Even in a very good organized government office, for what Germans are very famous for, bureaucracy and long procedures time is a serious issue for a small budget business. Bud, the main difficulty, a small business come up with, is consumers mentality. German consumer is real a mature consumer. German consumer, knows well what he/she wants, and does want perfection, German consumer is ready to pay more for a service or a product, if he/she gets the best quality.
In the same way, the whole process to the business creation and activity must happen with real professionalism and high standards.
Making the whole process, even more expensive in a place which request anyhow a high budget. What I am trying to say is that any sloppiness is not acceptable in Germany. A new business in Germany have to get good planed, needs to get professional advice and a serious structure to considered from institutions like banks and other services. Is not happen less often to get a rejections to open a bank account, or renting a place, or singing an insurance contract, if no serious, Germany will not accept you!
The main structure of the German economy are large businesses and really grand founds, which my be disponible only from joint ventures or multinational companies. There are well known companies which did not get any return for more than ten years and continue their investing plan in the country, targeting a future market recognition.
Before I turn off anyone planing to get with a small business in this market I have to explain, there is still space for small business. I’m not going to propose any long term investment for future return, as the large business does in Germany, but small business does exist in Germany, does work and have a considered return in some case, also from first business year.
The rule is, no small business may really survive in Germany, without the support of any larger business. Instead of going against the large business community in Germany, is rather much better to walk along side.
Small business get jobs from the large business and work as a subcontractor or as a reseller, or as an exclusive representative and other that kind of forms.
In Germany you may do the best coffee in the town, but Starbucks will get more of the preference of the customers, just because its the multinational company Starbucks!
You have to choose well your big business partner, be aware what you sign and most important, don’t think about to braking any condition of any contract with any company, know well that the Law in Germany is favorising large business!