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Kingdom of Saudi Arabia announces Increase in Value Added Tax
  • Newsletter, Saudi Arabia

Kingdom of Saudi Arabia announces Increase in Value Added Tax

The Saudi Arabian Government recently announced that the VAT or Value Added Tax will be increased from 5% to 15% as of July 1st, 2020.  The increase is one of several measures that have been taken in response to steadily declining government revenues associated with the impact of the Coronavirus on the Saudi Arabian economy.  Reports state that the decline in revenues is attributed to increased healthcare costs, lower oil prices, and reduced economic activity.

How will the VAT increase affect Businesses?

Due to the enhancement of VAT rate, most of the businesses in all industries will be affected in Kingdom of Saudi Arabia (KSA). Additionally, business can expect a higher amount of scrutiny from the General Authority of Zakat and Tax (GAZT) because the VAT has become an important component of the revenue to the state. It is time for businesses to review their costs as even those businesses that are exempt shall be affected.

Whether your sales are fully or partially exempt, you could experience increased costs directly associated with the 10% VAT increase.  Furthermore, the increase will have an impact on all Saudi Arabian industry sectors including the financial, insurance, and real estate sectors.  Although consumers will feel the impact of the VAT increase as well, it remains unknown as to whether or not the lower VAT rate will still apply to foods and utilities in order to mitigate the effects of the increase.

Due to the difference in timing between VAT payments and recovery, businesses can expect the increased tax to impact their cash flow.  Consequently, cash flow planning efforts will have a renewed significance.  Additionally, business owners should review their internal operating processes and systems so as to reflect the higher rate.  In the coming weeks, businesses and consumers can expect to see additional guidance for transitional rules released by the authorities.

The rate increase has affected cash flow of businesses as there has been a difference in the timing of VAT recovery and payments. Thus, the importance of cash flow planning has emerged as a significant aspect of keeping businesses afloat. It is time to take a deeper look at the processes and internal systems of businesses as there is an increased VAT rate.

Additional Considerations

Taxpayers should begin monitoring the impact of the VAT rate increase immediately so they can measure the effect on their cash flow, chain of supply, and daily operations.  As a reminder to taxpayers, the window for making voluntary disclosures without fees or penalties will remain open until June 30th as per last month’s VAT incentive alerts.  This will enable businesses to fully ensure that they are compliant with VAT regulations.

If your company needs assistance for business and corporate advisory consulting or tax advisory services, contact IMC Group.

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Mitigating the Developmental and Economic Impact of COVID-19 with new VAT Incentives in Saudi Arabia
  • Newsletter, Saudi Arabia

Mitigating the Developmental and Economic Impact of COVID-19 with new VAT Incentives in Saudi Arabia

In order to mitigate the developmental and economic impact of the Coronavirus on the Saudi Arabian private sector, the General Authority of Zakat and Tax (GAZT) recently launched a number of incentives that will provide support for taxpayers and stimulate the economy.  These General Authority of Zakat and Tax incentives in Saudi Arabia fall in line with:

  • The International Monetary Fund recommendations for global tax authorities
  • Ministry of Finance resolution announcements
  • Royal Decree No. 45089 dated March 18th, 2020

The scope of these incentives applies to companies doing Business in Saudi Arabia and that failed to meet their registration obligations and enables them to register for VAT.  Here is a quick recap of the provided incentives related to the VAT as it gives the taxpayers a chance to get relief from penalties.

