In the article I share what I learned about Things To Know And Avoid While Doing Business In Spain. Spain is known to be a business-friendly city and every year, a number of people from the U.S and other European countries come to Spain for setting up their venture. However, only a few expatriates can make a mark in business. Many businesses fail owing to poor business and financial planning and setting unrealistic goals, leaving the budding entrepreneurs disillusioned.
There are certain norms that have to be considered when you set up your business in Spain. If you are aware of them, you can survive and sustain in the Spanish business scenario. Let us examine some of the essential points.
Build a safety fund
You should keep enough money in the safety fund before you come to Spain for doing business. This is because the first few months or the first one year for that matter may not be great in terms of acquiring clients, getting customers and having a great profit margin. If you get it thank your stars. The safety fund may be required for your survival during the initial phase. It is good if you have some other business set up in your home country or a recurring source of income, such as house rent or bank interest etc.
Have the right business acumen
Unless you have enough business acumen and you have prior business experience, preferably in your hometown, there is no point in establishing a new venture in the country as an expatriate. It is good to have a stable business in your home country and an office in Spain. However, if you wish to choose Spain as your ultimate business destination, master all the business etiquette in the country and know the right business protocols so that you do not have a problem in carrying on your business among locals.
Have a proper budget allocation
Without a proper budget allocation, you cannot survive in business and more so in Spanish business. You should bear in mind that the initial cost of starting a business in the country will cost you quite a bit. This is because you have to pay the government a huge amount of taxes and duties every month for running the business, whether you are making money.
Therefore, ensure that you can cover your business cost and the other routine expenses such as food, living. Also you are expected to pay the essential taxes. if you can cope with these costs and plan your budget accordingly, you are welcome in Spain.
Get rid of that ‘expats’ label
Think global act local is the mantra for Spanish entrepreneurs. Do not assume that you will get special facilities just because you are an expatriate. Foreign entrepreneurs are looked own upon unless they know the art of blending business with the local community. If you wish to survive and sustain in an entrepreneurial venture in Spain, learn Spanish, and learn it well. Or else you will land yourself into trouble because most clients prefer to interact only in Spanish.
Now that you have a fair idea about how to succeed in business in Spain, give it a thought. If you still feel confident, go ahead with your venture. Spain has enough room for you provided to know the art of surviving.