In war (and business) it’s the terrain that matters. Sun Tzu’s old adage rings as true today as it did millennia ago. Failure to acknowledge the true need of your product or service in an unfamiliar market landscape is a surefire way to take a loss. It is all too common for start-ups in the UAE to fall short when it comes to market study, budget evaluation, and calculating rainy day reserves. It’s essential to clearly assess the competition and their pricing as well as the dynamics of your new selected market.
Knowing the laws of the land
Jupiter Business Mentors(JBM)’s licensing and regulatory expert, Richa Bhagnari, goes further, suggesting that, “within the GCC as a whole, it’s essential to carry out a market feasibility study whilst considering the various parameters to ensure sustainability – make sure to chart the cost of starting up and running a business against its potential to grow. It’s also crucial to evaluate the strength of your USP (unique selling proposition) and consider whether it’s enough to hold on to a large enough stake of the market share for survival and expansion.”
Knowing the laws of the land
The UAE’s improvement in the World Bank’s Ease of Doing Business 2020 index, currently ranked 16th, shows the success of efforts making it easier for fledgling businesses to start out. However, the hidden costs and complexity of requirements can soon dampen one’s enthusiasm.
Before entering into a new market and registering your business, it is of vital importance that you have fully considered all of the options available to set up business in UAE.
In order to assess which option suits you best, consider the following:
The structure of your business (Sole Proprietorship, LLC, Partnership, etc.)
Your business activities
The number of visas you require
Whether or not office space is necessary or if your staff can work remotely.
JBM’s company formation expert Edwin Cabanero Duria recommends engaging with reliable consultants, suggesting that “deciding on the right license for you without the right guidance and expertise can be expensive and ultimately fatal to your business. Only after receiving this can you start to get a realistic idea of what your options are. Then you can begin to budget accordingly.”
A common mistake that you can easily avoid
Edwin warns that, “over the past decade the most common mistake I see newly established companies make is being far too aggressive with offers and promotions, especially those advertised on social media platforms. More often than not, cheap doesn’t mean the best, and higher discounts doesn’t mean it's the cheapest. In order to avoid hidden pitfalls and have all your options made clear to you when starting out in the UAE, I recommend utilizing trusted and reliable consultants.”
The UAE offers multiple options to establish your business ranging from a mainland company, free zone to offshore. However not every option is the best and most certainly one should be extra cautious of misleading ads that offer cheap options for Business set up. For detailed and professional advice on the procedures involved in starting a business in dubai and registering for a license in the UAE, you should get in touch with business mentors in UAE.
Jupiter Business Mentors (JBM) is a platform dedicated to fostering the start-up community and small & medium business enterprises with access to experienced executives and industry experts from various areas of business, in the UAE and across the Middle East region, with plans in the pipeline to have global mentors listed on the platform.
To consult with our content experts, get in touch with us here jupiterbusinessmentors.com