Interview: This is what it’s all about

As an entrepreneur, it is important to think from the outset about how one’s own assets and business can be secured and maintained in the long term. A family foundation can be an interesting option here, as it not only offers asset protection and inheritance planning, but can also have potential tax advantages. By establishing a family foundation, for example, entrepreneurs can reduce their tax burden and thus achieve tax savings.

We talk in the interview about:

1. What is a family foundation, why and when do you “need” it
2. What are the 3 central advantages of a foundation
3. What about taxes? Corporation, donation, inheritance & Co.

We conduct the interview with Immobilien-Erfahrung.de (in conversation “IE”).

What is a family foundation?

FIV: Let’s start with an overview:

IE: To ensure that family assets are preserved in the long term, it is important to protect them from various risks such as inheritance disputes, creditors and the tax office. One possible option here is to set up a family foundation, which can provide the founder and his family with economic security over generations and protect the assets from being broken up. This is a legally independent foundation that manages real estate, company shares and other assets.

So in a nutshell:

• Protection of family assets over generations
• Avoidance of inheritance disputes and break-up of assets
• Possibility to manage assets such as real estate and company shares in the foundation
• Tax advantages due to the taxation of the foundation with corporate income tax
• Possibility to avoid the right to a compulsory portion of family members

Well-known family foundations in Germany

FIV: Strong, because we have many articles on the subject of first capital investment buy & Co. So that it does not become too abstract for our readers, what are the most well-known family foundations in Germany? Who do you know? Can you tell us 3 examples?

IE: Yes, of course, there is the Bertelsmann Foundation, for example, founded by Reinhard Mohn, is one of the largest foundations in Germany and is involved in the areas of education, society and culture.

There is also the Robert Bosch Stiftung, founded by Robert Bosch, promotes projects in the fields of health, science and technology, and international relations. Another flagship would be the Krupp Foundation, founded by the Krupp family, is involved in the areas of culture, education and science as well as in the promotion of social projects.

Then there is:

• Aldi Nord and Aldi Süd Stiftung Stiftungs GmbH
• Otto Group Foundation
• BMW Foundation of Herbert Quandt
• And many more!

When does a family foundation make sense?

IE: Roughly speaking, very roughly speaking:

It only really makes sense to set up a family foundation with a capitalization of around 1 million euros.

Protection of family assets and businesses

FIV: Now let’s get to the core of the interview, the why and wherefore! What does protecting assets mean, from whom and why should I protect my assets – once I am a millionaire?

IE: Even though the family foundation is not tax-exempt, several factors can make it worthwhile to establish:

Raising a family is often a long and arduous process of hard work and hardship. It is therefore understandable that entrepreneurs are concerned that their legacy will not be carried on in their spirit after their passing.

One way to alleviate these concerns is to establish a family foundation.

Divorce, inheritance, family dispute – examples

Establishing a family foundation ensures that the entrepreneur’s assets remain in the family and are not fragmented by divorce or inheritance.

A foundation can also help avoid the breakup of the company, as foundations do not issue shares that can be bought out. This provides effective asset protection, as the foundation retains control over the assets and manages them in accordance with the wishes of the entrepreneur and his family.

In addition, family foundations can also help preserve family peace by providing a clear structure for the management and distribution of assets.

However, the foundation can also play an important role in supporting charities and non-profit projects, which can be of great importance for entrepreneurs who want to engage in social responsibility, of course also in the point of self-PR.

Inheritance: taxes and protection

FIV: According to the Hans Böckler Foundation, the annual inheritance volume in Germany, including gifts, will amount to up to 400 billion euros in the period up to 2027 – per year. Inheritance is an important topic. Therefore the question, what can a family foundation do in terms of inheritance?

To illustrate this, here are the figures for the number of taxable inheritances and gifts in Germany from 2008 to 2021.

400 billion per year

180,000 inheritances per year

You can find more statistics at Statista

IE: By establishing a family foundation, family members can be provided with binding security during the founder’s lifetime. The clear structure of the foundation can help to defuse potential inheritance disputes in advance. This can be of great advantage, especially in the case of large estates or complex family structures.

Inheritance and mandatory shares

Another advantage of setting up a family foundation is that the founder can avoid the claim of children or parents to his inheritance (so-called claim to a compulsory portion) if he transfers the assets to the foundation ten years before his death. This can be particularly important if the founder intends to concentrate his assets on certain family members or if he wishes to support a charity, for example.

In addition, the establishment of a family foundation can also help to protect the assets from creditors. As long as the assets remain within the foundation, they cannot be seized by the founder’s creditors. This can be important for entrepreneurs who have a high personal liability risk or who operate in a particularly high-risk business field.

Tax advantages: Only 15% tax

FIV: Now to question that everyone is most interested in, what is it about “saving taxes” when you set up a family foundation?

IE: In Germany, the establishment of a family foundation can bring tax advantages. The foundation is subject to corporate income tax, which can lead to a lower tax burden compared to other types of companies such as a GmbH, which have to pay trade tax. In addition, donations to the foundation may be tax-deductible under certain conditions.

FIV: Can you explain that in more detail?

IE: Simply put:

You can legally lower your tax burden to 15% with a family trust.

FIV: With a family foundation you can legally reduce your tax burden in Germany to 15%, ok. How does that work and what does a “normal” GmbH pay?

IE: The establishment of a family foundation can indeed help to reduce the tax burden in Germany to 15%.

This is the corporate income tax levied on the income of the foundation.

In contrast, a “normal” GmbH must pay trade tax, which can vary depending on the municipality. In addition, there is corporate income tax, which is levied on the income of the GmbH and is usually higher than for a family foundation.

However, the 15% corporate income tax for family foundations only applies up to a certain exemption amount and depends on various factors such as the size of the assets and the structure of the foundation. But it pays off, especially over the years.

But we don’t want to go into too much detail!

Inheritance tax and gift tax

FIV: As far as I know, you also have advantages in terms of inheritance tax and gift tax, especially through the allowances, which are taxed more favorably and can thus be paid in year after year. Can you tell us something more about this?

IE: Unlike charitable foundations, the family foundation does not enjoy any automatic tax benefits – that’s just in advance. Nevertheless, it can offer great potential for tax optimization compared to other corporate forms.

Transfer of assets to the foundation

When assets are transferred to the foundation – in particular when they are established – gift or inheritance taxes are incurred. In the case of a “normal” private foundation, the unfavorable inheritance tax class 3 is generally applied. In the case of a family foundation, on the other hand, the relationship between the founder and the entitled family members (beneficiaries) is decisive. If only the spouse and the descendants (children, grandchildren) are beneficiaries, the favorable tax class 1 applies.

Here’s a tip on the side, we also have a handy gift tax calculator. Here you can calculate what typically has to be taxed.

However, in the case of family foundations, a fictitious inheritance is assumed every 30 years, on which inheritance taxes are incurred. Here, an allowance of 800,000 euros applies, the so-called double child allowance. Otherwise, the general regulations for inheritance and gift taxes apply. However, if there are favored business assets, the corresponding exemption discount can lead to significant tax savings.

If you would like to learn more about this, please visit our blog. I can recommend, among others, the articles Asset Protection and Vermögensschutz durch Familienstiftungen by our foundation expert.

FIV: Thank you for the insight into family foundations!

Summary: 10 Learnings on the Family Foundation

Let’s briefly summarize the most important facts for you.

	Learning foundation
1	A family foundation provides asset protection and estate planning for family assets and businesses.
2	A family foundation can protect assets from divorce, inheritance and break-up, thus avoiding inheritance disputes.
3	A family foundation provides a clear structure for managing and distributing assets and can preserve family peace.
4	By establishing a family foundation, family members can be provided with binding security during the founder’s lifetime.
5	A family foundation can circumvent the claim of children or parents to the inheritance (claim to a compulsory portion).
6	A family foundation can protect assets from creditors.
7	A family foundation can be used as an instrument of social responsibility.
8	A family foundation is subject to corporate income tax and can thus reduce the tax burden to 15%.
9	A family foundation offers great potential for tax optimization compared to other corporate forms.
10	In the case of a family foundation, the relationship between the founder and the beneficiary family members is decisive for the tax classes for gift or inheritance taxes.

