Portugal may not be Europe’s biggest franchise market, but it shouldn’t be discounted as an opportunity for international expansion. Portugal provides stability, an impressive business image and multiple benefits to entrepreneurs.
Portugal provides numerous opportunities for those of all profiles and pockets – be they an ambitious entrepreneur with considerable resources or retired people seeking a second career path.
1. Investing in a franchise is a safer option
If you want to break into the Brazilian market but fear investing too much money, a franchise is an attractive solution. Not only can it give a solid return on your investment but it can help alleviate some of the risks associated with starting up a new company; your franchisor will provide access to professionals and marketing resources to ensure the success of your franchise in Brazil; additionally you’ll get training programs and support during its initial months of operation.
Initial investment for a franchise in Portugal will depend on your chosen industry and specific franchise option, for instance a cleaning franchise will require less capital than retail store. Before making a final decision it is crucial to conduct market research and understand how competitive your business will be against rival franchises in terms of cost, revenue and customer retention – the best way of doing this is attending franchise fairs where representatives from franchisors will meet you directly and explain everything you need to know.
Before offering you a franchise, a franchisor will carefully evaluate your qualifications and experience as well as the profitability and growth potential of investing. Once you decide to invest, be sure to read over the terms and conditions of the franchise agreement carefully, making any necessary modifications before signing it.
Before investing in any franchise, it’s essential that you learn about local culture. This will enable you to form strong relationships with clients and customers by responding promptly and being punctual when meeting requests or deadlines. Hiring an accountant could also prove invaluable in running the administrative side of things smoothly.
Portugal’s economy, despite being small in size, remains robust. Tourism accounts for much of Portugal’s GDP with 12.7 million tourists visiting in 2017. This creates an immense consumer market as well as opportunities for businesses; Portugal thus becomes an attractive location for investors due to low operating costs and competitive wages – plus offers various tax breaks for foreign investments.
2. It is easier to open a franchise in Portugal than in a new market
Portugal presents many opportunities for businesses seeking entry to the European Union market. It has a relatively large population and an average household net-adjusted disposable income higher than OECD average, making Portugal an attractive investment location for foreign investors.
However, opening a business in Portugal requires extensive research and planning. You must understand both its culture and business environment before selecting an ideal business structure – an LLC or SOC are popular options to consider – which will protect both you and your company against risks.
Furthermore, it’s also essential to comply with local labor laws when hiring employees. Labor laws govern issues like working hours, vacation days and benefits – it is crucial that you are familiar with them so you can hire the ideal talent for your business and offer competitive pay and benefits packages to attract and retain staff members.
Building relationships with your target audience is another essential step in the process, helping you establish a solid brand identity and promote products or services to potential customers. Social media provides another avenue through which to reach out and gain a better understanding of their needs.
Before investing in a franchise in Portugal, do your research and determine whether it fits with your business model. Once you know your target market and competitors, start researching potential competitors as well as the amount you will invest. It is also essential that you know how much capital is available and when to expect returns on your investment.
Utilizing an entrepreneur visa is an excellent option for anyone who’s hoping to live and benefit from Portugal’s vibrant economy. Though the application process may seem complex at first, with Fantastic Services’ assistance it should become simpler quickly.
3. It is easier to open a franchise in Portugal of low investment
Investment in a franchise can be more secure than starting up in an unfamiliar market, since you will be working with an established brand that knows how to adapt. Furthermore, franchisors often provide support in creating your business plan and strategy as well as accessing government resources available to small businesses.
Low investment franchises in Portugal may be an ideal way to launch their own business without needing the resources on their own. Although you will require initial capital as well as advertising and training costs, they could prove an worthwhile investment if you put in both time and effort into building it yourself.
Opening a franchise in Portugal is relatively straightforward for foreign investors. The initial step involves registering the company at a notary office; then either associaco (association) or cooperative (cooperativa). An association must focus on social activities while cooperatives have commercial applications as well.
As soon as your company is registered, you must present its documents to its franchisor for review and submission. These include a declaration of commencement of activity, articles of incorporation and proof of income. In addition, keep track of your tax obligations such as corporate income tax (Imposto sobre o Rendimento das Pessoas Colectivas or IRC), value added tax (Imposto sobre a Valoraco Acrescentado or IVA), customs duties or taxes that may apply.
One effective method of finding employees for your franchise in Portugal is attending job fairs held at Portuguese universities. Not only are these events an opportunity for young graduates, they also provide invaluable information regarding labor laws in Portugal. Furthermore, you might even consider partnering with universities by offering internship opportunities.
4. It is easier to open a franchise in Portugal of low investment
For those interested in investing in a new business without taking on its risks, Portugal provides many franchise opportunities with low investments. From real estate agencies and supermarkets to insurance companies and laundries – even some for as little as few thousand euros, making these franchises ideal options for Brazilians who lack resources or knowledge about Portuguese markets. Moreover, this approach can reduce management costs significantly while giving greater insight into local markets.
First step to opening a franchise is selecting an appropriate type of company structure. There are two possible models – limited liability companies (LLC) or joint stock companies (SOC), with latter typically offering greater investor protection. Once your business model and franchise have been decided upon, conduct a comprehensive market study to identify optimal opportunities and assess potential returns on investment.
After conducting your research, the next step should be searching for an ideal franchise in Portugal. Expo Franchise, held annually in Lisbon and featuring major companies that provide franchising opportunities starting at five thousand euros such as Century 21, Auchan and Factory Fitness are great resources.
Reaching out to a business consultant may also provide the edge necessary for success, providing a solid base on which your venture can stand. Furthermore, this professional can assist with local regulations, financing sources, talent recruitment needs and much more – not forgetting government programs that may make your enterprise even more lucrative!
Launching a franchise business in Portugal can be an ideal opportunity for those with limited resources or who seek something different in life. There’s sure to be something suitable to your profile and budget – whether that be recent graduates, qualified professionals or retirees alike!