Late Bloomers for UAE Startups

My former colleague, 50+ years old, who is currently working in one of the leading aluminum companies in the United Arab Emirates (UAE) asked me about a good business idea as he has been preparing for early retirement for some years already -- not in the Philippines but in the UAE.

His family members are all here. His wife who has been suffering from cancer for few years has received a very good medical treatment as one of company benefits through its accredited health insurance outfit. (Prayers for her... I bought my second-hand Toyota Corolla from her in 1990's.) His sons, daughter-in-law and granddaughter are enjoying their lives here which they consider as their second home, so for now he cannot see himself going back to the Philippines very soon. He and his sons each managed to invest in properties in our home country so they all have places to stay in when they decide to return back for good.

I asked him about his passion as it is better to invest in a business where your heart is, because in trying times you will move heaven and earth to keep it breathing, and by God's grace if you can pass the 5-year mark then you can continue it or maybe transfer to the children or sell it.

Things seem bright as there will be a new residency visa rule in the UAE that will be implemented this year.  It will allow investors to enjoy 10-year residency visa here and hopefully there will be more good news to be announced later. The good thing is family members of investors can also have the same 10-year residency visa. The family which is the basic institution of the society will be preserved, and absolutely this will help achieve the happiness goal of the government, not to mention the contribution to economy because of their consumption of local products and services.

This is a very good move. According to Laura Montini of www.inc.com, "xxx only 60 percent of startups make it to year three". In the UAE the investor visa is good for three (3) years.  Her infographic shows only 35% can make it to 10th year.   So how can an entrepeneur / investor make it to 10th year and beyond?

What does it take for a startup to grow?

This is very challenging for a late bloomer who wants to launch a business.  It is not easy to have an  access to banks and other financial institutions for funding as there are many strict requirements to be met particularly these days. His savings can be used to fund his business but if the business fails then the savings supposedly for emergency and retirement will be gone. If he has angel investors, relatives or friends, he / she can request them to help him start the business and wait for some more years until revenue is generated for principal payback and return on investment.  He must NOT romise big ROI in few months as this is not realizable and their relationships will be damaged.

It is tough to survive a startup business in the first five (5) years, the usual mark to gauge whether to continue or stop the business. Hitting the break-even point is difficult to achieve when there is insufficient fund for operations.

There is a model of fund sourcing which is called crowdfunding wherein entrepreneurs can promise investors with rewards or equity in return for their investments. Authorities here strictly regulate this kind of platform. According to www.commitbiz.com, "Since 2010, crowdfunding platforms such as Beehive, Eureeca, Zoomal, Yomken and Durice have found prominence to support the local ecosystem in a variety of fields." 

Every businessman's goal is to have revenues and to generate that,  there must be more income and less expenses.

For the UAE startups, what costs or expenses can be minimized? Some management and consulting companies can help give entrepreneurs a wise advice based on their long years of experiences in helping set up and renew businesses. It will be good also to read related information from the reliable sources online.

Bank guarantees will no longer be needed for the UAE-based workers when the new rules will be implemented so it will give a big relief to businessmen. From AED3K bank guarantee for each worker, it is reduced to AED60 that will give them some insurance benefits entitlements and the business owners, additional money to be spent in operation or business expansion.

I think that the space rentals, both for commercial and residential, will go down as more and more spaces will be occupied. Sharing will be the trend to allow co-working hub models to house entrepreneurs wanting to reduce rental expenses. Virtual offices will likewise be on the rise.

There are some rules on inclusion of activities as per category allowed in a trade license. It is worth reevaluating the option to add more products and / or services possible in a single trade license to minimize costs of the entrepreneurs so they can increase their revenues, survive and thrive.

Sponsorship fees depend on the local sponsors but it is my personal opinion that parallel to government programs they will be open to some adjustments favorable to investors considering that more and more businesses will help propel the economy growth in the long run.

Many transactions are simplified by online processing so reduction in manpower costs is expected. Other investors can go on with few staff. Sometimes it is a one-man or one-woman wagon and they resort to freelancers, on-call assistants, real or virtual.

Innovation is a big boost to increase revenues for a startup so there is a need for more creative entrepreneurs and staff. It is truly challenging to compete with heavily-funded businesses which have been running for many years. Only innovative approaches can and normally it is a result of connecting ideas in a very creative and unique way that will give a solution to people's problem/s or need/s.

All startups need the right promotions / advertising to reach their target market. These days traditional and digital marketing are important marketing tools.

Company owners and managers in the UAE must be reminded of this --  A creative social media influencer must get a separate business license. It is my hope that someday there will be less costs  for creatives to develop and enhance their creative skills, put those into practice to check which works and not, and over time be seasoned in their creative activities, so in the future there will be many home-grown business unicorns.

Startup owners must have information tool kits related to --

• Financial literacy such as accounting system and bank rules
• Information on VAT computation and reporting
• Healthcare benefits platform 
• Handbook on labor laws
• Directory or network of entrepeneurs or like-minded people to have regular physical or virtual meetings to learn from each other
• Newsletter for promotional offers of other merchants / privilege discount card
• Government-mandated benefits (both home country and country of residence)
• CSR (community social responsibility) programs templates | volunteer opportunities

We must support late bloomers (perhaps give startup setting and renewal discounts to those in 40's and 50's entrepreneurs). It will be helpful to provide them with a conducive environment to be productive in preparation for their retirement. The younger generation will benefit from their wisdom gained from experiences and ease as they will not be burdened much when they grow old and get sick.

For late bloomers, let us get inspired with some stories of enteprising people who have proven through their successes, that age does not matter in business. It is never too late to really, really bloom. Please check these out --

• Late Bloomers
• Late-blooming Billionaires
• 14 Inspiring People Who Found Crazy Success Later in Life
• 7 Famous Late Bloomers Who Prove There Is No Deadline For Success
• How to Succeed in Life as a Late Bloomer
• 10 of the World's Greatest Late Bloomers

According to Sara Peck of www.forbes.com, "For the past eight years, the average age of new members to the Forbes 400 and Billionaire's list is 54." 
How old are you now? 

If you think you are a late bloomer,  make today your Day One to that startup journey and say, "One day, I will be abundantly rich in all aspects of my life."

May we passionately magnetize good things to happen.

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Photo credits:  Pixabay