5 Tips to Lowering Your Startup Cost in Dubai

Having the minimum initial expenses and making your business thrive in the market is the dream of every entrepreneur. Starting a business that you’ve always been thinking of is good, but at the same time, it can soon become heavy on your pockets if you don’t do it wisely or not consider the financial aspect of it. No, we aren’t talking about not hiring the best talents but about saving every single dirham that’s not required while you’re just starting out.

Let’s say, getting a huge office while you’re still figuring out your PMF or buying all the fancy furniture that could be avoided otherwise or rented out.

Today, we will delve into the nitty-gritty of how to run a successful startup with minimal cost but at the same time maintaining standards better than the market. Here are five strategies for you to keep your startup finances healthy as they grow in Dubai.

1. Hire only those you need:

Ambitious business owners are often eager to build their teams quickly, ensuring they have all the right people in place from the beginning. However, labor costs can quickly escalate, especially when dealing with turnover, volatile revenue, and other growing pains of new businesses. When you’re just getting started, you will have to look for individuals who can wear multiple hats and get things done.

Now, you might be wondering about additional costs like electricity and such. Let’s put that aside for now because you’ll find office spaces in Dubai that include those expenses.It’s crucial to hire people who share your vision because the initial hires will set the tone for the teams to come.

Depending on your industry, in the initial days, you can outsource most of your work instead of hiring people full-time. For instance, for marketing, you can explore options such as freelancers or agencies. This approach not only gets the work done but also is easier on your pockets.

Choose the right business license based on your industry:

Choosing the wrong business setup license can become tricky and expensive if you don’t seek professional advice beforehand. Dubai offers two types of business setup: mainland and Freezone. Most startups prefer the latter due to lower initial setup costs and the ease of establishing operations without hassle. However, the choice depends on the nature of your business and its intended location.

The mainland setup provides the flexibility to conduct business both within and outside the UAE, whereas Freezone permits 100% foreign ownership, operates within designated zones, and allows repatriation of profits and capital.

Therefore, before obtaining your business license, it’s advisable to consult a business setup expert to determine the exact license you require. This step not only saves costs but also ensures you make the right decisions from the outset of your entrepreneurial journey.

3. Choose an office space with a lower price and more amenities:

Choosing the right office space can be tricky with numerous options scattered throughout the city. So, before starting on your search, it’s crucial to compile a list of essential features for your office.

Here’s a checklist we highly recommend:

• Prime Location:Opt for a location that offers a competitive advantage when meeting clients.
• Meeting Room Access:Availability of meeting rooms in various sizes tailored to your specific needs.
• Private Offices: Look for spaces that offer private offices suitable for 2-5 individuals
• Coworking Space: Access to a coworking area can foster collaboration and networking opportunities.
• Strong Wi-Fi: Reliable internet connectivity is a must for seamless operations.
• PantryHaving a pantry on-site adds convenience for breaks and refreshments.
• Parking Space:Adequate parking facilities for you and your team’s convenience.
• Content Production Studio:Access to a studio for content creation, particularly video production, can accelerate growth without the need for heavy investment.
• Community Atmosphere:Seek a space with a community of like-minded individuals for networking and support.
• Well-Equipped:Ensure the space is adequately furnished and equipped to meet your needs.

SAs you’re just starting out, it’s crucial to secure the best facilities within an affordable range. Finding office spaces with all these amenities can be challenging, but fortunately, we have a recommendation for you. At RAG, you’ll have access to all the amenities mentioned above. Book a tour with our office space experts today

4. Look for low-cost business software solutions:

As your workload and team grow, you’ll need more software tools. Stick to free or low-cost options to save money. AI-powered tools can handle repetitive tasks, and you get the CRM and bookkeeping tools built with it, so you can focus on more important things.

When picking software, make sure it works well with what you already use. Choose ones that can grow with your business without breaking the bank.

It’s tempting to get lots of different software, but too many can cause problems. Stick to versatile tools that do several things well.

5. Choose the service provider that has everything under one roof:

The process of setting up your business and meeting other requirements can increase over time, along with your expenses. This includes obtaining business licenses, securing visas for team members, setting up your bank account, and more. As your business grows, so will the requirements and documentation needed to ensure smooth operations in compliance with government policies and regulations.

Seek out a place that offers office spaces, business setup assistance, market research, and everything else you need to get started, all under one roof. This approach will save you time by avoiding the need to juggle between different service providers and can also reduce costs.

Whether you’re exploring options to establish your business, validate your business idea, or find office space, consider checking out RAG.

Ready to take the action?

IThe earliest stages of your business’s development are going to be the hardest, financially. Pay close attention to your business’s profitability and operating expenses during these early growth stages and make the most informed choices to help your business grow.

If you’re seeking expertise, particularly in the UAE, with business growth or startup strategies, reach out to our business experts.