Do’s & Don’ts for Startups
UAE is evolving as the desired center for investments & startups in the global commercial environment. According to startup Cities Index Ranking, UAE has surpassed older, well-recognized, startup ecosystems like New York & Tokyo by achieving a record, five/five in the Income Tax score.
Between 2009 & 2019, the country encountered 859 startup releases, with 76% of these being active and 52 of these existing. UAE startups are strong & pioneering, contributing to the country’s flourishing & developing startup ecosystem.
In the UAE you may have a mainland startup or a Freezone company, as per your preference. Here are some basic key steps to commence a business:
- Define the type of legal entity.
- Pick a trading name.
- Apply for a business license.
- Choose an office space.
- Get pre-approvals, register your business, & get your license.
What basics do startups require?
A significant, Exclusive & Innovative Product or Service
Investors usually seek out a product or service with a convincing reason for customers to modify current habits, or to experience something out-of-the-box or truly unique. Meaningful patents or trade secrets are also highly attractive for investors. In any case, the product or service should have strong discriminators. The functionality provided by a unique or innovative product should be readily noticeable, making the sale process easier. Minimal obstacles should hold in the way of the buying process, making it easily approachable for the consumer.
Ability to Gain Traction with Large Potential
It is wise to pursue sustainable businesses that have traction in the market or at least a robust strategic position. As a result, you are seeking loyal customers, a low customer toss, & a high rate of recurrent buying. These can be good indicators of a feasible product or service. According to Entrepreneur magazine, a common element among effective startups is that they are continually pursuing to satisfy their customers & the entire organization is allied to this goal. So, the product or service requires to be devised with the customer’s satisfaction in mind.
A Strong Team with a Solid Leader
As a founder or an investor, you will certainly look for teams that are passionate & knowledgeable about your product or service. You may want to identify your employees or team by knowing if:
- Their experience caters to the desired industry.
- Is the team fully committed?
- How competent are they under pressure?
- Will they be able to find clarifications or make amendments whenever required?
A Detailed Business Plan
A reasonably detailed business plan. It does not have to be complicated but it should define your plan for at least 3 years.
- A summary of the product or service with clearly conveyed key differentiators as well as possible target groups.
- The expansion plan, marketing & selling capability.
- Outline of the current market, the competitors & potential opportunity.
- A structural overview with key employees & any key relationships & partners, including both existing and future possibilities.
- A financial forecast which uses existing trends & evaluation of predictions & clear assumptions to display the projections of revenues, operating costs, cash flow, etc.
Startups are obligated to distinctively communicate the following to their investors:
- The overall valuation of the company.
- Amount of funds being raised & the source if applicable.
- The type of funding the dynamics associated with it.
- Use of funds, which should involve expanding the company, combining marketing, & selling capability, promoting product development, or comparable examples.
How to begin a startup?
- Build an innovative concept.
- Make a business plan.
- Develop a marketing plan.
- Secure Funding or investment for Your Startup.
- Make sure all legal steps are followed
- Establish a Location (physical or/and online).
- Build a customer base.
Brief on Do’s & Don’ts for startups.
- Don’t waste time, resources & energy on fancy & impressive strategies.
Adapt smart resource consumption & store this vitality when the real opportunity appears.
- Don’t follow a predefined track & don’t be afraid to accept & change things. Flexibility is your weapon.
You may create variations in your business without creating any confusion. Make sure to have defined principles for the company, that are not amended.
- Don’t replicate large companies.
Take inspiration from flexible bio-organisms – striving to live but growing every day. SMEs are great examples.
- Don’t stick to innovation. If you are innovative, it’s a great opportunity, but if you’re not it’s okay. Look for diversity instead. Realize what makes the product or service unique & invest in whatever makes you stand out of the competition.
- Don’t implement complex organizational structures.
Make a simple, working & nonexclusive organizational chart with a limited extent & depth. Rather, build an open environment & get maximum people you cooperate with.
- Don’t give fancy & glamorous titles to your employees which do not indicate reality.
Select moderate ones & create the prospect for personal development.
- Don’t repeatedly change your vision & strategy.
Every company claims to have one but only a few really adapt to it. Rather, it is wiser to clarify the business principles & support them through all business strategies.
- Don’t employ overqualified staff.
Invest more in other capabilities like enthusiasm, commitment, passion, ambition & hard work.
- Don’t set multiple unrealistic objectives. Don’t set a very high target, it usually leads to poor results.
Set a few easy, measurable & significant goals, which can be achieved with hard pressure.
- Don’t ignore the strength of the team you build.
Provide them with good software, that organizes their day-to-day tasks, measures productivity, provides CRM tools & Business Intelligence functionalities, exceptional teamwork online can also be achieved.
How can we help?
We have consultants that are experts in setting up your company hassle-free. Along with that we also provide financial consultation, business evaluation, accounting & bookkeeping services, corporate secretarial services, etc.
All services under one roof, just best for what a startup needs!