When starting a business plan write-up, your initial thought might be: is it necessary to go through all that effort? As we may already know, writing a detailed business plan may seem like an intimidating task, especially when you struggle to articulate your thoughts, but the truth is, having a coherent business plan is an important requirement if you want to set up in the UAE.
However, other than fulfilling requirements, having a business plan for your start-up is practically your roadmap to success, it is a crucial tactic to access the feasibility of your business in the long run. We understand and acknowledge your apprehension in starting your business plan write-up so we’ve listed down a few know-hows on how you can simplify the process. But first, let’s look at why you need one.
Why do I need a business plan in the UAE?
Providing a business plan is a must if you want to acquire investments from a bank or a venture capital firm. It will help answer questions about the profitability and revenue generation of your business.
Securing the Funds:
Depending on your nationality, some free zones may require you to provide a business plan as per their requirements.
A Requirement Based on your Nationality:
The UAE has 40+ different free zones that you can set up to claim 100% ownership of your business, however, it is important to note that most of these zone’s requirements include a business plan.
To Set Up in Free Zones:
Now that we’ve clarified the importance of having a business plan, let’s now look at points we need to keep in mind before we start writing.
1. Does it reflect your company’s purpose?
First and foremost, your business design needs to explain what your company aims to achieve: your services, target audience, your position in the market – it needs to give investors and banks a clear indication that your ideas are feasible.
2. In-depth market research:
A common mistake done by budding entrepreneurs is failing to understand the market that they are planning to enter. Not showcasing good research and being unable to identify your strengths and weaknesses is a clear indication of a poor business plan, so make sure your write-up reflects your industry knowledge.
3. Costs and Finances:
Include realistic financial data and projections for the future. Avoid over-optimistic estimations as these will most likely be questioned by the investor or bank, that being said, don’t underestimate your profits and revenues as poor cash in-flows will decrease your chance of acquiring funding.
4. Follow the template:
This is especially important if you wish to enter into a specific free zone in the UAE. Most free zone websites already provide a business design template that you can download or fill in, regardless, make sure you provide all the information that they need from you.
If you’re still facing difficulties despite following our tips, we will be happy to provide you with any help that you may need. Feel free to contact us at firstname.lastname@example.org for more inquiries.