Rental yield: What is it actually?

When you finance your purchased property and rent it out, you generate income from the tenants. The rental yield puts your investment in relation to the potential rental income.

This simple formula makes it easy to calculate the rental yield:

• Annual rent /investment x 100 = rental yield

The rental yield factor can be used to determine whether the rental income covers the interest, repayment and ongoing operating costs and whether a surplus is left over at the end for asset accumulation. In addition, this is the best way to compare yield properties on offer.

Yield and location: Dependent factors

The location is particularly important for the yield of a property. In addition, it depends on the goal as an investor whether one wants to invest in an investment or yield property.

What does it depend on?

• Location of the property
• Investment strategy/return or investment real estate

Excursus: A – B- C- location and their yields

Here we have briefly summarized the potential return for the three location types:

A- Location:

• Low return
• Long-term value enhancement

B- Location:

• Good return
• Increases moderately but steadily in value

C- Location:

• Very good return
• No increase in value (+ greater risk of vacancy)

Rental yield: When is it worthwhile?

Basically, the higher the return, the less I have to pay myself and the more I get paid off. Ideally, there is even a monthly surplus that can be used to build up direct assets.

Here are a couple examples of possible returns:

A-Layers:

• Top A-location like Munich Ø Yield ~ 3 %
• A-location like Frankfurt Ø yield ~ 4 %

B-Layers:

• Good B-location like Dresden Ø Yield ~ 5%
• B-location like Nuremberg Ø yield ~ 6 %

C-layers:

• Good C-location like Wuppertal Ø Yield ~ 7%
• C-location like Chemnitz Ø yield ~ 8 %
• Poor C-location like Krefeld Ø Yield ~10%

The next step: existing or new building

When buying a home, in addition to the question of owner-occupancy or capital investment and return or investment property, one wonders whether to invest in existing or new construction. Both forms have their advantages and disadvantages. In this article, you will learn what they are.

The right location: owner-occupier or capital investment?

Where exactly should I buy my first property? Owner-occupiers and capital investors, as well as yield properties or investors with the goal of value appreciation, accordingly, the decision of the perfect location is different. Here we go into the analysis again to help you find the best location for your goals!

• The right location

When are you Curvy?

Let’s start with the most general question, when is one a Curvy Model?

Explained very basically, there are 3 areas if you go purely by the measurements of a model:

1. High fashion and haute couture – usually tall and very thin.
2. Commercial – relatively slim models
3. Curvy Models

Very important, the transitions between the model areas are fluid. Of course, there are also curvy models who work for clients in high fashion, but there are also typical high fashion models who do jobs in advertising, for example, when they drive for a commercial in a new car model on a highway.

What is the dress size of a Curvy Model?

Curvy Models represent the average woman and the average man. Mehr dazu: CM Models The clothing size here is between 42, 44 and 46. We deliberately do not call Curvy Models Plus Size Model. As described, Curvy Models represent the normal average of women and men.

Hayley Hasselhoff, Curvy Model at CM:

How do you become a Curvy Model?

Here come the classic factors for models:

• Beautiful, respectively interesting appearance
• Positive character and charisma
• Healthy lifestyle

And especially important, as always, is a smile! Just laughing brings a model, whether Curvy Model or high fashion, further. After all, it’s also about sympathy in model castings and jobs. Believe me, looks aren’t everything! As you have seen in our checklist for Curvy Models, only one point deals with the appearance. Otherwise, it’s all about positive character and charisma on the one hand, healthy lifestyle on the other, and as I said, the extra tip, a friendly smile.

How tall is a Curvy Model?

When it comes to body size, it’s similar to high fashion models: of course there is an ideal for women and for men, but there are also deviations. Ideal means here that a large part of the jobs is designed for these body sizes, for example because test pieces were tailored exactly to these dimensions. Accordingly, model agencies usually have about 70%-80% models who are rather taller. But that still leaves 20%-30%!

So if you want to become a Curvy Model, your height only plays a role in the second rank. Here we can directly refer to the checklist for Curvy Models: Charisma and personality, are absolutely in the foreground!

• How do you become a model?
• What does it take to become a model?
• Can anyone become a model?
• What skills do you need to be a model?

Becoming a model and becoming a curvy model means above all being reliable. Especially at the beginning of your modeling career, your model management looks very closely to see if they can trust you. Why? Model agencies live mainly on their reputation (brand rating). A simple example: an international brand is planning a photo shoot for a new advertising campaign. On production day, many people are on site, the studio, the outfits, the advertising agency and much more have already been paid for. Now there is only one person that matters, the model.

Simply put, if your modeling agency sees that they can count on you, that’s half the battle. In addition to trust, this includes other classic qualities, for example punctuality.

You also need to create the possible spaces for yourself. Again, to give a simple example, if you sign up for a time-intensive medical degree after school, you won’t have time to model. Why? Specifically, the years until you’re about 24 are used to build you up. When you finish school at about 18, then it’s time to go out into the world! The first time in Milan for a few weeks, then you go to Paris. After the summer is over, you might start right away in Milan again and then it’s on to London. The better you get, the more your agency trusts you, the further you can go. Then cities like Tokyo, Cape Town or New York and Los Angeles will be open to you.

In order for you to make it this far, your model management needs to build confidence in you. Many live the dream of becoming a curvy model. Photo shoots, video productions, social media shoots, fashion shows and eventually lots of travel. The competition is fierce, for many it is an absolute dream job.

Anusha, New Face at CM Models:

Application in the model agency

On most frequently asked:

What do I have to do to become a model?

Ask yourself the question a little differently, how do I apply to a modeling agency? Of course, you can also wait to be discovered as a model, here’s a little reminder: you become your own entrepreneur, so try to become self-employed and apply in a modeling agency! The step is super simple, at the same time it is also the most effective.

Modeling agencies scout new models on Instagram or TikTok and other social networks, of course, but applying directly to the modeling agency is still the best way to be discovered.

What do you need for the application in a model agency? The answer is also relatively simple, because you usually only need two or three simple photos (taken with a smartphone) and a few details about yourself, i.e. contact details and measurements.

It’s that simple! Good and reputable model agencies will usually answer you within 48, maybe 72 hours. Sometimes it can take a bit longer, because some good agencies are not big and are often run by only one or two people. But if you don’t hear back after seven days or less, it will probably be a rejection. You should be able to deal with that too! Look for possible alternatives and don’t give up immediately!

This brings you to one of the most important lessons for Curvy Models and for models in general. Don’t give up right away! You will also go to different castings later and not get every job.

Here is a small but very, very important tip

If a good modeling agency believes in you, you have the chances. Your model agency can only suggest you but they can open the doors for you. The customers will always decide in the end. The fact that a good model agency believes in you shows you that you can make it. You have the prerequisites that are needed at first sight, now it depends on you. How do you act at shoots and castings? How do you talk to clients? How quickly do you get through individual outfits (usually up to 20 outfits are photographed per day)?

Last but not least, we come to one of the very most important questions that very many young models ask:

How can I be discovered as a model by brands?

How can I become a model for H&M, Zara & Co. Actually, there is only one way: Through a good and international model agency. To explain it simply: Especially high-end clients with high demand, like H&M, Zara, but also Victoria Secret, naturally make sure that they have as little effort as possible. That means few agencies, few contacts, little organizational effort. Sometimes brands look for new talent through other channels, for example Instagram or TikTok, as well as model scouts. But 98% of the work in marketing and advertising is then focused back on working with models from agencies. Why? As you learned before, it’s all about trust. What happens if a model doesn’t show up? What happens if the measurements deviate from the given measurements (often by 2, 3 cm)? Clients don’t want to take risks, so they only work with good, very reputable agencies where they have as little risk as possible.

