Why a Brit Chose to Start a Business in Berlin
As soon as I tell people I’ve moved to Berlin to start a business I hear one of two reactions:
1. Is that because of Brexit? (The question from non-Brits)
2. Is that because Fabric has shut down? (The question from Londoners)
Admittedly my trigger is more around the second point than the first. (For those that don’t know — London has half the clubs compared to 8 years ago — it’s another reason why the city is becoming hostile towards young people). But the truth is, my reason to move is just about affordability. I do not believe London is a great place to bootstrap a business right now. Berlin is a much more affordable city.
The only strategy a start-up needs: We must survive!
My father is a highly experienced businessman and entrepreneur. He sold his previous business Conchango to EMC in 2008, and he also organised a part sell to Enron and the subsequent buyback. He is extremely bright and practical.
He’s always said the only strategy start-ups need is ‘survival’. The only thing all successful companies share is that they survived long enough to become profitable.
Early stage start-ups usually fail for two reasons. The first is they run out of money, and the second is the founders lose their passion.
Moving to Berlin combats the money problem. Given Berlin’s comparative affordability compared to other start-up hubs it is possible to bootstrap here for a long period of time. And so far I haven’t missed any of the ‘benefits’ of being in an expensive city like San Francisco or London.
Berlin’s Affordability
I am currently renting a room for €480 a month. This includes all bills, wifi and a weekly cleaner. It is about the size of a normal London living room at 20sqm. The location is the equivalent of being in the centre of London, like Shoreditch or Holborn.
This room would cost me ~£1,300 a month in London. This is ~€1,450 even with today’s terrible exchange rate.
It goes without saying that if you were keen to have a smaller room, in a worse district, you’d be paying a lot less. I’ve seen rooms going for around €250 in central locations, and although finding these gems take a bit of research, it’s still possible.
The food and drink here are also much more affordable. The Berliners have a fantastic shop called a Späti — a bar/newsagent hybrid. You can get a large beer for €1.50 — networking needs only cost a few euros.
Perhaps the only thing which is a similar price is the transport. A single trip on the U/S-Bahn is €2.70. However, the majority of people cycle round here instead of using the transport — which after the upfront cost is completely free.
It’s cheaper to travel abroad compared to London. Airport transfers in London are ridiculously expensive. It costs £19 to get to Stansted Airport from Liverpool Street. To get to Berlin Schonefeld from anywhere costs a mere €3.30.
Some non-monetary benefits to starting a business in Berlin
1. Meet-up scene
Berlin has an excellent reputation for meet-ups. It’s so easy to find and mix with people who have similar interests to you. Through meet-ups, I’ve already met countless entrepreneurs, sociologists, philosophers and technologists.
What’s more — the quality of conversations that I’m having in Berlin are of a very high standard. It’s tempting to believe that high quality talent congregates around San Fran, New York, Paris and London, but the reality is that so many amazing ideas are coming from Scandinavia and the Continent. This may be my Berlin honeymoon period but I think the advice and support coming from this city is slightly better than London.
2. No distractions
I was born in London and moved straight back after university in 2011. My family is there and so are the majority of my friends. As much as I love spending time with them (and I miss them), moving to another city does have the bonus of providing little or no social distractions. I’m able to work a 6 day week and prioritise my business.
3. You are more creative when you change your environment
This one may be a bit more relevant for me, but I think it’s applicable for every business owner. My business is called The Echo Chamber Club — we curate articles that counter a traditional metropolitan viewpoint and send them to our hundreds of subscribers. It makes sense that I remove myself from London to understand new points of view and communicate them with my subscribers.
However, any founder needs to creatively solve business problems. One of the best ways to do this is an environment change. Although short-term you may be slightly less productive as you learn how to navigate a new city, medium-term it’s an amazing way to think outside of the box.
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I’m keen to write something on the second part of survival soon — maintaining and keeping a passion for your business. I believe this will be my biggest challenge in making The Echo Chamber Club a success. The Echo Chamber Club wants to challenge deep founded biases and opinions, and I am becoming a professional contrarian. This is mentally exhausting — it’s much harder to publish pieces that you think your audience will naturally hate, compared with stuff you know they will love.
However, the truth is that I believe this type of commentary is more important now than ever before. Society is becoming more and more polarised and we don’t understand each other. I expect this belief will pull me through future doubts and challenges.
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Alice Thwaite is the founder and editor-in-chief of The Echo Chamber Club — a weekly newsletter that challenges educated metropolitans to read views that differ from their own. Click here to subscribe.
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