How to structure a Business Plan for opening your Business Account in UAE?

How to structure a Business Plan for opening your Business Account in UAE?

A business plan is an essential component of the formation of a corporation. While you may believe that a business plan is always necessary, this is not the case when you just want to attract investments. When registering a business or opening a bank account in the UAE, it is critical that the party you approach understands what you intend to do and how you intend to develop. As a result, many authorities in the UAE will ask for a business plan, a business overview, or a company profile from you.

Why does Banks require Business Plan in order to open Bank Account in UAE?

Business plans aren't just for start-ups when it comes to getting a commercial loan. Bankers want the same amount of knowledge from an existing organisation as they do from a start-up.

You'll have to show that you and your company are qualified for a doing Business in UAE. To do so, you'll need to tell a story that's both convincing and complete.

Below are the few points as to what Banks look for in a Business Account-

Banks look for in a Business Account

 

Background

Banks want to know who you are, what you've done, and how your business has performed. They are looking for both tangible and intangible qualities.

The following are some of the most frequently asked questions:

  1. How long have you been in this line of work?
  2. What did you do before you started your company?
  3. What is the nature of your business?
  4. How do you make money in your company?
  5. Is it possible for your company to function without you?

“Bankers want to get a sense of your personality,” says one expert. They will get a better picture of who you are if you back up your previous accomplishments with evidence and admit your flaws.

Bankers want to know that you and your team have the best combination of expertise and experience. For example, if you just started your engineering firm a few years ago but have 20 years of experience as an engineer, sharing your project and people management experience would be helpful. Alternatively, if you are more of a technician than a salesperson, showing that you have an accomplished salesperson who can assist you in growing the company may compensate for your sales weakness.

You should also be able to demonstrate that the company will survive without you.

Market Analysis

It's critical to show that you understand your industry and any unique challenges it faces, as well as who your competitors are and how to build credibility.

Bankers always inquire

  1. What do you sell?
  2. Why do people purchase?
  3. What is the size of your market?
  4. Who are your main rivals?
  5. What makes you unique?

Banks are also curious about how the company planned to benefit from the sale of imported products.

Financials

The presence of a solid, well-documented cash flow that will be more than sufficient to repay a loan's scheduled principal and interest is one of the most compelling things you can offer a banker.

Business owners should be prepared to address questions like these-

  1. Why did the cost of products sold changed?
  2. Why have you taken such a large sum of money from the company?
  3. How are you preparing your balance sheet to withstand a slowdown in the economy?

Prepare to show that your assumptions are reasonable if you provide predictions to a bank. When selling different goods and services, bankers would want to see that each sector can stand on its own, so the whole company isn't reliant on one.

10 Necessities to include in your Business Plan for opening Business Account in UAE

Include these 10 essentials in your business plan-

  1. A mission and vision statement that explains what you're trying to accomplish.
  2. Detailed overview of your business and the products or services you provide
  3. Describe how the product or service differs from those in detail.
  4. Business research that outlines the market you're trying to get into, your rivals, where you fit in, and what kind of market share you can get.
  5. SWOT analysis of the company's strengths, vulnerabilities, opportunities, and risks will demonstrate that you are objective and have taken into account opportunities and challenges.
  6. Account of the management team, including main team members' experience and previous achievements
  7. Your strategy for entering the market, promoting your product or service, and advertising it
  8. To better understand your current and future needs, create a cash flow statement (a cash flow statement can help you consider how cash flow could impact business growth)
  9. Include sales forecasts for the whole company as well as each product and service.
  10. Finally, there is a summary conclusion that brings it together (this could also be an executive summary inserted at the start of the plan)

These things will help the Banks in knowing you more clearly so that it is easy for them to open your Business Account.

How Dhanguard will help you in structuring your Business Plan for Opening Business Account?

We at Dhanguard will structure a business plan as per your requirement and will help you in opening Business Account in UAE.

Following are the things that are essential for Business Plan for opening business account-

  1. An executive summary is the first section of a business plan. This is a very brief summary of what you'll be talking about in the rest of the documents. We will explain what prompted the company's creation, what relevant experience shareholders have, and what services or products the company expects to offer or sell in this section (just a brief summary of those). Also, explain why that specific registration authority was chosen for the setup and why you believe there is potential for this company to be established and grown in the UAE. In general, reading an executive summary will provide you with a complete image of the business model and business in general.
  2. We will discuss future business in greater depth. We will concentrate on why this business was established in the first place.
  3. We will discuss the services or goods you will offer. We will be more descriptive and clarify why your services or goods are required. We will extend your explanation of the value your products or services can provide.
  4. This is the section where we will identify your suppliers. If you sell those things, you almost certainly purchase them from someone or at the very least manufacture them from raw materials that someone provides to you. We will Identify your vendors, their locations, and the items you buy from them. If there is any potential for cooperation, we will mention those as well.

Conclusion

When it comes to opening a corporate account, having a business plan and a company description file can be extremely beneficial. A brief business overview with a list of suppliers and clients, as well as some other details, would be required by the bank, which you would already have in your business plan. So there's no need to waste time on the profile; instead, use your business plan to negotiate with the bank to open an account.

By Om Chaudhary

21-Apr, 2021

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