Hanser Verlag, München, 2008
This book is a bestseller in the genre of start-ups and self-employment, but constitutes also a memorable reading on the topic of strategy. Günter Faltin is Professor for Entrepreneurship at the Freien Universität Berlin and multiple founder and business angel. In “Kopf schlägt Kapital” three central themes are particularly prominent:
The absolute necessity of a well thought-through entrepreneurial concept
The possibilities to found based on components
Away from typical founding myths
For Günter Faltin, the entrepreneurial concept stand in the centre. It consists out of an idea concept with a strong value proposition, which needs to be developed into an entrepreneurial concept or design step-by-step. Also logistics, customer service, accounting and the logic of pricing and terms need to be simplified, streamlined and intelligently connected with each other and integrated into the entrepreneurial design. Entrepreneurial design is a permanent task of a founder and the “reliable and most important partner for success” of the company.
Many components of the entrepreneurial concept are already available as special services by others on the market, for example logistics services. The capital need, potential mistakes and overload of the founders especially in the beginning phase can be minimized by using a systematic outsourcing of non-core services to specialists. There are several examples how digitalization can be used beneficially.
Not at least Günter Faltin is undermining many traditional myths around business formation and is presenting counter-examples. Such as, that a well thought-through entrepreneurial concept is the deciding factor and not capital per se. Also one should divest stereotypes, such as the picture of an enterprise with a lot of people on its payroll or that start-ups necessarily need to deal with high-tech. At the same token, he ends the discussion around character traits of business founders. In empirical research no conclusive evidence could be found for the correlation between character traits and success of business formations. Rather, is is about fund and the capability to develop an idea into a marketable entrepreneurial concept and bring it to the market.
This book is only available in German so far.