Author: Afreen Razak

Most people have certain notions and ideas about what it takes for a business setup and become a successful entrepreneur. These beliefs are inspired by media portrayals of business owners and can sometimes discourage someone from business setup and starting their own business. In this article, we explore some of the myths about business setup and why you shouldn’t believe everything you hear.

1. Setting up a business can be time consuming

A lot of us have the idea that business setup is something that needs to be painstakingly long. According to this myth, there’s a direct correlation between how long you take to start your business and long-term business success. After all, the more prepared you are, the more likely you are to be ready for the risks that plague businesses. This myth is far from the truth. The reality is that the amount of time you spend in business setup doesn’t necessarily impact how effectively your business will run. As long as you have the major details covered, starting a business shouldn’t be an extremely time-consuming process. Additionally, there are many resources available that can speed up the process even further. With SPC Free Zone you can get your trade license issued within 2 hours!

2. You need to be working all day and everyday

Movies tell us that a successful business owner is a pioneer for dedicating all their time and resources to their business. Continuous all-nighters, the lack of a social life, and piled up papers all point in the direction of an overworked and exhausted entrepreneur. Reality, however, paints a different picture. Business setup does not mean giving up every other aspect of your life. When you work for that long, you’re more likely to experience burnout, which can have more of a negative impact than just maintaining a good work-life balance. If there’s too much you need to do, opt to delegate those tasks to those within your company. Delegation or outsourcing your work can reduce the time spent on a given task, all while helping you maintain a manageable workload.

3. Everything needs to be perfect

One of the biggest fears of any entrepreneur is the risks that comes with business setup. The fear of the unknown and how it can affect your business can make starting a venture a tedious one. A lot of aspiring entrepreneurs believe that they should start their business at the right time and that it should be perfect in all aspects to ensure entrepreneurial success. However, this is simply not true. There is no perfect time a business setup and no matter how prepared you think you might be; unforeseen circumstances will always arise. Ultimately, a business setup is all about adapting to changes as they come and no matter how prepared you think you may be, risks will always arise, seemingly out of nowhere.

4. You need a lot of capital to start a business

The myth that you require a large amount of funds to start a business has deterred many from setting up the business of their dreams. Though money is an important contributor to business success, having a large amount of it does not guarantee the success of the venture. A business setup does not need to be expensive. There are several resources that can allow you to set up your business successfully. Here at SPC Free Zone, we provide entrepreneurs with zero paid-up capital requirements as well as affordable office lease options helping ease financial burdens.

5. You have to know how to do everything

People tend to assume that entrepreneurs know everything related to setting up and running a business. Reality, however, paints a different picture. Entrepreneurs don’t have the answers to all their business issues, and they have their strengths and weaknesses as well. Sharing business problems with the team can help you get a different perspective on various issues and delegate it to someone who has the necessary expertise to complete the task effectively.

Starting a business in the UAE can be a daunting task, especially if you’re unsure about where you need to start and what you need to do. Our experts here at SPC Free Zone can help you get on your feet and aid your business preparation and documentation, so that you can easily set up and operate your business effectively. Contact us at 800 SPC FZ to book a consultation with our business experts today.

The emirate of Sharjah is a cultural center as well as an industrial hub, budding with a variety of entrepreneurial opportunities. Known for its business-friendly regulations and policies as well as its holistic approach towards the development of its diverse industrial portfolio, the emirate nurtures businesses from beginning to end. In this article, we will explore the various reasons why investing in Sharjah is a lucrative business opportunity that will benefit your venture and help fuel its growth and prosperity in the long run.

1. Culture and Tourism

Sharjah has evolved over the years into a central hub for the arts as well as cultural history and heritage. Granted the title of ‘Cultural Capital of the Arab World’ by UNESCO in 1998, Sharjah is home to almost a quarter of the entire country’s historical museums. Due to this, tourism within the emirate is a rewarding opportunity for business setups in the UAE. With over 1.7 million visitors to the emirate along with high quality hotels and restaurants, as well as a surge of visitors expected to arrive due to EXPO2020, Sharjah offers a wide range of investment-based business opportunities to those interested in this particular sector.

