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What does it take to start your own business in 2025? (part 2)

Nicolas von Brandenstein

Key Steps from a Startup Mentor

Starting a business is an exciting endeavour. Like buying your first car, you can’t wait to get in and start driving. Or like welcoming your first child, there's joy and anticipation for something new—despite the costs or inevitable challenges.


As a startup mentor, I’ve experienced this journey multiple times and have had the privilege of guiding others through it. From crafting a solid business plan to selecting the right legal structure, every decision shapes your success. Registering your business and navigating tax requirements might seem daunting, but with the right support, these steps become manageable.


Whether you’re exploring financing options or seeking startup funding, opportunities for entrepreneurs in 2025 are more abundant than ever. Let’s break it down step by step to help you confidently launch your business.


Starting your own business

1. Crafting Your Idea into a Business Plan

Every great business starts with an idea, but not every idea is great. Ask yourself:

  • Does it solve a real problem?

  • Is there a demand for it?

  • Who are your competitors, and how do you stand out?

Validating your idea through market research, customer feedback, and testing a minimum viable product (MVP) is crucial. A business plan clarifies your vision and includes:

  • Your value proposition

  • Target audience and marketing strategies

  • Financial projections

  • Operational plans

Even if you don’t need a business plan for investors, having one gives you clarity and direction.


2. Understanding Your Market

Before launching, take the time to analyse your market:

  • Who are your potential customers?

  • What are their needs, preferences, and behaviours?

  • What gaps exist in the market?

Use online surveys, focus groups, and industry reports to gather data. Conduct competitor analysis to identify ways to differentiate yourself. A well-researched market strategy strengthens your positioning and increases your chances of success.


3. Financial Projections and Growth

Financial planning is critical for assessing viability and securing funding. Outline:

  • Your revenue streams

  • Projected sales for the first few years

  • Cost estimates (operational, marketing, staffing, etc.)

Develop key financial statements, including a profit and loss statement, cash flow forecast, and balance sheet. Prepare multiple financial scenarios—optimistic, realistic, and pessimistic—to navigate potential challenges.

Solid financial projections are essential for attracting investors and ensuring sustainable business growth.


4. Developing a Unique Value Proposition (UVP)

A strong UVP sets you apart in a crowded market. Your UVP should:

  • Clearly explain how your product/service solves a problem

  • Highlight the specific benefits you offer

  • Show why customers should choose you over competitors

Keep it concise and test it with potential customers to ensure it resonates. Your UVP should serve as the foundation for your marketing efforts.


5. Choosing the Right Legal Structure

Your legal structure affects liability, taxation, and operational flexibility. Common options include:

  • Sole Proprietorship/Einzelunternehmen – Easy to set up but comes with personal liability.

  • Partnership/GbR – Shared responsibilities and profits, requiring clear agreements.

  • Limited Liability Company (LLC/GmbH) – Protects personal assets and attracts investment but requires more regulations.

Consult a legal expert to determine the best fit for your business needs.


6. Navigating Tax Requirements

Understanding taxes and legal obligations is crucial:

  • Register to obtain a tax number and VAT ID if applicable.

  • What are the expected income & sales taxes? - These vary by state and country.

  • Do Corporate, Trade, Solidarity surcharge & Capital gains tax apply to your business?

  • Which business insurance is necessary vs helpful? - liability, workers’ compensation, property insurance

  • What are the implications of payroll taxes & Insurance if you hire employees?

Early consultation with tax and legal professionals can prevent future complications.


7. Registering with Authorities & Securing Funding

To operate legally, There are numerous necessary registrations you have to complete:

  • Trade License (Gewerbeschein): Required for business operations.

  • Commercial Register (Handelsregister): Necessary for certain business structures.

  • Tax Registration: To comply with tax regulations.

  • Transparency Register: Required under German Money Laundering Act

  • Labour Department: Required if employing staff

Financing options include:

  • Bootstrapping: Using personal savings.

  • Bank Loans: Traditional financing, requiring strong financial planning.

  • Venture Capital & Angel Investors: Ideal for scalable businesses.

  • Government Grants & Subsidies: Various programs exist to support startups.

  • Crowdfunding: Raising funds from a broad audience online.

Choose the right funding source based on your needs and growth plans.


8. Branding, Website & Online Presence

First impressions matter. A strong brand includes:

  • A compelling logo and visual identity

  • A professional website with clear messaging

  • Consistent branding across social media

Ensure your website is mobile-friendly, fast, and optimised for search engines (SEO). Build an online presence that connects with potential customers through social media, email marketing, and engaging content.


9. Leveraging Referrals & Networking

Your best marketing tool? Happy customers and strategic networking. Increase your reach by:

  • Asking for reviews and testimonials

  • Offering referral discounts

  • Joining industry groups and forming partnerships

Strong networks lead to organic growth and business opportunities.


10. Employment & Staff Management

If hiring employees, prioritise:

  • Understanding labor laws and employee rights

  • Defining clear job contracts & descriptions

  • Knowing how to navigate interviews effectively

  • Creating a positive work culture amongst a growing team

Good leadership and team management is essential for happy staff plus drive productivity and long-term impact.


Final Thoughts

Starting your own business is an exciting journey.

Challenges will arise, but with proper planning, strategic execution, and the right guidance, success is within reach. Take it one step at a time, stay persistent, and keep learning.

Need a mentor to guide you through it all?

Let’s connect—I’m here to help you turn your business ideas into reality!

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