Portugal is a small country with a big potential for tech startups and entrepreneurs. With its sunny climate, rich culture, and low cost of living, Portugal offers a high quality of life and a friendly environment for innovation. In this article, we will explore the reasons why Portugal is becoming a new European hub for tech companies, and how you can enter this market with a successful go-to-market strategy.
Why Portugal?
Portugal has many advantages that make it an attractive destination for tech businesses. Here are some of them:
- Talent pool: Portugal has a young and educated population, with a high level of proficiency in English and other languages. The country has several top universities and research centers, producing skilled graduates in engineering, computer science, and other fields. Portugal also attracts talent from abroad, thanks to its visa schemes and incentives for entrepreneurs, such as the Startup Visa and the Non-Habitual Resident regime.
- Government support: Portugal has a pro-business and pro-innovation government that provides tax breaks, financial assistance, and regulatory flexibility for startups and investors. The government also launched a €200 million venture capital fund in 2018, to support the growth of the tech ecosystem. Portugal is also a member of the European Union, which gives access to a large and diverse market, as well as funding opportunities and legal protection.
- Startup scene: Portugal has a vibrant and fast-growing startup scene, with several hubs, accelerators, incubators, and coworking spaces. Lisbon, the capital city, is the main tech hub of the country, hosting events such as the Web Summit, the largest tech conference in Europe. Porto, the second-largest city, is also a rising star, with a strong focus on hardware and industry 4.0. Other cities, such as Braga, Coimbra, and Faro, are also developing their own niches and communities.
- Quality of life: Portugal is a beautiful and diverse country, with a rich history and culture. The country offers some of the best weather, food, and scenery of any Mediterranean country, as well as a safe and clean environment. The cost of living in Portugal is much lower than in other European countries, especially in housing, transportation, and entertainment. The country also has a good infrastructure, with modern airports, highways, and public transportation.
How to Enter Portugal?
If you are interested in entering the Portuguese market with your tech product or service, you will need a go-to-market strategy that considers the following aspects:
- Market research: Before launching your product or service in Portugal, you need to understand the market size, demand, competition, and customer preferences. You can use online tools, such as Google Trends, Keyword Planner, and SimilarWeb, to analyze the online behavior and trends of your target audience. You can also use surveys, interviews, and focus groups, to gather feedback and insights from potential customers and partners.
- Market segmentation: Based on your market research, you need to segment your market into different groups of customers, based on their characteristics, needs, and behaviors. You can use criteria such as geography, demographics, psychographics, and behavior, to define your segments. You also need to identify your ideal customer profile, or the segment that is most likely to buy your product or service, and that has the highest value for your business.
- Value proposition: Based on your market segmentation, you need to craft a value proposition that describes how your product or service solves a problem or fulfills a need for your ideal customer. You also need to communicate how your product or service is different and better than the alternatives in the market, and what benefits and features it offers. You can use tools such as the Value Proposition Canvas, to design and test your value proposition.
- Marketing plan: Based on your value proposition, you need to develop a marketing plan that outlines how you will reach, attract, and convert your ideal customers. You need to define your marketing goals, strategies, channels, and budget, as well as your key performance indicators and metrics. You also need to create a marketing mix, or the combination of product, price, place, and promotion, that best suits your market and customer. You can use tools such as the Marketing Plan Template, to create and execute your marketing plan.
- Sales and distribution strategy: Based on your marketing plan, you need to establish a sales and distribution strategy that defines how you will sell and deliver your product or service to your customers. You need to decide whether you will use direct or indirect sales, or a combination of both, and what type of sales force, partners, and channels you will use. You also need to determine your pricing strategy, payment methods, and delivery options. You can use tools such as the Sales Strategy Template, to design and implement your sales and distribution strategy.
Conclusion
Portugal is a great opportunity for tech startups and entrepreneurs, who want to enter a new and emerging European market. With its talent pool, government support, startup scene, and quality of life, Portugal offers a lot of advantages and benefits for tech businesses. However, to succeed in this market, you need a go-to-market strategy that is tailored to the specific needs and preferences of your customers, and that leverages the strengths and opportunities of the country. By following the steps and tips outlined in this article, you can create a go-to-market strategy that will help you launch your product or service in Portugal, and achieve your business goals.
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Join our community now!
We are always on the lookout for new opportunities to partner with talented and passionate entrepreneurs who have a vision to change the world. If you have a great idea that needs funding and support to grow, we invite you to apply to join our community and programs. Whether you are looking for seed funding, Series A, or beyond, we have the right solution for you.
Join our community now!