2. Free Zones

Sharjah possesses a strategic position that makes the emirate the trading hub of the region. In addition to this, the government has allocated designated free zones, making company formation in the region easy and profitable. SPC Free Zone is one such free zone that offers a platform to cater to the needs of entrepreneurs looking to start or migrate their business across various industrial sectors, providing consulting services along with all the necessary requirements.

3. Education and Healthcare

The education industry in Sharjah is highly developed, with numerous campuses that offer courses across various disciplines. With over 232 schools and 21 higher learning institutions, as well as more than 25,000 students present in the emirate’s renowned University City, Sharjah provides excellent investment opportunities across the education sector. Along with this, the emirate also provides a large pool of opportunities when it comes to the healthcare industry. Covering everything within the industry from research and development to pharmaceuticals and hospital supply management, the industry provides benefits that affect both businesses and the public alike. With over 15 public and private hospitals, insurance, and private healthcare for all within the emirate, the industry has shown incredible growth and opportunity for investors and entrepreneurs alike.

4. Logistics and Manufacturing

With export and re-export markets rapidly expanding, and over 62% of industrial hubs involved in the freight forwarding sector, Sharjah is an emirate that has a locational advantage, allowing for a wide range of logistic based possibilities. Similar opportunities also exist in the manufacturing industry, which is the second largest industry in the emirate. Light manufacturing in particular accounts for 16.5% of the emirate’s GDP and nearly a third of the UAE’s manufacturing output as a whole, making the industry heavily sought after in terms of investment and venture-based opportunities.

5. Sustainability Initiatives

The emirate has started a multitude of efforts to become more sustainable in terms of its environmental impact and energy consumption. Initiatives to switch to renewable sources of energy, the introduction of environmental protection legislation, as well as the establishment of projects like Sharjah Sustainable City- Sharjah’s first community with net zero energy, has made the emirate an attractive location to invest in for investors interested in renewables, waste management, and research and development of products and services.

Over the years, the emirate of Sharjah has flourished, making it one of the best places for a business setup in the UAE. SPC Free Zone is one of the best places to set up a business here in the UAE. With our expert assistance and easy set-up process, establishing your own business or clearing queries has never been easier. Call us at 800 SPCFZ to contact our expert consultants for more information on free zone-based investment opportunities and the like today.

Over the years, the UAE has become a central figure of business opportunities in the GCC, and the world. This is due to the country’s venture-friendly policies that enable businesses to thrive and encourage investors to invest in the multitude of industries that exist within the Emirates. The introduction of foreign investment and international businesses into the economy has made the market thrive, all while keeping investors and entrepreneurs satisfied with simple and easy to understand procedures and regulations. Starting an international business in the UAE is a lucrative opportunity for potential investors to expand their reach from outside the borders of the UAE. This article delves into the various steps involved in starting your own international business in the UAE.

1. Select your business activity and trade name

The very first step is to choose what economic activity you would like to engage in for your newly formed international business in the UAE. You can select the business activity of your choice from the list of activities provided by the Department of Economic Development (DED). After this, you will need to select a trade name for your venture. Ensure that the name you select is in line with the guidelines and protocols for trade names provided by the DED. You will need to submit at least 3 naming options for your international business in the UAE in your application to the DED.

2. Select the ownership structure, legal form, and location of your business

Depending on the location of your business as well as the type of business you would like to engage in, there are varying rules that can affect the overall constitution of your firm. The various types of ownership structures include Limited Liability Company, Sole Proprietorship, Civil or Professional Company, and Free Zone Company. Additionally, you can choose to set up your international business in the UAE either on the mainland or in a free zone. If you choose to set up your company within a free zone like SPC Free Zone, you can enjoy benefits that allow for 100% ownership to the shareholder without the need for a local agent, or “sponsor”.

