Business setup Have you been planning on launching a new business but uncertain about how to get started? Writing a business plan should be the first step of your entrepreneurial journey as it will help you organise your thoughts and see the big picture clearer. You may think that many business owners have succeeded even after not writing or following a business plan. Thanks to extraordinary business skills, entrepreneurial drive, solid timing, and little luck, some might have thrived without any business plan. However, the odds of failure are undoubtedly greater for them.
Does having a business plan ensure success for startups under all circumstances? Obviously no! But great plans have the potential to make a difference. This post will help you create a futuristic business plan for your Dubai based startup that will optimise your organisation’s vision and formulate its goals. So, keep reading to make the first step right in your entrepreneurial journey in UAE.
Reasons to Create a Business Plan for Dubai Based Operations
The World Bank has recently conducted a study with 190 nations to understand which country is most suitable for running a business. According to that list, UAE has acquired 21st rank for ease of doing business. However, UAE has fallen behind in the list of ease of starting a business. UAE’s 51st rank in ease of starting business indicates that business setup in Dubai can be a challenging job. But once started, running and managing its operations will be a cakewalk. The below reasons will help you understand why having a business plan is a must to start a company in Dubai:
- To Get Initial Funding: Acquiring funds is essential to start any business in any country. UAE is not an exception. You must provide a business plan to your potential investors in order to convince them and acquire funds.
- To Keep Up with Free Zone or Industry Requirements: The governing authority of UAE allows entrepreneurs to form companies in the different free zones of the nation. However, each free zone has specific requirements that you must fulfil to become eligible to open your company. You must have a business plan in the first place to get qualified for starting a business in most of these free zones.
- Owner’s Nationality Matters: Many free zones in Dubai require entrepreneurs from a few countries to submit a well-described business plan as a criterion of their application.
Tips to Write a Business Plan Right
You might have already written several business plans in the past but optimising a strategy specifically for the UAE is different compared to other countries. If you want to get the license to launch your startup in the emerging financial hub of the globe, make sure your business plan is a product of diligent research. Keeping the below tips in mind will help you tailor your business plan for Dubai, UAE.
- Through your business plan, you must convince the authority that the operations you have proposed are legal under the jurisdiction of commercial laws and regulations, aligned with your targeted free zone requirements, and in line with your business mission and vision.
- Creating a business plan for Dubai requires more research-based detailing than in other countries. We recommend conducting market research or gathering data from reliable sources before writing the plan. Market research reports and data will empower you to support the value proposition you are promising.
- Kindly note that you can’t submit a generic business plan in Dubai. Instead, you must optimise your document for a specific audience and define your purposes precisely.
- Consider adding honest financial data of your company in your plan. Don’t be tempted to show an over-optimistic estimation in the future projection section.
- Every free zone in the UAE provides a template that includes the information titles needed from entrepreneurs. These templates could either be online forms or downloadable word documents that you can edit and submit. We recommend sticking to that format while writing a business plan.
Do You Always Need a Business Plan in Dubai for Your Startup?
The answer to this question depends on two factors:
- Nature of your business
- The free zone you have targeted for your business operations
The below 3-point analysis will help you understand which situations you must provide so that your business plan can get approval.
- As already mentioned, providing a business plan is compulsory to start a business in Dubai’s certain free zones. Take Ras Al Khaimah Economic Zone (RAKEZ), for example. Providing a plan is a part of their online application process.
- Some free zones in Dubai ask for business plans for certain operations. For instance, you must submit a business plan in Dubai Multi Commodities Centre (DMCC) for education and health-oriented business models.
- Sensitive nationality status also plays a critical role in deciding whether submitting a business plan along with your application is a must or not. Dubai South Free Zone asks entrepreneurs of certain nationalities to submit a plan based on their requested license activity.
We recommend carefully checking the application criteria for your chosen free zone to understand whether or not you need a business plan.
Craft an Expert-Vetted Business Plan with us
We hope this post will help you create a business plan for your startup in Dubai. We would also like to add that writing a business plan is the first step toward business setup in Sharjah, Dubai, or other cities in the UAE. Therefore, you must take prudent measures while writing your business plan.
Consider seeking assistance from top business setup services in Dubai if you are still not confident about it. ebs can help you. We are a full-service financial and business solution company offering business setup services. Our hand-holding support will help you create a perfect business plan that will make all the difference. Contact us now to discuss your startup ideas.