As the opportunity is time bound till end of June, experts recommend that the companies and taxpayers look over the past tax returns and disclose all of the errors or omissions under this window of opportunity. The following is a summary of these incentives as they relate to the VAT:

  • Eligibility and timeframe – benefits are extended to all registered taxpayers as well as those that are required to register according to KSA VAT legislations (includes non-residents who are required to pay VAT in Saudi Arabia. In addition to this, any VAT registration as well as return amendments made between March 18th and June 30th, 2020 will be eligible for benefits.
  • Late registrations – for resident and non-resident entries that should have been registered prior to the original date of March 18th, NO penalties will be imposed from 18th March to 20th June 2020 and this holds valid for non-resident taxpayers.
  • Returns and voluntary disclosures – VAT returns that were due prior to March 18th can be filed up until June 30th without incurring penalties. Taxpayers are allowed to make amendments to previously submitted returns up until June 30th without incurring penalties.  Furthermore, that can apply for an installment plan and make payments during the incentive period.  Previously audited GAZT returns can also be amended while those returns that are undergoing an audit can be amended by contacting the GAZT directly.

It should also be noted that there are limitations that will apply where these incentives are concerned.  For example, any additional taxes or penalties that were imposed prior to the date of the initiative will not be cancelled.  Additionally, any requests for tax refunds due to VAT returns amendments will no longer be accepted.  They will be processed as per the current KSA VAT Legislation. For additional information or to learn if these new VAT incentives apply to you, contact a VAT consultant in Saudi Arabia.

Thus, to claim benefits under this new scheme, all previous liabilities need to be cleared before 1st July 2020. Thus, it is time to review the previous and current VAT position to keep your tax returns in order and smoothen the process.

If your company is looking for professional assistance with VAT and tax filing procedures, contact Intuit Management Consultancy (IMC Group). With years in the

Industry, we offer business set up solutions, tax advisory, international tax structuring, bookkeeping and VAT. Call us today and let us help you.

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Deadlines for Filing Tax Returns and paying Taxes extended in Saudi Arabia during COVID-19 Pandemic
  • Newsletter, Saudi Arabia

Deadlines for Filing Tax Returns and paying Taxes extended in Saudi Arabia during COVID-19 Pandemic

On March 20th, the Saudi Arabian Ministry of Finance published the details of its economic relief measures to benefit businesses that have suffered during the COVID-19 pandemic.  The following is a detailed listing of the measures that apply to taxpayer obligations that fall within the period of March 18th through June 30th:

  • Filing deadlines for all returns including income tax, WHT (withholding tax), VAT, and zakat, are extended for a 3-month period beginning with the original due date. 
  • NO restrictions will be placed on the issuance of tax and zakat certificates that expired during the fiscal year of 2019. 
  • Payments on expatriate levies, extension fees on exit and re-entry visas, government service fees such as municipal fees, and work visa fees will be waived, subject to certain conditions. 
  • Tax payment deadlines including excise tax, income tax, VAT, WHT, and zakat are extended for a 3-month period beginning with the original due date.


Be aware that the Ministry of Finance statement doesn’t address certain issues such as the filing of tax appeals and objections.  The GAZT (General Authority of Zakat and Tax) and the GSTC (General Secretariat for Tax Committees) has issued prior notifications relative to hearings by the Internal Settlement Committee.  Additionally, various appeal committees are suspended pending further notice.

Your business needs the assistance of professionals and that is where Intuit Management Consultancy (IMC Group) steps in. We can assist your business with business set-up, tax consultations, corporate advisory services, international tax structuring, filing taxes, VAT and more. 

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Saudi Arabia Exerts Efforts on Providing Scopes of Doing Business
  • Newsletter, Saudi Arabia

Saudi Arabia Exerts Efforts on Providing Scopes of Doing Business

“Saudi Arabia is now shifting its interest from studies to creating sustainable environments for attracting investments,” stated Mohammad Al Tuwaijri, the Minister of Economy and Planning in Saudi Arabia.

There are three pillars for catching in incentives, and they are creating clear strategies for measuring performance, offering diversified sources of finance by way of lucid plans through ministries, and the vital role of investment funds. Tuwaijri further stated that the investment funds would be coming in from the National Development Fund, aimed towards supporting all the areas and ministries to use investment opportunities.

In other words, doing business in Saudi Arabia would now be a possibility for every business investor. That’s good news added to the fact that three pillars are offered for attracting investments.

