Why Think About Business Organization Already?

Before every business launch comes an idea, a solution to a problem, or even a finished product. Once the decision to start a business is made, the question quickly arises: “Who actually does what?” - the first point of contact with the topic of "Business and Organization." It is helpful to address this topic early on, as this ensures that every necessary functional area and responsibility is given due consideration and anchored in the company right from the start.

Organization in the Startup Phase

Successful startups are characterized by filling three core roles from day one: Visionaries, Technicians, and Numbers People. This does not mean that three separate founders or employees are required, but it does mean there must be clarity regarding the necessity and distribution of these roles.

Visionaries: They drive the product forward and act as external ambassadors. They have a clear vision for the product, motivate contributors, and inspire investors and prospective customers. They look ahead, keep track of emerging market and customer trends, and constantly evaluate new opportunities.

Technicians: They ensure project execution and ground the vision in reality, serving as the present-day counterpart to the visionaries. Technicians are responsible for the craft and quality of the product as well as project management - everything that reaches the customer has passed through their hands first.

Numbers People: They take charge of financial and legal matters, serving as the primary contact for tax advisors, payroll accounting, and the financial plan / controlling. They ensure that operations run smoothly and that all financial and administrative aspects function reliably. In doing so, they provide the organizational framework within which visionaries and technicians operate.

Sales is a distinct topic and is initially not listed as an isolated role. In a newly founded company, every founder is to some extent a salesperson and must actively market the business and its products. As a rule, building awareness is initially a critical hurdle for any young company and therefore a top executive priority - especially since many founders find the role of active selling challenging. In any case, one founding member should hold overall responsibility for sales and coordinate all activities.

Organization in Subsequent Growth

With these roles defined, the organizational core is established: Business Development, Sales/Marketing, Operations/Production, and Finance/Legal. Through division of labor and formal organization, external resources can be integrated very early on, enabling fast and flexible execution, especially in the initial phase.

Depending on the business model, departments will grow at different rates, meaning that splitting individual departments may become advisable over time. When planning for growth, it is helpful to look at established companies in the industry and analyze their typical personnel and cost structures. While there is no one-size-fits-all structure, benchmarking against successful examples is always valuable:

• In a technology-driven company, for instance, it may make sense to separate operations early on into product management, engineering, and production, as these involve distinctly different competencies.
   
• In a retail- or trade-oriented company, it might be more sensible to split operations into purchasing/procurement and sales.
   
• For an internet company, the digital platform itself represents the production environment and would be viewed as a core function (e.g., eBay). For a company whose core product is physical merchandise, the e-commerce platform might instead simply be a component of marketing and sales (e.g., fashion retailers).

The ultimate goal of an evolving organization is to optimally map your company's value creation processes while clustering similar competencies together, fostering knowledge sharing and organizational learning. What is your unique competitive advantage, and how do you generate revenue?

Perspectives in Organizational Development

A vital aspect of organization is the question: "What corporate culture do I want to establish?" Many modern companies shape culture primarily through a defined vision and corporate values, providing clear direction for all team members. When paired with measurable objectives and an environment that fosters individual ownership, employees are empowered to make sound decisions within their areas of responsibility. This can have a profound impact on the target organizational structure.

Under such leadership, interdisciplinary teams are often just as effective as functionally specialized departments, tackling an operational area or project comprehensively. For example, a cross-functional team might take ownership of executing a specific product strategy, equipped with all necessary marketing, engineering, and operational skill sets. In this model, teams are assembled based on the resources required to complete a mission rather than departmental silos.

The prevailing corporate culture also directly drives employee attractivenes - highly qualified professionals in particular place a premium on flat hierarchies and autonomous responsibility. For these specialists, compensation is increasingly just a hygiene factor: it must be competitive, but the decisive factor in joining or staying with a company often lies elsewhere, notably in corporate culture. The founding team is therefore well advised to consider this early on and regularly review how closely daily operations align with their cultural aspirations.

Summary

Having a comprehensive overview of the roles that need to be filled within the company is essential. Reflecting on typical startup roles helps immensely with division of labor and identifying which competencies are missing internally and how those gaps can be bridged. Using your value chain and benchmarking against competitors' growth trajectories provides a practical framework for scaling. As soon as employees are brought on board, the question inevitably arises: “Which leadership style do I choose?”