3. Preparation of Documentation and Legal Paperwork

For the international business in the UAE to be successfully established, it is important that all necessary paperwork and legalities be completed so that the company is in compliance with the rules and regulations associated with starting and operating a business. A Memorandum of Association (MOA) or Local Service Agent (LSA) Agreement is a document required for the successful registration and operation of the venture. The partner(s) and the local sponsor (if present) must prepare the document and sign it before sending it to the DED along with the other paperwork for approval. Some other documents include:

• Trade license
• Various forms associated with the application
• Passport and visa copies

4. Application for initial approval and additional approvals

The initial approval is an important approval to attain, as it signifies that the UAE government does not object to your company’s formation and that all documents submitted along with the application are valid. Once you receive the initial approval from the DED, you can proceed with other formalities required to begin your international business in the UAE. Additional approvals may be taken if required, depending on the line of business you intend to engage in.

5. Payment and share capital

If your application is successful, you will be issued a payment voucher by the DED. After paying the amount specified on the voucher, your application is officially approved, and you can begin business operations accordingly. Additionally, it’s important to note that a minimum paid-up share capital is often required to start a business. This capital can start from AED 10,000 onwards. SPC Free Zone allows AED 0 paid-up capital for companies set up within the free zone.

establishing an international business in the UAE can be a challenging process for those unfamiliar with the country and its rules. Our experts here at SPC Free Zone (Sharjah Free Zone) can help you in your business journey, making sure that all your needs and queries are addressed and that the process of starting your international business in the UAE is smooth. Contact us at 800 SPCFZ to begin your consultation today.

UAE Free Zones are areas for business designated by the government in order to encourage prospective investments from all across the world. The introduction of free zones has seen major benefits for everyone! Those who aspire to start their own business setup can find opportunities in company formation within a free zone. Due to the continuous support and benefits offered by the UAE Government as well as the Free Zone Authorities, setting up a free zone company is a lucrative opportunity that investors would never miss. Here are some of the key steps that can help you set up a free zone company.

1. Select the company structure

The most important step to beginning your entrepreneurial journey in a free zone is to determine its ownership structure. Free zones have the added benefit of allowing 100% ownership to expatriates who wish to start a business- which is not available to companies outside a free zone. For investors who wish to establish a free zone company, can do so by registering the company in the form of a Free Zone Establishment (FZE) or a Free Zone Company (FZC). The primary difference between these two structures is that an FZE has one shareholder, whereas an FZC has two or more shareholders present. These forms of ownership are both under the broad classification of a Limited Liability Company (LLC), though they are governed by the laws of the free zone they reside in and not under the provisions of the UAE Commercial Companies Law (CCL).

2. Select a trade name

Naming your entity gives it an identity and is the first step to establishing your free zone company’s brand presence. Before finalizing a name for your free zone company, it’s best to check with either the Department of Economic Development (DED) or the free zone authority that governs your business setup. Enquiring about the validity of the name you chose can let you know whether the name does not comply with the protocols established with respect to trade names, or if the trade name has already been registered by another entity. Some naming conventions for trade names are as follows:

• The name must be followed by the legal form of the entity (LLC, FZE, FZC, etc.).
• The name should not violate public morals or the public order of the country.
• The name should not use the names of any governing authority, the names of the emirates, the UAE, or the names of any religion.

3. Application for a business license

This aspect of the free zone company setup process involves the primary economic activities of the venture. What products or services you plan to conduct business with is directly related to the trading license you will have to acquire. Trade licenses are particularly important due to the fact that a license is an ultimate proof your business has the legal right to function within the UAE. In terms of free zone licenses, free zones like SPC Free Zone (Sharjah Free Zone) offer a multitude of benefits ranging from over 1,500 various business licenses across multiple industries to 10-year license duration periods.

4. Select an office space

Free zones offer flexibility in terms of office space requirements. You can choose to rent or even buy the property required for you to begin your free zone company. The office specifications all depend on the type of business you will engage in, and free zones have a large variety of office suits that range both in size and availability of certain facilities.

