Young start-ups face numerous challenges ranging from business model development, financial planning, market and competition analysis to finding corporate finance opportunities and navigating legal and tax compliance issues. As successful companies grow, new challenges arise that include adjusting internal company structures, managing the company image and rethink long-term strategic positioning.
The digital transformation of the New Economy is critically questioning the stability and sustainability of a large number of existing business models. New applications and technical opportunities mean that there are hardly any limits to progress in virtually every industry. Those who do not react to the new conditions in time won’t survive the market in the long run. Successful business models always consider the most important core questions such as "How scalable is your business?", "Do you produce recurring revenues?" or "How high is the effort for your customers to switch to one of your competitors?”.
The rapid transformation of the New Economy is putting the success of short- and long-term strategies in a new light. Especially in times of digital revolution, it is important to consider flexible and short-term strategic approaches in classic long-term strategies to be able to react to fast-moving market conditions. With the right strategy, companies can react properly in times of fast-moving markets as well as benefit from rapid growth.
In general, company participations are always made for either financial or strategic reasons. The investor usually supports the company with financial liquidity and in return is granted a number of preferences such as profit participations or co-determination rights. In contrast to a classical loan, the variety of possibilities and the freedom of a company participation can offer a quiet interesting alternative to strengthen the financial power of your company and thus secure the organic growth in the long-term.
In addition to company participations, a cooperation is another popular way to collaborate. The success of a cooperation mainly depends on a well thought out and comprehensive cooperation agreement. Cooperation goals and the strategic approach should be always clarified in advance of any binding covenants. Strategic considerations such as the right kinds of cooperation, division of responsibilities, delimitation of services and much more.