Entrepreneurs need to educate themselves. Business owners in the UAE can avoid failure and create a stable future financially by learning the basic skills of running a startup. This includes drafting financial statements, doing simple accounting and audit tasks, and applying for a business loan.
Tips to manage startup finances in UAE
To help you stay on top of all financial business matters, we’ve compiled a couple of things that you need to do. Read on.
1. Invest in the growth of the startup
Set aside some money for the growth opportunities for your startup. It will not only allow your business is thrive in UAE’s competitive markets but also allow you to move in a much healthier financial direction.
A startup that plans on continuing its growth, attracting the best employees, and innovating is to demonstrate that they’re ready and willing to invest in the future. Customers appreciate an increased level of customer service. As for employees, they appreciate employers investing in the company. Ultimately, you’ll create more value when you invest in growth for your business compared to if you were to spend all your profits on personal matters.
2. Develop a strategy for financial growth
Although you might think a business plan will be enough to support the growth of your startup in Dubai or anywhere in the UAE, you should also start considering creating a strategy for financial growth. It will help your business grow as you define your aims and the individual steps that you’ll take towards achieving them.
The strategy you take on for your startup’s financial growth should include potential funding and investment opportunities, how to maintain startup cash flow, and how to react to the current global trends and economy. You would also have to consider a time scale wherein you expect the financial growth to occur, and the risks with the financial growth.
3. Look closely at the business structure
When you’re planning the growth of your startup in the UAE, it’s also important to rethink the structure of the business. Also, consider the benefits it has on your business. The business structure you pick will not only boost your business’ efficiency but also change the way losses are being offset against the business. If you ask us what the best business structure is for your business, it will depend on your specific circumstances. We would advise you to consult with experts on business setup in Dubai, UAE if you’re unsure of the option that’s right for you.
Read also: Sustain Business Growth in UAE
4. Consider private equity
When startups in the country start to grow, a lot of business owners search for investment opportunities that can help them in growing returns. Investment opportunities provide large amounts of funding. One of your best options is private equity, most especially if you are solely interested in garnering high returns.
The significant investments which stakeholders make typically drive them in helping businesses that they’ve invested in to grow and excel. This is why a lot of startups in AUE look for private equity deals, most especially when they’re having trouble staying afloat due to financial issues. to ensure that you’re able to manage the stakeholders and maintain some sort of control over the startup, you should consider employing an administration company for a private equity fund. This is to reassure the investors and also to allow you in focusing on running your business operations while business experts produce the necessary financial statements.
5. Don’t be scared of business loans
Taking a business loan can be very tricky and scary for most owners of small businesses. They lead to worry regarding financial repercussions which accompany failure. But, without an influx of capital that you obtain from a business loan, your business may face critical challenges when trying to keep up with the business demand and grow your team. A business loan can also help in boosting cash flow. This means you will be facing fewer issues when you pay suppliers and your employees.
6. Monitor the books
This one is pretty obvious. Do your best to set aside time every single day or week to review and monitoring your books. This is even when you are working with an accountant or bookkeeper. This will allow you to become a lot more familiar with your business finances. In addition, you will also prevent potential financial crimes committed by accountants.
Do not neglect to spend time each month reviewing bank reconciliations and outstanding invoices. Failing to do so, most especially when there is a bookkeeper or financial professional that is involved, will open up your business to embezzlement or wasteful spending.
7. Plan ahead
With running a startup in UAE, there’s always an issue that comes up. For financial issues, you have to plan ahead so you know exactly what to do when faced with business troubles. Look five to ten years ahead, so you are also not running behind the competition.
For more information on business setup in UAE, call us here in FAR Consulting Middle East today!