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High Risk in the Crisis: Start-Ups in the Culture Business

Start-Ups are mostly a difficult balancing act.  Photo: Sean Locke © iStockphoto
Organisational talent, networks, staying power and, ideally, plenty of start-up capital – these are important prerequisites for a business start-up. But for new businesses in the culture industry the vital thing is to have a unique idea.

“It may sound absurd, but the crisis made it easier for me to decide to become self-employed,” says Sandra Buchta. One and a half years ago, she dared to make a new start developing ideas for documentaries and feature films. “I did not want to be dependent on other people anymore but to take my own decisions and in particular to pursue my ideas.” And the 35-year-old certainly has no lack of those. Next to her desk is a concertina magazine rack with project material on a wide range of subjects: the plot of an action thriller, film festival programmes, a comic novel, scriptwriting guides, a cultural history of Islam and a map of Doha, the capital of Qatar. The folding map is right at the front because Sandra Buchta has just been to the Emirate to do research for the cultural broadcasting station Arte.



Testing the basic idea

The big question: can this idea really earn you money?  Photo: Bart Coenders © iStockphoto
It all sounds extremely challenging – high-calibre projects, interesting clients, plenty of scope for one’s own ideas, in short, the ideal situation for a freelancer. Did things go smoothly from the start? “I was quite nervous,” says Sandra Buchta. “As an employee, I was not used to taking control of everything - the acquisition, the insurance, tax returns.” So Sandra Buchta attended a seminar before setting up shop on her own entitled “Business Start-Ups in the Culture Business”. Her instructor Maria Kräuter also sees herself as a psychological support: “For me, the aim is to take away peoples’ fears.” Maria Kräuter, who holds a doctorate on start-ups in the culture business, advises her clients on the contents of their businesses. She revises concepts with them, hones the basic idea and above all critically goes through the business plan: can this idea really earn you money?



Building up the right networks

It can. Clarisse Garlot, expert for business events, developed her concept during a coaching session by the Chamber of Industry and Commerce and soon revamped her original idea: “My plan was dreadful, I would have earned far too little.” Originally, Clarisse Garlot had been planning to organise private parties for small groups of people, but she soon realised that the idea is only lucrative for groups of about 30 or more. She now organises business events for up to 150 people under the “Kultessenz” label. She has found her unique selling proposition in giving the events a theme and including guided tours, presentations and an individually planned menu tailored to clients’ requirements. At a cosmetics firm’s corporate event, for example, a perfume expert talks about flacons and the cultural history of scent.

Persons setting up their own business have to roll up their sleeves particularly in the beginning.  Photo: Bart Coenders © iStockphoto
Through her previous work in the fashion industry and through acquaintances, the 42-year-old already had some key contacts, but at the beginning, she invested generously to extend her network. She invited business managers from a whole range of different sector to her start-up party: “I thought that since I was offering premium events, I would go to the best caterers in Munich and invite mangers from Allianz, BMW and the pharmaceutical industry to come.” One year on, Clarisse Garlot had made the seed money she had invested in her website and in marketing. Meanwhile, word of mouth is so effective that she no longer needs to do any advertising, especially not on the internet, as that did not do the trick for her.



Boosting motivation and first successes

Advertising depends very much on the type of client and the product’s distribution channel, however. Corina Schukraft-Wadle has set up an internet bookshop for foreign language and multilingual children’s books – ibambiboo.de. She regards the internet as the most important advertising medium, as here, potential customers are just a click away. The 39-year-old started out with English, Italian and Spanish children’s books. Within 18 months, she extended the range to nine languages. “Success is a matter of definition,” she says, “I can’t measure it in terms of sales figures yet. But the first step was winning the Successful Start-Up with Multimedia competition of the Federal Ministry of Economics and Technology.”

Success is a matter of definition.  Photo: Kristian Sekulic © iStockphoto
Start-up consultants reckon that three years of intensive commitment, advertising, acquisition and conceptual development are usually needed to establish one’s idea enough for it to be financially viable. The risk level depends to a great extent on one’s own room for manoeuvre. When unemployed people set up a business, they get 60 per cent of their last net income as an employee for nine months plus 300 euro for their social security contributions. “The start-up grant played an important role for me,” says Sandra Buchta. “That security was a great motivating factor.”

Astrid Mayerle
is a freelance cultural journalist and features writer. She researches and writes for various magazines and online media, as well as reporting for ARD radio stations (BR, Deutschlandfunk, Deutschlandradio, NDR Kultur).

Translation: Eileen Flügel
Copyright: Goethe-Institut e. V., Online-Redaktion
July 2010
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