Do you have a great idea for a business? Are you concerned about cracking open your precious nest egg to fund your start-up idea?
You should be. A fifth of small businesses fail in the first year alone, according to the US Bureau of Labor Statistics. However, it doesn’t take much money to set up your own company.
Hewlett Packard, now worth over $50 billion (Dh183.64bn), was started by its namesake founders in 1939 from a California garage with $538 of their own money — the equivalent of $9,875 today.
Most people think they can leave jobs later on but the escalation of commitments — like school fees — gets harder and harder. Do it early on in your career and life is easier.
Here in Dubai, British entrepreneur Diana Wilde started building her performance management platform GuideMighty last year with not much more. So far she has invested just Dh50,000.
Ms Wilde, 37, a former business development consultant who has lived in Dubai for 14 years, has learnt not to plough too much of her own money into start-ups and to get out quickly when failure looks likely.
“Don’t invest more than you can afford to lose. It may be your company, but most start-ups fail and, if you can’t afford to lose it, find a way to work on your idea without giving up your day job. Validate your idea with a paying customer first,” she says.
Last year she built what is known as a ‘minimum viable product’ (a basic, cost-effective model that has core functionality only, so it can be tested by early users and potential clients) for a private tutor marketplace called Tutoroo.
She spent Dh5,000 on a course to allow her to build the product herself, when she had been quoted Dh60,000 for the work. After spending nine weeks working on the project — and just Dh500 on a website and business cards — she decided to drop it.
“I realised there was a potential business there — but it wasn’t one I wanted to run,” Ms Wilde says. She went on to pitch an idea called StartupMighty at Gitex Future Stars, but feedback she received at the event showed the concept wasn’t scalable.
So she pivoted her idea to create GuideMighty, a “human-centred” platform for performance management, which allows businesses and individual managers to monitor goals and achievements and flag any risks early on.
Of the Dh50,000 Ms Wilde has invested, she has spent Dh20,000 on courses in app development, prototyping and design thinking.
During the six months she has been building GuideMighty, Ms Wilde has bootstrapped the business by doing consulting work on the side, and says she will continue to do so if necessary.
“I haven’t spent a lot up to this point because I am still in the early stages and have built everything myself,” Ms Wilde says. “I expect to spend more but I am still testing some of the assumptions I made in my business plan."
Of all small businesses started in the US in 2014 (the last year for which there are currently five-year statistics), 20 per cent failed in year one, a further 10 per cent in year two and only 56 per cent made it to year five, according to the US Bureau of Labor Statistics.
Almost a third of start-ups (29 per cent) cite running out of cash as the reason their business failed, according to a 2019 study from market data provider CB Insights, making it the second highest reason for failure behind a lack of market need.
Entrepreneurs who don’t put money into their ventures are signalling “incomplete commitment”, which is a “red flag” for investors and early senior hires, says Louis Lebbos, a founding partner of Dubai-based co-working space Astrolabs, and previously co-founder of e-commerce portal Namshi.
“That said,” he adds, “this doesn’t have to be in the form of large sums of direct contribution. It would also include the income foregone from other opportunities.
“It is much easier to abandon ship after the first storm if the only money you raised is from a network of well-off businesspeople,” he says. “And the perseverance to go through the first couple of storms will be critical for the long-term success of the venture.”
Although Ahmed Agour, a 31-year-old Egyptian born and raised in the UAE, supports his wife, two sons aged one and two, and has a third baby due next month, he says now is the “perfect time” to have launched his open banking FinTech start-up Dapi.
“Most people think they can leave jobs later on but the escalation of commitments — like school fees — gets harder and harder," he says. "Do it early on in your career and life is easier.”
Dapi has already received substantial seed funding from US and Middle Eastern investors. Mr Agour says leaving his job as programme associate at a UAE entrepreneurship centre was an “early sign of commitment” to them.
Heather Henyon, founding partner at Mindshift Capital, a venture fund investing in women-led technology start-up companies, and founder of WAIN (the Women’s Angel Investor Network), says she prefers to invest in companies "where founders have invested their own cash in the business to show that they have ‘skin’ in the game".
“Of course there are cases where founders may not have the financial means, so we do look at it on a case-by-case basis.” Ms Henyon adds.
Mr Agour's funding for Dapi, which came in October, the same month the start-up launched, allowed him to draw a salary from his start-up after six months.
Mr Agour kept himself afloat during that time with side gigs as a consultant and trainer, which brought in Dh120,000 that he could plough into the platform.
“Venture capitalists won’t take you seriously until you leave your job. It doesn’t rub them the right way,” he says. “Investors will take risks with you but they’re not an insurance policy.”
Ms Wilde, who lives in Dubai Sports City with her husband, three-year-old son, nanny and mother, warns that the cash you put into your business as an entrepreneur should be considered a “high-risk component” within your personal investment portfolio.
