While being in this pandemic and uncertain situation, everything is getting altered, now it’s time to save more money. Many of us have lost our jobs, businesses are not gaining profits, markets are shut down, etc. but if you desire to start your own business, then this is the time you can go for it. 

When it comes to business, every individual makes some mistakes, but you have to handle it before it’s too late. Opting for a local investment plans provider, not having an emergency fund can be a few slip-ups to raise investment problems.

Investing in overseas businesses can be a more formidable task as we don’t know much about the country and the market, right? Worry not, if you are planning to commence a business in Dubai, then we can help you out! 

No wonder Dubai is attracting the eye of business investors since it started to show its economic stability in the global market. Dubai is one of the most excellent business hubs around the globe. Dubai market is one of the largest with 1.5 billion people in neighbouring countries like the Middle East, and gulf, America, Africa and Europe. There’s a phenomenal rate of 11% growth in the economy to date. So, yes, it’s the perfect idea to start your business and gain huge profits.

You might be thinking of several financial resolutions, but, these monetary goals are challenging to handle, right?

 Let us highlight you some pitfalls you can avoid while making investments in Dubai:

1. Acquiring chaotic advice

Well, there are still too many financial advisors in Dubai who give tubulated bits of information which are preying on innocent people, so be aware of them. These advisors drive products that might profit them but will be a loss for you. 

If you know in Dubai, foreigners can have ownership rights of up to 49% in the case of Limited Liabilities Company and 100% for professional companies, branches, and free zone companies. So, while commencing a business in Dubai, one should understand the ownership rules which can be explained by an ideal business solution provider.

Always, look for an adviser who works legally and charges a fee for their time. Avoid the one who receives a commission from selling financial products which is adequately an agent for a product provider. 

2. Investing in something you don’t comprise

Many experts advise that you should only spend your hard-earned money if you understand and believe it’s worthy of funding.

If you are earning a decent salary or acquiring profit in business, then you can afford the sky-high rentals in specific locations which are charged at a premium rate. For example, washing would cost hardly AED 5 in some places like Deira or Karama, and the same would cost up to AED50 in Downtown.

So, don’t prefer other people’s choices; it can only lead to your losses. While dealing with overwhelming investment schemes in the market, listen to them, but make sure you do your research and invest based on your risk appetite.

3. Not building up an emergency cash account

There aren’t many drizzly days in the UAE, but you still need to save for them, just in case. You need to keep the equivalent of 3 to 6 months’ spending in savings accounts for an emergency.

Think about what sickness or unemployment would do to your finances? If you save up those expenses for years, you don’t need to withdraw from a trading account. There are a few banks like Emirates Islamic’s E-Savings Account, which requires no minimum balance to open the account but can give up to a 2% annual return and Emirates NBD’s Mudaraba Savings Account requires an AED 3,000 minimum balance to be maintained. You can gain up to 1.35% profit if the balance is maintained.

4. Living in an unsustainable lifestyle

It is obvious to get carried away with lavish cars and shopping trips to the malls, but don’t you think you must keep some salary in reserve?

When you gain enormous profits in business, you feel the immediate need to upgrade their way of life. From purchasing an upscale new car to designer clothes, most to ‘keep up’ and carry on with a way of life they perceive as a merit of their business and salary. 

Avoid it, as this is a substantial financial lapse. It will reduce one’s potential to keep producing more wealth.

5. Not having a substantial budget

If you urge a stable budget and an accurate financial plan-of-action, it empowers you to be accountable for how and where you spend your cash. Many individuals and business owners who drift through life with restrictions, end up with losing cash control. So, it is imperative to first plan out a compact structure and a proper budget for how one will go about managing the cash.

Sticking around the financial resolution is a more arduous task. Well, if you are firm enough to brood a money resolution, make sure you go on the right track. The best way to commence a business is to make smarter investment decisions and avoid the mistakes we have been making or seen somebody doing it. Everyone’s spending spreadsheets and goals are different, and the only common thing might be how they handle.  

Here, you don’t have to worry!

EBS offers complete consultation and company formation services in Dubai. Our highly skilled team understands today’s Dubai market and provides you with a relevant solution. Our primary values include loyalty, transparency, availability and customer satisfaction. Regarding our all in one service, our vision is to make our team more understandable and professional in day to day life. We have a team of CA, Accountants, tax consultants and many other team members who help the small to medium to prominent entrepreneurs or business owners to achieve the peak of their business and attain profitability. 

To know more, visit: https://www.ebsae.com/

If you have some thoughts on how to avoid such financial mistakes, you can drop it in the comment box.