In war (and business) it’s the terrain that matters. Sun Tzu’s old adage rings as true today as it did millennia ago. Failure to acknowledge the true need of your product or service in an unfamiliar market landscape is a surefire way to take a loss. It is all too common for start-ups in the UAE to fall short when it comes to market study, budget evaluation and calculating rainy day reserves. It’s essential to clearly assess the competition and their pricing as well the dynamics of your new selected market.

Knowing the laws of the land

Jupiter Business Mentors(JBM)’s licensing and regulatory expert, Richa Bhagnari, goes further, suggesting that, “within the GCC as a whole, it’s essential to carry out a market feasibility study whilst considering the various parameters to ensure sustainability – make sure to chart the cost of starting up and running a business against its potential to grow. It’s also crucial to evaluate the strength of your USP (unique selling proposition) and consider whether it’s enough to hold on to a large enough stake of the market share for survival and expansion.”

Taco Bell’s swift retreat from the UAE is a great example of inadequate local market research. Counterproductive outlet spots and a lack of cultural insight, tied in with an unappealing USP, saw the American fast food giant close its doors in The Dubai Mall after only 4 years. 

Knowing the laws of the land

The UAE’s improvement in the World Bank’s Ease of Doing Business 2020 index, currently ranked 16th, shows the success of efforts making it easier for fledgling businesses to start out. However, the hidden costs and complexity of requirements can soon dampen one’s enthusiasm.

Before entering into a new market and registering your business, it is of vital importance that you have fully considered all of the options available within the UAE, and where exactly to establish your business.  In order to assess which option suits you best, consider the following:

• The structure of your business (Sole Proprietorship, LLC, Partnership, etc.)
• Your business activities
• The number of visas you require
• Whether or not office space is necessary or if your staff can work remotely.

JBM’s company formation expert Edwin Cabanero Duria recommends engaging with reliable consultants, suggesting that “deciding on the right license for you without the right guidance and expertise can be expensive and ultimately fatal to your business. Only after receiving this can you start to get a realistic idea of what your options are. Then you can begin to budget accordingly.”

A common mistake that you can easily avoid

Edwin warns that, “over the past decade the most common mistake I see newly established companies make is being far too aggressive with offers and promotions, especially those advertised on social media platforms. More often than not, cheap doesn’t mean the best, and higher discounts doesn’t mean its the cheapest. In order to avoid hidden pitfalls and have all your options made clear to you when starting out in the UAE, I recommend utilizing trusted and reliable consultants.”

For detailed and professional advice on the procedures involved in starting a business and registering for a license in the UAE, contact our platform mentors. Take advantage of your three 1-2-1 mentor sessions of 30 minutes duration each with those that know the landscape best! 

To book a FREE spot with Richa Bhagnari
To book a FREE spot with Edwin Cabanero Duria