From waiting tables as a teenager to running a tech company
Drones gave wings to this UAE resident’s business dreams
Rabih Bou Rached, a UAE-based Lebanese expat in his 40s, saw himself as an entrepreneur for as long as he can remember. But before setting off on a decades-long entrepreneurial journey, he recalls waiting on tables in his teenage years.
But even though it was a low-paying job as a restaurant attendant, it gave him an influx of money because of how well he was tipped. After working in the Food and Beverage (F&B) industry, Bou Rached went on to set up a restaurant by age 21, equipped with the financial lessons he learnt.
“In my teens, I didn’t know how to save or invest my money and spent most of what I made on unnecessary expenses. Over time, I learned how to save and, more importantly, evaluate and decide what expenses were necessary,” said Bou Rached, who now runs a commercial drone service provider.
His chance encounter with drones in 2013 became a light bulb moment for him when he realised the potential impact this technology could have in different industries. Since then, it has been his resolve to launch a drone-operated commercial service company in the UAE.
Bou Rached came to Dubai nine years ago, looking for a place to start his Middle East-focused commercial drone operating business and found UAE to be the ideal business hub. However, before he started, he operated a brand-building consultancy in the African region.
“Even though, when we started, there was no classification for our type of business, we were allowed and even welcomed to start up, grow, research, develop, and bring new and revolutionary tech to the region.”
Today, Bou Rached’s business provides commercial drone services in the fields of surveying and mapping, inspection, construction monitoring, and aerial filming.
Managing expenses
Bou Rached self-funded his business for the first two years, after which the company became self-sufficient in managing its operations with the revenues it generated. The initial investment he made to self-start the business amounted to about Dh4 million, he revealed.
A breakdown of Bou Rached’s different expenses in his business are as follows: Drones made up 20 per cent of his total costs, while spare parts came to around 8 per cent and the cost of related software made up around 10 per cent of the total cost.
As a drone company, an additional cost was for Ground Control Points (GCPs), which are large photo identifiable targets that are placed on the ground within the boundary of your drone survey, and this cost made up 10 per cent of his total expenses.
About 5 per cent of total start-up expenditure went into marketing activities like exhibitions, Search Engine Optimisation (SEO), which is the process of improving the quality and quantity of website traffic to a website), among other advertising requirements.
Meanwhile, office space, utilities, and human resources (which falls under ‘OpEx’ or operational expenditure) made up 18 per cent of total costs of his business, while other costs that went into setting up the business and legal expenses made up 20 per cent and working capital was at around 9 per cent.
Even though, when we started, there was no classification for our type of business, we were allowed to start up, grow, research, develop, and bring new and revolutionary tech to the region.”
Rabih Bou Rached | Serial entrepreneur