The economic downturn during the COVID-19 crisis is anything but positive. We are unclear on the long term impact this will have on our economy and in turn ourselves. However, it seems nearly everyone believes a global economic reset is upon us.
If you are considering a startup or to join an existing setup, keep in mind that the current situation does offer startups certain advantages. Here are 5 advantages to start a company during an economic downturn.
- Reduced Start-Up Fee
Most of the Free Zones in Dubai are offering reduced start-up fee and discounts on registration. Dubai Multi Commodities Centre (DMCC) is notably one of the highest discount securing free zones at present, offering a whopping 30% discount on company registration fee.
- Discounted Rents
The current climes have driven landlords to reduce their rents or even possibly provide payment reliefs to help their tenants get through this period. You can take advantage of securing better rents for your facility at flexible payment options. There are several business centers in Dubai, that are best suited for startups as they offer low rents with turnkey services.
- Survive Now, Reap Later
Financial conditions periodically reach the trough or the crest on the economic cycle. We are currently headed downwards towards the trough. If your new startup can weather the downturn by being self-funded and generate adequate revenue from its customers, you will eventually reap the rewards of the next economic expansion. They key is to survive.
- Excessive Talent Pool
Elevated unemployment rate has an upside for entrepreneurs. There is abundance in quality of potential employees coupled with the downward recruiting cost. New recruits will most likely be willing to agree to lower salaries in exchange for solid benefits and equity based compensations.
- Bargain, Bargain, Bargain
You are already aware that you can bargain for better recruits during an economic downturn. But it does not end there. Nearly everything you need to fuel your business will come at reduced costs propelling your profit returns. The markets are more open to reduced prices on products, services and freelance time. One can also use heavily discounted prices on ads in media spaces to boost the business visibility.
Remember that adversity translates into opportunity for those willing to swim upstream and not wait until the tide turns.
This article is bought to you by:
Mayfair Executive Office DMCC, a high-end business centre in JLT – www.mayfairdmcc.com
Park Avenue Offices DMCC, a budget business centre in JLT www.parkavenuedmcc.com
Quantum Business Centre, a state of the art business centre in Business Bay – www.qbcdubai.com