Top 5 mistakes to avoid when starting or doing a business in Dubai
With a spring in your step, you are soon going to live your dream of owning a company in the UAE. But hold on, do you know what can go wrong? Whether in your home country or abroad, you can see yourself going out on a limb, doing business. Entrepreneurship is inherently risky, and it’s not for the faint-hearted. Being prepared for the potential troubles beforehand is the key to sustaining and achieving your goals.
No doubt, setting up a business in Dubai, UAE is highly profitable that allows you to enjoy economic and personal freedom. But you should be au courant with the smorgasbord of hurdles that might affect the business not only when you are at the stage of inception but in the later stages as well. Whether you are a newbie or a mature entrepreneur in the field, you can only hit it out of the ballpark only if you keep yourself on your toes by knowing how to steer clear of the potential problems and how to deal with them if they still manage to block your way to the goal. So, without further ado, let’s take a peek at the top five errors (with a bonus tip!) that can be fatal for your new or old business.
Not paying heed to the correct advice on structures
Bests can be more than one but right could be just one! Getting the correct advice on your company structure is of utmost importance. Do not fall prey to the sales pitch it’s their job. Be mindful and ensure that the advice you are taking comes from an expert business consultant armed with years of commercial experience and reputable qualifications. You do not want to pay an arm and a leg for the consequences of an incorrect company setup. Neither you want to waste your precious time fixing the mistake. Plus, you could jeopardize the lucrative contracts on their way. One way to avoid this mistake is – research a lot. And the other and crowd favourite is – engage one of the best business setup consultants in Dubai.
It’s no more a secret that marketing decides the fate of a business. Therefore, it’s crucial for entrepreneurs to be as accurate as they can on the projections in terms of capital needed, prospect reach, and conversion ratio. Redirecting capital from any of the departments to the marketing dept. to make up for the shortfall is not advisable. Make sure you allocate realistic budgets to meet both current and future marketing needs. The benefits of a well-balanced budget don’t get you out of bed in the morning. Growth and spectacular branding are what you’re here for.
Not identifying value for money
The diversity of company types a foreign investor is allowed to set up in the United Arab Emirates is one of the reasons you chose Dubai for. From the simple structure of sole proprietorship to even more complex types of companies and free zone structures, the sky is the only limit, when it comes to choosing a business structure for your venture. Dubai really has one of the most flexible legislations for setting up a business. Finding a business structure that squarely fits into your vision amongst more than 45 free zones and 2500 business activities offered by onshore companies to pick from is not child’s play. The cheapest option can appeal to you the most but remember you only get what you pay for. To keep your profit potential high, opt for a compliant company structure only.
Ignoring the future when planning
Okay, let’s face it! Most businesses fail if strategic planning is missing. Making a strategy based on only yesterday’s stereotypes, not tomorrow’s demographic archetypes could be hazardous for your business’s health. What worked for you in the past may not work in the future. Establishing a company based purely on today’s requirements could have you bear the expense of another company set up in a year or so. You must have a plan and know where it is heading in the future. Lack of forward planning could burn a hole in your pocket. Keep in mind the future growth aspects while planning to save your priceless time and hard-earned money. You would not want to renew your business licenses between 18-24 months of establishment just because of insufficient planning at the time of inception. A pro tip: Perform a SWOT analysis to keep your plans on track and in lieu of your long-haul vision for the establishment. Despite being the starting point of any business establishment, this simple yet powerful tool plays a pivotal role in strategic planning.
Skimping on hiring quality workforce
Blame yourself if you get the undesired results due to the poor performance of your staff! Cost-cutting has become our habit now after what we have gone through during the last couple of years. But short-term cost-cutting strategies may backfire in the long run. And one of the most common cost-cutting practices most small business owners is following after pandemic is hiring low-quality staff/unskilled workers at low salaries/wages. Remember, it’s the employees that row your boat. And if they are not skilled in doing what they have been recruited for, you can imagine what is likely to happen with the boat. Recruiting and hiring a top-quality workforce is what the doctor said if you want your company to stay healthy and wealthy during the course and in the future. Investment in human assets today is sure to bring you long-term benefits tomorrow. Delegating the tasks to the right people only gives you peace of mind so that you can focus on more important things to keep your business on a roll. Therefore, do not fall for short-term cost savings and hand over the strings of your organization to qualified human capital. In addition to that, treat them fair and square because the ways in which organisations treat their staff have implications in the long term. So invest in the quality staff, keep them motivated with lucrative incentives plans, perks, and bonuses, splurge on their training and development to enable them to deliver on strategic objectives and see the magic happen.
Boasting world-class road infrastructures, air and sea connections, high subsidies, a professional environment, largest pool of world’s best talent, streamlined and comprehendible visa process, painless paperwork, fertile ground to grow innovative ideas, open and welcoming society, plenty of free zones, cooperative government, and a lot, the commercial city of UAE you have chosen for your business itself is all the more reason why you should avoid common mistakes that many visionaries commit and end up winding up the operations. Your organisation’s agility and ability to innovate lies in the attitude you carry. After investing a fortune in setting up a business in Dubai or any other part of the world, you can’t afford to compromise on human capital, business structure, branding of your products/services, market research, and business consultant. Keep yourself and your team abreast of the regular changes and updates in rules and regulations done by the Government that might affect your company. Interpret the local business environment, the nuances of legislation and the specifics of incorporation to ensure the success of your business in the UAE. It’s important to identify your strengths and weaknesses and plan accordingly to stay in the competition and in the consumers’ list of favourites. And last but not least, make sure you have an expert by your side to familiarize you with the relevant laws to keep you from expensive mistakes. Remember, you make mistakes. Mistakes don’t make you!
Step up your entrepreneurial game…
With Adam Global, one of the most trustworthy business setup advisory companies in Dubai, UAE. They say successful business owners must possess a knack for mitigating company-specific risks. But who enlightens them? Google or YouTube tutorials/Vblogs? Well, it’s us, business consultants. And you have to agree when we say – “Behind every successful business, there stands a smart business consultant”. Whether young entrepreneurs or established business persons looking out to expand their business abroad they have to deal with multiple hindrances while establishing or expanding the business that can be daunting and almost give a turn to both of them. And a proficient startup advisor in Dubai is the answer to all these troubles. Engage us to keep all your business setup hurdles at bay. Whether you are planning to set up a virtual law firm, wondering about trying your hands at cryptocurrency business, looking for some great investment opportunities in Belgium, or pondering if blockchain is a great option to consider for your business, our professionals are more than happy to design a business model and development strategy for you while making sure that your visions come to fruition. Because we believe in creating success stories to tell to the coming generations of entrepreneurs!