Starting a Business in Berlin

46 47 Starting a Business in Berlin A Beginner’s Guide N.B.: You should work very carefully on this business model. If it is well thought out, it will prove valuable in several respects further down the line: for instan- ce, as the basis for an elevator pitch or the executive summary of your business plan. Elevator pitch This concept first emerged from American sales training courses in the 1980s, and is now part of the established repertoire of a good salesman. Essentially, you should be able to interest your opposite number in a product or project in a maximum of sixty seconds (the duration of a longish ele- vator ride). You should practise making your case in a brief, articulate and engaging way. This can be very useful when talking to your bank, soliciting new customers or introducing yourself, as well as in many other situations! BUSINESS PLAN While the business model represents the most important cornerstones of your mental image of a ‘business edifice’, your business plan will have to combine these elements in a constructive way: creating the walls, ceilings and founda- tions, as it were. You should draw up your business plan with as much care as you would like taken with the construction of your house. This is essential if you are to succeed in con- vincing your reader that the concept behind your business is a viable one. Business plan competition  b-p-w.de/en sound it out with other people. It should contain a descripti- on of the following ‘cornerstones of your business edifice’: ESSENTIAL ELEMENTS OF A BUSINESS MODEL Goals ls What benefits will be generated by the business activity? ls What exactly is the concept? Who will be willing to pay to enjoy its benefits? ls What kind of success (e.g. sales, profits, market share) are you trying to achieve in the short and long terms, and from what sources (products, services)? Instruments ls What concrete measures will help you achieve your goals? ls What resources are available, or are still needed? ls What specific success factors (innovations, specialist knowledge, etc.) characterise your business? Knowledge ls What restrictions (limitations) apply to your area of activity, and how will you deal with them? (Important factors outs- ide your sphere of influence, such as legislation, customer habits, competitors, etc.) CHAPTER 4