10 Key Steps To Building A Business Plan UAE Dubai
Starting a business in UAE can seem like a daunting task, thinking of all the things to be done initially before launch. But this process of launching a new business in Dubai or any other Emirate can be streamlined by following a business plan, put on paper. Having a clear vision and plan of action helps you to determine what has to be done and also, you will be able to set goals or targets.
Becoming an entrepreneur entails having a dream, a clear plan of action, discipline and a plan B if plan A fails.
So before you start a business in Dubai, have a business plan in place. Business plan is a clear and concise layout for your business.
So now the big question is, how to build a business plan?
The folks at Washington State University have created an infographic namely ‘ 10 Keys To A Successful Business Plan‘ which outlines the steps you need to take in preparing a business plan.
10 Steps To A Successful Busines Plan:
#1. Identify The Purpose Of Your Business
Before you can take any step, determine what is that your business will fulfill or what kind of problem your business will solve. If you are not clear about what kind of product or service you will provide, then you are planning to navigate without a compass. Rethink, modify and make things as clear as possible. This will help you to focus your energy and investment toward one goal. Determine your niche market. What is it that you want to fulfill, which gap are you going to plug?
Lets take for example, you are going to start a Personal protective equipment (PPE) trading company in UAE. Your purpose would be to fulfill the PPE requirements of companies.
#2. How You Will Do It?
If the first point was about ‘what’, this is about how? Define how you will serve the market. If others are already serving the same market, how will you gain an edge? In what way you will do things differently? How will you better your service than others?
Now you can either import PPE directly from the main manufacturers of PPE Like Canasafe, 3M or you can procure from local third parties. Also you can mix and match. Import some and procure locally some. Either ways, you need to have a clear understanding of how you will go about your business.
#3. Determine Your Strengths
I believe this is one of the most important factors in a Business Plan. You can boost your chances of getting required finance to start your business by clearly defining your strengths, how you stand out from crowd and how your business will strive to become the best in the niche. A clear business plan will greatly increase your chances of securing investment capital from banks and other venture capitalists.
Also, analyse the strengths and weaknesses of your competitors. This will help you to better customize your products or service.
Personal protective equipment trading is highly competitve in UAE. For example, one of your strengths could be to gain an exclusive distributorship of a particular branded product which is much in demand. This will definitely put your business in a strategic position.
#4. Your Management Team
If you are the leader, then you need people who can complement your efforts toward that one particular goal. Decide who will be on your management team and if you do not already have your team in place, define what kind of people will fit each role and what would be their value add to your business.
#5. Analyse Market In General
Well, if you going to sell something, then you better know your market. Taking out example, you need to analyse the PPE requirement of different types of companies. The What oil companys’ PPE needs could be different from a construction company. Again you need to determine, which niche market you will tap. Whether you will only deal in safety vests or become jack of all trades and deal with all PPE items. Try to analyse how big is market, the growth trend and the potential of your business becoming profitable.
#6. Know Your Niche Market
If the market is very big and product range is very wide, then it is better to specialize in few products. Knowing a few products in and out and specializing in logistics and quality service can put you ahead of the crowd. You need to have clear marketing strategies to tap that niche market.
For example, if you want to trade in safety shoes only, then you need to determine what brands of safety shoes are available in the local market, which kind of safety shoes companies usually prefer, whether there are customers for high end shoes, import Vs local procurement trade off and so on.
#7. Your Promotional Strategies
Initial years of business are hard. You have to make your presence known and also you need to convince potential customers to give you business. So you need to put on paper in what way you will promote your business venture. You can have print media, advertisements, a website, a Facebook page.
#8. Your Business Expenses and Revenue
A viable business plan is one which has potential of making profits and also which can expand and grow over the years. So you need to have clear written pricing strategies, your probable fixed and variable costs, margins and revenue potential.
#9. Budget Your Investment Requirements
If you have been following the above steps, you will have a fair idea about your finance requirements to start your business. If the initial investment is low, then you can think of using your own funds, ask friends and family but if the initial investment is very high, then you need to approach financial institutions and venture capitalists.
Banks and other financial institution will be ready to lend only if you have a legitimate business plan in place with clearly defined vision, mission, strategies and plan of action.
Predicting sales and expenses in real terms before launching a business is tough but if you know your fixed expenses, then you can have a fair idea about how much you need to make with how much margin to break-even.
Prepare For Contingencies:
However full-proof your business plan maybe, its in your best interest to prepare for contingencies. Always have a plan B and C and a plan D. A prepared mind to face problems will help you to immediately shift gears and take a new course in a different direction.