Startup

ADVANTAGES AND DISADVANTAGES OF CREATING YOUR STARTUP

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As you embark on setting up your startup, it’s crucial to consider both the pros and cons. Despite being a small business, we can make the most of our newest business.

If you are looking for your company to have certain advantages, you should know that these companies offer:

  • Agility: Startups are based on current technologies and have the necessary tools to obtain information quickly. Being small companies without a large development, they choose to focus on technologies that can help specific areas they want to achieve.

  • Adaptation: As with the speed in obtaining information, being small companies in development, they do not have a business plan established in a fixed and rigorously studied way. Therefore, they can adapt to trends, changes in markets and different needs of customers, which stand in the way of these companies.
  • Legal facilities. The project of Law of Startups It includes fiscal and bureaucratic measures to encourage the creation and investment in these technology companies. It includes tax incentives, such as reductions in corporate and income taxes, as well as facilitating the incorporation of companies electronically without notarial costs. Learn more about the law at this link: https://portal.mineco.gob.es/ca-es/comunicacion/Pagines/211210_agenda.aspx

But, on the other hand, Startups have other disadvantages that you will have to analyze before their creation, such as:

  • Dissatisfaction: Small companies have to take the position of other companies to position themselves in the market. This is a difficult task, considering that the development of this type of business is slow and not very clear. Therefore, not achieving results or a clear growth opportunity can influence employee motivation.

  • Low salaries: Building a small business requires minimal investment and a regular contribution of money to keep the company going. Making low profits is part of this process of creating a company, especially if it is a small business and is starting to enter the market. In addition, there are risks of losing investments in projects that in the end are not successful due to frequent changes in the market.

Once you have analyzed these basic advantages and disadvantages involved in the creation of a Startup, you can start making your decision.

We are the Business Center of Badalona, to give visibility and possibilities to your business. At Espai 114 together we form a team; we want to inspire you and accompany you.