How to save money during your first year as a startup

The first year of running your new business setup in Dubai can be both exciting and stressful. On the one hand, all the hard work you put in to obtain your business license in UAE and planning your launch has finally materialised. On the other hand, this next year is a crucial starting point that could make or break your business.  So how do you use this year to learn and problem solve whilst growing your revenues ad saving money to build your future success?

Practice patience. 

It is unlikely that you’ll turn a profit the first year after opening a business in UAE. It’s important to keep in mind that this first year of business is a learning curve. Your priorities should be learning what works and planning for a stable future for your business. You’ll be mastering skills like problem solving on-the-go, setting reasonable goals, assessing whether you’re meeting them, and evaluating how to do so. You’ll also need to identify sales targets, and analyse whether your marketing strategies are driving customer traffic, and if they’re not, examine what you need to do differently. 

Have an emergency fund. 

It’s hard to predict unexpected costs when opening a business in UAE, so it’s a good idea to have some funds set aside. A reserve for emergencies means that whilst unexpected costs might take you by surprise, or be a hassle, you won’t be unprepared. You never know when a computer might break down, or repairs might be needed to your office space. But with an emergency fund, you’re budgeting for possible expenditures as part of your larger business plan.

Make a budget. 

A clear budget that includes the cost of setting up a business in UAE as well as annual renewals allows you to visualise how money is moving in and out of your business. And there may be areas where you can save on costs. For example, there may be ways to cut back on utilities expenditures when they are not in use, or you could switch from paid computer software to open source software applications, which are both free and reliable. Always keep clear, organised, detailed accounts of all the money you spend and all the money your business draws in.

Outsource when you can. 

A great way to save money during your first year of business is to outsource work to independent contractors. You may not be in a position as yet to hire full-time team of in-house experts, but you’ll still need some basic business services, like marketing and proper accounting. This could be an opportunity to make the right move for your company and save money, without compromising on quality or professionalism. 

Go digital all the way. 

Office space is expensive, so it’s a great idea to cut back on this cost by creating a virtual office, which are quite versatile. You could contract out your organisational tasks to a freelance administrative assistant, or when you have meetings use teleconferencing, a meeting space venue, or video conferencing applications to meet with staff or clients. These options help to eliminate costs, such as staffing and leasing physical space, but still allow you to conduct all business operations flexibly. 

If you’re thinking of starting a business in UAE, Check Decisive Zone- the leading business setup consultants in Dubai- www.decisivezone.ae. Contact them at [email protected] or +971 4 584 7332 to begin your entrepreneurship journey.