Augustin Mbata established his consultancy 25 years ago and has since supported many customers with advice and practical help. From furnishings to the adaptation of production and administrative structures, you get practical support based on proven experience.
Over the years, Mbata Business Consulting has primarily focused on start-ups, supporting founders from initial preparation through the business plan to the actual start of business. Do not hesitate to contact us.
Small and newly established companies frequently have problems assessing their correct staff requirements. Here is some relevant information about the tasks of each section.
The administrative section issues invoices, keeps the books and handles procurement, supplier relationships and other correspondence. Young companies usually employ one staff member in this section. A second employee only becomes necessary once revenue exceeds €750,000. The salary in this section is €15,000 per six-month period. These personnel costs are allocated 1/4 to the procurement cost centre and 3/4 to the administration cost centre.
This section handles sales conversations, customer relationship management, customer consulting and support for individual design development. Staff also advise customers via the website using a chat function. The average salary is €16,000 per six-month period. A customer consultant tends to have about 200 successful consulting appointments per six-month period — the fewer customers per advisor, the better the advice.
Staff productivity mainly depends on the type of product. According to a study by the Leisure Industry Association, the productivity of one employee per six-month period in the production of a custom-made bicycle is approximately 130 units; productivity for many common leisure items, such as surfboards, is similar. Once staff are familiar with the work, productivity can increase further as processes become routine.
Greater flexibility in production can also be achieved through overtime: you pay staff a statutory surcharge of 25% to work longer, and you may let staff work up to a maximum of 120%. Approximately €14,000 per six-month period should be budgeted for the salary of an industrial mechanic.
Product quality is of increasing importance in the leisure industry. Young companies producing snowboards usually employ about 2 staff members in research and development; the technology leaders in the sector employ 3-4. Staff mainly develop material composition, riding feel and further technical enhancements. Wages in this section are the highest of all sections, at around €17,000 per six-month period.
The labour market is tense and it is difficult to find qualified staff. We usually recommend the online job portal Production-Recruits to our customers. The cost here is €3,000 per hire.
Dismissal costs should not be neglected when calculating staff costs — these come to €1,000 per employee. Another factor is non-wage personnel costs, such as statutory employer social-insurance contributions, continued salary payments and training costs. Experience shows these usually amount to 20% of the salary or wage.
One of our employees has compiled guidelines for the decisions entrepreneurs have to make every year, along with a checklist for strategy development.
Analyse the reports from the previous period
Evaluate the market situation and potential developments
Set your goals and develop a strategy
Create a plan for your sales and marketing mix
Make your personnel decisions and productivity plans
Make decisions regarding the technical infrastructure
Determine the purchasing volumes
Determine the planned figures you aim to achieve
Plan your finances
Secure liquidity!
Liquidity planning is an important part of running a company, particularly for small and medium-sized companies. Our experience shows that young, newly-founded companies often neglect liquidity planning, which can have disastrous results! We therefore recommend maintaining a cash level of at least €10,000.
You should plan your company's capital requirements carefully in advance to avoid serious financial shortfalls or even insolvency. Below are a few tips that may help.
What one-time expenses arise when you take over, found, or buy shares in a company? This includes, for example, the cost of premises, buildings, machines and vehicles. Calculate how much capital you need for all your company's equipment to produce successfully during the first few periods and get off to a good start in the market.
Founders often underestimate their requirements for operating materials, assuming that income will offset the cost of material and goods warehouses. This is rarely the case — warehouses must first be filled, which causes considerable capital lock-up. Because capacity is not yet fully utilised and the customer base must first be built up, founders rarely generate a profit during the first six months. The company must pre-finance many items, including rent, salaries and wages, while customer payments only arrive with a delay.