The dream of small business ownership lures many people each year to open doors of new offices and shops. Unfortunately, according to statistics, two-thirds of new small businesses fail within the first two years, and by the fifth year, less than half of the remaining businesses are still open. If you have a great idea for small business, understanding how to set it up from the beginning can help you avoid the common pitfalls.
1. Contact the Dubai Economic Department to determine whether you need a business license for your type of business. If so, research the options and apply for one. In Dubai, there is no sales taxes for most of the product types. If you are going to sell tabacco or cigarettes, you will need to report your sales periodically and pay tax to the government.
2. Choose a business location. Whether you are going to lease a pre-built space or a temporary kiosk, it is important to choose a location that will provide for your needs. If your business will depend on walk-in street traffic, choose a location that is in a busy area. If your business will be primarily conducted on the telephone or through the mail or if you will be providing services to your customers in the field, you can look for a more out of-the-way location. In Dubai, utility bills are rarely included in the rental agreements.
However, nowadays some landlords offer up to six months of rent-free periods, because the oversupply with office and retail units is huge.
3. Hire an accountant who will be responsible for payroll, and other costs to running your business. Set up your in-store bookkeeping system with your accountant so you know how to keep things ready for him to use.
4. Purchase equipment. Obtain receipts for each piece of equipment you purchase so your accountant can properly deduct it from the budget. Don’t overbuy, but do be sure to purchase everything you will need to run the business from the day you open. For example if you are opening a business that rents landscaping equipment you want to be sure you have enough lawn mowers to get through the busy spring and summer seasons.
5. Contact suppliers that can provide your product inventory. Check their delivery, customer service, and return policies to be sure they will work well with your new business. Set up delivery dates and accounting deadlines. If you will make purchases on credit, set up a line of credit with each supplier.
6. Design and have business cards, stationery, and letterhead printed. Do the same for signage and pick it all up so it is usable before you open the doors. Be careful to choose logos and designs that you will be happy with for the long run. These things can be changed, but you want your customers to identify with your business name and look without having to get used to a different look.
7. Send notices announcing your opening day to everyone you know. The supermarkets notice board could the place to start. Neighbors, friends, businesses you support and others are all potential customers that should be contacted about your opening. Plan a grand opening. Advertise in local online publications and ask them to publish grand-opening photographs if you send them in.
