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Why a Brit chose to start a business in Berlin

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Re: Why a Brit chose to start a business in Berlin

#61
Welcome to Berlin. :)

I came to Berlin roughly 5 years ago before the investment started pouring in and most startups were existenz grundungs, this is when you get 50k from the government and you underpay some interns to build your MVP. It was pretty shabby back then, and things have changed dramatically in the intervening years, but most people came for this vague idea of living cheaply and doing what they want - you could say they washed up here as tourists and stayed. Not that there's anything wrong with that, but these people are being replaced with people coming here for startup jobs that pay real salaries. It used to be that ~500 euros a month was a good startup job, now it's more like 4-5k.

All of this change is happening while Berlins administration is still the bureaucratic and slow machine that it always has been, they haven't built affordable housing in 25 years, there's no plan on how to reduce congestion or prevent gentrification from wiping out existing communities. Registration takes ~3-5 months to get an appointment, god forbid you're a foreigner and have to also register at the ausländerbehörde and wait from 3am for the 1 of 50 tickets available that day.

It's nice that people still see a future here, but i take an issue with such a rosy picture of what it's like to live here, because it really isn't the case.

Re: Why a Brit chose to start a business in Berlin

#62

Earlier quoted context omitted.

Hey! I'm the author! This is pretty cool to be number one on Hacker News. The idea behind the newsletter is to build a brand which makes liberal metropolitans comfortable with hearing viewpoints outside their own. Then I can monetise it! :)

No offence intended as I enjoyed reading your article and it wasn't really about your business, but if a liberal metropolitan wanted to experience viewpoints outside their own, couldn't they just browse to dailymail.co.uk? It's free and monetised already. If the idea is something more highbrow, again, surely they could just subscribe to the Telegraph? Or watch Fox News? Or heck, just use reddit? Lots of different vie…

I would say that my target market aren't really familiar with twitter - let alone Reddit. Also it's just a time thing - I spend about 15 - 20 hours researching each newsletter.

Re: Why a Brit chose to start a business in Berlin

#63

Why Western Europe if you want to get cost of living down and move somewhere ? Eastern Europe is 1/3 cost of living, usually has very good tax rates (Bulgaria has 10% flat tax on income + local tax for example, Hungary is close AFAIK) and there are startup accelerators trying to take advantage of that. If you're using your own money to fund it and have customers who don't care about your location you'll have much eas…

Quality of life varies greatly between countries.

That said I would certainly consider Bratislava if I was moving East. Its proximity to Austria (Vienna in particular) means that you can, in many ways, have the best of both worlds.

Re: Why a Brit chose to start a business in Berlin

#64

Why Western Europe if you want to get cost of living down and move somewhere ? Eastern Europe is 1/3 cost of living, usually has very good tax rates (Bulgaria has 10% flat tax on income + local tax for example, Hungary is close AFAIK) and there are startup accelerators trying to take advantage of that. If you're using your own money to fund it and have customers who don't care about your location you'll have much eas…

How do you define "very good tax rates" though? Is it the same thing as "low taxes"? Are high taxes in Northern Europe "bad taxes"?

Taxes are not theft you know, they're supposed to buy you and your fellow citizens things (health care, infrastructure, cheap education, services, etc), some of them highly beneficial to a startup.

Re: Why a Brit chose to start a business in Berlin

#65
post #24

Earlier quoted context omitted.

I agree, my experience after a week of work in Berlin was that a lot of the restaurants I visited, the waitress couldn't speak English at all. Or taking a cab was sometimes quite an effort to communicate as well. Even more strange, Berlin (and perhaps much of Germany, I don't know), places much greater emphasis on cash than on electronic payments like credit cards. I gave a credit card to a vendor once and they looke…

Cash is much more popular however another big factor is that credit cards aren't really a thing. Instead Germany has its own system of EC cards which are directly tied to your bank account (which most people get as a child here) and work more like debit cards. The only reason to have a credit card as a German is for buying this outside of Germany.

