Low cost is not something that enters one’s mind when he thinks about establishing a business in UAE because the skyscrapers, explicit architecture, and living standards in Dubai send a completely opposite message.
However, UAE is not only a glimmer and big budget. There are different proven strategies that can help you reduce your business’s operational costs, if implemented in the right way.
Dubai, in a very short period of time has become a center of attraction for starting up businesses because of its countless opportunities for new companies to grow and establish their setups in the market.
Any company aiming to establish in the UAE surely has a vision and strategic plans because running a business there has never been a piece of cake, especially in a place like Dubai. Â
Whether you’re a new startup or an established company, reducing operational costs can significantly increase your bottom line. In this article, we’ll explore some proven strategies, including how to reduce telecom costs in UAE, cost reduction strategies in UAE construction, and more.
1. Look out for free zones
Free zones can be a home for low cost business setup because of its affordable license policies, visa costs, tax exemption etc. Running a business needs space for an office which requires a good amount of budget that becomes a problem for low cost buisnesses but in the free zones you do not have to worry about the expenses.Â
To reduce the operational cost of business in UAE, free zones are benefiting from 0% tax exemption, the ability to spread their business in all other states and zero currency restrictions.
Some prominent free zones include:
- Dubai 1 Central
- Dubai Media City
- Dubai Airport Free Zone
Free zones are ideal for businesses looking to reduce building cost in UAE by minimizing office space expenses, as these zones often provide affordable infrastructure with access to international markets.
2. Promote remote working
Digital revolution has been transforming the conventional ways of running a business. It has provided easy and quick ways to communicate and operate that can help to reduce the business operational cost.Â
With the shrinking of hardware technology there is no longer need for a large infrastructure for offices where you have to invest on a large scale.
The implementation of cloud based technology provides you with so many options that give you the power to access the company systems via a variety of devices, conduct meetings, sell and advertise your products, search for different ideas from other established firms and companies.
Pros of remote working
- Increase autonomy
- Cost saving
- Save time and infrastructure
Cons of remote working
- Difficult to stay motivated
- Sedentary lifestyle
- Management challengesÂ
3. Reduce supply expenses
Another key area to focus on is supply costs. Whether you’re purchasing office supplies, raw materials, or manufacturing components, always look for better deals. Avoid unnecessary purchases and prioritize spending on items that directly contribute to revenue generation.
Additionally, businesses can benefit from switching to modern tools that streamline operations and reduce costs, such as digital collaboration tools, project management software, and automation systems. These tools can help reduce reliance on physical resources, further driving down operational costs.
4. Switch to modern tools and find your niche
You do not need to travel in order to attend a meeting with your business partners, that surely is not going to reduce your operational costs for business in UAE.
You can now have a detailed conversation, discuss ideas and projects with many people at once just by getting your hold on the modern tools such as zoom and skype meeting. You can also explore and learn different strategies of many successful entrepreneurs just by one click that in turn can help you focus on your business goal more efficiently.
5. Hire an accountant
An accountant is a person who sorts out all your financial planning that is needed to run your setup. From planning a business to the formation of the company, and from government audits to paying taxes,it is only a qualified accountant who can handle these things professionally. So hiring an accountant can run up your firm smoothly and can help you to reduce the operational cost for business in UAE by consuming time and keeping the company safe from any major loss.
6. Hire interns
Hiring interns at the beginning of your setup is another useful strategy to reduce the operational cost of business in UAE.Â
Interns are paid comparatively less than the standard worker employee while still executing the same level of work as an experienced person, another cherry on the top for hiring interns is when they are done with their training they can be hired in the first hand without paying any additional costs on training programs for new applicants as they will be already familiar with the job.
7. Sponsor Events to Minimize Costs
If hosting a business event is essential for networking or brand-building, consider seeking sponsorships. Sponsorships can help you cover a significant portion of event expenses in exchange for advertising and promotional opportunities. This strategy is particularly beneficial in the UAE, where business events and gatherings play a crucial role in creating business connections.
8. Regularly Review Expenses to Stay on Track
Continuously reviewing your business expenses is vital for maintaining financial health. Keep track of your finances, and hire a professional to help you manage your accounts. This will give you a clear picture of your financial standing and highlight areas where you can cut back on unnecessary spending.
By consistently monitoring and analyzing your expenses, you’ll be better equipped to identify potential savings and make more informed decisions that benefit your business’s financial health.
FAQs
Never compromise on your product quality, use modern advertisement strategies, get in touch with already established firms.
With growing business revenues also increases, so it is important to maximize your profit by keeping a strict eye on your business operational costs. For a business to grow, the foremost concern is to control the budget by making weekly or monthly plans and follow them strictly
- Improve demand forecasting
- Re evaluate your assets
- Find less expensive suppliersÂ
- Outsource some of your company tasks
Advertising through social media platforms can help you to gain more audience at lower cost as compared to the old outdated advertisement ways which are costly and time consuming. Modern marketing strategies can reduce the operational cost of business in UAE.
- having sales with negligible profits
- Investing too much in the office infrastructur
- Hiring more staff more than the requirement
- poor management of revenue
- Investing too much on advertisement while selling compromised
- Quality in the market
