So, you have a great idea to set up a business, or a dream you have always had to work for yourself. Well good for you, go for it … but before you do, be sure of some key things:
Know your financial requirements
There are numerous companies within the UAE to assist individuals with setting up a business. It is essential to research these companies to make the correct informed decision. Whilst cost will be a strong deciding factor when setting up your company, be sure to look at all costs as well as the initial setup costs, for example, renewal costs, annual charges, bank charges, minimum maintained balances and any other commitments which will be required.
We have all heard the phrase cash is king, and this is so prevalent when establishing a Company. In starting this journey we are all hoping for a positive path, but be aware that whilst it will take time for the cash to start rolling in, cash will definitely have to go out. Put together a monthly rolling budget, capturing all the monthly outgoings. This will give you a clear indication of the monthly amount you should strive to bring in on a regular basis.
There are 2 fundamental options which can be considered when establishing a company, either 100% owned or with a local sponsor. If 100% owned, the Company will be set up as a Free Zone Company which will have restrictions of where the business can be located, which in turn can carry high location costs, and limited the target market. Alternatively, a number of companies can assist with setting up LLC facilities where virtual and shared offices are arranged. Be sure you know what you need to set up your business, do you need office space or retail space? Knowing what you need will help you to make the right decisions.
Location, Location, Location
As the popular show suggests, location is everything. Consider where you would like to based. Which location would be most viable for you to get to potential clients, or for them to come to you? If it is too far for customers to travel, they may find a closer option. Use your cash wisely, taxi or travel costs can be minimised if the perfect location is selected first time. Be sure, that the location you select will positively impact your business.
Market and industry knowledge
Knowing your idea and your business is great, but ensure you do some market research on your competitors. A business idea in itself is not enough. Knowing where you can add value ahead of your competitors will be a sure way of attracting clients. Why would someone be lured away to work with you rather than stay with their existing choice? You are the newcomer and it’s down to you to entice people and other businesses to work with you.