Location matters a lot when deciding on where to cite your new business. Germany is one of the countries on the destination lists of entrepreneurs and for good reasons. According to Wikipedia, Germany is one of the economically-prospering countries. This is evident in its standing as the leading national economy in Europe. Germany’s economy is also considered the fourth-largest in the world when it is adjudged by the nominal GDP.
Following these figures, you are a bit convinced in your decision to float a new business in the country. Need more reasons to urge you on? Here are the top five (5) benefits of establishing your new company in Germany:
1. Your Company will Serve the Needs of a Multicultural Country
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One of the factors to consider when starting a business is the needs of the prospective customers. This helps you to decide on whether your company has what it takes to satisfy those needs or if there are options to come up with related solutions.
This can be tricky when serving the interests of a mono-centric market. Thus, a majority of the target market may not be interested in what you are offering, thus, tanking your brand’s opportunities.
The reverse is however the case in Germany where you have access to a multicultural market. This is backed by the fact that over 10 million immigrants reside in the country. So, what a German doesn’t like maybe what an immigrant from Canada or the U.S. This way, your new company will have more people to serve.
2. Germany’s Labour Market is Liberal
As a new business owner, one important factor for increasing revenue is cutting down on costs of operation. This includes hiring a few employees and keeping the productions lower while trying to maintain quality.
In countries like the United States, you will find employees with different working experiences. When it comes to Germany, the stakes are high. Due to the existing restrictions imposed on immigrants, anyone that wants to get into the country must be thoroughly qualified.
Finding skilled individuals or professionals in your company’s area of interest becomes easier, as you will have access to a pool of qualified persons to pick from.
Here are a couple of factors to consider when making your first hire for your new company in Germany:
- Years of Experience: Take note of the number of years that the persons you want to hire have. Because most of these professionals are immigrants, there is a chance that they have had a stint of working in their home countries before migrating.
- Qualifications: Another factor to consider is the prospective employee’s qualifications. What is their educational background? Does their qualification relate to the job or role you are looking to hire them for?
You can click on this link for more ideas on the factors to consider when making your first hire.
3. Germany has a Large and Thriving Economy
No doubt, the economy of a country has a way of impacting the success of businesses located there. If the economy is on a downward spiral, in recession or the country is in debt, there are chances that the inflation will send many companies packing. But when the economy is booming and as huge as Germany’s does, the chances of recording massive success are high.
Indeed, Germany’s economy is one of the most enticing in Europe. As a founding member of the Eurozone and the European Union, Germany is adjudged one of the largest economies in Europe. The country is also rich in mineral resources, ranging from natural gas, timber, salt, and lignite.
Asides from the thriving economy, Germany has a couple of other factors working in the favor of startups looking to launch here. These are:
Infrastructure
From roads to modern telecommunication networks, Germany has lots of infrastructures to offer. So, you needn’t bother about the basic amenities because the country has lots of that to offer.
Further Reading:
- How to Incorporate a Company
- How to Start a Fintech Company in America the Easy Way
- Why Switzerland is the Best Place to Start a Company
4. Government-Backing
The German government is known for supporting new companies opening branches or headquarters in the country. The provision of the basic amenities is a great step, but when you have the government patting you on the back, there is no limit to how big your startup will grow in the country.
Professional Support When You Need it
Nobody knows it all, even Elon Musk doesn’t. That is why we have successful business owners making conscious efforts to upgrade their knowledge, as well as seeking help when they need it.
As a new startup owner in Germany, you are not alone. In addition to the several existing business owners you can collaborate with, the country has professional information centers in each of its states. These are your go-to places when you need clarity on the next direction to take at any point of doing business in the country.
Stable Economic Environment
First, the German political sphere is stable, so there are little or no chances of a drastic change in government. Besides, the country frowns at copyright-related issues, the reason why it has put in place different frameworks to protect business owners in the country.
Your Intellectual Property and business strategies are protected in several ways, including:
- Competition Law: This protects your company against inordinate claims from your competitors.
- Patent Law
- Copyright Act
5. Excellent Funding Opportunities
Whether you are looking to raise funds to take your company to the next level or you are raising seed funds; you can easily do that in Germany.
For one, the government has several funding programs, designed to help existing business owners to receive grants from the government.
Some banks in the country are also cooperative and would be willing to offer you loans. Note that you may need to hire the services of a consultant who will help you come up with a catchy business plan that the bank wouldn’t say no to.
Final Thoughts
Germany is one of the countries in the European Union that offer ease of doing business, excellent funding opportunities, and a plethora of skilled professionals. So, why don’t you fly to Berlin and understudy the target market so you can come up with the best business strategy?
