Week 81

Running a company is not only about having cool clients and doing a great job. It’s also about having full control about the financial situation.

It is amazingly easy to start a company. Yes, even in Germany.

I will admit that before we started Third Wave, I was heavily biased toward believing that the bureaucracy will be a pain in the ass when it comes down to formally start a GmbH, the German version of the Limited. It is not. The process – yes, I will dare say it – feels almost slick and requires a healthy amount of involvement. After all, it is not completely unreasonable to require a certain commitment of somebody to actually start a business.

Where it gets more tricky is the actual maintenance of a company. Besides getting all the cool projects that you are be looking for, and then executing the task in a way that exceeds expectations, you also need to understand how to create a financial plan that will help you do all this.

For a long time we didn’t manage to create a system to provide us with a quick overview of our short, mid and long term financial planning without much maintenance. By now, we’ve figured it out, step by step. So based on that information, we are able to plan our upcoming weeks and month more easily. When the books are full, we can shift slightly away from focusing on acquiring new business and invest some of the time in our own projects or publications (as you have seen over the last few months).

While we feel quite comfortable with how our systems works right now, there is still room for improvement. That’s why we gladly took up Peter’s father offer – who is a financial auditor with more then 30 years of experience – to take us through some of the basic and more advanced methods of running a company on a financial level. While we usually are the ones who give workshops and tell people how things work, it was a rather good experience to be sitting on the other side of the table and get some input that instantly felt actionable.

Author: Igor

Igor likes to connect the dots. As a strategic consultant in an increasingly complex world, he favours broad knowledge over specialisation. In the last five years, he helped shape strategic decisions at large corporations like Deutsche Postbank AG and Deutsche Telekom AG as well as at startups like Amen and refund.me. In his work he is focusing always on finding the appropriate solutions as well as the people who will be executing upon his advice. Beside the consulting work, Igor speaks at international conferences on variety of topics (SXSW, PICNIC, re:publica, etc.).