Owning a bar or restaurant in Spain is one of the most profitable businesses to take advantage of overcrowded tourism, the problem is that it requires a good investment. Fortunately, there is funding available to help make the dream a reality. An excellent option is to get some of the grants to open a bar.
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Grants or subsidies to open a bar, everything you need to know:
Spain is one of the ideal European countries to open a restaurant business or a bar – not for nothing, it is among the nations with the highest density of these – the explanation? an excellent climate, large tourist crowds and above all, inhabitants who know how to enjoy leisure, in short, there are plenty of arguments to join the entrepreneurs who wish to materialise the idea of owning their own premises.
Help to open a bar:
However favourable the context, starting this business is not easy, especially if you lack the capital; fortunately, in Spain there are aids, subsidies to open a bar and financing facilities that allow you to start without delay, the idea is to take the first step with some security.
Given that most of the country’s business fabric is made up of small and medium-sized enterprises, coupled with the large number of self-employed workers, it will not be difficult to obtain different types of aid to set up a business, but where should you start?
Basic factors when opening a bar or restaurant:
After specifying the type of business and detailing it as best as possible, the next step to follow to materialise the idea of opening a bar is to determine its location, and the characteristics of the environment are fundamental not only to define the style of the establishment, but also the service to be provided, furniture and even staff.
Capital, the essential aspect:
They say that money isn’t everything, in this case it is! That’s why the next phase in the execution of the project will be to define the budget, estimating everything necessary, from the premises to the crockery.
– Premises and equipment:
Assuming that you do not have your own premises, renting is the option, so you will have to include in the budget the amount of the advance deposit that is usually requested as a guarantee; as far as equipment is concerned, every bar requires basic implements to start with, and renting is again a good strategy.
– Staffing, permits and licenses:
How many people will be needed, what specialities should be available, and based on these questions, analyse the costs of salaries and tax expenses; with regard to legal formalities, a bar requires a bar manager, licenses and permits that vary depending on the locality, as well as the consideration of stamp duty and taxes.
In addition to other items such as catering clothing, which are indispensable for the staff.
With the definitions and cost estimates in hand, what follows is the choice of the form of financing, without doubt, a decisive part since without money it will be impossible to move forward; this is where grants to open a bar and other types of aid come to the rescue of the entrepreneur who does not have his own capital.
Subsidies and grants to open a bar:
Spain is kept active by the SMEs, which is possible thanks to the existence of subsidies and aid that the governmental entities grant to small and medium-sized entrepreneurs, at different state levels; among the most outstanding are:
- Aid for local initiatives: in the search to benefit projects that become sources of employment, each Spanish Autonomous Community develops benefits, with its own guidelines.
- Allowances for hiring workers: ideal when hiring staff, especially if they are young employees, as they obtain greater benefits.
- Social Security bonuses: with this plan, a fixed rate of 50 euros is stipulated for one year for the payment of self-employed workers.
Why are subsidies to open a bar the best option?
The idea is to help unemployed people to materialise their business projects, not only to become self-employed, but also to encourage the creation of new job vacancies.
How do these grants work? Through funds with different objectives– ranging from a simple contribution for technical assistance to a general financial grant – in which the beneficiary undertakes to keep the establishment running for at least a couple of years.
Which channels facilitate funding?
At the moment of obtaining the money needed, the entrepreneur can follow different paths to develop his project; among the most relevant are listed:
- Financing by the Official Credit Institute
The credits proposed by this bank are characterised by their low interest rate, as they aim to help the entrepreneur or company whose project has social, ecological, cultural or innovative transcendence, hence if you opt for this alternative, the bar must meet this profile.
- Subsidised financing:
These are the lines of credit proposed by Enisa, a body of the Ministry of Industry, Trade and Tourism of Spain, which have the advantage of being free of guarantees, making them a very good option to start; but this is not all, the organisation also offers support, advice and information.
Crowdfunding, the technological modality at the service of the business world:
Based on the contribution of third parties interested in participating in a given project, it is a collaborative funding mechanism currently in great demand, in fact, many crowdfunding websites are available to start making incursions into the modality.
What documents are needed to apply for a grant?
When opening a bar or applying for funding, a series of documents are required, although these vary depending on the different autonomous communities, most of them coincide in the following:
- Certificate issued by a technical consultancy, which guarantees that the premises comply with all the legal regulations necessary for the operation of a bar.
- Sanitary permit
- Registration in the register of traders and commercial activities.
- Hazard and fire control and analysis plan.
- Food Handler’s licence for all workers.
- Tax solvency.
- Visitor’s book.
- Registration in the Workers’ Centre and Social Security of the workers.