Ms Wilde says she and her husband, a commercial manager at an interiors fit-out service provider, look at her business “holistically”. “We can keep investing in other areas, as there are two of us and we have an income,” Ms Wilde says.
The Wildes bought their four-bedroom villa in Dubai Sports City on a rent-to-buy scheme and, after two years, are now paying down the mortgage rather than rent. They also keep some cash savings in the UAE and in the UK as well as holding investments offshore and $20,000 in cryptocurrency, having originally invested $800 in 2014.
“[My husband] is the security within this and what we do as a family,” Ms Wilde says. “His money is our security and mine is far more risky, but we agreed where the cut-off was: how long we were willing for me to go without a secure income; how much we were willing to put in of our savings for this early-stage work on the project; and what happens with the rest of the financial portfolio.”
Mr Agour says most entrepreneurs make “one big bet” on the business they believe in the most. “A lot drain their savings,” he adds. “Most do not have much of a safety net. What entrepreneurs do is not really good financial advice: they take one big risk, which is the polar opposite to diversification.”
The biggest cost was allowing him to go full-time on the job, Mr Agour says — financing his family’s living expenses plus healthcare and visas. As a knowledge worker, the biggest tangible expense was the licence.
“I recommend founders get good healthcare coverage and take advantage of incentive programmes,” he adds.
One such programme is offered by new Abu Dhabi tech start-up hub Hub 71, which gives office space, subsidised housing and healthcare to the staff of seed-stage and emergent start-ups. Dapi has now been accepted into Hub 71, lowering Mr Agour’s costs and providing that all-important healthcare cover.
Ms Wilde, meanwhile, has registered her company and been accepted into Dubai start-up incubator In5, which means financial support in the form of a subsidised licence, rent and visas as well as advisory services and an entrepreneurial working space.
Entrepreneurs must put at least “a small amount” of their own money into their venture, she says. “It only takes a little cash to test and validate. If you are not willing to spend your own money, why should an investor? Ideas don’t make businesses.”
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
THE SPECS
Touareg Highline
Engine: 3.0-litre, V6
Transmission: 8-speed automatic
Power: 340hp
Torque: 450Nm
Price: Dh239,312
UAE currency: the story behind the money in your pockets
At a glance
- 20,000 new jobs for Emiratis over three years
- Dh300 million set aside to train 18,000 jobseekers in new skills
- Managerial jobs in government restricted to Emiratis
- Emiratis to get priority for 160 types of job in private sector
- Portion of VAT revenues will fund more graduate programmes
- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government
Recycle Reuse Repurpose
New central waste facility on site at expo Dubai South area to handle estimated 173 tonne of waste generated daily by millions of visitors
Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site
Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area
Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent organic waste and 13 per cent general waste.
About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor
Recycling at Ras Al Khor unit:
Plastic items to be converted to plastic bags and recycled
Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays
Glass waste into bowls, lights, candle holders, serving trays and coasters
Aim is for 85 per cent of waste from the site to be diverted from landfill
MATCH INFO
Brescia 1 (Skrinia og, 76)
Inter Milan 2 (Martinez 33, Lukaku 63)
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
The biog
Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.
His advice to anyone starting out in business is to have no fear as life is about taking on challenges.
“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.
"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”
Mr Stephen sells his luxury fragrances at selected perfumeries around the UAE, including the House of Niche Boutique in Al Seef.
He relaxes by spending time with his family at home, and enjoying his wife’s India cooking.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Sheffield United 3
Fleck 19, Mousset 52, McBurnie 90
Manchester United 3
Williams 72, Greenwood 77, Rashford 79
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Dengue%20fever%20symptoms
%3Cul%3E%0A%3Cli%3EHigh%20fever%3C%2Fli%3E%0A%3Cli%3EIntense%20pain%20behind%20your%20eyes%3C%2Fli%3E%0A%3Cli%3ESevere%20headache%3C%2Fli%3E%0A%3Cli%3EMuscle%20and%20joint%20pains%3C%2Fli%3E%0A%3Cli%3ENausea%3C%2Fli%3E%0A%3Cli%3EVomiting%3C%2Fli%3E%0A%3Cli%3ESwollen%20glands%3C%2Fli%3E%0A%3Cli%3ERash%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3EIf%20symptoms%20occur%2C%20they%20usually%20last%20for%20two-seven%20days%3C%2Fp%3E%0A
'Dark Waters'
Directed by: Todd Haynes
Starring: Mark Ruffalo, Anne Hathaway, William Jackson Harper
Rating: ****
RESULT
Wolves 1 (Traore 67')
Tottenham 2 (Moura 8', Vertonghen 90 1')
Man of the Match: Adama Traore (Wolves)
Virtual banks explained
What is a virtual bank?