Become a Model: Photo Portfolio, Castings and Jobs

After the model agency application, it really goes into the work! The very first appointment that comes up is the first agency visit and the introduction in your model agency.

Introduction in the model agency

First of all there is the agency appointment. If your model application has found favor with the bookers of the agency, then you get an appointment. Either for a video call or for a live GoSee at the agency.

This appointment usually lasts 30 minutes, maximum one hour. Here you get to know the agency and the agency gets to know you. But, don’t worry, time is money! Accordingly, only those applicants are invited who really have great potential. Therefore again the absolute secret tip: smile! Even if you are absolutely shy, which is absolutely okay, try to go into this appointment with a positive attitude.

In principle, the appointment consists of these three points:

1. Presentation of a model agency
2. You introduce yourself
3. First quick photos and videos(Polaroids)

Whether you are finally accepted in the model agency or not, that is, whether you get a model contract as a Curvy Model or not, you will then find out relatively quickly. Usually within 48 hours. If you made it, congratulations, now you have your modeling contract in your hands! If you haven’t made it yet, try a second or third agency. After all, you have already made it to an invitation in a model agency.

Once you’re in a good, big modeling agency, it’s straight to building your photo and video portfolio.

Photo and Video Portfolio Building: Photographers and Jobs

To build a good photo and video portfolio, you need two things. One is photo shoots with photographers, so-called tests. In tests, photographers try out new techniques, ideas or even equipment. For this you need a model. Both work for their portfolio, so to speak, and accordingly you have great footage afterwards that can be used for your portfolio.

After that come the first jobs. Here you will also collect great footage that you can use for your own photo portfolio.

Castings and job

As of this moment, you’ve already come a long way as a Curvy Model. You had the dream, you decided at some point to send an application to a model agency. You had your invitation, the introduction in your model agency, your first photo shoots.

The better your portfolio is compared to other models, the more invitations you will get for castings and jobs. Now it depends on you! Your agency can only open the doors for you, the performance, especially in photo shoots, fashion shows and also in the production of promotional videos is in your hands.

If you have already made your decision, we are very happy about your application! As already explained in the question, two or three photos with your mobile phone and a few information about you are enough.

FIV: Thanks for all the tips, for young curvy models!

Camille, one of the first Curvy Models at CM.

Apply now as a Curvy Model at CM!

You’ve learned so much about becoming a curvy model. If you want to learn even more about the topic, check out our big guide here: Becoming a Model.

If you have already made your decision, we are very happy about your application! As explained earlier in the question, all you need is two or three photos with your phone and some information about yourself. Are you ready?

• Curvy Model Application

What comes after the application? Photo shoots with photographers, building up the portfolio, the first castings and jobs…

Selling Real Estate: 15 Mistakes When Selling Condo & House

This list goes further than all other guides on the Internet, which usually only deal with six, seven or eight errors. Here it goes much deeper; also critical of too high valuations by real estate agents.

Example: No sale due to too high valuation

Here is a small example that we will discuss in more detail later:

You’re smart, of course, and ask several real estate agents for an offer on your condo or house! Actually, that’s exactly right. But there may be a mistake here, because you will probably end up choosing the real estate agent who gives you the highest valuation. But a too high offer price (not purchase price) can scare away interested parties and thus your property, whether condo or house, will quickly become a slow seller and it will not be sold, at least not in the period of time you would have wished. If it is to be sold then nevertheless fast, you must accept substantial losses with the purchase price. After all, you are under pressure! But let’s start with the typical mistakes.

First, a look at the full checklist.

Checklist: Mistakes when selling an apartment or house

These 15 typical sources of error were identified by Lukinski (List: 15 Mistakes in Real Estate Sales; external).

1. Time pressure! Too little time for the sale
2. Timing! Wrong time to sell
3. Inaccurate object description! Exposé written unprofessionally
4. Unflattering photos! Interested parties do not click
5. Wrong target group! Newspaper for students apartment with 50m²
6. Too high a valuation! Too expensive, no buyers
7. Lack of documentation and evidence
8. Viewings unprepared! Does not convince interested parties on site
9. Underestimated effort! Back to time pressure (error 1)
10. Negotiation are easy! Purchase price losses with professionals
11. Private, sell alone! Sales phase without experience
12. Waiting time! Prospective customers stall too long
13. Creditworthiness! Proof of financing (buyer)
14. Sales contract! Defects in the purchase contract are overlooked
15. Burn property! Large or exclusive properties in mass portals

Condominium as an investment in the city centre: Apartment sales are not only interesting for private individuals, real estate investors also have a look at the coveted A-locations. That’s why real estate portals are not always the best idea, especially properties in A-locations are usually sold through renowned brokers who are not only regionally positioned, but have an international network of buyers.

Loft on 2 floors, such properties sell well! Even if they are in need of renovation. After a make-over, such a loft apartment with modern, free-standing staircase shines in all new splendour.

Now let’s take a look at some of the risks:

Time pressure! Too little time for the sale

One of the biggest sources of error that can ultimately cause you to get a much lower sale price than you would have liked is too little time. If you don’t have enough time to sell your condo or house, or even land or apartment building, then you will most likely be under pressure. Of course, if you are under pressure, skilled traders can take advantage of it and they will!

• Time pressure – sales process underestimated
• Option A – Accept lower purchase price
• Option B – Accept longer selling time

The problem: Option B only works if you don’t need the money from the sale of the apartment or house! For example, because you have already bought a new property.

As a recommendation, at least 2 months of preparation time are mentioned here. After all, as you will learn in the other sources of error, it is not just about making a small advertisement, you have to collect documents and records, you have to collect the object data, make meaningful real estate photos, accept the first inquiries, conduct conversations, arrange viewings, then follows the entire negotiations, the purchase contract and notary appointment.

At least 2 months preparation time; sales time often up to 6 months

You see how complex and extensive the process of selling real estate is. That is why it is so important that you take enough time.

Inaccurate object description / Unprofessionally written

What puts off many prospective buyers, especially if you have a lot of listings on property portals, is an inaccurate property description. No one wants to ask for extra information if it is not already provided by the seller. Why should they, when there are a multitude of other offers just a few clicks away.

There are many factors that go into an accurate property description, in the article a complete list(mistakes in selling real estate) is given, with details that must be given at least in the real estate listing.

An object description should at least contain this information:

• Meaningful title
• Address, or location and district
• Living space
• Footprint
• Apartment type / House type
• Available from when
• Number of rooms
• Bedroom
• Bathroom
• Garage / Parking space
• Internet

Features and Extras:

• Building fabric & energy certificate
• Year of manufacture
• Modernisation/refurbishment
• Object state
• Equipment
• Heating type
• Energy source
• Energy certificate

Documents in the first step:

• Floor plan

The result is then an online advertisement or a nice, clear brochure, as shown here in the example:

Unfavourable photos in the exposé – Just like exposé, hardly any demand

Photos say more than 1,000 words! As a magazine, we know very well from our practical work how important photos are; from the online edition to the printed magazines, the choice of picture is one of the most important criteria for attracting the attention of prospective buyers. It’s the same with house sales and apartment sales.

What you have to pay attention to is the quality of the camera. If you use a new smartphone or a modern digital camera, you won’t have any problems. But sometimes the lens is dirty, sometimes the phone model is no longer the latest. When the photo shoot comes up, check what camera options are available to you beforehand. Tip. Smartphones today take very good photos, usually it is quite enough.

Apartment: Before / After example

Here is a practical before / after example of good and bad photos. A simple example: daylight and camera setting.

Before (with bad light):

After (with good light):

With simple tips for photography beginners and the most important camera settings, you can quickly achieve a lot, from outdoor to indoor, even with backlighting.