5. Registration

The registration for free zone companies is simple and easy to comprehend. All you have to do is submit your application along with the relevant trade license, documentation, and paperwork, after which you will have to pay the registration and licensing fees. Business setup costs in free zones are not as high as they would be on the mainland. Due to perks like zero paid-up capital requirements as well as economical pricing of office spaces, the initial cost of starting a business is reduced, easing any financial strain. The process after your payment is completed is smooth sailing, with entry permits issued for non-residents and your business legally established.

Starting a free zone company doesn’t have to be daunting. Our experts here at SPC Free Zone can help you set up the business of your dreams with no hassle! Contact us at 800 SPCFZ to bring your entrepreneurial dreams to life in just a day.

The UAE is known to attract expats from all over the globe due to the opportunities they offer to budding entrepreneurs, start-ups, or corporates. Though the business-friendly atmosphere of the country attracts many, new start-ups, they may find it challenging If they are not well versed with the procedures and workings of setting up a business in the UAE.

This article explores the key factors that every UAE-based entrepreneur needs to consider before establishing their business set-up.

1. Business Set-up Costs

Capital investment is the bloodline to starting your new business. Starting a small business in the UAE involves operational costs, government fees, location-based payments, business licenses, visa and immigration, and other business expenditures. Understanding the amount of money you will need to start and run your business and arranging for it, can make the initial period of your newly set-up business flow smoothly.

2. Regulations and Paperwork

The UAE is known to be one of the best countries to start a business in due to its robust legal structure. With easy-to-understand laws, starting a small business has never looked simpler. However, you should be aware of the legalities involved in starting a business. Though documentation may not be as tedious as with other countries, failure to comply or fill out the right paperwork can cause a huge setback in establishing your new business. Some of the regulations and paperwork that you’ll need to keep in mind are as follows:
1. Economic Substance Regulation (ESR)
2. Anti-Money Laundering Regulations (AML)
3. VAT registration
4. Bank Account Registration and related paperwork
5. Business and Trade Licensing

3. Set-up Location and Jurisdiction

Locations to set up your business in the UAE can be broadly categorized into three jurisdictions:
1. Mainland
2. Free Zone
3. Offshore

The location you choose will correspond directly to the type of business you plan on starting. If your business taps into a more local market, you should select a mainland location. Free zones are a lucrative option for businesses that tap into foreign markets or larger industries. It’s an attractive option since it allows for 100% foreign ownership and has a lot of additional benefits. SPC Free Zone is a free zone wherein ownership benefits, consulting aid and export import exemptions amongst other advantages are provided to those who choose to set up their business there.

4. Ownership Options

Selecting the right ownership structure will define the probability of success of your business. The most common form of ownership structure is currently Limited Liability Company, though many are shifting to free zones like SPC Free Zone due to the 100% foreign ownership privilege, negating the need for any local sponsorship.

5. Recruitment and Employment Procedures

Employing staff is one of the most important steps in establishing your small business. Before starting the recruitment process, do some research on the talent pool available for the roles you plan to hire for, and any legalities involved in that process. Many industries need to follow employment quotas, like hiring a certain percentage of locals. If you plan to hire expats as well, the application for the same as well as relevant paperwork needs to be sent to the MHRE and the GDRFA in your local emirate. If your business is set up in a free zone, you’ll have to apply directly to the local authority within the free zone. There are many more regulations involved in hiring employees, so make sure you keep a note of the number of staff required, the jurisdiction in which you operate and other industry specific employee-based regulations.

Our team at SPC Free Zone has many years of experience within business setup and helped over 500+ businesses start and succeed in the past couple of years. The advantage of working with an experienced busines setup partner is they will be able to advise the best business setup solution for your business while making sure that your new business fits within the UAE Rules & Regulations. Contact us today at 800-SPCFZ to understand how we can help your dreams come true.

It’s a well-known fact that setting up a business in the UAE is fairly easy, and the process is one of the simplest in the world. With the country’s business-focused outlook, the benefits of starting a business here are plenty – amazing infrastructure, low taxes, free zones, strategically beneficial geographic position, to name a few. However, there are a few things that people typically only realize once they’ve started the process of setting up their business. In this article, we uncover some of the things no one really tells you about starting a business in the UAE.

