Being a business owner is more than just making money. To be a competent entrepreneur, a combination of knowledge, skills, and hard work is required to keep the business going. You need to educate yourself in the rudiments and fundamentals of starting and running a business or a company.
If you are thinking of venturing into this kind of career, you need to know these terms and concepts that can help you run your trade:
- Company formation
Not a lot of people know that there are different kinds of company formation and business setup in Dubai. When you are planning to start your business, especially in this jurisdiction, you need to apply for incorporation and business registration. With that, you need to know what kind of company formation is applicable to the business you have in mind. There are 6 basic types company incorporation: General Partnership, Limited Partnership, Public Shareholding, Private Shareholding, Limited Liability Company, and Joint Venture.
- Free Zones
Apart from knowing the business setup that would be appropriate for your trade, you also need to consider the jurisdiction where you will register and incorporate your business. One of the most popular locations for business formation is the Free Zones, particularly the Ajman Free Zone. A Free Economic Zone is a designated area that encourages business development and other economic activities. On the other hand, a Free Trade Zone is an area recognized for allowing smooth manufacturing and trading of commodities, with less intervention from the Customs Department.
- Law of Supply and Demand
The Law of Supply and Demand has been taught in some business subjects or Economics classes. But this economic concept is a crucial part of running a business, especially in price determination. In layman’s terms, the concept postulates that the supply of an item is directly related to the demand of the market. If the supply is scarce, but the demand or desire of the public is high, it will result in a price increase. But if the supply is largely available with the consumers’ demand relatively lower or the same, the pricing is likely to go flat.
- Business goals
As mentioned, running a business is not just about increasing profit, although it is part of it. To expand your business, you need to set business objectives or goals which will serve as your benchmark when making any business move or decision. These business goals should be realistic and attainable, but flexible as well.