6 Tips for Launching A Startup in Europe
Launching your startup in Europe can seem like an intimidating prospect, especially with the crowded startup market that exists on the continent. There are, however, plenty of opportunities to make your mark if you’re prepared and willing to put in the hard work. To help you make it happen, here are six tips to help you get your startup off the ground in Europe.
6 Tips for Launching Your Startup in Europe
1) Pick The Right City
What city should I choose to launch my startup? It really depends on what your goals are. There are numerous cities throughout Europe that have different costs of living, taxes, access to resources, and more. Here are a few questions you'll want to answer when deciding where to launch your company:
- What is the cost of living in this city?
- What will your business tax be?
- How far away is your market audience?
- How much time do you have to spend travelling between clients?
- Does this city already have established entrepreneurs or companies who can give you advice?
- Will most of your clients be from within 100 miles or from across Europe?
- Is there easy access to funding if you need it?
2) Don’t Let Culture Shock Derail You
There's something that no one told you about launching a startup overseas: culture shock. There are so many other things to consider aside from language barriers when launching in another country, such as business culture, technology availability, and more. Make sure you are prepared and research the culture of the country you aim to base your business in well.
3) Don’t Do it Alone
If you're planning to start a company in the EU, make sure to set up the appropriate legal entities, get advice on your tax status, and find an accountant and lawyer who understands startups. The process may seem daunting at first but remember that you don't have to do it alone. There are many resources and networks to help you throughout this process. For example, if you're looking for funding there's Slush. And if you want to know what other founders think about launching a startup in Europe then check out Reddit or Facebook groups such as Startup World Central or FounderLove.
4) Learn the Language
One of the biggest mistakes you can make when launching your startup overseas is to overlook language barriers. If you don't speak the language of your intended market, you're going to be at a huge disadvantage. Consider hiring translators, or learning another language like Spanish and French that have a higher number of speakers than English. You may also want to translate some basic marketing material into your target language. The best part is if you decide to learn French you can take road trips in France while you learn a new language.
5) Get an EU Bank Account
There are a few things to consider when opening an account: the type of bank, where the account is physically located (some are only available in certain countries), the requirements needed to open the account (some banks require an employer letter of reference or validation from local authorities), and how often you intend on accessing your funds. Some banks also offer special features like fee-free ATMs, reduced currency conversion fees, etc. Compare all these options before settling on one.
6) Keep it Legal
As a general rule, startups should expect to spend about $2,000-$10,000 for the design of their product or website. That includes everything from hiring a web designer to purchasing the domain name and logo. It's also important to keep in mind that you may need more than one lawyer, depending on where your company is based. For example, if you're launching your startup in both the US and France then you'll need two lawyers. The cost will vary depending on how much work is required by the law firm to draft contracts as well as government regulations and laws pertaining to each region. However, there is nothing more important than keeping your business legal, especially if it’s based in another country.