1. Administrative work

The legalities and paperwork involved in starting a business aren’t talked about as much as the glamorous, fun part of starting new ventures. However, it’s one of the most important aspects of company formation, and neglecting it can result in hefty fines and other negatives. You will need to understand exactly which authority to approach, and the relevant paperwork and licensing required to start operations smoothly.

2. Finances

More often than not, entrepreneurs underestimate how much they need to invest in their new business. The initial costs involved in a company set-up can reach astronomical heights, and not being prepared for these expenditures can pose a huge setback for your organization. Licensing alone can cost up to 10,000 AED, and adding up additional annual costs and infrastructure investments can cause a major financial strain to your business’ bank account, if you aren’t prepared for it. Accounting for these expenses before you enter into the field of business is the best way to mitigate the risk of financial failure.

3. Culture and Values

The UAE is in a particularly unique situation, wherein the number of expatriates significantly outnumbers the locals within the country. This means that there exists multiple cultures and values due to the various nationalities within the country. This mix of various cultures makes the country’s environment diverse in nature, making it crucial for companies to establish a corporate environment that respects all cultures equally. The most successful organizations harbor an environment of understanding and communication. Before you start your business, you will need to understand the cultural needs of your potential employees and prepare to foster those needs effectively.

4. Ownership and legal structure

The most well-known and common form of ownership structure is the Limited Liability Company, wherein part ownership (at least 51%) is given to a local sponsor. However, there are many other forms of business structure that are slowly gaining speed within the country. Some of these forms are as follows:

a. Sole Proprietorship: This form of organization is only available to UAE and GCC nationals and gives the entrepreneur 100% ownership.
b. Civil or Professional Company: Doctors, Lawyers, Accountants, and other professionals can open this type of business. Similar to an LLC company, this form of business structure requires a UAE national sponsor to hold at least 51% of business ownership.
c. Free Zone Company: Businesses that choose to set up operations within a free zone come under this category. Similar to other free zones, SPC Free Zone offers 100% business ownership to the entrepreneur, without the need for a local Emirati sponsor.

5. Finding the right location

Choosing the right location to conduct your business is harder than it seems. Selecting a substandard location can result in heavy financial losses. There are a variety of office spaces available in the UAE. Traditional workspaces, co-working spaces and even spaces offered by free zones are available for new company set-ups.

Starting a business in the UAE doesn’t have to be challenging. Our experts at SPC Free Zone can answer all your business needs. With our easy set-up process, everything from licensing and visas to ownership perks is only a click away. Call us at 800 SPCFZ to get in touch with our experts today.

Starting a small business in the UAE is a dream come true for many, thanks to the country’s business friendly environment and large market that exists within its borders. However, the journey to business success is no easy feat, with chances of risks and challenges cropping up and affecting the business negatively present throughout. Your business may sink before it even had the chance to swim if you don’t account for the uncertainties of business. In this article, we explore some of the most crucial tips you will need to know when starting your dream business.

1. Manage your funds

It’s a fact that money is the lifeline for any business. Not having enough of it can cause bankruptcies for even the most renowned organizations. The biggest reason why businesses run out of funds is overspending. Investing in non-essential business items and being careless with where your business funds are being spent is a foreboding sign that your business will fail. The best way to mitigate this issue is to manage your business funds wisely. Keep a close eye on investments and their returns, and don’t splurge on items that don’t need the extra cash. Additionally, ensure that your business has a positive cash flow and that you have cash reserves for any unexpected contingencies. For companies set up in the UAE, an easy way to cut down on costs is to start a business in a free zone. SPC Free Zone provides many perks as well as financial aid that can help new businesses get on its feet and thrive in the UAE.

2. Consider feasibility

Not all businesses succeed. In fact, many end up failing. This is because potential customers do not see a need to purchase the business’ product or service. Overestimating customer perception of your product or service can lead to a short-sighted view of your business, resulting in failure. Conduct feasibility studies and beta product test runs to see how the market reacts to your product or service before launching it. Keeping customer or client communication open is a great way to understand what they want or need, giving your business a blueprint to success.

