The Spanish sun is going out: startup fading, investors losing interest? 5 steps to reboot a startup
- Anastasia Maslo
- Oct 12, 2024
- 4 min read
Why is Spain's startup paradise turning into purgatory?
How to revitalize a startup and win investors?
¡Hola, amigos!
Every day we help dozens of startups go from idea to investment, and believe me, we have seen a lot of things. But today we want to talk about a problem faced by many entrepreneurs who have decided to conquer the Spanish market: what to do when a startup starts to «wither», money runs out, and investors are in no hurry to open their wallets?
We know what it is like to move to a new country with burning eyes and ambitious plans, full of hopes for success. Spain beckons with its sun, sea and seemingly favorable climate for business. But the reality, as it often happens, turns out to be much more prosaic.
Where are the pitfalls for startups in Spain? |
BUSINESS PLAN
A business plan is not like paella, you can't make it in a hurry. Spanish investors appreciate clarity, thoughtfulness, realistic forecasts. No freebies, amigos!
Make sure your business plan:
Adapted to the Spanish market. Takes into account the specificities of local legislation, taxation, consumer behavior.
Contains a detailed financial analysis. Includes revenue and expense projections, break-even point analysis, return on investment estimates.
Supported by market research. Demonstrates an understanding of the competitive environment, target audience and growth potential.
ADAPTATION IS THE KEY WORD
Your product may be a hit in Russia, but fail in Spain. Culture, language, legislation - everything matters.
Example: A Russian startup that developed a mobile app for calling a cab failed to take into account that radio cab services and apps with a local focus are widespread in Spain. The result was low demand and the need for a costly redesign of the app.
What to do?
Conduct in-depth market research. Study the needs of Spanish consumers, their preferences and behavioral patterns.
Adapt the product to local conditions. This may include translating into Spanish, changing the design, adding new features.
Find local partners. They can help you better understand the market and connect with customers.
TEAM IS THE FOUNDATION
Investors sponsor not only in an idea, but also in people. Experience, competence, passion for the business - that's what's important.
Show investors that your team:
Has the necessary knowledge and experience. Includes specialists in various fields - marketing, sales, finance, technology.
Motivated and goal-oriented. Ready to work for results and overcome difficulties.
Has a clear distribution of roles and responsibilities. Communicates effectively and achieves goals.
COMPETITION IS LIKE BULLS IN A BULLFIGHT
The Spanish market is dynamic and saturated. Be prepared to fight hard.
Study your competitors. Analyze their strengths and weaknesses, pricing policies, marketing strategies.
Find your unique advantage. What can you offer your customers that your competitors don't have.
Develop an effective marketing strategy. Use various promotional channels to reach your target audience.
How to resuscitate a startup and win over investors? |
REBOOT STRATEGY
Analyze mistakes, find weaknesses. Perhaps you need to change your business model, find a new niche, refocus on a different segment.
Example: A startup that created an online hotel booking platform was unable to compete with large aggregators. The solution is to refocus on a niche market, such as booking boutique hotels or apartments.
What to do?
Analyze the current situation. Evaluate your achievements and failures, analyze market trends.
Be flexible and ready for change. Do not be afraid to experiment and try new approaches.
Develop an action plan with clear goals and deadlines.
COST CONTROL
Optimize everything you can: cost price, rent, marketing. Every euro counts!
Review your contracts with your suppliers. You may be able to negotiate more favorable terms.
Use free or low-cost tools for marketing and analytics.
Switch to telecommuting or reduce your office costs.
TEAM STRENGTHENING
Find professionals with experience in Spain to help you adapt and network.
HELP IS NOT ASHAMED TO ASK
Reach out to mentors, experts, business incubators. Spain has programs to support startups.
Accelerators and incubators: Startup Valencia, Barcelona Activa, Tetuan Valley.
Government support programs: ENISA, ICEX.
Business associations: Cámara de Comercio de España.
Business studios: The Octo Studio.
FINANCING - LOOK FOR ALTERNATIVES
Grants, gas pedals, crowdfunding - consider all options:
Grants and subsidies from the European Union and the Spanish government.
Angel investors and venture capital funds.
Crowdfunding platforms
Our team at The Octo Studio knows how difficult it can be for startups at the initial stage, especially in a new country. That's why we offer comprehensive support, which includes:
Development of a business plan and financial model
Market and competitor analysis
Company registration and obtaining necessary licenses
Legal support for your startup
Accounting and reporting in accordance with Spanish legislation
Tax optimization
Assistance in finding investment
Mentoring and consulting
P.S. Don't forget that the success of a startup depends not only on external factors, but also on your self-confidence, perseverance and willingness to learn from mistakes. Spain is a country of great opportunities, and even if the sun doesn't seem so bright right now, remember that after the sunset there is always a dawn!
❓ What challenges have you faced on your startup journey?
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