Doing Business In Spain
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Its a daunting prospect for anyone to embark on opening a new business. A great idea can easily develop into an exciting Business Plan and some toe in the water tests proves the idea to work - its at that point when decisions have to be made to start investing time and money into the unknown.
Imagine all this but then imagine doing it in a foreign country with a foreign language away from everything you know and understand at home!
This is the prospect facing expats who are looking to open a new buisness in Spain and whether its a Bar, a B&B or, in this case study a Furniture Store, the high risks involved in starting a new venture are multipled several times when trying to start up abroad.
Mad About Furniture is a Furniture Store based in Estepona, and is this year celebrating 10 years trading to expats on the Costa del Sol.
The owners saw a gap in the Marketplace for selling Complete Furniture Packs to the many Expats, usually British, buying second homes on the Costa del Sol.
The Furniture Pack market was relatively young at that point and the market dominated by 2 or 3 bigger retailers, The Costa del Sol was waiting for some fresh new ideas to expand the concept and Mad About Furniture was born.
An easy way to jump in at the deep end for expats is to buy an existing business for sale with a client base and much of the legal work established. This is a great option especially with a business with a regular and loyal client base. The Furniture Business does have such clients but, 90% of the time once a second home is furnished the job is done for a good number of years so its necessary to start the search for new opportunites.
Not only this but add to this equation a showroom, a warehouse, stock to fill them both, add the set up charges for many business and the risk starting up a business abroad, already way greater than on home turf as just got HUGE!
So we have just built a case of why not to start up abroad but are there any tricks of the trade to lessen the risk and starting the life in the sun without the risks.
The short answer is no!
Mad About Furniture has grown form a very small business 10 years ago slowly but steadily but its taken many hours of hard work and there has been little opportunity for summers lying in the beautiful Spanish sunshine.
The owners of this company agree that one of the key tips is to have a close relationship with your accountant and Bank who are happy to take the numerous questions you will have, particularly in the early years and help you navigate the legal requirements necessary to run a business abroad. They also recommend using a local person who speaks your language as well as the local language and has established contacts at local level such as the local Town Hall via there existing customers so can offer you good and invaluable advice.
Aside from growing naturally, one major way of ensuring success is consistant good service, keeping close to your clients who recommend you to others and not gorwing so big that you lose your unquie selling points or that those ideals get diluted with too many staff, outlets or committments.
Over the last 10 years there has been massive growth on the Costa del Sol followed by one of the biggest recessions in history. A Furniture store is a great example of success and failure on the Costa del Sol.
As one of the few Package stores on the Coast 10 years ago, Mad About Furniture were soon joined by hundreds of businesses almost on every corner doing similar things.
Which companies weather the recession? - the short answer is not so many - Some of the better Companies like Mad About Furniture survived the storm but many companies have disappeared in the last few years.
We are not out of the woods yet and every day more depressing statistics are realsed about Spain, Greece and other parts of Europe. Starting a business remains a risky business but there are great rewards, not least, and indeed probably most important the lifestyle that living in Spain brings even though, most business owners will tell you they never get to see the sun!
11-05-2012
Its a daunting prospect for anyone to embark on opening a new business. A great idea can easily develop into an exciting Business Plan and some toe in the water tests proves the idea to work - its at that point when decisions have to be made to start investing time and money into the unknown.Imagine all this but then imagine doing it in a foreign country with a foreign language away from everything you know and understand at home!
This is the prospect facing expats who are looking to open a new buisness in Spain and whether its a Bar, a B&B or, in this case study a Furniture Store, the high risks involved in starting a new venture are multipled several times when trying to start up abroad.
Mad About Furniture is a Furniture Store based in Estepona, and is this year celebrating 10 years trading to expats on the Costa del Sol.
The owners saw a gap in the Marketplace for selling Complete Furniture Packs to the many Expats, usually British, buying second homes on the Costa del Sol.The Furniture Pack market was relatively young at that point and the market dominated by 2 or 3 bigger retailers, The Costa del Sol was waiting for some fresh new ideas to expand the concept and Mad About Furniture was born.
An easy way to jump in at the deep end for expats is to buy an existing business for sale with a client base and much of the legal work established. This is a great option especially with a business with a regular and loyal client base. The Furniture Business does have such clients but, 90% of the time once a second home is furnished the job is done for a good number of years so its necessary to start the search for new opportunites.Not only this but add to this equation a showroom, a warehouse, stock to fill them both, add the set up charges for many business and the risk starting up a business abroad, already way greater than on home turf as just got HUGE!
So we have just built a case of why not to start up abroad but are there any tricks of the trade to lessen the risk and starting the life in the sun without the risks.The short answer is no!
Mad About Furniture has grown form a very small business 10 years ago slowly but steadily but its taken many hours of hard work and there has been little opportunity for summers lying in the beautiful Spanish sunshine. The owners of this company agree that one of the key tips is to have a close relationship with your accountant and Bank who are happy to take the numerous questions you will have, particularly in the early years and help you navigate the legal requirements necessary to run a business abroad. They also recommend using a local person who speaks your language as well as the local language and has established contacts at local level such as the local Town Hall via there existing customers so can offer you good and invaluable advice.
Aside from growing naturally, one major way of ensuring success is consistant good service, keeping close to your clients who recommend you to others and not gorwing so big that you lose your unquie selling points or that those ideals get diluted with too many staff, outlets or committments.
Over the last 10 years there has been massive growth on the Costa del Sol followed by one of the biggest recessions in history. A Furniture store is a great example of success and failure on the Costa del Sol.As one of the few Package stores on the Coast 10 years ago, Mad About Furniture were soon joined by hundreds of businesses almost on every corner doing similar things.
Which companies weather the recession? - the short answer is not so many - Some of the better Companies like Mad About Furniture survived the storm but many companies have disappeared in the last few years. We are not out of the woods yet and every day more depressing statistics are realsed about Spain, Greece and other parts of Europe.
Starting a business remains a risky business but there are great rewards, not least, and indeed probably most important the lifestyle that living in Spain brings even though, most business owners will tell you they never get to see the sun!