The government in Saudi Arabia is taking up many assignments and even financing the same for offering major benefits to the private sector, said the Minister at a Municipal Investment Forum held on 24-26 February in Riyadh.

The Minister further put down that Saudi Arabia is putting in the best efforts in creating sufficient infrastructure in the long run. The infrastructure will be in perfect line with Vision 2030 in collaboration with the municipalities.

Speaking on investment incentives and as queried by Mubasher, Tuwaijri stressed on the legislative facet of investment incentives in the future. He further added that the Saudi government is working on offering the infrastructure required for different sectors and projects.

The economy in Saudi Arabia is a thriving one, with the nation being the only member of the G-20 major economies from the Gulf region. The oil-based business in Saudi Arabia, along with petroleum, accounts for around 87% of budget revenues, 90% export earning revenues, and 42% GDP. With recent declines in the export of oil, the government here is looking to offer new business opportunities to entrepreneurs seeking Saudi Arabia as a great destination for doing business.

A record number of major business reforms were carried out in this Gulf country in 2019. This earned the nation a position in the Top 10 Universal Business Climate Improvers of 2020. This report came from the Doing Business 2020 publication of the World Bank Group.

There were a total of eight reforms implemented by Saudi Arabia in different business areas. The country ranks 62nd in the list of countries offering the ease of business. It means company registration in Saudi Arabia will not be a matter of great concern for business investors.

Thanks to the reforms meant towards improving the interests of the minority investors, the country now has the third position universally on this indicator. It ranks just after Singapore and New Zealand. The destinations considered easiest for doing business in the world. In addition to this, new reforms being made in the field of getting electricity have made it easy for new businesses to get fast electricity connections in the country.

Coming up with a new business gets easier in Saudi Arabia as the nation has now introduced a one-stop store that merges multiple post-registration and pre-registration procedures. Getting structural permits has also become easier because of the evolution of new online podiums.

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Saudi Arabia to Soon Shift their Economic Focus to Financial Technology from Oil
  • Newsletter, Saudi Arabia

Saudi Arabia to Soon Shift their Economic Focus to Financial Technology from Oil

The production of crude oil in Saudi Arabia has slowed down significantly last year, from 10,643 BBL/D/1K in December 2018 to just 9,890 BBL/D/1K in November 2019. Continuous plunge in crude oil production could be attributed to various factors like the attendant impact on output, and also the attacks on the Saudi Arabia’s oil fields.

Many reports suggested that Saudi Arabia has been trying to coax other OPEC member countries to slash down production by 400,000 barrels per day. But the Saudi government has not agreed to this. OPEC, which is one of the world’s biggest energy-focused coalitions, has reduced its production by 1.2 million barrels (each day) since January last year, which is going to be extended till March 2020. OPEC member nations intend to maintain more stable oil prices by cutting down production.

Saudi Arabia’s economy was able to face the growing pressures in the global oil market because of its diversification policies. The Saudi Arabian Riyadh Bank, which is one of the largest financial institutions located in the Middle East, recently said that they had invested a whopping $26.7 million in a Fintech start-up investment program.

Riyadh Bank CEO Tariq Al Sadhan highlighted the requirement to update the country’s financial and technology infrastructure, particularly with the latest developments that are taking place in the global Fintech industry. The continuing growth and development of this fund is important to the research and development (R&D) work for local start-ups.

Saudi Arabia’s Monetary Authority (SAMA) has supposedly issued over a dozen Fintech licenses especially for this experimental program.

Saudi Arabia’s National Wealth Fund (the Public Investment Fund, or PIF) has now become the key growth engine of the country’s economy. The PIF fund has collaborated with Japan’s Softbank Group by setting up a $100 billion investment fund in the year 2016 specifically for the technology industry. The partnership is only the first step, as the PIF fund has an intended (estimated) investment value of $2 trillion.

