Several start-ups face challenges and hurdles while sustaining their businesses in the UAE which include financial obstacles, security and of course, paying bills, rents, salaries and maintaining revenues/income likewise. There is always the anxiety pertaining to survival and relevance of your business in a highly competitive environment as well. How can you remain solvent while you are sustaining your start-up business in the UAE? Here are some tips worth considering.
Have a Salary Provision in the Business Plan
Everybody has to pay bills and cover household expenditure. As a startup entrepreneur, you will not be an exception. If you are setting up your startup business in the UAE, factor in a basic salary at least into the business plan which covers your basic costs. If you are pitching to investors, include your personal salary component in the proposal.
Limit your Own Investment
Not all startup entrepreneurs have abundant family resources or get equity investments early on in their journey. Many find themselves putting their own savings into their businesses. However, you should have a strict limit on the money that you are putting in upfront. Have a certain threshold that you will invest and if the business goes well, you can have a provision for an additional amount. By no means will you go beyond this final threshold.
Family Assistance Always Matters
Make sure that family support and assistance is tapped by you while establishing your startup business in the UAE (United Arab Emirates). It is always great if basic expenditure is covered by the salaries/income of other family members. Support from family will help you sustain financially.
Lower your Set-up Expenses
Establishing a business in the UAE is not always cost-effective although you can minimize the expenditure considerably. Check out free zones and benefits they offer to startups minus up-front license fees and other such incentives. Do not plunge into buying costly management systems, IT systems and ERP based software programs. Minimize costs of starting up.
Keep an Emergency Fund Handy
Always have an emergency fund which should cover startup costs for the first 6-12 months of your journey. This will make you more confident and help you sustain your company financially.
Have Knowledge about Financing Options in the UAE
Know where you can get financing in the UAE. Keep your credit score impeccable for availing of bank loans and see if you can arrange for collateral. Non-bank lenders are another alternative funding source along with venture capital, angel investors, crowd-funding, bonds, seed funding, asset financing and Sharia compliant finance.
Check out Government services and support
You can obtain interest-free loans from the Khalifa Fund of the UAE Government for Enterprise Development for instance. There are several other Government initiatives that you can check out. DED (Department of Economic Development) has its Dubai SME agency for instance, which offers financial support solutions and other options for SMEs and startups including incubatory and advisory services as well. You can check out programs like Intelaq under which Emiratis in Dubai get ample support for establishing their businesses.
Start at the right time
Some people prefer starting up when they are young, do not have children and fewer financial obligations/commitments. As a result, they have higher risk appetite than couples in their late 40s with steady incomes and children. Identify the right window for launching your startup.
Most importantly, as an entrepreneur, be ready for sacrifices that go beyond financial commitments, business regulations and working hours. You can reach out to GCC Filings for help with VAT registration, filing, company incorporation, accounting, auditing and many other services in the UAE. The company will help you out with all these vital aspects and save you time and money immensely while starting your business.