A business plan is a crucial element in the creation of a Company. Although you would think a business plan is always required, it is not when you are merely looking to attract investors. It is crucial that the Bank you approach understands what you aim to do and how you intend to develop when you create a Business Bank Account in Dubai. As a result, you will be asked by numerous Banks in the UAE for a business plan, a business overview, or a company profile which in return will supplement your process for opening a business account in Dubai, or anywhere in the UAE
In this Blog, Dhanguard will extensively discuss how a Business Plan can play an important role in your process of Business Bank Account opening in Dubai. So without any further ado, let’s learn!
Why is a Business Plan for Bank Account Opening necessary in Dubai?
Contrary to the common notion, Business Plans are essential for more than applying for a Business Loan. The level of expertise that bankers seek from established companies is the same as what they seek from start ups in the process of starting a business account. You must demonstrate your eligibility for conducting business in the UAE, as well as the eligibility of your company. You must narrate a persuasive and comprehensive business plan in order to accomplish this.
Below mentioned are the 3 crucial factors on which Banks lay specific emphasis-
The Analysis of the Market
It is essential to demonstrate that you are knowledgeable about your field, any particular difficulties it may encounter, your competitors, and the best ways to establish reputation.
All bankers ask the following questions:
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What do you sell?
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Why do people purchase?
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What is the size of your market?
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Who are your main rivals?
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What makes you unique?
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The question of how the business intended to profit from the selling of imported goods is also one that banks are interested in.
Read More: Investing in Index Funds in Dubai is an Opportunity You don't Want to Miss! Read Why
Background of the Applicant
Banks are interested in learning about you, your past employment/ work, and the success of your company. They are seeking both observable and elusive features which can convince them that you are a genuine organization.
Some of the most typical queries include the ones listed below-
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How long have you been in this line of work?
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In what line of Profession you were before starting this company?
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What is the nature of your business?
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How do you make money in your company?
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Is it possible for your company to function without you?
Many experts claim that bankers are interested in learning about your personality. If you can back up your prior successes with proof and disclose your mistakes, they will have a better idea of who you are.
When it comes to competence and experience, bankers want to know that you and your team are the most qualified. For instance, discussing your project and people management knowledge would be beneficial if you recently founded your engineering firm but have 20 years of engineering experience. In contrast, if you are more of a technician than a salesperson, demonstrating that you have a successful salesperson who can help you build the business may make up for your deficiency in sales. Additionally, you must be able to show that the business can continue operating without you.
Cash Flow
One of the most persuasive things you can provide a banker with is the existence of a strong, well documented cash flow that will be more than enough to meet a loan's scheduled principal and interest.
Business owners must to be ready to respond to inquiries like these:
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Why did the cost of products sold change?
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Why have you taken such a large sum of money from the company?
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How are you preparing your balance sheet to withstand a slowdown in the economy?
If you provide a bank a prognosis, get ready to demonstrate that your presumptions are legitimate. Bankers would want to see that while selling various products and services, each division can stand on its own so that the entire business is not dependent on one.
How to create a Business Plan for Bank Account Opening in Dubai?
An effective Business Plan can supplement your process of bank account opening in Dubai. For your assistance, our experts have accumulated a few points which you should include in your Business Plan, when presenting it to the Banks.
They are mentioned below-
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An explanation of your goals in the form of a mission and vision statement.
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Detailed description of your company and the services or goods you offer
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Provide concrete examples of how the good or service differs from the competition.
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Business analysis that describes the market you're aiming to enter, your competitors, how you fit in, and what type of market share you can achieve
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A SWOT analysis of the company's strengths, weaknesses, opportunities, and dangers will show that you are objective and have considered the possibilities and difficulties.
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A description of the management team, covering the backgrounds and accomplishments of the key players
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Your plan for entering the market, publicizing your good or service, and using advertising to do so
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Make a cash flow statement in order to better comprehend your present and future requirements (a cash flow statement can help you consider how cash flow could impact business growth)
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Include company wide sales projections as well as projections for each individual product and service.
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A brief conclusion that completes it and unifies everything (this could also be an executive summary inserted at the start of the plan)
These factors will make it easier for the banks to open your business account by allowing them to understand you better.
Conclusion
Having a business strategy and a company description file can be quite helpful when it comes to registering a corporate account. The bank would need a brief business overview that included a list of your suppliers and customers as well as some other specifics, which you would already have in your business plan. Therefore, instead of giving major emphasis to making your profile better, approach the bank with your business plan to request an account opening. Thus, we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website or visit our head office as well.
