Where to get the money
Everyone asks about grants. The truth: most start-up money comes from savings, family or a loan. Grants help, but they won’t set up the business for you.
Your own savingsThe healthiest option. If it goes wrong, you owe nobody.
Family and friendsCommon, but put it in writing: how much, when it is paid back and what happens if it goes wrong. Many people lose family over badly agreed money.
Bank loanThey will ask for a business plan and, almost certainly, guarantees. Repayments are due whether you sell or not.
Lump-sum unemployment benefitIf you receive unemployment benefit, you can ask to be paid what is left in one go to invest in your business (capitalizar el paro).
Flat rate€80 a month self-employed fee in the first year.
Grants and microloansThere are public programmes and organisations for entrepreneurs. Ask at the town hall, the chamber of commerce or the employment service.
Lump-sum benefit: what matters
- You must apply before registering as self-employed. If you register first, you lose it.
- You need at least 3 months of benefit left, and not to have done it in the last 4 years.
- The money is for investing in the business and you may be asked to prove it.
- The exact conditions come from SEPE (the employment service): confirm them first.
The cushion rule
On top of the investment, keep money to pay at least 6 months of fixed costs while selling almost nothing. This is what saves most businesses: staying alive until the customers come.
Don’t borrow everything. If the business needs €30,000 and you have €0, start smaller or save first. A business with a lot of debt has to go well from day one, and almost none go well from day one.