Owning a business, whether small or big, is thrilling as well as challenging. It demands you to have tons of knowledge about your product, the market, finances and so much more. A robust business financial planning in UAE is a must to run a successful business.

But where to start? Financial planning is so vast that it may seem daunting sometimes, especially for new entrepreneurs and small business owners. Don’t worry. We’ve got you covered. Here is a list of some key financial planning questions to ask yourself.

Financial Planning Questions Small Business Owners Should Ask Themselves

  • Am I able to make all the financial decisions completely on my own?

The first and foremost question is, do you think you are capable enough to handle all finances on your own? If you have a thorough knowledge of the subject and previous experiences, then why not. But, if you are someone who wants to remain only on the creative side of the business, then it’s best to take the help of a professional financial advisor for best financial planning in Dubai.

  • How can I save on business taxes?

Paying taxes is an inevitable expense. No business can skip it altogether, but you can take tax write-offs in various ways. Funding a retirement plan, buying assets such as machinery or equipment, timing your business income and expenses, etc are some proven ways to save on business taxes. Find out more ways that can work for your business.

  • Is my business profitable?

Generating income doesn’t mean your business is profitable. The personal income you are getting should be more than the efforts and risks you are taking into your business. The best way to find out the financial status of any business is to calculate its exact income, expenses, and at what point it will break even. By knowing the exact standing of your business at a particular point in time, you can make healthy business and financial decisions.

  • How can I lower the overhead expenses?

Overhead expenses are the running cost of your business and may sound like a hurdle when focusing on financial planning in Dubai. Now this may include office rental space, employee’s wages, cost of raw materials, and so on. These expenses eat up a large sum of your monthly income. You can cut down these expenses by finding affordable alternatives for office rental space, cutting staff you no longer need and investing in necessary insurances only.

  • Can I get additional capital from my bank?

It takes money to earn money. Your business may need extra capital for a new project, expansion, etc. It’s wise to make good connections with key people in the bank and keep your credit score high. So, you can easily take money from the bank whenever you want. Don’t let your business hang under the risk of undercapitalization.

  • Can I predict the weekly, monthly, or quarterly cash flow correctly?

Having an idea of cash flow helps you make better financial decisions for your business. The weekly, monthly or quarterly cash flow can be predicted correctly by making proper financial reports and thoroughly studying them, especially when working on financial planning in UAE.

  • Do I need to add another overhead?

Things may seem overwhelming if you plan on doing everything on your own. It’s better to delegate your work, if it’s more than you can take. If you find yourself working 24/7, it’s high time to add another overhead who can take some things off your plate. Of course, these decisions should not be rushed as hiring someone also adds the expense of paying their wages.

  • How can I make a perfect exit strategy?

The market is unpredictable. Your business may or may not perform well in upcoming years. It’s wise to plan an exit strategy way ahead of time, so that if your business seems to go downhill, you will know when to sell. You can easily make your business lucrative to a potential buyer by making it system dependent. A business that’s independent of you has a higher chance of standing still after your departure, giving you a greater value while selling that can be used for other things in your life.

  • Where do I want to take my business over the next five years?

Your business financial planning in UAE should be a fine integration of short-term goals and long-term goals. Take the current situation of your business and the dreams you hold for it into consideration while making a financial plan. Asking such questions helps you make realistic financial plans and goals for your business.

  • Am I saving enough for my retirement?

Nobody wants to work till the last breath of their life. We have dreams about where we want to settle and what lifestyle we want to live after retirement. You can make all this come true through proper financial planning in Dubai for your retirement. Your retirement savings plan should reflect your dreams keeping inflation, risks of investment, and other things into account.

  • What do I want to do with my business after retirement?

Are you planning to sell your business afterwards, or are you trying to build a legacy? Definite answers to these questions may drastically change your business financial plan. For example, if you want to pass on the business to your next generation, you may plan on expanding it. But, if your goal is to sell the business someday, then keeping it simple seems like a decent idea.

Now that you know what you should be asking yourself, get ready to reshape your business financial planning Dubai. If it seems like a lot to take in, there is a solution for that too. You can always take the help of a professional financial advisor to get a better understanding of the subject.

Asfar Ibrahim - Top Financial Advisor Consultant Dubai UAE, Qatar, Oman and Saudi Arabia

Asfar is an Independent Financial Advisor and Associate Partner with Continental Group based in Dubai, UAE with over 12 years of experience in the region. His clientele includes high networth individuals, corporations, C suite executives, business owners, and entrepreneurs in the region.

Although with proper planning and consistent effort, you can save, invest and distribute your own finances. It is always good to get some professional advice. If you need help in planning your finances in the short, medium, or long term, I can help you do so. You can write to me with your questions and comments to asfar@profinancial.solutions

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