As a UAE Freezone company you may be wondering which is the best way to capitalize on your wealth. Apart from growing your business, one of the best ways to build your wealth reservoir is reinvesting your profits.
How does one reinvest their profits?
Channelizing a significant percentage of profits towards reinvestment is always a healthy business choice. This could either mean channelizing the profits back into the business to enhance it, which can have great long-term success ratings. It reflects a good outlook to potential investors.
It could also mean investing in by adding additional activities to your license, or investing in an additional license, also another long-term success strategy. And in the UAE, the DED mainland and all the freezone authorities permit this.
Investment gurus suggest that deciding the amount should be based on strategic analysis and avoid any set figures. But to use prudence as well so that you do not go overboard and encounter unnecessary cost over runs which may not be recoverable.
Enhancing Your Current Business
Your current business setup in Dubai may need some enhancement, which should be audited, researched and then add the enrichment to it. This could mean adding more employees, improving technology, improving infrastructure etc. The enhancements bring in more value to the business thus improving your cash flow.
One of the best pay offs in this investment is when you invest particularly to enhance the marketing and sales team. This definitely brings in good return of investment. This could mean investing in marketing and sales tools, which can be used to bring in the business.
One could invest in a strong guerrilla marketing campaign, or adapting technologies such as Big Data support the teams, or purchasing of good CRMs (Customer Relationship Management software), so that your team can utilize it to tap potential clients and markets.
Bear in mind sometimes employees don’t really need cash and or kind perks to bring in business but rather the right kind of support from the management to bring in the business.
Additional Business Activities & Licenses
As a UAE Freezone or LLC company, apart from your normal license, you can actually add additional business activities to your license thus expanding the scope of your business. Each of the authority allows a certain number of additional activities, which you can add to your license for a small fee. There are a number of permitted activities, which you can choose from to add to your existing license.
If you desire to start a particular activity, which is not permitted under your current license and also which doesn’t fall in the category of additional license, you can opt for an additional license for the same, however the main criteria is that the additional license will be granted based on your office structure.
Hiring a professional consultant will be the wise idea to evaluate and understand what kind of activities can you add to your current license or opt for a fresh new additional license.
Reinvesting a tidy sum of your profits is always beneficial for your business in Dubai, however you need to have the risk taker in you to adopt the trend of reinvesting in your business.