What are some ways to start a business?

Answer 1

"Before starting a business, an entrepreneur should be fully prepared. Hence, the following steps have to be taken before your venture can actually start doing business:

1. Conduct a Market Research:

The first step should be to conduct a market research. This will help determine the potential for your business idea to succeed and enable you to conduct the second step. The market research should answer questions that need to be addressed and accounted for to ensure business success. In order to answer these questions, you may either employ primary researches through focus groups or surveys, or conduct a secondary research by studying published researches and materials. Some of the questions that the research should address are:

· Is there a need for the product/ service your business plans to offer?

· Who is the target market?

· Are there existing players offering the same services/ products?

· What are the current players offerings, how are they performing and how are they going about doing this (Business Model)?

· Is there space for new players?

2. Create a Business Plan

Creating a business plan will provide a sense of direction to make your business idea a reality. The business plan should be a blue print of your businesses venture from a start up phase to and established business. The following must be covered in the plan.

· Current Market Outlook

· About the business and services provided

· Business model

· Unique Selling Proposition

· Target Market

· Marketing Plan

· Source of Funding

· Projected sales and financials

3. Choose a Business Structure

Once, you have a clear path for your business developed in the form of a business plan, it is time to select the business structure you wish to employ. In the UAE, the two major business structures to choose from are a Mainland company (LLC) and a free zone company. Choosing between them will depend on your target market and the ownership structure you prefer. This will impact factors like your business name, jurisdiction you are allowed to operate in, your liability and how you file for VAT.

4. Pick and register your business name

This an area where you can flex your creative muscles. The name of your business is how your customers will identify your company and its products and services. Hence, it is important to make sure to select a name that is not only socially acceptable or catchy, but also represents your business/ brand and the products and services it offers. Also, make sure the name is unique, at least in your business activities space, so as to not contradict with any existing businesses.

5. Apply for the required licenses and permits

For your business to be identified as a legal entity it is important for your company to have the proper licenses and permits from local governing bodies. In the UAE, this will depend on the company structure you choose for your business. A mainland company will need to apply for a license from the economic department of the Emirate you wish to set up in (Dubai – DED). Depending on the business activity you may need approvals from other third-party governing bodies (DHA, HAAD, KHDA, RERA, Civil Defense etc.). Free Zone establishments usually do not need approvals from external bodies they can apply for a business license from the free zone authority where they wish to establish their company.

6. Set up your operation

Once, you have a plan of action, the funding required and the license/ permits required for the business you can set up operations. In the UAE while setting up a mainland company, you usually need have a rental agreement before applying for a business license. You will need to prepare your location, equipment and overall set up required for your business to start operations. This includes acquiring assets that will be required for business operations.

7. Hire and train your team

You can choose to ignore this step if you wish to work on the business alone. However, if you wish to employ a staff, this is the time to create positions and job roles required for the business functioning and fill these positions with capable resources. These resources should be trained if required to improve the businesses efficiency and effectiveness.

8. Promote the business

Once your business is up and running you need to start acquiring clients. You can follow the strategies you may have created in your business plan and additionally add on to it depending on the current market situation and market trends.

If you need help with setting up your new business in the UAE you can approach a business consultant who can guide and assist you through the above steps. We at Centurion Consulting LLC, a Dubai based company in the UAE, offer various advisory services like Business Consulting and Restructuring, Market Research, Feasibility study, Business Plan with an investor deck, Market entry strategy, Regulatory compliance study, Financial modelling and more for SME’s and Start-ups in the MENA region.