3 Dos And Don'ts Of Setting Up A Business in Dubai

Did you know that, on average, many new and small businesses fail within the first few years of launching? Although this may come as a surprise, it is a very normal phenomenon.

To put it in numbers, approximately 20 per cent of small and new business ideas fail within the first year and 30 per cent by the end of the second year. By the fifth year, almost half of the business would have failed- and by a decade, only 30 percent of the business would remain active. This accounts for, on average, a 70 per cent failure rate. While there are many strong reasons that cause startups to fail within the first few years of setting up a business, some tend to stand out the most. If you are planning to start a new business in Dubai, the city of opportunities, here are 08 common Dos and Don'ts you should be aware of.

The Dos

1. Research and Plan Thoroughly

While this has been emphasized enough, people don't do their homework enough before entering a market. This is especially true if you are an expat or non-citizen trying to introduce new business ideas to a foreign and competitive market like Dubai.

Start by understanding your target customers, what they want, who your key competitors are, what makes them special, and other cultural aspects that affect your product or service.

Once you have done the research, make sure to plan it properly with smart goals, strategies, and financial objectives. It is always good practice to get advice from professionals who are experts in the industry you want to enter.

There are also many professional companies that provide consultancy for new and emerging entrepreneurs with business setups in Dubai.

2. Focus On Legal Compliance

Aside from being a key contributor to an inefficient business setup in Dubai, failing to uphold legal compliance can actually lead to expensive fines and penalties. Starting from obtaining any necessary business permits or licenses to managing payroll with the WPS system in UAE, make sure every step of your business fulfils relevant legal obligations.

The best option here is to get professional legal consultants who can help with your new business ideas in Dubai. You can let them handle the legal part of your startup while you can focus on other key areas of promoting your concept.

Register your business and obtain any necessary permits or licenses. Consult with legal professionals to ensure compliance with local, state, and federal regulations.

3. Build a Strong Brand

Marketing and promotion have now almost become common buzzwords entrepreneurs use when discussing their new business ideas. However, the real concept of marketing requires a much more in-depth approach and understanding, which is often or most of the time the result of comprehensive research and testing.

It would not be wrong to say that in today's digital era, the right marketing is the deal breaker in setting up a successful business. The first image you give of your brand plays a crucial role in how far your business set up in Dubai can sustain itself.

Always ensure that the branding efforts distinguish your new business ideas and create a memorable yet impactful identity among targeted customers. A strong brand will always have a compelling value proposition and message that resonates well with customers.

Remember that Dubai is a diverse city with many nationalities and a high sensitivity to religious values, so make sure your branding acknowledges them thoroughly before making informed decisions.

The Don'ts

1. Neglect Financial Management

Overspending and not keeping track of your finances does more harm than good when you are setting up a business. Make sure you have the right team or professionals to help you with payroll and accounts. This will help you make informed decisions with your money and avoid spending beyond your means.

Most importantly, monitoring cash flows allows you to plan ahead with resource management and growth initiatives. Proper financial management also helps a new business set up in Dubai navigate uncertainties and risks in the market more effectively.

Analysing financial records and data helps identify spending patterns, pain points, strengths, and weaknesses, allowing you to make strategic adjustments accordingly. In worse cases, neglecting financial management can result in legal penalties, especially for noncompliance with the WPS system in Dubai.

2. Resist Innovation & Change

Change is the only thing that doesn't change, and if you don't, your customers will change you. This goes hard on having the ability to be adaptable and open to innovation. Showing resistance to change can put you way behind your competitors.

Nowadays customers look more for the experience in a brand than the product and service alone. Giving them this experience comes predominantly from the ability to embrace innovation.

Always remember that market conditions, trends, and customer preferences change rapidly. Especially in today's era of information demands that vary every now and then, and it is crucial to alter your strategy and make adjustments accordingly.

Aside from the customer perspective, innovation and change are equally important to improving organizational efficiency, reducing inaccuracies, and maintaining productivity. Employee engagement and retention also have a positive correlation with how your business embraces innovation.

3. Ignoring Feedback

Never ignore customer feedback, whether positive or negative. Feedback is an organic source of information that can help you make effective decisions. No amount of research can equal the first-hand input you get from your customers on your product or service.

Customer feedback also provides invaluable information about competitors, what motivates them to choose alternative products, and what keeps them loyal to your brand. Using this, you can identify areas in your business setup in Dubai that need improvement and those that need to be sustained.

Developing all your new business ideas and strategies using organic customer feedback can reduce the risks and uncertainties associated with your decision-making process. Feedback from mentors, partners, and advisors can also act as a learning opportunity to redefine your brand offering to better meet your target market's needs.

Setting Up A Business In Dubai Made Easy

When it comes to implementing your new business ideas remember there are no one-size fits all strategies or approaches. However, there is a standard set of Dos and Don'ts that can ensure you are heading the right way and mitigating all sensitive points effortlessly.

One of the best ways to establish a business setup in Dubai with minimum risks is to opt for pro services or enterprise solutions. These services have experts and legal professionals who can help you swiftly handle all the processes involved in setting up a business in Dubai effortlessly.

With Pro services, you will need to put in minimum effort for the setup and have more time to focus on other areas of branding and promoting your new business ideas.