Order, cleanliness and daylight

What the camera can not solve is order and cleanliness in the premises and, of course, on the outdoor areas. Not only at the viewing, already when real estate photos are created, should always be paid attention to order and cleanliness. Because so the rooms seem high-quality, accordingly more prospective customers on your offer will jump. A good tip is also to remove objects. For example, if there are too many picture frames on the cabinet, clothes hanging visibly in the room, and so on. The tidier the rooms, the higher the chance of a profitable sale.

When the rooms are prepared, it is still a matter of the right timing of the photo shoots. Here you should make sure that you shoot in daylight. This way you have the optimal, natural brightness in the rooms – this is much better than unnatural light, as in the example above. In order for buyers to get a good picture of the apartment, house or apartment building, you should also always photograph multiple perspectives. Simply put, don’t just take one photo of the living room, take three.

Quick check for your photos:

1. Camera quality
2. Order and cleanliness
3. Daylight, bright rooms
4. Multiple perspectives

Also for viewing: Preparation of the rooms

For the visit, similar standards apply as for the real estate photos, everything should be well prepared, because the property must convince. Fresh air, daylight, order and cleanliness, in addition also already prepared, drinks and snacks, it should come directly to the first deeper going in discussions, during the inspection.

House and condo priced too high! No one writes

This mistake is relatively fatal:

If the valuation of the property is wrong, you will usually notice it late, namely exactly then, when no or too few inquiries come!

Under exactly this aspect of the late knowledge of the too high offer price, you are quickly back in error 1) the time pressure. Because suddenly there are no prospective buyers and maybe you’ve already confirmed your new home? Maybe the new financing for the house has already been taken out? This is where it gets critical! There are many reasons why a majority want to sell quickly, not after 1 or 2 years when the ideal time + buyer is found.

As described in the introduction, many get comparison quotes. When you look at settlement offers, you’ll probably say “I’ll get the highest rating”, after all, that’s when you get the most money, right?

Real estate agents also compete with each other and accordingly, of course, you know that the real estate agents who give the highest valuation are usually hired. If 2 real estate agents recommend ~ 800,000 for your condo and another one recommends 950,000, who do you think will win?

1. Broker valued at 820,000
2. Broker valued at 800,000
3. Broker values at 950,000 – gets the job

This could be a mistake!

Brokers want the order, high rating are the means for “satisfied” customers

Therefore, when evaluations are made by real estate agents, make sure that they also include critical points in the evaluation and do not only see everything from the optimal point of view for the order confirmation. A well-founded property valuation should definitely always be done by a professional, a real estate agent or even directly a surveyor. You should make sure that your property is not only “nicely calculated”.

Documents and proofs are missing – Documents are not available

If you want to sell your house you need a lot of documents, if you want to sell your condo is a lot of documents and papers! From floor plans to the energy certificate.

To give you an immediate overview, here is a checklist with the important documents for all types of houses and apartments.

Source: Lukinski.de

Documents for real estate

The general documents for the sale of real estate:

• Official cadastral map of the municipality
• Land register entries and documents relating to registered land charges
• Floor plans / construction plans of the property, building description and the building permit certificate
• Living space and usable space calculation
• Open Space Design Plan
• Building specification
• Building permit and building plans
• Property tax assessment notices
• Energy certificate of the object

In addition, there are the photos of the property, as already described above.

Documents for condominiums

For condos, you’ll need to get a few more documents.

• Declaration of division
• Caretaker agreement
• Business plan
• Partition plan (showing special and common property)
• Common rules of the community of owners
• Minutes of the owners’ meetings
• Service charge statements
• Amount of the maintenance reserve

Selling phase is designed alone – selling privately without estate agent and expertise

If you now take another look at the entire list of possible mistakes, you will quickly notice that the private sale of a property is very difficult, from the credit check of the interested parties (proof of capital), through the entire process of communication, initial enquiries, further discussions, to the first viewing, further viewings, the sales negotiations and, of course, the purchase contract and the notary appointment.

Here again at a glance:

1. Time pressure! Too little time for the sale
2. Timing! Wrong time to sell
3. Inaccurate object description! Exposé written unprofessionally
4. Unflattering photos! Interested parties do not click
5. Wrong target group! Newspaper for students apartment with 50m²
6. Too high a valuation! Too expensive, no buyers
7. Lack of documentation and evidence
8. Viewings unprepared! Does not convince interested parties on site
9. Underestimated effort! Back to time pressure (error 1)
10. Negotiation are easy! Purchase price losses with professionals
11. Private, sell alone! Sales phase without experience
12. Waiting time! Prospective customers stall too long
13. Creditworthiness! Proof of financing (buyer)
14. Sales contract! Defects in the purchase contract are overlooked
15. Burn property! Large or exclusive properties in mass portals

When selling a home and homes, working with a professional real estate agent who has the right expertise and experience is worth a lot.

Did you already know? Two thirds of all properties in Germany are sold through estate agents. Why? The time involved is very high, you need to have the right contacts so that his apartment does not appear on 20 real estate portals. You need the right negotiating skills and ultimately…

House & apartment forms at a glance: List

In the real estate market, there are a lot of different types of construction. Both in the field of apartment and houses, there are many forms and types according to which a property is designed. These are divided into different formats. We have clearly listed some of the most common house and apartment types for you here. You can find more information about the respective property type in the corresponding article by clicking on the corresponding link.

Overview of house types: from bungalow to prefabricated house

Here you will find a list with an overview of all common house types. The linked article provides you with more information about the respective house form, introduces you to characteristics and definitions and you also learn which house type is suitable for whom and why. In addition, we introduce you to the advantages and disadvantages of the respective house form in the associated articles.

• Bungalow
• Semi-detached house
• Single-family house
• Half-timbered house
• Holiday home / weekend house
• Beach house
• Prefabricated house
• Country house
• Massive house
• Terraced house
• Villa
• Low-energy house
• Zero-energy house
• Passive House

Apartment types overview: Old building apartment to basement

The housing market is highly competitive and there are many different types of housing that come with certain characteristics. In the corresponding articles you will find definitions and information about the respective type of apartment, as well as a list of potential advantages and disadvantages of the corresponding apartment.

• Old apartment
• Apartment
• Attic apartment
• Granny flat
• Apartment
• Loft
• Maisonette apartment
• Penthouse
• Basement apartment
• Terrace apartment

Real estate agent in the vicinity

Especially if you’ve already moved away for your new love, are planning to move, are changing homes for work reasons, and so on. You can find good tips directly with us:

• Real estate agent in the vicinity

Guide: Taxes, Income & Co. – Everything explained!

Taxes are dry and annoying for most people. But those who deal intensively with the topic can also recognize its advantages. For example, if you know your way around, you may be able to save or avoid a lot of taxes with the right strategy. So it’s worth getting to know and understand taxes, because in the end you can always make a profit from them – and you don’t necessarily need an experienced tax advisor for that!

Taxes in Germany: Income tax, property tax & more explained

Whether income tax, wage tax, real estate transfer tax or trade tax: there are many taxes in Germany. So it’s understandable that many people find it difficult to keep track of them all. Here we present the German tax forms and summarize them roughly. Which tax has to be paid under which circumstances – whether for individuals or companies – and much more you can find out here in a summary. We would like to give you an overview of the common taxes in Germany in the following linked article.

• Taxes Germany

Taxes USA: Buying property and paying taxes in America

What taxes do you pay when you buy a house in the US? In this article you will find a list of all the types of taxes you have to pay, how much they are, what they are used for and where you can learn even more about the subject. Everything you need to know about taxes related to buying a property, be it a house or a vacation home. We answer your questions here like: What are “transfer taxes”? How much is the property tax when buying a property? You can find out all this and more in the article linked below.

• Taxes USA

Inheritance tax on real estate: tax-free amount & market value

Anyone who inherits or wishes to inherit real estate should take a few things into account, as taxes are also levied on inheritances in Germany. The amount of the tax allowance depends on the degree of relationship to the testator. Relevant here is the tax class to which the heir belongs and the tax rate applicable to this tax class. Since 2009, it has been common practice for inherited real estate to have inheritance tax determined according to the market value.

