Andalusia is quickly becoming an ideal place to start a tech company. However, even with the growing support for local startups, there are still plenty of important details that aspiring entrepreneurs should keep in mind before building a business.
If you are planning to build a startup in Andalusia, the blog post below will help you get started.
Are You Ready to Start a Company?
Most Entrepreneurs Won’t Survive to the End
Forget the stereotype that launching a company is easy, because the startup life, especially early on, is incredibly hard. Unless you have a team or co-founder who’s willing to work for free in the early months, you’re going to be by yourself, which means that anything and everything that goes wrong has to be fixed by you and you alone.
If You’re Starting a Company Just to Become Successful, You Will Fail
If you build a startup just to get rich, you will probably end up poor.
If you plan on starting a company just to sell it, you will have a small chance of finding a buyer.
You need more than just the desire to become successful to actually succeed in the startup world. Remember, only the ones who are ready to dedicate themselves to their companies for the next twenty years or so are ready to become full-fledged entrepreneurs.
Passion Will Only Take Your Startup So Far
Passion is required to sustain you during the dark times of launching a startup, but it’s not enough to succeed. Everything else is hard work and sacrifice - lots and lots of sacrifice, which means your marriage will suffer and you’ll have to put off seeing your kids’ recitals for the next year or so.
Perfect Your Idea
Some of the biggest companies in the world - like Google, Apple, and Amazon - provide a multitude of products and services. Unfortunately, what too many founders don’t take into account is that none of these companies started out big; each of these companies started off with one simple, clear mission and stuck to it, building considerable traction before expanding into other ventures.
The lesson here is that if you have an idea for a startup offering, don’t get caught up in the excitement of launching the numerous versions, features, and other areas you want to expand to. Make sure that your startup idea does only one thing at the beginning, as this will make it easier to present to potential customers and investors. However, not only should your idea do only one thing, but it must do it well, as that is the only way that you can differentiate yourself from your competitors.
Questions to Ask
- What is the killer-feature of my product?
- Does my product have too many features?
- What are the features my product can do without?
- How well does my product solve a problem? If the answer is “not very well”, how can I improve its use?
Hire Your Team
Selecting a Co-Founder
If you decide to enlist a co-founder, keep in mind that they should add complementary skill sets to the team and should help keep you focused and motivated. Also, since so few lucrative companies were founded by a single person, investors are more likely to invest in a founding team rather than a solo entrepreneur.
The founding team will spend a significant amount of time together hustling and overcoming obstacles, so it's important to have the right chemistry. Think of your partnership as a marriage in the business world.
Identify the gap in your business. Whether it’s in a specific process or an entire business area, associate yourself with someone who brings that expertise to the startup.
Once you’ve identified that need, start with someone that you already know. Your network is a great place to look for potential co-founders. Sometimes it's a good idea to partner up with someone that you’ve worked with before, as there will be familiarity with each others' work ethic, along with a mutual trust and respect for each other.
Next, share your idea with that person. Your co-founder needs to have the same level of passion, excitement and commitment about building something disruptive.
Selecting Your Team Members
However, merely having a co-founder on your team isn't enough, for if you want your company to really expand, you'll need a team of dedicated individuals to manage the numerous aspects of a startup, from marketing to operations to development and more.
- Identify the voids of your startup to easily identify the skill sets required to satisfy your company's needs. You might have several useful skills, but you don’t have all of them.
- Start recruiting team members. When it comes to your needs, be as specific as possible to ensure that you're hiring the perfect candidates. Don't be afraid to be picky!
- During the interview process, ask questions to understand the context that they are coming from. Gather information about everyday tasks, specific situations and their participation in building a product or service.
- These answers will help you determine two things: 1) Do they possess the right tools for you startup? 2) Do they they fit the startup’s culture?
Raise Funding
While the United States may be the world’s primary entrepreneurial hub, Spain is quickly making a name for itself as a growing center in the international startup scene. And while it may be easy for aspiring Spanish founders to assume that the only way to raise significant startup funding is to travel to the United States, there are actually more and more financial resources cropping up in Spanish everyday for burgeoning startups. The rise in investor activity has increased sharply in recent years, meaning that it is now easier than ever to for entrepreneurs to raise funding for their companies.
Incubators and Accelerators
There is no doubt that the number of Spanish startups has increased dramatically in recent years, which also means that the number of startup incubators and accelerators has grown as well. Below are some of the top institutions that you should consider joining.
Venture Capital Firms
Because of the sharp rise in entrepreneurial activity, more VC firms have launched to match the demand for startup funding in a variety of growing markets, including life sciences, energy, mobile, and more. Here are some of the top VC firms in Spain:
- Active Venture Partners
- Axon Partners Group
- Bonsai Venture Capital
- Cabiedes & Partners
- Caixa Capital Risk
- Kibo Ventures
- Lanta Digital Ventures
- Nauta Capital
- Seaya Ventures
- Vitamina K
