University of Cooperative Education Eisenach, course: Business English, language: English, abstract: 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.