The firm has been planning to get a capital of $100 billion via a public sale of a trivial stake in Saudi Aramco, the nation’s energy company.  The Saudi Arabian Aramco IPO was put on sale recently and spiked by almost 10% to $9.38, which moved the firm’s valuation to $1.88 trillion, and made it the world’s largest publicly listed company. The IPO was launched on the Saudi Arabian Tadawul, and it broke all previous records that were set by Chinese billionaire Jack Ma’s Alibaba IPO, which was valued at $25 billion in September of 2014.

The fund has now has an objective of supporting and enhancing the country’s economy, and even though it took almost 40 years to establish, the good part is that it has been growing very quickly.

The sovereign wealth fund had now grown to $300 billion in multiple assets (as of May 2019). Then, Saudi Arabia moved its focus to China for various promising business opportunities. Almost $50 billion has been invested in the American economy between 2018 and 2019, and now the country’s government is expecting stable growth and development because of these strategic investments.

Considerable investments in Saudi Arabia’s growing economy and international markets should enable the PIF fund to set up a commanding global presence with billions of dollars’ worth of planned and strategic deals done across the Middle East region, Europe, Asia, and North America.

The Public Investment Fund collaborated with Blackstone in the year 2017 for establishing a $100 billion investment in the space of US-based infrastructure. Approximately $20 billion in investments supposedly came from Saudi residents. But, Saudi Arabia’s alliance with SoftBank’s Vision Fund seems to have captured huger attention, as it’s aimed on Silicon Valley firms. The fund has apparently invested $3.5 billion in various Uber technologies in 2016.

So if you have a plan of doing business in Saudi Arabia and don’t know where to start or how to register a company in Saudi Arabia, do get in touch with us and we would be glad to assist you.

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Why is Saudi Arabia the Most Appealing MENA Market for Retail Investments
  • Newsletter, Saudi Arabia

Why is Saudi Arabia the Most Appealing MENA Market for Retail Investments?

Why is Saudi Arabia the Most Appealing MENA Market for Retail Investments?, Saudi Arabia is the top-most and very appealing developing market for retail investment in the Middle East and North Africa (MENA) and also ranks among the top ten in the world, as per the 2019 Global Retail Development Index (GRDI).

The Kingdom has consumers spending about $125.5 billion annually on their shopping,out of which a large proportion of the residents spend on luxury labels. This is the reason that Saudi has risen up on the index and got the seventh rank globally, just after China, India, Ghana, Malaysia, Indonesia and Senegal.However, Saudi Arabia was ahead of Jordan, which got the 8th position, the UAE being on 9th, and Colombia on 10th.

The latest ranking has been a huge leap from the 11th rank of Saudi Arabia in 2017,largely because of the continuing efforts by the government to launch new economic and social reforms, as part of the plan to give the country a makeover and attract more foreign investments.

From the time of launch of its Vision 2030 agenda in 2016, Saudi Arabia has executed various social reforms like easing travel restrictions for women, permitting women to drive, and making abayas optional. Many such reforms have also assisted the retail industry.

In 2017 end, a proposal to open hundreds of cinema theatres by 2030 was announced, which ended a 35-year-long ban on movies and cinemas.  The GRDI is a bi-annual research or study of the retail industry in about 30 developing markets. It provides ranking to countries depending on “country risk”, their population and per capita gross domestic product (GDP), enabling retailers, consumer goods producers and global service providers comprehend which destinations are growing, and which are stagnant or declining, and the reasons for the same.

Among the numerous reasons that make this Kingdom an alluring destination for international investors is their huge population, and also their young demography that offers itself to the volume game.

In addition, Saudi Arabia has high per capita income which also makes it very lucrative. The concentration of high-net-worth (HNI) individuals adds up to make it an appealing destination for the retail luxury segment and Saudi company incorporation.

Saudi Arabia has a population of 32.9 million and is therefore considered the largest market in the Gulf Cooperation Council (GCC) region for consumer brands and over 58.7 percent of the people here are quite brand-conscious. Its female consumer base and ultra-high net worth individuals are expanding, while the religious tourism is also on the rise. Between the years 2012 and 2016, the retail sales recorded in Saudi Arabia grew from $85.3 billion to $114 billion.