• Inheritance tax real estate

Save taxes: Where do I start? – Examples

Classification, income, turnover, coaching: tax advantages and benefits as well as tips and tricks on the subject of “saving taxes” are essential for entrepreneurs, freelancers, pensioners & Co. in order not to lose track of the many laws and guidelines in tax law. Although everyone is familiar with the word “tax”, only a few people actually know what taxes are. What taxes are there? For what do we pay taxes and how much? To whom do we pay taxes? What tax tricks and tax saving tips are there? And very important: How does saving taxes work at all and which tax saving tools should I use? You can find out about this and much more below, quickly and easily.

• Tips & Tricks: Where do I start? Save taxes

Video Tips: Taxes explained by experts – tricks and more

Understanding taxes is not easy, especially with such a complicated tax system as in Germany. But once you have a grasp of it, you gain many advantages. We have compiled helpful expert videos for you, with which you can understand the world of taxes easier. Whether it’s tax returns, real estate taxes or basic tips and tricks: you’ll get help here, and in an understandable way!

Overview Tips & Tricks: Tax Videos

Tax basics: explanation, definition and settlements

Taxes are extensive and complex. But who understands the principle behind it, also understands more and more connections. In this article, we want to show you videos that teach you what taxes are exactly, what they are used for and what types of taxes there are in Germany. You can also find videos with helpful information on the topic of tax returns, as well as a definition of the differences between direct and indirect tax.

• Video Tips: Tax Basics

Tax return: how, when and where? – Deadlines and instructions

Why, why, why are tax returns so important? Not only professionals, but also students or pensioners can benefit from a tax return. If you have never deducted anything from your taxes and have no previous knowledge, you can get super informed in our tax return guide. We show you tips and tricks on how to avoid mistakes and provide you with tutorials that will help you with your first or next tax return. Here you will find everything important on the subject of tax returns to watch in the most popular and helpful videos. Whether you’re looking for instructions or tips and tricks on how to save even more, we’ve got a video to answer every question.

• Video Tips: Tax return

Taxes real estate: basic knowledge and where you can save

Real estate is basically a big financial issue. Buying, selling, renting, investing, etc. But what about taxes when it comes to real estate? Through tips and tricks you can save a lot of taxes, you just have to know how. In our video list you will find many videos in which experts explain to you what really matters and which mistakes you should avoid at all costs. With this help, you will soon be able to fully understand the topic of real estate taxes and save money!

• Video Tips: Taxes real estate

Taxes & Capital Gains: Capital gains tax and more

Capital gains: One or the other may have heard the term before. However, there may also be people who can not yet do so much with the term. What it is exactly and what it has to do with taxes, you will learn here. Capital gains tax, tax return, dividends and interest in relation to taxes are also adressed. You will also get tips for the tax return and for more net income.

• Video Tips: Taxes & Capital Gains

Tax tips & tricks: recommendations for families, employees & more

Almost everyone knows it, there comes a time in the year when it is called: The tax return is due. For many, this is still a vexing topic, but it doesn’t have to be! With the right tax return and the appropriate tips, you can often get a lot of money back. We have compiled the most important and exciting tips and tricks for you, so that you can also save money and look forward to the next tax assessment in the future!

• Video Tips: Tax Tips & Tricks

Book Tips: Recommendations and tax optimization

Everyone knows them and virtually no one likes to deal with them: taxes. But taxes don’t always have to be something negative. With tips and tricks, everyone can save taxes, be it when buying or selling a home or the usual annual tax return on all kinds of topics. We’ve rounded up the most interesting and informative topics for you. With book recommendations we try to bring you closer to the world of taxes and show you how you can save as much money as possible with as little effort as possible. Find out more here!

Overview Tips & Tricks: Tax Books

Tax basics: tax lexicon, basic knowledge and more

Taxes. Everyone has to pay them, but very few people have a complete overview. Tax advisors, who are well versed in the subject matter, are often expensive and not an option for everyone. In this article, we have therefore compiled book recommendations for you, in which experts discuss the basics around the topic of taxes. Among them you will find, for example, a tax encyclopedia or the basics of the real estate industry in the area of taxes. Find helpful tips and tricks for all your questions here!

• Book Tips: Tax Basics

Tax return: where, when and how? Learn how to do it!

The tax return is an unpleasant task for many people every year. But the world of taxes is not that complicated and inscrutable, especially not the tax return. Who, when, what and above all how and with whom you have to file a tax return, these questions will be answered in the following recommended books. We have compiled the most successful books by experts and professionals on the subject of tax returns, so that with this knowledge you no longer have to worry about your tax return in the future!

• Book Tips: Tax Return

Taxes real estate: buy or sell your own home

Taxes in the field of real estate and home ownership: For beginners, the tax world is already quite confusing, but to combine the whole thing with the real estate world is a whole new world. We want to make this entry easier for you with the best recommendations and tips from the pros. Our book tips will guide you through the whole world of real estate and taxes and offer help for learning the basics, guides for private investors and savings tips.

• Book Tips: Taxes real estate

Taxes & capital gains: Flat rate withholding tax and more

If you are interested in the topic of taxes in connection with capital gains and would like to read an informative and helpful book, then you have come to the right place. The higher the tax burden, the more important the topic of avoiding taxes becomes for you. Especially if your profit is growing and growing. The more profit, the higher the taxes: a vicious circle. But of course, there are also many options that the state provides you with. What’s important for you: Your tax advisor won’t tell you, that’s not his job. Tax avoidance is your job. Because you know your individual financial situation best of all.

• Book Tips: Taxes & Capital Gains

Tax tips & tricks: recommendations + how to save taxes

Every year it’s time to file your tax return. For many people, this has been an annoying topic for years, but it doesn’t have to be! With the appropriate know-how and tips, you can often get a lot of money back, and the tax return is easy to do. We have compiled the most important and exciting tips and tricks for you in the form of popular books by experts, so that you too can save money and look forward to the next tax assessment in the future!

• Book Tips: Tax Tips & Tricks

Tip! Wealth building XXL: Finance, Investment & Co.

Who wouldn’t like to build up their own assets? Whether you want to be able to afford something or would like to generate a financial buffer for old age, asset accumulation is a relevant and, above all, sensible topic for virtually everyone. But what options are there for building up assets? Life insurance, retirement planning, or investing in real estate? Here you will find an overview of articles, as well as book and video recommendations on the subject of asset building. From saving taxes to passive income to tips on successful investing – experts and professionals share their know-how in their videos and readings and answer all questions about wealth accumulation.

• Book and Video Tips: Wealth Building XXL

Zero energy house simply explained: characteristic values & requirements

Zero-energy houses are small, building planning and energetic masterpieces. A zero-energy house is oriented in its standard value to the passive house. This means that it does not exceed the energy requirement of 15 kWh/sqm per year (regulation of the Passive House Institute Darmstadt) and also produces the consumed energy itself through photovoltaics and solar thermal energy.

This means that a zero-energy house is a completely self-sufficient entity and is not dependent on electricity purchases. Here is a summary of what a zero-energy house is all about:

• Energy demand <15 kWh/sqm per annum
• The remaining energy required is produced by the company itself
• Neutral CO2 balance

Features and technical details

The simple explanation seems very appealing at first and the question arises why not every house is built according to these standards. The reason for this is that, on the one hand, the completely self-sufficient house is unfortunately still an unachieved idea and, on the other hand, the technical and construction requirements are not so easy to integrate in old buildings.

Furthermore, depending on the season and location, even a zero-energy house is still dependent on electricity purchases. This unfortunately makes the title zero-energy house somewhat misleading. Nevertheless, the residents of a zero-energy house can look forward to a very low electricity bill.

Why are not all new buildings automatically zero-energy houses? Because zero energy houses also have certain disadvantages, which we will explain in more detail in the course of this article. In addition, the construction of a zero-energy house can be associated with higher costs than a standard house construction due to the additional installations that must be made in relation to the sustainability of the houses.

