Are you looking to relocate to Spain and trying to get a grasp of the local economy?
Perhaps you would like a better understanding of what works, or rather, what might work for your unique circumstances.
Maybe you are already living in Spain soaking up the incredible lifestyle and now you need some ideas to bolster those valuable life savings.

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What is the best way to understand which businesses work and in Spain and which don’t?
Of course, the best understanding comes with time. However, not everyone has the means to sustain themselves for a year so they can see how the population and economy change throughout the seasons.
And yes, if you are looking to start a business on the coast of Spain, then it’s important to understand that the coastal areas can change dramatically throughout the year.
What looks like a buzzing vibrant town in summer could turn out to be a very sleepy nook in winter.  Some villages and towns on the coast of Spain will see a 90% drop in population heading into winter.
Factors like these may have a serious impact on the business you decide to start.

Some general rules of thumb for how quiet a coastal town can become after summer and usually through to easter the next year are:
1) The further the location from a Spanish city the less population you can expect in winter.
2) The further south you are in Spain the same is true.
3) The less surrounding towns and villages the same is true.

Your greatest assets are the long-term residents

So, without having the luxury of a year to observe which businesses will make it to the next summer, and which won’t, your greatest assets are the long-term residents of the area.
Speak to your expat friends and acquaintances that have been living in the area for years already.
And I always find it perplexing how few entrepreneurs will actually speak to the people who have lived through many of the changes in the area, seen businesses come and go, and sometimes even the same businesses type starting with the same idea in the same location where the same business failed the year before.

My advice is to speak with the long-term residents and other non-competing businesses in the area. I have not met a single expat who is unwilling to help. They can literally save you many thousands of Euros and a lot of heartaches.
Other business owners (for example the local Estate Agencies) can also give you an idea about what services they or their customers require.

Join your local online communities

Local Facebook groups are excellent resources for advice and even ideas.
Search your desired location in Spain (in a Google search you can input: “your location + Facebook Groups”) and then check for Forums, Connect groups, Expat groups, societies, etc.
Who better to ask than the people who have been living here for years, and right now are saying “I wish there was this and that business here.”

Holiday-proof your business

So what are some good business categories?
Well, you may want to consider holiday-proofing your business.
Choose a business that caters more to the year-round population, so that whatever extra business you achieve during the summer months is a bonus rather than a necessity.
These types of businesses will also allow you some holiday time in Summer when the rest of Spain is on holiday.

A word about Restaurants and Bars

I have written another article dedicated entirely to starting a bar or restaurant in Spain, so I will keep it short here.
Restaurants and bars on the coast of Spain have the highest attrition and failure rate of all business types.
The ones that do survive will have owners that have lived in the area for many years and have plenty of experience in the hospitality industry.
These owners are usually supremely knowledgeable about the area and have an excellent understanding of what ambient, entertainment, food, and beverages the area needs.
They prioritize the year-round residents, understanding that it’s most likely these folks that will see their business through the slowest times of the year.
They offer excellent service and quality food and beverages.

A word about trades

If you are skilled in a trade then you have a huge asset.
When we first arrived in Spain 20 years ago a friend of ours bought a parasailing “business”.
A few months later, he understood that the whole enterprise was dependent on the port authority granting a license for the year ahead.
The previous owner knew the port authority, but he didn’t. No new license was granted, and this resulted in lots of stress, and many thousands of Euros wasted.

The good news is that he is a qualified boilermaker.
He started installing and repairing metal gates, fencing, burglar bars, etc.
To say that he was inundated with work is an understatement. He completely turned things around for himself and his family.

If you have a trade, whether electrical, plumbing, carpentry, tiling, building, appliance repairs, etc., you already have a strong advantage.
In most coastal areas there is a large expat community of English-speaking Brits, Dutch, Belgians, Germans, and other Northern Europeans who are waiting for professional, friendly, and timely service.
If you can offer better than the other trades in the area (which many times is not too difficult) then happy days.

Some ideas for low capital investment and holiday-proof businesses on the coast of Spain.

Photographer/Videographer for weddings, baptisms, birthdays, and events.
Real estate drone photography, videography, and 3D walk-throughs. Home staging.
Flower arrangements and gift baskets.
Commercial and residential cleaning services. Also, consider windows and solar panel cleaning.
Pool, garden, and landscaping services.
Home maintenance and repair services.
Home security and home automation.
Airconditioning installation and repairs.
Interior and exterior decorating and painting.
Kitchen and bathroom installations.
Home energy efficiency.
Electric bicycle, patinete, mobility scooter hire.
Appliance, machinery, and tool hire.
Outdoor furniture fabrication. Think Ibiza style.
Printing business. (Leaflets, brochures, promotional material, business cards, etc.)
Home sitting, pet sitting, and care, dog walking.
Event & party planning.
Home care assistance – senior care.
Mobile health care and spa – massage, facial spa, waxing, manicure, pedicure.
Mobile hairdresser, makeup, and nail beauty. Body treatments, laser hair removal, and anti-aging skin-care services.
Removal services.
Blinds and curtains service.
Ikea and other flat pack collection and assembly. (You can programme all your collections on specified days).
Home-delivered meals.
Mobile vehicle cleaners.
Water filtration systems and installation. Water delivery.
Computer repairs and servicing.
Personalized culinary or historic tours.
Golf tours.
Home clearances and 2nd hand resale.

Some final words of advice

Study other successful businesses in nearby areas, and get a clear understanding of what they are offering, who their clientele is, and their operational methods.

Some other good sources of inspiration include local Facebook groups. You can get a good idea of the types of businesses advertising in other coastal areas of Spain.
You can also get ideas from online Spanish newspaper websites for expats like Euroweekly, Olive Press, etc.