Growth phase

The growth phase is a section in the life of your business characterized by increasing revenues and fixed costs with relatively low result increase. In this case, it makes absolutely no difference if you have 5 or 10 or 500 employees.

In this phase, the entrepreneur has to deal with special requirements.

Business administration provides useful tools, which a growing business must always keep in mind

• planning and budgeting
• cost accounting
• ABC analysis
• competitive analysis

Tax law provides growing businesses with the possibility of a tax neutral optimization of the legal form. Thus, self or debt financed growth can be fiscally optimized by

• atypical silent partners financing the growth
• repaying debts faster due to a low current tax expense (25%) at a strong investment activity in operating an Ltd
• enhancing debt financing through non-institutional sponsors deriving from participation in tax loss.