Tip. Are you looking for the perfect house, but don’t know if building or buying is right for you? Then take a look at our XXL Real Estate Guide! Here you will find interesting facts about buying, selling & Co. on the subject of apartments and houses.

Are you looking for the right house? Then check out our guide! Here you will find definitions, meanings and lots of information: House types from A-Z

Room layout and construction

What exactly can you expect from the room layout of a sustainable house and what restrictions arise in terms of rooms and room layout. However, we do not want to go too much into disadvantages and advantages here, as these will be discussed in the following section.

A big factor in the construction of zero-energy houses is to optimize the external surface in relation to the total volume of the house, which means reducing it to prevent heat loss. In addition, the insulation of zero energy houses is the be-all and end-all of the building. If the insulation is not optimized, the house will not serve its purpose.

Advantages & Disadvantages: Savings and risk of mold

What speaks for and what speaks against the zero-energy house? Are there any arguments against sustainable buildings? We will try to answer these questions in the following, so that you can decide whether such a sustainable home could meet your needs.

Advantages: Service charges, living space and windows

Many of the benefits of zero energy homes are obvious and have also been briefly touched on in previous sections. But there are a few more factors that help to make sustainable living palatable.

• Low power consumption
• Reduced ancillary costs
• CO2-neutral
• Large windows
• Optimized living space

Disadvantages: Cost, limitations and risk of mold

If you want to live in an environmentally conscious way, you have to say goodbye to the German ventilation culture, because the energy-efficient living options unfortunately come without opening windows. Instead, a ventilation system is installed that allows a regulated living air exchange, but keeps the temperature of the house constant.

• High acquisition costs
• Limited freedom in construction
• Danger of mould due to ventilation deficiencies

For whom is the zero-energy house suitable?

The question of who should move into such a house is not so easy to answer, because an energy-efficient house always tends to offer the option of accessibility, especially if it is a new build, so the groups that can feel comfortable in this type of house are wide-ranging.

Families, singles, pensioners and co.: Building a zero-energy house?

Do you want to move into a zero-energy home, but aren’t sure if it’s right for you yet? Making the choice is really difficult, but in the long run, investing in energy-conscious living will definitely pay off in terms of cost. In addition, you’ll be an absolute pioneer when it comes to the house and housing market.

Sustainable housing options will become more and more in demand. Of course, this brings advantages and disadvantages for zero-energy houses. On the one hand, the loss in value due to aging is not quite as high, as certain standard values are already taken into account during construction. On the other hand, they require maintenance in places that other houses do not have.

In addition, progress in sustainable housing can be expected to be driven by political and popular interest, with new technologies overtaking old ones.

Source: Zero Energy House (Lukinski.com)

Energetic sustainable building: KfW Efficiency Houses & more

Zero energy homes have only existed in the real world, and not just on paper, for a little over ten years. But zero-energy homes are not the only players in the field of sustainable housing options. Environmentally conscious building projects are being viewed more and more positively by lending institutions and banks, and getting support is often tied to the planning of the building projects.

KfW efficiency houses, old buildings and zero-energy houses in comparison

In order to be classified as a KfW Efficiency House, a building must meet certain criteria. The better the house performs, the more favourable the loan options are. These criteria can be particularly interesting when building a new house. The requirements for a KfW Efficiency House consist of primary energy demand and transmission heat loss. These are the values for new buildings:

• KfW 40 Plus: primary energy requirement 40 % // transmission heat loss 55 %.
• KfW 40: PEB 40 % // TWV: 55 %
• KfW 55: PEB 55 % // TWV 70 %

The values are to be considered in relation to the reference building. Primary energy demand describes the amount of energy required to meet the energy demand. Transmission heat loss, the heat that is lost through walls, windows, etc.

We have also compiled the energy requirements of popular housing types so that you have an approximate reference for the energy consumption of houses at hand. The values are of course to be considered average, as a simplification has taken place:

• Partially renovated old building: 155 kWh/qma
• New building: 45 kWh/qma
• Modernised old building: 120 kWh/qma
• KfW Efficiency House 40 Plus: <25 kWh/qma
• Passive/zero energy house: <15 kWh/qma

Build or buy: Pros and cons of building a house

Now, after all this information, the question arises: should I rather build or buy such a house. Of course, this question must always be answered on a personal basis. How much time, effort and money can you put into your new home and, most importantly, what is on offer in the housing market? Are there perhaps already offers that meet your requirements, or do you have expectations that have not yet been fulfilled?

One factor that specifically favors building sustainable homes is the availability of good loan options for this type of home. If this is a factor for you, building a home here may even be more of an option than other types of homes you’ll find in our magazine.

Refurbishment tips: From old building to zero-energy house?

Turning a beautiful old building into a zero-energy house? Hardly possible. But nevertheless there are renovation measures that help to make the old building a little more energy efficient. For example, through new insulation in the roof and the general overhaul of the windows.

Double or triple windows reduce a building’s transmission heat loss, as does upgrading insulation. If you are really interested in improving your energy balance, you can expect to spend a little money. On the other hand, you’ll save money in the long run. In addition, loans for renovation measures that have a positive energy effect on the house can be obtained at good conditions.

Zero energy home setup: Brands, tips and tricks

The zero-energy house is usually equipped with an efficiently used area, but this also means that unnecessary free space is reduced and high rooms are avoided. So that you don’t have to do without style in your interior, we have summarized a lot of interior brands and their assortment for you and maybe there is also one or the other object for you. You can find the different collections here: Interior Brands Guide.

Low-energy house & passive house: energy-efficient living – features & comparison

The low-energy and passive house are also house types that enable energy-efficient living. We have presented the individual house types in separate articles and compared them for you. Energy-efficient living does not know only one solution, inform yourself here about the individual possibilities and find the perfect house form for you, with which you can live sustainably and energy-efficiently.

• Low-energy house
• Passive House

Shit happens! Make it a T-shirt

Projects fail due to internal or external influences that you as an entrepreneur can sometimes not count on. For me it was the “Social Analytics” investment, for example. A few weeks after the launch of our software “Social Analytics”, Monitoring and Influencer Management for Instagram, we had to stop the service again. Our mistake, we had underestimated the risk that Facebook would restrict third-party access. Almost three quarters of a year of work and preparation were within seconds for the cat. So it’s not always just about opportunities and risks, advantages and disadvantages, even access restrictions, whether from social media networks or suppliers, can quickly put you in your place. After all, you have a beautiful story and learn from your experiences!

Many have failed with a business idea

As strange as it sounds, many icons from the business world say that they have always learned the most from their mistakes, sometimes even more, than from successes and the best ideas! You can then contribute your expertise to many discussions or projects. In this respect, you no longer have a business model, but your history and learnings, which will certainly be of interest to others.

At this point I would like to point out three quotes from great entrepreneurs, which I find very inspiring myself. Mister Thomas Edison has also had the experience of failure, the man to whom we owe the light bulb, among other things.

Quotes on failure

Even he liked to talk about his failed projects and still shapes entrepreneurs worldwide:

Mr. Thomas Edison

“I didn’t fail – I discovered 10,000 ways that didn’t work” – Mr. Thomas Edison

In the area of the great inspiring quotes and the great entrepreneurs, it is also worth taking another look at Mister Henry Ford. The man I already mentioned in relation to the calculation of marketing tasks with the sentence: “For every dollar you put into your product, you have to have another one ready to make the product known”. Henry Ford also frequently referred to the topic of “failed projects” and “failure” per se. The second quote that I will mention in the context of the book refers to the absolute beginning, the foundation. Starting a business is like playing football with friends as a little boy. It’s just fun! If you don’t take that into account, you give up quickly and that happens in most cases. If you manage to stay in the market alone for three, five, or even seven years, that’s half the battle, because most of your initial competitors automatically disappear after some time. So you don’t have to focus too much on the others. Concentrate on your success and on yourself as an entrepreneur. That’s why Henry Ford said:

Mr. Henry Ford

“There are more people who surrender than those who fail” – Mr. Henry Ford

To achieve all this, you need attention to detail and precision! That’s why here’s my favorite quote from Confucius. From spontaneous device failures of several notebooks in the office, to spontaneous flu waves in winter and high levels of illness, to demanding customers and projects, to waiting for the craftsman.

