Many organizations / entrepreneurs are started their businesses in different countries because they were a lifelong dream of a Business. There a few who start a company in a desperate bid to make some money. Whatever the reasons are, you must keep in mind that it will take a bit of cash before you can begin to make money. And there is more to a company than furnishings and office space. Especially in the initial stages, startup costs require careful planning and meticulous accounting.
If you are like most new business owners, you probably took the risk of starting your own business because it’s a lifelong dream or desire. The thing is, most company owners often forget that it takes money to make money- especially when you are just starting out. There are many overlooked costs. There are a few expenses that are obvious, like your salary or equipment to produce your products, but there is a lot of amounts involved with commencing and running a business.
Here are a few costs that you must consider before establishing your venture.
- Research Expenses
Before setting up a company, you must conduct careful research into the business industry you want to enter. While there are a few who hire a market research firm, you can conduct your own market research through phone, email, survey etc. even though it comes with a cost, you will get proper numbers to schedule your future plans
2. Business Setup Cost
Registration of a business is necessary before official conducting the operations. You need to decide the type of business activity, corporate structure, register trade name, register business and get the Certificate of Incorporation and then a Business License. You can either do it by yourself or hire a business consultant who can do it for you. Emaraat Business Consultant is a platform that helps entrepreneurs like you start your new business in Dubai and can make the incorporation process hassle-free.
3. Product Development Cost
If you are building a product, then you are going to have invested in putting together an accomplished commodity and design team in order to build, iterate, and continuously improve the product. In many cases, this will include the cost of designing, engineering, and manufacturing product, which can be costly. However, you can minimize these costs as per business requirements and strategies.
4. Taxes
Your yearly taxes will depend on the type of structure that you select. In case of Dubai, if you start your own business in any free zone of Dubai or any other state of UAE, many taxation costs are avoidable with different prospects and different rules and regulations with different costs of setting up a business. Each country has its own policy, and if and when you start a business, you must study the guidelines to avoid paying additional and unnecessary.
5. Employee/New staff Expenses
If you want to grow your company, then you must hire employees. You need to plan in advance on expenses incurable like wages, salaries, benefits, as well as advertising, training, hiring. Just the procedure of posting a job and going over cover letters adds up when you factor in time cost. This is also important step of any company to hire their trusted and capable staff as their assets. There are different steps to process staff working visa in different countries and different state of any one country.
6. Technological Expenses
The technical expenses can include the cost of purchasing a domain and host, building your website, information systems, internet fees, computers, and software such as payroll and accounting systems for running the business in proper line and in specific system. You may finalize to outsource these functions to other businesses or freelancer to save cost, but if you decide to do this on your own there are cheap software available in market.
7. Trademark
Filing a trademark for your business production will protect your brand and prevent others from stealing or copying your name and invention. Trademark registration comes with a cost, and it must be renewed after a certain point. Even though there is a cost involves, for a longer duration your product is protected and will not be royalty-free
8. Office Space
For a freelancer, working from home is not a problem. However, depending on a particular business. There may be zoning and other guidelines that might include you to have something more official. Before buying or renting a workspace for your business, think about how much space you need currently and what you’ll need as your company grows. You should also think about the area of the company. For example, if you’re in retail, then you’ll need something that is easy for consumers to find it all time.
CONCLUSION / SUGGESTION
Establishing your new company is so invigorating and interesting that it’s easy to neglect the details. These can quickly lead to your business failing. But, you simply can’t afford to ignore those details, like the costs listed above. Moreover, you should also discuss with others who have travelled this road before. They can share with you the mistakes and successes that they made along the way.
If you have decided to start a business, then we at ‘’Emaraat Business Consultant’’ can help you in providing services like business incorporation, visas, PRO, Business license, Local Sponsor, Document Attestation & translation, sponsoring your families, office space, bank account opening, marketing of your business in the United Arab Emirates. Contact us today- we’ll be happy to assist you in your all business & residential problems in Dubai and all over the UAE any time with our great, sincerity and hard efforts.
Your personal professional Business Setup Advisor;
”Mr.Arslan Rashid & Mrs. Saman Arslan’‘
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