Become a managing director - this is how you rise to become the boss

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Become a managing director - this is how you rise to become the boss

A top salary, delegating employees, implementing big goals: The position of the boss has a great appeal for you. You enjoy economic and strategic thinking, and you have a solid education: So there's nothing standing in the way of your goal.

What are the requirements for becoming a managing director and what do you need to consider? Rights and obligations, your salary expectations, your qualifications and your professional experience: all these factors have an impact on your career opportunities.

There is no specific training to become a general manager: that's a plus, but it's also tricky. What is expected of you? A degree in business administration or economics is definitely a good thing. A degree in management and controlling will also bring you closer to your goal.

Definition and tasks of a managing director

A managing director is responsible for legally representing a company. As the boss, he assumes full responsibility for the company and is therefore also liable. What exactly the rights and duties look like depends on the legal form of the company.

  • With a Sole proprietorship the managing director is often the owner.
  • In a limited liability company, the shareholders appoint the managing director, who acts on behalf of the company.
  • In the case of an AG, the management is the board of directors.

One of the main tasks of the managing director is the overall strategic conception. The managing director supports the company in its qualitative and quantitative growth while keeping an eye on the predefined targets. Healthy sales growth plays an essential role in this.

Successful company management includes strategic and operational business. Smooth processes in day-to-day business and entrepreneurial orientation are further areas that fall under the responsibility of the managing director.

Relevant Management Tasks:

  • Assessment of opportunities and risks,
  • Market positioning,
  • Development of the corporate strategy,
  • Analysis of investment potential,
  • Listing of company products or services,
  • Development of the marketing strategy and reputation,
  • Innovation assurance.

Taking into account these Fields of work the company should be prepared for the future so that its long-term continued existence is ensured.

task managing director

Requirements for a career as a managing director

Not everyone has what it takes to be a boss. The position of managing director places high demands on your abilities and Motivation. In addition to your personal competence, there are legal requirements to meet.

The law states that any natural person can become a managing director, provided they have unlimited legal capacity. Persons from abroad can also act as managing directors in a German company.

The work in management involves important entrepreneurial and economic decisions. Organization, employee management, in-depth knowledge of the industry - to be able to perform this work, you need to have the appropriate expertise. This means that as a boss, you need a solid educational background.

The following personal qualities and qualifications are particularly important:

  • planning and organizational skills,
  • economic, commercial and fiscal understanding,
  • forward thinking for the further development of the business,
  • communication skills,
  • Knowledge of employee management,
  • self-confident appearance towards others Executives, business partners, customers and banks.

Not everyone is allowed to work in management

Natural persons who have a previous conviction for certain criminal offenses may not become directors. In the List of the offenses in question, the following offenses are particularly relevant:

  • Conviction for insolvency offenses (insolvency delay),
  • Fraud,
  • Infidelity.

Even if the administrative authority issues a ban on practicing the profession - or on practicing a trade - the job as a managing director is no longer possible.

Required qualifications and skills

What qualifications do you need to be a managing director? A commercial education makes sense in any case, because only then can you correctly assess the economic situation. Profit and sales forecasts are just as important as cost accounting.

Whether you have completed vocational training or a business degree: Practical work experience is indispensable for this responsible task. Industry-specific knowledge will also help you to lead the company to success. Other important skills relate to organizational and negotiation skills as well as employee management. Here there are further training courses that can help you climb the ladder to the top. Executive floor easier.

An self-assured appearanceA well-groomed appearance and good communication skills are also an advantage. This is the only way to convey the necessary trustworthiness to your employees, business partners and customers.

Some people seem to be born for the executive suite. But entrepreneurial thinking can be learned, as can assertiveness, discipline and decisiveness.

How to become a general manager

Company founder often automatically become the boss and are thus responsible for business decisions. However, the classic career path begins with the application for the position in management.

For this job, you need a lot of experience and stamina. In principle, anyone can apply to be a managing director, but this position requires a lot of commitment. Often, the path leads to the top of the company via various management positions (department head, assistant to the managing director). This is how the internal career, which builds on practical experience.

It is also possible to move from one company to another. With work experience from a similar industry, you'll have the background you need to move on to the next company.

Information about the Business and further training measures such as seminars on management and corporate strategy are important building blocks on your way to the top. You can deepen your knowledge and specialize at courses and conferences. Other topics such as personnel development, Self-Management and corporate communications are relevant to any chief executive position.

If you want to become the managing director in a GmbH, a vote by the shareholders takes place. The company meeting is responsible for appointing and dismissing the managing director. This is followed by a corresponding entry in the commercial register.

What are the challenges of being a general manager?

Among the major challenges facing German entrepreneurs are the current shortage of skilled workers and changes in society. Especially as part of the management team, you should address these issues.

Other important Topics are the digital transformation, the effects caused by climate change and trade conflicts, which are directly related to the lack of economic development.

To master these challenges, long-term strategies are needed. Particularly at management level, it is a matter of finding the right Making decisions and to think in a future-oriented way. This means that the company management has to keep an eye on the figures on the one hand and the big picture on the other.

To be successful, to make profits - these are the classic goals of management. But rushing ahead regardless of losses does not work. That's why you also have to take internal company difficulties into account. As a manager, you should concern yourself with the motivation and work-life balance of your employees. Communication plays an essential role here. A good working atmosphere is very important for employees.

Team leadership and employee motivation as important skills

A successful company needs an enthusiastic team and a boss with a lot of Communication competence. As a managing director, you have a certain role model function, not only for the other managers, but also for the employees. This applies to companies with traditional structures, but also to modern companies with flat hierarchies.

As the boss, you take responsibility and make the decisions. But it pays to listen to the opinions and suggestions of your employees. Explain your strategies so there's no ill-feeling. Mutual understanding is more important than ever. Remember: every employee is an ambassador for your company.

What does a managing director earn?

If you're the boss, you earn a lot of money - that sounds logical. But how high is the Salary of a managing director actually? This is not always apparent at first glance, because in many cases earnings are divided into a fixed salary and a bonus (and/or gratuities). The bonus is a variable salary component that is based on personal performance as well as the company's financial success.

How high the earnings are depends on the sales figures and the size of the company. The individual professional experience and the competence of the managing director also have an impact on the salary.

The following list of annual gross salaries shows you what is possible:

  • up to 3 years of professional experience: on average up to € 130,000
  • 3 to 6 years of professional experience: on average just under €136,000
  • 7 to 9 years of professional experience: on average just under €146,000
  • over 9 years of professional experience: on average over €176,000

Generally, the tax office makes a comparison with similar companies and managing directors. Smaller companies are sometimes below €100,000 per year, while large companies with high sales pay over €500,000.

Reviewed by Dr. med. Stefan Frädrich

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