Women

innovator
PART TWO
Startup and execution
phase
We have spent the majority
of this article on the
planning phase. But that’s
just reflective of the hard
truth- if you plan right, you
will significantly increase
your chances of success.
That’s Project Management
101. However, the execution
phase is also very important,
and there are certain aspects
that an entrepreneur needs
to pay attention to in order
to avoid problems and failures
of their F&B business
before it begins. Among
those, we have chosen the
following:
I. Know that the free
fit-out duration period
will not be enough Every
landlord and real estate
agent will promise you a
month of rent-free, fit-out
period, but rest assured that
it will not be enough. There
is a lot to do and you need
to allocate enough money
to pay rent while the fit-out
work is ongoing. Here is a
simplified version of the
sequence of events:
a. As soon as you sign the
lease agreement, you will
need to obtain the outlet
drawings in order to modify
them with your construction
details that are specific to
your restaurant.
b. Once the design is finalized,
it needs to be submitted
to the Municipality (or
Trakhees) to obtain the
required approvals to start
the work.
c. The fit-out contractor will
be late. They will mobilize
only few people in the beginning;
you need to keep pushing
them and will probably
need to be in location every
single day more than once.
You can easily be spending
the first month of your
enterprise in the aforementioned
first item alone.
So, always be prepared for
this risk and plan it in your
schedule.
II. Be prepared to manage
variations Variations are
inevitable in construction
business. The contractors
know it, and in many cases,
plan for it, so don’t panic
when they send you the
variation orders. Always
go back to the contract
to double-check what is
included and what is not
(note the criticality of the
planning phase!). Negotiate
with contractors and explore
alternatives that can reduce
the price or expedite the
work.
As a basic rule of thumb,
never accept after-the-fact
variation orders. Make this
very clear in the contract.
The contractor must obtain
your approval prior to proceeding
with the work.
III. Obtaining final
approvals will be timeconsuming
This is the
frustrating part. Your
fit-out and construction is
complete; all equipment is
installed, but you can’t start
because you are waiting
for the DEWA approval
and the power connection,
Civil Defense approval,
Municipality approval, etc.
This is the time that you are
paying rent to the landlord
while you are not generating
any income- so be sure to
factor this period into the
initial budgeting. In order
to make this process better
for you, make it a point to
talk to the local authorities
and government entities.
Some of them (especially the
ones that require physical
inspections) have express
services for additional fees.
You can weigh the additional
fees against the loss if you
delay the opening.
IV. Marketing, marketing,
and marketing Although
this bulletpoint is
not related to project
management, it’s a point
that’s easy to miss when
opening a new F&B outlet
in Dubai, arguably the hub
of the hospitality industry
in the GCC. The city is full
of restaurants and food
outlets that are opening
on a daily basis. It’s only
strong marketing and PR
work that will allow the
name of your restaurant or
brand to spread through
your prospective consumer
base. Without a strong
marketing and PR strategy,
you will be just another
fish in the market that will
go unnoticed. Given the
criticality of this factor,
it’s worth working with a
PR and media consultant
Drinks served
at @blend
for three to six months to
spread the word about your
new brand. Work with them
to invite bloggers, media
reviewers, social media
influencers to your outlet to
try out the menu and review
it. Participate in events,
make agreements with social
groups that can feed you
valuable clients, and even
put some money into a grand
opening media event to the
get the place known.
In conclusion, we would
like to emphasize the
importance of careful and
thoughtful planning. Starting
a new F&B business in
Dubai can be profitable;
however, entrepreneurs
must be prepared for the
risks and challenges that
they will be facing when
trying to convert the idea in
their heads to an operational
restaurant. Making the
greatest cake in town is one
thing. Building the café that
serves that delectable cake is
totally another thing!
C
M
Y
CM
MY
CY
CMY
K
Malak Al-Habib and Mohamed Al-Sadiq are the co-founders and co-owners of @blend, a healthy café located at Palm Jumeirah in Dubai, UAE.
While Al-Habib has a background in science and medical facilities management in Saudi Arabia, Al-Sadiq has been working in construction project
management for the past 13 years in Saudi Arabia and holds Project Management Professional and Risk Management Professional certifications
from the Project Management Institute.
54 Entrepreneur may 2016