You probably have an idea of what your business will provide. The next thing for you to decide is the location. For most people, the Costas of Spain are an ideal place to run a business. But it won’t be as simple as just setting your shop somewhere and waiting for customers to come. There are a few things you ought to know before you pursue this big dream of yours. So, what are they? Find out from this guide.
- Understand the Legalities
If you are opening your business in Spain, you have to choose between starting up as self- employed (autonomo) or a limited company called Sociedad Limitada (S.L.) a private limited company, or a partnership called a sociedad civil. One option is to start as self-employed and later progress to S.L. Because of the expensive capital of starting as an S.L. and the accounting expenses, businessmen consider advancing to an S.L. when their company receives a certain level of income and has possibly attracted external investors. The cost of setting such a company is nothing less than €1000. You’ll also pay additional offshore structure fees if your business is a subsidiary of an existing company or it operates internationally. Starting as self-employed is a less complicated and cheaper option, but to know what is right for you, you will need to procure the help of a gestor, which is a professional offering services along the lines of an accountant and legal adviser..
- Registering Your Company
Before opening and setting your business, it will again need the help and advice of your gestor to get the needed documents. Don’t think you can do this alone, because it would be unfortunate for your company to get fined or even closed down due to the wrong paperwork. There are various licenses you’ll need depending on the business. For instance, if you have a club, you must obtain permission to play loud music and sell alcohol. On the other hand, if yours is a hotel, you must meet the strict requirements for food hygiene and health.
You’ll also have to register for taxes and security with the help of your gestor.
- Deciding on the Location
Here is where you take your time to study the market. It would be a waste of resources to open your business in an area that has no potential customers for your particular service or product. Do you want your company to be in an urban or rural area? And how many companies within the locale of your choice are offering the same services or selling the same product? When deciding the location, you should go back to your budget. If your budget allows, you could buy a locale, but if it doesn’t then you must go with the other option, rent some premises. However, in many cases you can also set your business up at home, but you will still need a permit to do that legally. Just be sure you chose a place that will be ideal for your business to flourish.
- Hiring of Staff
This is yet another big decision you must make. Our advice is that you start with the smallest number possible and gradually progress. Then you have to take note of the minimum wage. Also, ask your gestor about employment laws. Once the employee has worked for you for a year, they are considered to be on fixed employment by the government. This means that should a dismissal occur, they are entitled to severance.
What many managers do is they put the workers on a trial contract, assessing whether they are fit for the job then only after they have proven themselves, sign them for a fixed contract. Also, don’t hire extra staff until you are sure your business can pay for it. Employing staff is expensive!
- Getting Your Business Out There
If it is a new business, it’s probably not known, so people can’t give recommendations by word of mouth. You, therefore, must take the extra step of marketing to get yourself known. Even if your business is centred in a thriving town, don’t assume that customers will flock in just because you’ve opened your doors.
It is essential that you advertise your new business in Spain, just as you would have to in the UK. In this respect, the Internet has, of course made things much simpler. Create a website and social accounts for your business. And if you don’t understand how online marketing works, you can always hire someone to do it for you. But don’t stop there. Advertise in print as well as via electronic media.
And don’t make the mistake of throwing a huge opening night party hoping the freebie seekers will become customers. The money would be better spent on steady marketing and gaining customer loyalty.
It is one thing to start a business and another to ensure it remains for years. Careful planning your new Spanish business is essential, Set aside extra cash in case something you hadn’t budgeted for pops up. And always be sure to work with a gestor to avoid any legal or financial issues.