So you have a business idea and you want to transform it into a successful business venture in UAE? You need a sound business plan.
Planning your business properly is the first and foremost thing to do while setting up business in UAE. Entrepreneurs should establish goals and objectives of their business; have clear understanding of them and also set the direction that the business needs to follow.
Analyzing the risk before entering UAE market, marketing and financial planning as well as organizing the managerial structure of your business is one of the most important aspects before setting up a new company in Dubai or opening a branch of a company in a completely new environment.
What is A Business Plan for Your Company?
A plausible business plan for doing business in UAE contains a formalized set of business goals, the rationale behind their achievement and a plan on how to attain those goals. Typically a business plan includes company description, market analysis, marketing, sales and financial forecasts and managerial structure of organization.
Why Do You Need A Business Plan?
“He who fails to plan is planning to fail” – Winston Churchill
A business plan is the cornerstone around which business opportunities are measured, evaluated, articulated and resources allocated. A sound business plan is the key to secure funding. It places investors and management on the same page and be ready for action. If you are starting a new business in UAE, you need a clear assessment of every aspect of the business and show how you will achieve it.
A good business plan lets an entrepreneur answer the most basic yet important questions that help him put things in perspective. These questions include,
- Clarify your vision and decide whether or not to proceed with the idea.
- Determining if your product or service has an adequate market to support and whether or not it will be profitable.
- Provide an assessment of your start-up costs.
- What will be the source of funding?
- Convince investors and lenders to fund your business.
- Define your target market (who your customers will be) and what will be your marketing strategy to reach them.
- Analyze your position in the market by conducting a thorough analysis- Who are your competitors?
- What are their weaknesses and how you can take advantage of them?
- Define corporate goals, objectives and how to achieve those goals.
- An estimation of how long it will take the business to be profitable.
- Develop sound operational strategies which will help you make money from start.
- Measure the risk and anticipate potential problems you may encounter so that you solve them beforehand.
Who Will Read Your Business Plan?
There are two entities for which you prepare business plan i.e. external entities and internal entities.
External entities include,
- UAE government authorities in order to acquire business license for your company
- Potential lenders/investors in order to secure funding
Read More: Small Business Loan in UAE
External entities require a startup business plan in order to assess the potential and viability of your business idea and make certain that your plan is given considerable thought and effort.
Internal entities include potential partners, co-founders, management and employees who will be part of your vision and in attaining goals of your business.
Business plan is the most important communication tool
One of the most common question that banks, loan officers, investors, venture capitalists and angel investors often ask an entrepreneur in UAE – “Do you have a business plan?”
If your business plan does not meet their requirements or what they are used to, they will never invest in your business. So, business plan is not mere a document rather it is the most important communication tool for an entrepreneur to secure resources – whether it’s funding, key personnel or partners. A viable business plan will ensure your success by 50% and the rest of 50% will be achieved with proper execution and enhancement in the original plan from time to time.