I live in Germany, and I always wondered: how Germans buy online and/or book hotels/tickets online, if most of them don't have credit cards and only have this EC-Karte?

Re: Why a Brit chose to start a business in Berlin

#66

Genuine question, Whats the business model for The Echo Chamber Club? I've always seen newsletters as a marketing tool for a business, rather than a business itself. Very interested to how you'd make money with it as a standalone business.

Hey Tam - thanks for your question. So my target market don't generally want to hear the topics I'm posting. They have to trust that I'm as liberal as they are before they start taking me seriously. So it became clear that the most important part of the ECC was to create a trusted brand. Otherwise, I spent about a year trying to figure out a solution to the filter bubble. I was looking at RSS feeds, new types of algo…

Thanks for the reply, very interesting.

Re: Why a Brit chose to start a business in Berlin

#67

Why Western Europe if you want to get cost of living down and move somewhere ? Eastern Europe is 1/3 cost of living, usually has very good tax rates (Bulgaria has 10% flat tax on income + local tax for example, Hungary is close AFAIK) and there are startup accelerators trying to take advantage of that. If you're using your own money to fund it and have customers who don't care about your location you'll have much eas…

How do you define "very good tax rates" though? Is it the same thing as "low taxes"? Are high taxes in Northern Europe "bad taxes"? Taxes are not theft you know, they're supposed to buy you and your fellow citizens things (health care, infrastructure, cheap education, services, etc), some of them highly beneficial to a startup.

Depends on what you need, but from a startup perspective they are stiffing and offer very little in return, if you're not dependent on the local market you're just increasing costs.

Re: Why a Brit chose to start a business in Berlin

#68
post #24

Earlier quoted context omitted.

Cash is much more popular however another big factor is that credit cards aren't really a thing. Instead Germany has its own system of EC cards which are directly tied to your bank account (which most people get as a child here) and work more like debit cards. The only reason to have a credit card as a German is for buying this outside of Germany.

I live in Germany, and I always wondered: how Germans buy online and/or book hotels/tickets online, if most of them don't have credit cards and only have this EC-Karte?

I have a credit card for that, but if I have the option, I always use Paypal. There are often other payment options though, like "Sofortüberweisung", paying on account or SEPA bank transfers (the last two more typically for b2b though).

Re: Why a Brit chose to start a business in Berlin

#69
post #44
post #40

Earlier quoted context omitted.

Can you explain Pegida?

They're essentially a group of neonazis who protest every monday for about two years now against immigrants and refugees.

They are more dangerous than that. There are straight neonazis in there, but it is a broad spectrum from straight Nazi to the "besorgter Bürger" (concerned citizen), which is a meme in Germany for the new right and far-right. For obvious reasons it was previously socially unacceptable to voice these viewpoints out loud. Pegida and the AfD party changed that a bit and like everywhere else in Europe the right is on the rise in Germany.

Nevertheless I would not count on them surviving. The AfD constantly has to fight the Nazis in there, split itself in one German state (Bawü), wants to get rid of their subdivision in another state (Saarland) and has members from Nazi parties they have to exclude of all over the place. Meanwhile Merkel and the established parties already moved to the right and the refugee crisis is largely over - at least in Germany. Lately Merkel is even gaining in popularity polls again.

Re: Why a Brit chose to start a business in Berlin

#70

Earlier quoted context omitted.

Learning enough German for daily things is probably not a problem at all, but can you deal with authorities (business licenses, taxes, mandatory reports etc) in English or very broken German?

Many speak english (except, for some reason, those at the immigration desk). Other stuff can be done online, in English. If people are really nervous, they usually find someone to come along and translate, or they meet someone in the waiting room.

To be honest, those things can be pretty involved here even for me as German, so it probably makes sense to just use someone who does that as a service (obvious for taxes, but most likely also available for business registration etc) rather than investing your time in understand bureaucratic German.
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