With a focus on the large Saudi retail market, the consumer tech giant Apple has recently collaborated with Fawaz Al Hokair Co to establish their business in the kingdom. SPAR International, a Dutch food retailer that entered into the market in the year 2018 by affiliating with Saudi conglomerate Al Sadhan Group is working towards having their 40 stores operational by the end of 2020.

It’s not just global brands who are setting up their outlets in Saudi Arabia, but many are thinking of capturing a share of the huge online spending. As per some reports, online retail is expected to reach almost $10.2 billion by the year 2023, which is up from $6.3 billion in 2019. Big brands such as Ikea and Landmark Arabia have launched their click-and-collect service to reinforce their omnichannel presence, whereas the e-commerce retailers such as noon.com are working hard to expand their online presence.

So if you are looking for business setup consultants in Saudi Arabia, please get in touch with us and we would be glad to assist you.

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Announcement of Instant Visas for the SMEs who are Planning to set up in KSA
  • Newsletter, Saudi Arabia

Announcement of Instant Visas for the SMEs who are Planning to set up in KSA

One of the biggest obstacles for any entrepreneur or SME setting up their business in a new country is the humungous amount of paperwork needed, particularly in case of getting a licence to operate there. Various governments across the globe understand this challenge and are taking steps to simplify the process of doing business in the country, which in turn, attracts foreign investments and businesses to set up and add to the country’s GDP.

In 2019, Saudi Arabia opened its doors and simplified guidelines to pull in more visitors to the nation. Their visa-on-arrival and online visa application system went live this year on 27 September, and since then, over 50,000 visitors have travelled to the country.

Saudi Arabia, which is the GCC’s largest economy and also houses one of the world’s most profitable companies, has announced its plan to start an instant work visa scheme next month for SMEs and entrepreneurs who are thinking of setting up their base in the country.

“[The work visa service] will enable young Saudis to launch start-up projects, open small businesses, boost economic growth and accelerate business expansion plans, which will have a positive impact on national development.”

Ahmed Al-Rajhi, the minister of labour and social development

The ministry mentioned that this decision was made after undertaking an extensive study into the requirements of SME entrepreneurs. Therefore, this work visa has been designed especially for assisting new small enterprises. Additionally, the service would be available through Saudi’s Qiwa platform that is particularly designed for SMEs. This initiative is likely to also make it easier for Saudis to begin more and more start-ups.

This announcement was made during a meeting held with entrepreneurs from Hail Chamber of Commerce and Industry. It also said that entrepreneurs would now be able to gain from a set of integrated tools made available for SMEs. After an initial grace period, the ministry is planning to introduce a new framework which will nationalise the workforce of these businesses under the Saudi nationalisation scheme named, Nitaqat.

It’s a fact that SMEs are the backbone of any economy. As Saudi Vision 2030 is aiming diversification of its economic dependence away from oil, it is now also working to strengthen the tourism and economic sector by taking new initiatives to attract investors and businesses to the Kingdom. Under the Vision 2030, there are plans to enhance the contribution of SMEs to the country’s GDP from 20% in 2016 (when the vision was announced) to about 35% by the year 2030.

Though further details about the new visa service scheme are yet to be announced, it is a good sign for new businesses, particularly SMEs and start-ups based in the Middle East, who are planning to do foreign company registration in Saudi Arabia and gain from the large economy.

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Doing Business in Saudi Arabia Becoming Simpler
  • Newsletter, Saudi Arabia

Doing Business in Saudi Arabia Becoming Simpler

Saudi Arabia had announced multiple reforms in eight sectors which were being supervised by the World Bank.

Last week, there was an inauguration of the World Bank report on “Ease of Doing Business” in Saudi Arabia where various senior government officials, international diplomats, leading entrepreneurs and media was present. The presentation quality and the content were impressive.