3. Risk Management

The world of business is an unpredictable ocean of opportunities and threats. No business can truly predict what will happen next, and those that are unprepared find it even harder to survive, let alone thrive. Planning for risks is something you will need to do, especially when you’re just starting out. The risks new businesses faces are many but planning for any contingencies can help your business thrive in the market. Conducting a risk analysis is the best way to prepare your business for any unwarranted risks. Though many risks seemingly come without warning, your business’ chances of survival are higher when you’ve prepared for the worst.

4. Employee Management

What makes an organization thrive are its people. The employees of a business have the capability to either make the business soar to new heights or drag it down to failure. Lack of communication is the main reason for team breakdowns. Creating a work culture that celebrates communication and does not have any inherent biases can make planned strategies work like a dream, while also building employee trust. As a business owner, it’s easy to feel like you need to do everything yourself, but that’s not the case. The people in your organization are there to make the business function at its best, so distribute and delegate work to the people you’ve hired for the task.

5. Market your business

Business owners see their businesses fail because no one ever knew it existed in the first place. Marketing serves as a tool to promote your business and the products or services you plan to sell. Marketing can make or break your business, no matter what your business’ niche is. Find the best ways to market your business brand and allocate resources for it. The more you market your business brand, the more likely you are to get relevant customers or clients to invest in your organization and its offerings.

Mitigating the risk of business failure is a process that involves foresight and flexibility. Ease the burden of business risk by using free zones to help you get through tedious tasks and make managing a business all the easier. At SPC Free Zone, setting up a business has never been smoother. With financial as well as licensing perks, your chances of business success can only go up from here. Call us at 800 SPCFZ to get in touch with our business experts today.

The UAE is a land filled with opportunity that invites entrepreneurs from all over the world to engage in businesses that make an impact. Establishing a business has never been easier with the UAE’s business friendly policies and regulations. Though most barriers to starting a small business are lowered or removed, the biggest barrier, i.e finance. Many turn away from the prospect of starting a small business due to the high set-up costs associated with the business setups. However, there are businesses that have lower start up costs as compared to the average usually spent to set up an organization. Though these costs cannot be completely removed, reducing the amount of investment required can boost the finances of a newly set up business. Here are some businesses that have low investments:

1. Education based businesses

Tutoring or instruction-based businesses have been on the rise due to the lucrative market it presents. If you have knowledge pertaining to a certain field or a skill that most would love to learn, this is the business for you. The initial set-up costs for this type of business were always minimal, but with the shift to online platforms, the initial expense has reduced even further. All you really need for this type of business to succeed is knowledge, qualifications (where needed) and skills for the field you’ll be instructing on.

2. Web design-based businesses

Post pandemic, there has been a major shift towards online markets and services. This means that most companies have now found it increasingly important to establish their own online presence, and this is where web design-based businesses come in. As long as you have the required skill set needed to set up websites, amongst graphic design or UX based skills, this business is a good option for you. The initial costs involved with this type of business is limited to the equipment you have, and subsequent investments are also lower than the average.

3. Social e-commerce stores

The new online market that has emerged in the recent months has inspired many to set up an online store and sell products. Small businesses have been thriving on platforms such as Instagram, due to its easy-to-access nature and directed algorithm that reaches the right type of customer. You have the option of starting this type of business from your own home, and all you’ll really need to do is acquire the relevant licensing needed for this type of business.

4. Consultancy

Similar to education-based businesses, consulting is a business that is profitable if you have a skill or service to offer. Consultancy services provide strategic advices that can assist its clients in improving areas of needed improvement. The initial investment is limited to the knowledge or skill set you have, licensing and an online presence, if you plan to conduct your business online.

It’s important to understand that businesses cannot be started without investments. There are unavoidable costs that are associated with businesses, like licensing requirements and other legal procedures. Avoiding these will only result in heavy fines, so it’s better to not skimp out on the important aspects of setting up your business. The easiest way to use your limited investment wisely is by making sure you’re spending your funds where it’s required and cutting back on areas where it’s not needed as much. Utilizing resources that are present is also a great way to reduce expenses. Instead of setting up your business on the mainland, set it up on a free zone like SPC Free Zone. These free zones provide cost-cutting benefits that can be crucial for new businesses with low funds. Turning your entrepreneurial dreams into reality is possible with the right type of financial planning. These businesses are an opportunity for you to start the enterprise of your dreams and grow into something bigger and better.