Legal Form, Management, and Ownership Structure

First, state the legal structure chosen for the business (e.g., sole proprietorship, GmbH, UG, AG, etc.). The choice of legal form governs liability arrangements in particular, but also impacts investor voting and control rights as well as tax obligations. At this point, you should also outline the ownership structure (e.g., shareholders in a GmbH, limited partners in a KG) and executive management responsibilities.

Location Choice

For many companies, especially in retail and branch-based operations, location is of paramount importance. For others, low rental overhead takes precedence. Carefully evaluate which location factors (e.g., customer accessibility, local business ecosystem, transport links, technical infrastructure, facility costs, etc.) are relevant to your venture.

Milestone Planning (Implementation Roadmap)

Investors want to understand exactly how you envision developing and scaling the company. Clearly define your medium- and long-term objectives and establish milestones for your company's roadmap. Ensure your target definitions are ambitious yet realistic.

Milestone planning directly influences various sub-plans. If, for instance, you intend to ramp up unit sales, this assumption must be reflected consistently across operational plans.

In this chapter, address pricing and sales planning, production and procurement planning, as well as human resources planning. Begin preliminary capital expenditure (CapEx) planning as well. Detailed financial planning will be covered in the next chapter; however, try to estimate the relevant costs across departments (e.g., production, personnel, sales, capital investments) at this stage.

Pricing and Sales Volume Planning

Briefly consolidate your assumptions from the previous sections (Product/Service and Marketing): When and at what scale will you launch sales, and at what price points relative to your established milestones? Pricing and sales volume planning directly drive all other sub-plans, as production capacities must be secured - potentially requiring upfront investments - and sufficient qualified staff must be in place.

Production and Procurement Planning

The products/services you plan to sell must first be produced or provisioned in sufficient volume and quality. Production planning addresses operational and logistical workflows, as well as production unit economics. Synchronize procurement, production, and sales, ensuring the entire chain remains competitive. Rising sales volumes necessitate capacity expansion, and the associated capital expenditures must be reflected in your investment planning. Human resources planning must likewise account for volume growth, particularly in service-driven business models.

Human Resources Planning

Scaling a business requires structured workforce planning that mirrors projected company growth. In your HR plan, briefly specify the qualifications and experience required for key personnel and leadership roles, whether these individuals belong to the founding team, or when external hires are to be onboarded. For supporting operational staff, detailed role descriptions are unnecessary; however, a staffing table illustrating headcount per functional area at year-end should be included in every business plan. Attach cost projections to your workforce planning to determine total personnel costs (gross wages and employer payroll taxes/contributions) for the income statement. Do not forget to include the founder's salary (Unternehmerlohn).

Investment and Depreciation Planning

Detail the capital expenditures (CapEx) required for your company, taking into account the milestones along your growth roadmap. Expanding sales volumes requires expanding production and operational capacity, which in turn demands capital investment. The planning must also account for the annual loss in value of fixed assets in the form of depreciation and amortization (see chapter Financial Planning and Financing).

Guiding Questions

Company

• What does the operating model / business system look like for your product or service?
• Which core activities do you focus on?
• Which activities will you handle in-house, and which will be outsourced to third parties?
• What functional areas make up your organization, and how are they structured?
• Who is responsible for what?
• Do you plan to collaborate with strategic partners? What are the advantages of these partnerships?
• Are environmental considerations (e.g., energy consumption, waste management) integrated across all workflows (e.g., office operations, production, supply chain)?
• Are social aspects (e.g., employee welfare and interests) taken into account?
• Does your company actively capture opportunities arising from sustainable business operations (e.g., through resource efficiency)?

Organization

• Which functions comprise your organization, and what is its reporting structure?
• How are key roles and functions staffed in terms of personnel?

Legal Form, Ownership, and Location

• What legal structure will your future company adopt?
• Who are the shareholders/partners, and who holds executive management responsibility?
• What location factors are critical to your company's success?

Milestones and Implementation Roadmap

• What are the most important milestones in your company's development?
• Which operational tasks and milestones depend on one another?
• Are your planning assumptions both optimistic and realistic?
• When and at what volume will you launch product/service sales, and at what price points?
• Are procurement, production, and sales synchronized?
• What are your staffing requirements across individual functional areas over the coming fiscal years?
• What total personnel expenses will be incurred?
• What does your short-term investment plan look like? What capital expenditures are planned over the longer term, and at which milestones do they fall due?
• Is a sustainability management system planned to measure and steer the company’s ecological and social impact?
• What operating expenses will the company incur (cost of goods sold, sales and distribution expenses, general and administrative costs)?