The Commerce and Investment Ministry, led by Maid Al-Qasabi, was the main reason of these accomplishments in coordination and collaboration with other ministries. The World Bank report on “Ease of Doing Business” in Saudi Arabia was created on the basis of interviews with almost 50,000 international private-sector executives, who had found the Kingdom and made the utmost progress in the area of start-ups.

With regards to indicators, the Kingdom has come out with distinct rankings. For example, for setting up a new business, the Kingdom stood at the 38 position. It took the 28 ranking for receiving various permits, 18 place for electricity access, 19th position for property registrations, and the third rank for safeguarding minority investors. But, it slipped down a bit in regard to trading across borders (86 place), tax payments (57 position), enforcing contracts (51 rank), and resolving insolvency issues (168 place).

The result of this report has been mentioned is in the mainstream of the Saudi Vision 2030 mission, which aims to rely lesser on oil-based revenues and alongside implement the above-mentioned reforms to enhance revenues also from non-oil sectors and economic drivers. To go to the next level of reforms, Saudi Arabia should improve transparency even further, encourage fair competition and even better governance.

Though there is some degree of perplexity in the private sector of the country, which is still facing challenges in operating or establishing new businesses. Therefore, Saudi National Competitiveness Centre (NCC) should lay more emphasis on making the local sector completely aware of these improvements and how to take advantage from them in an effective and quick manner.

The announcement of this report is very timely with just a week for the Future Investment Initiative (FII) conference to happen and with various high-stature governmental delegations participating from the US, India, and Switzerland. It should offer more assurance in foreign direct investments (FDI) in various sectors in the nation.

The country and entrepreneurs should take advantage of the country’s rankings, while inviting international collaborations and partners to gain benefit from the new investment opportunities in Saudi Arabia.

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New Developments in Store for Companies Functioning in Saudi Arabia
  • Newsletter, Saudi Arabia

New Developments in Store for Companies Functioning in Saudi Arabia

Saudi Arabian General Investment Authority (SAGIA) and the Saudi Ministry of Commerce and Investment have recently implemented new regulations that will affect the processing of many government services offered to companies. This article outlines the newly adopted regulations requiring compliance with International Standard Industrial Classification of All Economic Activities (ISIC) and looks at how they will impact business operations of companies operating in Saudi Arabia going forward.

Business activities & ISIC compliance

All of the Management Consulting Activities have been shifted to Ministry of Commerce and Investment (MoCI) under the professional sector and directly licensed by MoCI now.

The grace period granted by the SAGIA and the MoCI to update business activities of all companies established in Saudi Arabia has elapsed and such companies must now, as a matter of priority, amend their business activities to comply with the ISIC. The following considerations should also be noted:

  1. The normal course of operations shall not be affected or jeopardized since companies should be able to provide the same scope of licensed activities in Saudi Arabia after complying with the ISIC.
  2. The licensing officials will only apply the equivalent ISIC codes against the relevant currently approved business activities in respect of each company as may be deemed necessary to ensure the continued performance of the same licensed business activities in Saudi Arabia.
  3. SAGIA does not currently charge any regulatory fees for the ISIC amendments of the Foreign Investment Licenses (FIL), noting that the expenses usually incurred are of two thousand Saudi Arabian Riyals (SAR 2,000) for each respective FIL.


In addition, one of the major recent developments under the ISIC is the licensing of the management consulting activities. All of the Management Consulting Activities have been shifted to MoCI under the professional sector and are now directly licensed by them.

At this stage, SAGIA will only be licensing “high management consulting services” which shall fall under SAGIA’s Services sector (the High Management Consulting Activities). The High Management Consulting Activities should mostly allow the performance of general consultancy services that are not classified under MoCI’s professional sector and without specializing in specific services, which include the accounting, taxation, management, economical, educational, translation and/or security sectors.