The UAE is considered by many entrepreneurs and aspiring entrepreneurs to be a hub for startups. Starting a business in the UAE is a dream for most who aspire to break away from the clutches of the mundane, corporate 9-5. As with most adventures in life, carefully planning out such a venture will help increase the chances of success.

Here are 10 tips that can help a new business survive and thrive in the UAE:

1. Conduct a feasibility study

Decision-making as a startup can be nerve-racking and intimidating due to the lack of experience and know-how needed to run a successful business. A way to mitigate this is to conduct a feasibility study on the major decisions being taken in the organization. This would include thorough market and audience research along with competitor analyses to ensure you’re going in the right direction.

Before introducing a new product or service into a market, look for indicators through the study that will tell you whether there’s a need for it and will people pay money for it.

2. Monitor the environment around you

Keeping abreast of market and industry conditions is one of the most important aspects to business survival in the UAE. Through constant monitoring of your startup’s internal and external environment, opportunities and threats can be identified and a plan to mitigate threats and capitalize on opportunities can be constructed. This ultimately leads to adaptability, which is one of the most important traits a business must have to ensure long term survival.

3. Cash flow is crucial

An entrepreneur needs to have clear visibility and budget forecast of their financials to succeed. A detailed look into the amount of debt and credit as well as its sources can help you and by extension your business, make educated assessments on the current and future of the company.

Cash on-hand is crucial for most businesses while projecting healthy growth and cash coming in will help you avoid missing payroll and fixed monthly expenses.

4. Know your free zone benefits

The main reason why the UAE is such a hotspot for entrepreneurial ventures is because of the amenities given to startups in the form of free zones. Company setup in the UAE can be done easily with the help of institutions like SPC Free Zone. Some of these benefits are:

1.  100% Foreign Ownership
2. Fully Equipped Offices
3. No requirement for Local Sponsors
4. Exclusions on Import and Export duties.
5. Reduced Trade Barriers

5. Networking is the secret to success

The fate of many business ventures lies in the ability of the founders to network. Networking, in this part of the world especially, is not only limited to a B2B environment but also to the end consumer. Good networking can result in the expansion of business connections which may result in better distributors and supplier networks. On the consumer side of things, it can result in customer retention, thus giving your company a competitive advantage.

Related Article: Startup Do’s and Don’ts in UAE

6. Actively reduce your setup and operating costs

One of the biggest reasons for startup failing is the inability to recover costs incurred. The sad truth is that on average it takes around 2-3 years for a business to become profitable, which makes it even more important to limit unnecessary expenses and run a lean operation focused on value generation and growth.

7. Keep an emergency fund on-hand

2020 taught us that the world is truly unpredictable, and we can’t be prepared for every eventuality. Therefore, it is important for your startup to have a cash reserve ready for emergencies and other contingencies. The general rule of thumb for business is to be conservative in nature, which means that entrepreneurs must prepare for market downturns and potential paradigm shifts.

8. Monitor your cash to debt ratios

A good mix of both equity and debt can guarantee financial stability, though too much debt can lead to financial strains and organizational incapability.

9. Communication is king

Most startup difficulties arise from lack of communication within the organization. The entrepreneurial vision needs to be communicated to all the employees working in the startup, so that all parties involved know exactly what they’re working towards.

10. Creation of short- and long-term objectives and strategies

Every startup was initiated with a dream. At first glance, achieving this dream may be difficult but creating smaller objectives and strategies aligned with them can give startups a step-by-step method to achieve a grand goal.

Take the leap of faith!

One of the best things about starting your own business is the independence you have in all aspects of work, and it is the most rewarding experience you can hope to have. Take the leap of faith and start up your own company and don’t give up on your dream of independence and financial success!