70% of start-up businesses in Spain fail, and it is not for lack of financing.
According to the report Bigban Research 2024report, the main cause of startup failure of startups in Spain is poor business management and lack of experience in running the business..
But how can startups avoid these mistakes and ensure their survival?
Data on business failure in Spain
92% of successful startups had founders with prior experience.
- In the failed startups, only 22% of the founders had been entrepreneurs before.
- This shows that management experience is key to business success.
69% of emerging businesses exhaust their capital before generating significant revenues.
- The lack of financial planning and cash control is a structural problem.
- Four percent of the startups that close broke even before disappearing, indicating that many do not achieve financial stability in time.
70% of emerging businesses die because of poor management, not lack of financing.
- Accessing investment does not guarantee success if there is no strategic management of resources.
- Poor decision making and lack of control over revenues and expenses lead to the collapse of many companies.
Keys to avoid startup failure
Have a clear and realistic business plan
- Thoroughly analyze costs, expected revenues and break-even point.
- Define a scalable growth strategy.
Strict treasury control
- To have financial management and liquidity forecasting tools.
- Prevent uncontrolled growth from generating more expenses than the business can handle.
Not relying solely on external financing
- Design business models that generate sustainable income as soon as possible.
- Diversify sources of financing beyond venture capital: grants, crowdfunding, soft loans.
Seek professional financial advice
- Having experts in financial management can make the difference between success and failure.
- An external CFO or specialized consultancy helps manage liquidity, profitability and sustainable growth.
🚀 Don’t let your startup be part of the 70% that fail
📌 Innovative ideas are not enough if they are not accompanied by sound financial and business management.
At AYCE Consulting, we work with startups and emerging businesses to optimize their financial strategy and ensure their sustainable growth.
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