One of the most profitable business in the world, the tourism sector, which accounts for 10.4% of the Global GDP, along with an employment rate to 10%. It turns out as one of the lucrative investment sectors, and the tourism industry has widened its arms in all possible nations, covering a comprehensive platform for the investors to invest in. The United Arab Emirates stand as one of the hot-cake when it comes to the tourism and hospitality sector. Millions of visitors worldwide prefer UAE as the first choice when it comes to the selection of tourist spot. The number of tourists has been continually increasing in the Middle East region, and has contributed $237 Billion, which covers 8.7% of the world GDP. The Emirate of Ras-Al-Khaimah stands as one of the booming destinations that turn out to be a favourable investment platform for global investors.
Now, before you incorporate the business process, it turns out to be beneficial if you have a plan as to how to excel the business once you incorporate it. This blog tells you a detailed version of the strategic moves that you need to take to deliver outstanding performance in the competitive market. Let’s deep dive.
1.Target a Strategic Location
If you start your business where your target customers are not aware of your presence, how can you even cover the initial investment which you have made? When it comes to the corporate world, it is essential for you to understand that setting up a business at the right location is vital. This would not only generate profits but will also save you from incurring unwanted costs for promotion. Word-of-mouth will stand out to be well, and your happy customers will be your ultimate brand ambassadors.
Also, when it comes to the Emirate of Ras Al Khaimah, you have got several investment platforms like Mainland, Free Zone and Offshore, which have got their specialities. So, think twice before you select a location to incorporate your business entity.
2.Don’t Forget to Maintain Your Accounts from the Start
The very first day you spend a penny on converting your business dream into reality, you need to keep a track regarding your expenses. Minor expenses if not recorded, turns out to be a large sum of money at the end. So, every flow of money needs to be tracked in the accounting records. When it comes to the tourism business, you need to have good relations with your suppliers, drivers, customers etc. Every transaction dealt with each of the party needs to be noted, which will help you to maintain a balance between your creditors and debtors. The probability of an increase in bad-debts gets a decline, and your reputation is also maintained accordingly.
3.Plan a Budget Effectively
To utilize the revenue generated effectively turns out to be a more significant challenge for any business. You need to make sure that you have got a limited budget for each of the task that needs to be completed. Business planning can be implemented effectively when you have relevant funds in your hands, and that can be maintained only when you prepare a budget. This will help you to keep a track on the financial stability of your business and increase your revenue over a specified period.
4.Keep an Eye on the Business Cash Flows
Only planning and maintaining the expense won’t suffice the ultimate purpose. The next step that you need to do is keep track of your business cashflows. The heavy outflow of your business cash would turn out to be a serious problem to the business to exist in the competitive market. On the other hand, if you have a massive inflow, it needs to be implemented correctly for the benefit of the company. Both the outflow and inflow of your business needs to be maintained and frequently checked. In the former case, you need to develop strategies to minimize the outflow, whereas in the latter case, you need to create another set of strategies for effective implementation that would motivate your internal staff to come forward and give their best in the workplace.
5.Know the Market and Competitors
Generating a high revenue and capturing the target audience is not the ultimate end. When the size of a business grows, the list of competitors will also increase at a faster pace. Before you even set your footprints in the targeted location, it is recommended for you to keep track of the available competitors in the particular zone. This will not only help you to know their presence but will help you to identify the strategies that they implement to grab the attention of the audience. Let’s say you have carefully observed and analyzed their marketing strategies, and you will be in a position to build your strategy to target the audience in a better way and leverage the business growth.
6.Provide Customized Services
Now, the tourism sector is a platform wherein you can provide general services like travel to specific locations, ticketing etc. If you slightly move ahead and have a more in-depth look, you can see that there are multiple options that you can play around. Providing customized tourism packages and services will also help you to grab a broad audience and improve the goodwill at a faster pace.
7.Involve Digital Presence
One of the essentials which you shouldn’t forget is to create a digital presence of your business entity. This will help you to widen your reach beyond the geographical boundaries. By analyzing the tasks that your customers carry out in the online platform, you will be in a better position to understand their priorities and provide the relevant services accordingly.
Well, this is all about the key aspects that you need to take care of before starting a tourism business. However, you still might wonder why to opt for RAK, when you do have other opportunities, right? Well, your answer is just below.
By setting up your business in the Emirate of RAK, you will be in a position to avail the following benefits.
- Holds a historical background, thus attracts more visitors
- The investment cost stands comparatively lower than other Emirates
- Availability of dedicated free zones
- Government has taken numerous initiatives to enhance tourism industry in RAK
- 100% exemption on personal tax
- Turns out to be a favourable gateway to other Emirates and neighbouring countries
- Last but not least, World Expo 2020 is on the way
In short, we can say that the land of RAK stands as a perfect investment destination when it comes to the tourism industry. Managing the business after incorporation turns out to be a crucial task, but if implemented strategically, you can leave a mark. Now, incorporation of business when blends with the strategies to be implemented turns out to be a tedious task. One of the smartest ways through which you can carry out the process hassle-free is to get in touch with a business consultant. The business experts stand as professional experts who hold immense knowledge on the market situation prevailing outside and can guide you accordingly.
Commitbiz Consultants, one of the best business consultants in Dubai, have been helping multiple clients across the UAE to set up their business corporations. With a team of experts, we take the initiative to understand our client’s needs and cater them accordingly. Our experts are well-versed with business set up UAE proceedings, and can provide customized solutions suiting your business needs. In case you hold a query, do speak to our experts-we’d be glad to assist.