Monday, April 28, 2014

Starting a business in (East) Germany

I have never lived in West Germany for any length of time so I can't say what it's like to try and start a business there.  The differences between east and west are still to be seen.  They are obvious even to the passive observer.  I don't want to dive into those differences at this time, though.  The purpose is to let people who are thinking about moving here and starting a business know what challenges they will face.


One important thing to know is that if people here can't justify spending money on the product/service that your business supplies, then you will fail.  There is no doubt about that.  What they can justify spending money on is the question.  This answer is still not known to me.  I watch and pay careful attention to what people buy, when and ( if possible to find out) why.  This is my form of market research.
I know that people here don't earn as much as their West German counterparts, but the cost of living is a lot less here, too.  The question is, of course, is the pay in line with the cost of living.  I think it is, so with that being said, the next question is 'what do they think is important?'.  Okay, I know beer, sausage, and nice (read expensive) cars are important to everyone here.  There are enough black Audi A3's, Beamers of every variety, and Porsches to prove that point.  It also seems that expensive 'Jack Wolfskin' everything is in.  I've seen people dressed from head to toe in the stuff, so they don't mind spending money on nice clothes. 


They will take a bottle of water to a restaurant, though, to avoid having to buy drinks.  I don't understand this.  Why pay top dollar for clothes and cars and save a few euros on a drink in a restaurant?


The laws governing work are complicated, too.  Employers are required to provide their employees with at least 28 days of paid vacation.  Sick time is paid up to 6 weeks and then it's only minimally reduced.  If the employee has a problem, let's say with alcohol, the employer can't fire him/her until all efforts have been made to rehabilitate the employee.  This is definitely something to consider before you start a business here. 


It seems that if you have a good idea and your good idea is needed here, then getting a business license isn't that complicated.  A lot of paperwork, yes, but it could be worse. 


Okay, I've told you about the comical things that could prevent you from taking your idea to the next step, let me give you some encouragement.  The people here are awesome.  Not to say that you don't have jerks, but the people you meet who like you will be loyal to you no matter what and lend a helping hand at every turn.  They'll go above and beyond the call of duty.  I have made extraordinary friends here who have helped, encouraged me and even given me a shoulder to cry on when I needed it.  The friends you make here are genuine, not the 'good weather' friends who leave you the first time it rains.


I can only offer my encouragement here.  If you really are serious about moving here and starting a business, do it.  Weather the business is successful or not, you will leave with a whole new perspective on life and a lot of new friends.

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