5 Ways of Preventing Your Business from Meeting Failure

by commitbizadmin 23, Sep 2019

5 Ways of Preventing Your Business from Meeting Failure

Everyone wants to start a business in Dubai. Be it a long term business goal or a short term business goals, be it small business or medium size business. So if you are aspiring to set up a business in Dubai, you have to be sure about everything and to be more sure about everything that does not work.

Most of the people believe that running out of money and resources is the only reason why their business fails. However, in reality, this is not true, and there are many significant reasons which can be responsible for business failure.

Henceforth this article contains primary 5 reasons by which you can prevent your business from getting a failure:

1.Researching and Awareness

Dubai is considered as the city of opportunities for people from different parts of the world. Dubai also is a tax-free Emirate hence it attracts people to set up a business, and significant entrepreneurs from all over the world are keenly interested in setting up a business and growing in the economy of Dubai. However, the important thing is that many entrepreneurs fail to understand the local market and the need for such a market. Apart from the needs the culture, demography as well as the working style of the nation and the role that their business will be playing in the Dubai market.

For this purpose it is better to frame a proper market plan and record all the activities with licensing to getting an office space. It is advisable that before obtaining a license the business owners should get an office space.

2.Choosing the Right License

If you are planning on to set up a business in Dubai, you must have visited the official government website of Dubai. It contains the process for incorporating a business in Dubai. It also provides the seven types of business you can set up in Dubai. To start a business, one for the essential requirement in Dubai is to get a license from the Department of Economic Development Dubai. This License is just like an authority to run your business without any interference from the authority.

Getting a perfect business license suitable for your business is an important task. Many a time, the business owners without getting proper knowledge to obtain a license which doesn't suit the needs of the business. Such cases can lead to severe business failure.

3.Bank Account Charges

To start a business in Dubai, a corporate bank account is of great essence. Like every country in the world, Dubai has vast banks in terms of services as well as charges. Business owners are required to be aware of the type of bank that they are choosing to open an account as well as the charges that the said bank will be imposing on the account. Proper inquiry on such charges should be carried on for avoiding any business failure.

4.Proper Execution of Sponsorship Agreement

Dubai has provided for major two jurisdictions wherein business owners can open a business. Free zone and Mainland. In case the business owners want to go to the Mainland, (which is a Beneficial choice as it will include the main market area) local sponsor would be required having significant shares in the company. For this purpose, a proper agreement would be required to be framed between the sponsor and the owner for avoiding any clashed later. Local sponsors usually charge separately for the services that they offer. However, business owners should be sure about the conditions which they are going to include in the agreement. Moreover, a written agreement should be executed appropriately.

5.Business Reflexes

A Business never goes accordingly to the structure which you're planned initially. The plan is to be adjusted with the changing scenarios. Even if you have 20/20 vision for your business with proper execution and the best resources, there can be a time wherein they would not go as they were initially planned.  A solution to this problem can be creating "What if" scenarios and to see how your company, as well as the employees, react and respond. You can do the same thing for the debt analysis as well. This can be the right way of checking your company's cash flow activities and revenues as well.

Starting a business in Dubai can be a daunting task to do. All the aspects have to be handled by the business owners in a proper manner and as described by the Dubai regulatory authority. If you are planning on starting a business in Dubai, you should be careful about the legal aspects as well. Hence it is better to appoint an expert for this task. We at Commitbiz provides our clients with end to end solutions to all their business problems. If you have any queries as to business set up in Dubai and the like related services, you can contact us. We would be happy to help.