Confucius

“If one is not patient in small things, one brings the big projects to failure” – Confucius

Not only the old teachers have failed, of course the younger icons in business have also fallen on their noses a few times with projects.

Lose fear of the risk

So that you can continue to lose your fear of risk, here are three truly fascinating examples from the business world. Trial-and-error, that means trying and failing. The principle belongs, so to speak, to good entrepreneurship! Who does not also fail sometimes, dares in the reverse conclusion too little new. When they fail, it’s similar to the great buildings of history: We’re all talking about the pyramids that are still standing. Thousands and thousands of pyramids have been built. So that we do not always look only at the great successes, here is also a look at the attempts of large entrepreneurs to establish new business models.

failure at a young age: Today’s icons

Jeff Bezos, founder of Amazon and currently the richest man in the world – despite a billion divorce and costs of over 35 billion – failed with several Amazon projects. Morten Lund, founder of Skype, one of the communication platforms for video telephony, slipped into bankruptcy twice. Then the story of Bill Gates, Microsoft founder, his first software first nobody wanted to have. In the end, he even offered it for free, but nobody used it. Shortly thereafter, he founded Microsoft. The rest is history! These three giants in the digital industry are friends of principle trial-and-error. A small excerpt:

Jeff Bezos (Founder: Amazon)

Beside all successful projects, like one of the biggest online shops of our time or current and new the space travel and the colonization of the moon, there were also a few projects which did not go down so well with the society. His search engine A9 should become a competitor model to Google. Market shares could not be gained and so the project was terminated at the end.

But he also wanted to create a competitive model for eBay. This means that not only professional traders can trade, but also private individuals. “Amazon Auctions was the name of this project. This was also discontinued without success after a short time. Here you can see how difficult it is to compete against good and established products and to dare something new and to establish it on the market. Google, but also eBay are already so well positioned and function almost independently that it is difficult to get people to move to new platforms and switch.

• Search engine A9 – fail
• Amazon Auctions – fail

Morten Lund (Founder: Skype)

Morten Lund, Skype founder, is an excellent example of the skipjack of today. He had his first insolvency at a young age. His first business model: to sell Abitur hats. In Denmark, Abitur hats are the absolute bestseller for school leavers. Unfortunately, he did not manage to sell his hut, as it is an extremely seasonal business, he had to declare bankruptcy in 1994, immediately after the graduation celebrations. It shouldn’t be that way! Fifteen years later, he went bankrupt for the second time, in 2009. In fact, he had managed to organise all the money earned by Skype, the investment in 2003 and the subsequent growth spurt, in such a way that he went bankrupt for the second time. Nevertheless, he has not given up and since 2016 he has actually been debt-free again. A great example of a role model for someone who also fails in higher spheres and not only with a single project, but also privately.

• 1994 Insolvency (sale of high school graduation hats in Denmark)
• 2003 Invest in Skype, made millions
• 2009 Insolvency #2
• 2016 Debt relief

You can learn from Morten Lund’s story as an entrepreneur. Give up? What’s the matter with you? Those who really believe in themselves should always go on and believe that they will make the breakthrough at some point. Others have finally made it!

Bill Gates (Founder: Mircosoft)

Bill Gates is one of the most fascinating companies in the world for me. Not only did he start his business out of a garage, he became the richest man in the world and gave up half. What Bill Gates also deserves credit for is that he managed to leave his own company at a very good time. Many remain in the company until they are old and then do not find the right successor. Bill Gates took early care of a structure that would replace him. Hats off, Mr Gates! From garage to richest man in the world and back to privateer. Everyone starts with their first business idea. Will it directly become a million or even billions of ideas?

His first business idea was born in the high school “Traf-O-Data”. The software made it possible at that time for the very first time to carry out automated traffic counting, no longer by people with pen and paper. During the first presentations, however, the demonstration did not work without errors. The interested parties were less enthusiastic and so in the end not a single authority was interested in the software solution. Bill Gates was so frustrated that he ended up offering his software completely free of charge. Still, she didn’t want an agency. A typical moment to say, “I can’t do it.”

But no! Short time later, he developed in collaboration with his high school friend Paul Allen “Microsoft”. Since the beginning of the computer era, the world’s most popular operating system for computers and notebooks.

• High School: “Traf-O-Data”: Demo did not work (road traffic census), later free of charge, yet no authority wanted it
• Learned intensive software writing
• foundation “Microsoft”

Three icons whose products everyone knows. Amazon, Skype and Mircosoft. Three entrepreneurs who have experienced setbacks in their lives and yet remained steadfast. Believing in yourself moves mountains, as you can see from these examples, it is not a saying.

Amazon founder Jeff Bezos is currently even competing with other American greats such as Elon Musk or Virgin founder Sir Richard Branson. You and other multibillionaires are about to conquer nearby space. Elon Musk company SpaceX focuses mainly on logistics between earth and orbit. Jeff Bezos wants to be the first to colonize the moon permanently and thus provide a stopover for future Mars landings. Virgin goes mainly to space tourism and flights in nearby orbit…

Think big!

And already we are away from failure and from the big ideas that change the world! The perfect transition for you and your business idea.

Failure – Top 11 reasons

Go geht´s! Here are the top 11 reasons why so many start ups fail in the first 5 years:

Place 1 – The market does not need them

The third Burger Restaurant in the street, another brand that Cola offers in the beverage trade, a new car brand with a combustion engine that wants to be at the forefront. Who needs that? Nobody! Therefore the missing market is also number one when it comes to the failure of start ups. Your product fails because there is no need for it.

Place 2 – the money goes empty

The absolute classic and also often mentioned here: Finances must always be solidly planned and of course also handled in the operative business. If you calculate projects incorrectly, you will quickly run into difficulties with payments. Once this point has been reached, there are, unlike with private individuals, hardly any deadlines and certainly no postponement. You didn’t pay the rent? The business landlord can sue you almost immediately if the payment reminder and reminder are through. Employees are not paid? They’re understandably quicker gone than you can look. The supplier doesn’t get his money? Then you won’t get any more goods. No goods, no deliveries, no sales. Financial problems, number two in the list of reasons why start ups fail.

Place 3 – The wrong team

When it comes to personnel, there is of course a lot to consider, but in the end it all depends on the entrepreneur and the right decision as to who should be in the team and who should not. If these decisions are made wrong and the wrong people are hired without the right knowledge and motivation, a project can fail in the long run. After all, the person costs money and in the end nothing is earned, which is why follow-up costs arise due to lost profits. Your team must therefore be well selected, trained and able to deliver practical performance.

Place 4 – The competition gets you ready

Sounds hard, but it is! Especially in the area of software, the possibilities of adopting concepts are fast. Of course, this also applies to simple products. Producers in the Far East can copy any kind of product if they have the necessary small change.

A friend of mine had a successful cereal bar. Approximately 15 months after its foundation, the same product came onto the market from a large manufacturer. The direct competition stood overnight on all supermarket shelves. The name, almost identical. The composition, same. The outfit, right away. To compete as a start-up against the international food company is a big challenge. Competition can quickly destroy the business, especially when the business idea is particularly easy to adopt. That’s why you need a good entrepreneur who stands completely behind the whole, has experience and knows how to compensate your own deficits and how to position your own brand skilfully next to the competing product. At the end also an absolute success story, sold!

