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Knowing how to assess business startup costs is very important. It helps you decide on the location, finalize the type of license to obtain and set a budget for marketing strategies. It is advisable to consider the first six to 12 months for the calculation.
The UAE is a favorite destination for investors who want to start a new business. If your prime focus is a free zone, be clear that each zone differs in start-up procedures and fees. Most free zones also demand a minimum capital.
There are commercial, professional and industrial licenses, and the amount you need to spend on a license depends on the nature of your business. Insurance and professional fees for legal and accounting services also add to the cost.
Another is the cost of sponsoring employees, initial employee salary and benefits, visas and accommodation. Apart from these, you have to spend for registration, legal documents and administrative services.
You also need to calculate the expenditures for computer hardware, software, Internet access, website development, security measures and IT consulting. Administrative costs for parking, rent, utilities, office supplies and furniture should also be considered. Plus, the professional charges for market research, business planning and advertisements. Also include the sales and promotion charges in the list. If your business demands trading, then consider the fees for importing.
Knowing all these will set you on the right track.
Handy Hints on How to assess Business Startup Costs
• Startup costs differ in free zones and mainland
• Include in the calculation licensing, insurance, etc.
• Costs depend on the location and business type
Source: Asha Das, Special to Classifieds
The writer is a freelancer