Scope of application and implications

These recent requirements by SAGIA and MoCI will apply to all companies registered in Saudi and significant implications include the following:

  1. Established companies in Saudi, to the extent required, must amend their FILs, Articles of Association and/or Bylaws (as the case may be) and Commercial Registration Certificates (the Constitutional Documents) in accordance with the ISIC.
  2. Companies previously licensed by SAGIA to undertake any Management Consulting Activities must amend their Constitutional Documents to either reflect the approved High Management Consulting Activities or discuss with their respective Saudi legal advisors the available structuring options under the professional sector (if applicable).
  3. Based on our recent interaction with SAGIA and MoCI, the substantive regulatory services, which include the renewal and/or amendment of the Constitutional Documents and appointment/dismissal of managers, will not be provided to companies that are not compliant with the ISIC. The officials will first request the respective company to amend its business activities in accordance with the ISIC (including the Management Consulting Activities) prior to processing any applications submitted to either SAGIA or MoCI.

Required action

The Constitutional Documents of companies must be reviewed and amended to reflect the ISIC requirements applied by SAGIA and MoCI.

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7 Tips for Women Who Wish to Start A Business
  • Article, Bahrain, India, Oman, Saudi Arabia, Singapore, U.A.E

7 Tips for Women Who Wish to Start A Business

These days, women have loads of opportunities and the required abilities to start a business – be it full-time or part-time. Social media has also helped in changing the perception and women these days are taking the risks and becoming entrepreneurs.  There are many women who are also quitting their full-time jobs and starting their own ventures. So if you’re also thinking of starting your own enterprise but confused about how to go about starting it, then read on. We have collated seven tips for you, which would help you to kick-start your business.

1. Prepare an impressive pitch:

The first step before you start talking to your network or looking for investors, you must prepare a good pitch. You should know which product you are selling and why a customer should spend their money on it? So do you know what an elevator pitch is? Your pitch should be such that it is impressive yet not long. It should be crisp and something that grabs your attention quickly. It should also be something that enables people to understand your product or service and how the customers would be benefitted using it. Think of how your product is filling the gap in the market and giving what has been lacking.


2.  Study your market in detail:

After the sales pitch, do a detailed study on the customer base, that is, who will buy your product or service. What’s the size of your customer base? Are you targeting a niche customer base or generic one? Find answers to these questions first and then decide to present your idea to your potential investors.


3. Upskill yourself on financial aspects and knowledge:

Before making a sales pitch to investors, you must be confident with numbers, financials and data. Managing a business is not possible without mastering the financials of your venture; in fact your data and numbers should be on your fingertips. In case you’re not so confident about the financial aspects, you must upskill yourself and learn this from someone experienced and good at it. You should have answers to questions such as “What are the capital requirements of your business over time?”; “What are your gross margins?”; “What’s the time frame you are looking at for a break-even?” etc.


4. Don’t think twice and ask for help if needed:

You should not hesitate to look for help and advice in case you are have any doubts in how to set up your business. In this, networking is a very critical skill that should have so as to flourish in the entrepreneurial world. You must confidently tap into your network of acquaintances and friends, which is crucial to run your own business.


5. Have a useful board of advisers:

Having a board of advisers in an early stage in your company could really benefit your company’s image. While deciding the board members, make sure that you pick experienced people who can act as trusted advisers in your venture. These investors can advise you in all decision-making process and could even take you to your initial customers. So to start with, check and invite individuals from your own network who might have relevant experience. After deciding the board members, you could plan in-person or even virtual meetings on a periodic basis for discussing important issues.


6. Create a hiring roadmap:

Make a list of people you will require in your company in the coming 1 year or so and then start finding and hiring them. These people could be working with you full or part time or could be working for equity till the time you get some funding.


7. Work harder and faster than others!

Last but not the least, get ready to work harder than your competitors, or what you have done earlier. Do you know that most of the small business owners or entrepreneurs put in over 60 hours every week? Also, be ready for the inevitable failures or setbacks. It’s all part of the game. You must also not ponder too much and delay making the decisions, as others might launch the same product or service before you.

So, starting your own venture might have multiple challenges but if you keep these tips in mind, you’re surely off to a great start!

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