Place 5 – failure by price and cost

Determining the prices of products is not easy with under! The more difficult it is to quantify a product, the more complex the price calculation becomes. A screw, for example, can be quantified quite accurately. A certain material price, a certain production time, certain electricity and personnel costs. Ultimately, an exact figure of 0.37 euros net per screw is on sale. Whoever opens a start-up in the field of influencer marketing has a much more difficult time. How exactly can two postings plus one story be calculated from a specific person with a specific number of followers, an individual number of interactions? Each offer is correspondingly costly and time-consuming. Find the right price so customers can access your job. Ultimately, that’s exactly how it can fail. In the same part, the costs for procurement, for example, for material, are added. If you don’t manage to reduce costs over time, your profits won’t rise, or will rise very slowly. The profit lies in purchasing!

Place 6 – Your product is bad

Honest but true, your product can also just be bad! The workmanship is not right, the quality, the shelf life is poor, but maybe you’re just harvesting a Shitstorm because your product is discredited because of a quality that hasn’t been considered before. Everything was right and in the end only one detail was decisive for the entire business model to collapse. The same can of course happen if you can’t keep up with your competitors in a certain period of time. If, for example, a new industry is opened, such as bus transport in Germany or, for some time now, electric scooters, then the development in the market is extremely fast. Business models adapt within a few weeks, after one or two years the first competitors merge and after three or four years the market clears itself of its own accord. If your product can’t keep up with the market fast enough, people will buy from the competition.

Place 7 – gaps and errors in a business model

Here is a good best practice model from the United States. A big music festival, with big investors. Location of the mega festival should be the island of the former drug baron Pablo Escobar. Everything was discussed with the family, the island was allowed to be used on the condition that no advertising was made with the name of the family. Of course that’s exactly what was done and directly advertised in the first commercial that the festival takes place on the former private island of Pablo Escobar. Spontaneously the contract for the location was cancelled and the whole festival fell into the water. The reorganization within a few weeks is therefore impossible. After all, it was (at least announced) the biggest festival in the world. Financed with millions, it has now become an absolute debacle. A clause that brought everything to failure.

But it can also be a financial investment product. Instead of keeping winnings on your bank account at zero interest, you want to invest them profitably. Market fluctuations were not included in the planning. Suddenly there is a dent, worldwide and due to trade conflicts. The price goes to the cellar for a short time. Option A: You still sell your papers to be able to pay the employees for this month. But you don’t want to sell either, because your capital is tied to the financial product. Option B: You keep the securities in your portfolio, because next week the prices could go up again. What to do now, with the best will in the world, is no easy question.

Place 8 – bad marketing

Already the legendary Henry Ford – he revolutionized assembly line work and thus the automobile industry – said, “for every dollar you put into your product, you have to have another one ready to make your product known”. Many invest enormous sums in the business model, logistics, storage and personnel. They forget that the product has to sell in the end – how much space and financial resources do you give your marketing? Sales only take place when people come into direct contact with your product or service and are satisfied. You can have a great idea, but if the right people don’t hear about it, the whole business model will fail.

Tip! Especially multipliers are important, experts and people with a large community. But even these have to be reached, convinced or booked. However, it is worth investing time in such individuals with a high reach because they potentially reach far more people than traditional brand advocates. In the restaurant it is the free dessert for the blogger, in the online shop the personal letter for ordering a magazine. Because of course you assume that the order is a test. You got a celebrity ordering, or a management? Also here a personal cover letter should be with it or a few free products, otherwise nobody feels really adressed. With a bit of luck, the person will mention you to Instagram, for example, or become a regular customer and order regularly from you.

Place 9 – ignore customers and opinions

Criticism, especially constructive criticism, is worth its weight in gold for you as an entrepreneur. If you want to understand criticism positively, then simply see it as free market research. People take time to look at your product, test it. In the end, they even give a rating. Learnings that should be included in the entire product development process as well as the development process of your own brand and services. Very few people rate products or services after a single use. As a rule, the consumer simply resorts to a competing product for the next purchase, a situation that must be avoided at all costs. This is why it is so important to react to the opinions of the customers and to include them in the own development process and direct contact.

Tip! Respond to every review and comment. No matter whether it is the algorithm in a search engine or the one in a social network, the own interaction is measured. The faster you react to requests, ratings and comments from users, the higher your ranking will rise.

Place 10 – The wrong time

Some investments can also be made too early, just as companies can be founded too early. But trends also emerge and disappear within a very short time. If you want to play on Amazon, for example, and constantly place new trend products here, you have to be on your toes when it comes to timing. This year the “Flamingo for the swimming pool” may not be a trend anymore and you will sit on 5.000 pieces. Your product may even have been trendy at the beginning of summer, but due to the constant rain in midsummer, the trend and thus the sales dropped again. Next year it may become the ultimate trend with the post of an influencer. Not everything is in your hands, some things you just have to take as they come.

The wrong time may be too early, but definitely also too late! That is why market analyses and your assessment of the market development are extremely important. When you think about the perfect moment. Until the development and the organization are completely through, so that you can operate viably in the market, it can take months from brainstorming to financing to the first customers. While a product is still totally hip today, it can be “out” again in a few months. Also consider the cyclical movement of seasonal business, trends and product half-lives.

Place 11 – You lose focus

Point number 11 always makes me feel at home! After making the ultimate decision to become an entrepreneur with staff, offices and international relationships, I focused for two years. Before that, I worked for many other companies, as a one-man advertising agency, so to speak. I’ve done more than 100 projects, I’m just talking about the bigger ones, not about 100 pizza flyers at the beginning and probably 400 logos in total, from iBeacon technology to the pharmaceutical industry, automotive tuning and scene clubs. From this varied work it was really difficult to focus on one project for two years. Of course, I didn’t just do that during that time, by the way, I also set up a fashion magazine as a satellite project for the model agency and a short time later, due to the upcoming inquiries for influencer marketing, a social media agency. At the beginning of this year alone, three book publications, real estate portal and investment in the music industry. I’d like to do 20 more projects and start ups right away! But stop! Here I always remember reason number 11 of failure, you lose focus.

For me, this means fewer new construction sites, more a large high-rise building, building stone by stone. My own little daily fight! As a little inspiration I grabbed an empty DIN A4 sheet sometime in the evening. It only has two letters on it. The abbreviations of the company on which I want to focus (proportionally, most). It’s been sticking over my bed for a year now, so I can see it every morning and every evening and remember every time what my focus is on.

But most of them fail because of basic things! As a rule, they set the wrong priorities, too much partying, too much free time, too little active work. If you focus too much on your own leisure time and too little on the company, you’re in for a knockout.

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1. Has your family any secret or famous recipes?
2. If you could learn a programming language, what would that be?
3. What do you think the latest technological advances will bring us? Does it cause more damage than good?
4. Is there any food you would absolutely not eat?
5. Would you ever wear the latest gadgets like Apple or Samsung Watch?
6. What was the must-have accessory or element when you grew up?
7. What is the craziest thing a boss has ever asked you?
8. If you could only eat one thing for the rest of your life, what would that be?
9. What is the strangest compliment you’ve ever received?
10. What surprised you most about your current job?
11. What would you have put in a time capsule 15 years ago?
12. If you could fly anywhere for free, where would you go?
13. What would be your ideal superpower?
14. What’s your favorite food?
15. What is the next trip you have planned?
16. What is the best advice you have ever received? How about the worst?
17. Have you ever thought about a cool invention or company just to find out that someone has already invented or started it?
18. Who is your favorite person on Instagram?
19. What’s the most incredible thing that’s ever happened to you?
20. Who is the most important role model or mentor in your life?
21. How did you become a [job title]?
22. What is the best advice you have ever received?
23. What is the coolest road trip you’ve ever been on?
24. If you could only see one genre of movies for the rest of your life, what would that be?
25. Where did you live before? What are the biggest differences you see?
26. What is the last movie that made you cry?
27. If you could have an animal as a pet, what would it be?
28. What’s the most extraordinary thing you’ve ever done?
29. What is easy to bring to lunch that is not a sandwich?
30. Say me a book you hated and everyone else loved and vice versa?
31. What was your first job? Did you like it?
32. … more questions you can find in the app: Small-Talk