Small and medium-sized businesses in Germany have done exceptionally well in recent years. But those companies who haven't found a way of operating despite the credit crunch may find themselves in trouble. Flexibility and adaptability are needed more than ever.

Heinrich Schmid GmbH - known as HS -, a service provider for painting and construction, has always banked on quality and avoided price wars. This strategy has proved a successful one for the company which - with yearly turnovers of nearly 250 million euros - has become Germany's largest provider of painting and plastering services. Owner Carl-Heiner Schmid's recipe for success has been continual supplementary training for the firm's 3,000 employees. We went to see some of the company's foremen doing role-playing to learn how to better deal with customers. And we accompanied the boss to construction sites ranging from single-family homes to huge facilities like the new soccer stadium being built for Bundesliga rookies Hoffenheim. There HS craftsmen are building the VIP stands and applying anti-graffiti coatings to the walls. Marion Hütter took a look at this successful family business.

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