Covid-19, a black swan event, has created a pandemonium globally. With the pandemic affecting lives and businesses worldwide, it is normal for people to feel insecure and vulnerable. But as every cloud has a silver lining, so does this one. Covid-19 pandemic, even though has proven particularly grim for a lot of sectors, has also made a few sectors shine. Business segments such as education, entertainment, medicine, and communications now have a bigger role to play than ever before.
In addition, given the economic slowdown caused by Covid-19, businesses in Dubai have been subjected to several relief measures and stimulus packages. Both the government and commercial entities in the Emirate and the UAE are providing these packages to the businesses to help them during this crisis. As a result, many fees have been waived off for new businesses and SMEs. Economic relief packages have thus made it easier to register a new business.
Consequently, business opportunities in these fields have inspired many entrepreneurs. So, if you are one such entrepreneur, looking forward to start a business in Dubai, we have brought a few important tips on how to choose a financial consultant company in Dubai for your startup.
But let’s first understand why does your startup need financial consulting?
If you want to build a business that will last well in the future, the secret to achieve this is sound financial planning. Financial planning and analysis conducted by a financial consultant will allow entrepreneurs to look at various things before starting a business. It includes initial costs, current funding and potential funding sources, the viability of a business idea, potential profitability, and other critical factors.
Startups initially need to plan their investment, especially considering the current economic situation of Dubai, financial planning is significant for any business. It also makes it especially crucial for a startup business to consult a financial consultant company. Below-mentioned are some services that a financial consultant can provide to a startup business-
One of the major benefits of financial consulting is that it’s cost-effective. It will enable the business to avoid unnecessary costs and endorse efficient use of business finance which will result in higher returns. Also, a financial consultant company has experience in different industries. This ensures that they have valuable knowledge about the suppliers’ and competitors’ prices in various industries. Hence it will allow the startup to undertake the best deals and as a result, reduce expenses while increasing revenues.
Choosing the Right Financial Consultant Company
Getting help from a financial consultant is the most efficient way to make all your startup’s financial decisions. But with so many professionals out there, how do you go about choosing the right financial consultant to work with?
Some consultants offer financial planning services but not investment management services. While others might have little financial planning expertise. To find the best financial consultant that meets your needs, you must know the type of financial advice you need.
Being an entrepreneur who is looking forward to starting a business, you need perfect financial planning to execute your innovative ideas. You will need financial projections, key assumptions worksheet, departmental expense worksheet, P&L statement and sources, and uses of funds statements for your business. Therefore, you will need a financial consultant who can help you create these relevant financial statements for your startup.
Before hiring a financial consultant you need to ask how they get paid. It may sound awkward but it is important to understand their expense structure. Many financial professionals bill themselves as fee-based or fee-only.
Those working on a fee-only basis only receive payment from their clients. Their advice is not conflicted as they do not receive any sort of compensation from outside resources. However, they may be more expensive. On the other hand, a fee-based financial professional is mostly associated with a bank or a big brokerage firm. They can be less expensive because they not only earn a paycheck from you but also receive compensation in the form of commission, securities spreads, and mutual funds shares. So, make sure to review the compensation terms of the financial consultant company before hiring them.
Setting up an introductory meeting allows you to ask a few important questions to the potential financial consultant. The questions can be about their experience, their compensation, and anything else that you deem relevant to your project. It is during the introductory meeting that you can understand how the consultant communicates, as effective communication is the key to successful financial planning.
To make sure if the consultant has a good service record, always check for reviews and complaints. The best way to do so is to check for Google reviews left by customers and the ratings. You would not want to hire a consultant with too many complaints.
When Should You Talk to a Financial Consultant?
Talking about startups, most people wouldn’t want to embark on a long journey without a plan. It is unlikely for people to not seek financial help especially when they are starting something that is potentially costly and time-consuming. Financial consultants specialize in leading business owners to a path of profitability and preparing their businesses for future developments and different stages of business growth.
So, if you have a business idea that you want to turn into reality, get in touch with the financial consultant company in Dubai, DNA Growth.
DNA Growth is a global professional service provider specializing in Business and Financial Planning. We have 10 years of Company experience and over 50 years of cumulative professional experience in executing research, financial analysis, and content development globally. We provide a range of Financial Analysis and Forecasting services to companies from diverse industries in different key geographies. We aim at helping clients with accurate and foreseeable forecasts that help them plan for the future in a better and structured manner.