The Hong Kong Monetary Authority defines it as a bank that delivers services through the internet or other electronic channels instead of physical branches. That means not only facilitating payments but accepting deposits and making loans, just like traditional ones. Other terms used interchangeably include digital or digital-only banks or neobanks. By contrast, so-called digital wallets or e-wallets such as Apple Pay, PayPal or Google Pay usually serve as intermediaries between a consumer’s traditional account or credit card and a merchant, usually via a smartphone or computer.
What’s the draw in Asia?
Hundreds of millions of people under-served by traditional institutions, for one thing. In China, India and elsewhere, digital wallets such as Alipay, WeChat Pay and Paytm have already become ubiquitous, offering millions of people an easy way to store and spend their money via mobile phone. Indonesia, Vietnam and the Philippines are also among the world’s biggest under-banked countries; together they have almost half a billion people.
Is Hong Kong short of banks?
No, but the city is among the most cash-reliant major economies, leaving room for newcomers to disrupt the entrenched industry. Ant Financial, an Alibaba Group Holding affiliate that runs Alipay and MYBank, and Tencent Holdings, the company behind WeBank and WeChat Pay, are among the owners of the eight ventures licensed to create virtual banks in Hong Kong, with operations expected to start as early as the end of the year.
The Light of the Moon
Director: Jessica M Thompson
Starring: Stephanie Beatriz, Michael Stahl-David
Three stars
COMPANY%20PROFILE%3A
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Envision%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2017%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EKarthik%20Mahadevan%20and%20Karthik%20Kannan%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20The%20Netherlands%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Technology%2FAssistive%20Technology%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%241.5%20million%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2020%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Seed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%204impact%2C%20ABN%20Amro%2C%20Impact%20Ventures%20and%20group%20of%20angels%3C%2Fp%3E%0A
Generational responses to the pandemic
Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:
Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.
Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.
Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
RACE CARD
6.30pm Maiden Dh165,000 (Dirt) 1,200
7.05pm Handicap Dh165,000 (D) 1,600m
7.40pm Maiden Dh165,000 (D) 1,600m
8.15pm Handicap Dh190,000 (D) 1,600m
8.50pm Handicap Dh175,000 (D) 1,400m
9.25pm Handicap Dh175,000 (D) 2,000m
The National selections:
6.30pm Underwriter
7.05pm Rayig
7.40pm Torno Subito
8.15pm Talento Puma
8.50pm Etisalat
9.25pm Gundogdu
RESULTS
6.30pm: Maiden Dh165,000 (Dirt) 1,200
Winner: Miqyaas, Adrie de Vries (jockey), Rashed Bouresly (trainer).
7.05pm: Handicap Dh165,000 (D) 1,600m
Winner: Untold Secret, Xavier Ziani, Salem bin Ghadayer.
7.40pm: Maiden Dh165,000 (D) 1,600m
Winner: Shanty Star, Fabrice Veron, Rashed Bouresly.
8.15pm: Handicap Dh190,000 (D) 1,600m
Winner: Alkaamel, Antonio Fresu, Musabah Al Muhairi.
8.50pm: Handicap Dh175,000 (D) 1,400m
Winner: Speedy Move, Richard Mullen, Satish Seemar.
9.25pm: Handicap Dh175,000 (D) 2,000m
Winner: Quartier Francois, Fernando Jara, Ali Rashid Al Raihe.
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
Global state-owned investor ranking by size
1.
|
United States
|
2.
|
China
|
3.
|
UAE
|
4.
|
Japan
|
5
|
Norway
|
6.
|
Canada
|
7.
|
Singapore
|
8.
|
Australia
|
9.
|
Saudi Arabia
|
10.
|
South Korea
|
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
CHATGPT%20ENTERPRISE%20FEATURES
%3Cp%3E%E2%80%A2%20Enterprise-grade%20security%20and%20privacy%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Unlimited%20higher-speed%20GPT-4%20access%20with%20no%20caps%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Longer%20context%20windows%20for%20processing%20longer%20inputs%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Advanced%20data%20analysis%20capabilities%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Customisation%20options%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shareable%20chat%20templates%20that%20companies%20can%20use%20to%20collaborate%20and%20build%20common%20workflows%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Analytics%20dashboard%20for%20usage%20insights%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Free%20credits%20to%20use%20OpenAI%20APIs%20to%20extend%20OpenAI%20into%20a%20fully-custom%20solution%20for%20enterprises%3C%2Fp%3E%0A
Super Rugby play-offs
Quarter-finals
- Hurricanes 35, ACT 16
- Crusaders 17, Highlanders 0
- Lions 23, Sharks 21
- Chiefs 17, Stormers 11
Semi-finals
Saturday, July 29
- Crusaders v Chiefs, 12.35pm (UAE)
- Lions v Hurricanes, 4.30pm