Five tips to come up with a winning business ideaKWSME
Studies by Incarbia, a business management firm, found that 2 out of 10 start-ups fail in UAE – i.e. cease operations entirely in their first year. 6 more fail in their second year, according to Dubai Free-Zone website.
What can you do to ensure that your company won’t be one of the ones that fail? The key lies in making sure you have a viable business idea that’s positioned well to help your company succeed.
Today I am happy to share with you the 5 tips you will need to follow in order to develop and nurture a winning business idea.
1. Your Business Idea Should Solve a Problem
Many successful entrepreneurs and noted experts agree on this point i.e. identify the problem or “pain point” that you personally experience on a regular basis, it is the ideal motivation for starting a company.
While you can focus on other problems people face on daily basis for your startup idea, it would be wise to draw primarily from you own need. Why? Because starting a business setup in Dubai is a daunting process which requires long hours and endless focus. It will be much easier when you feel a personal connection to the purpose of creation of your company.
Another thing to consider here is that the problem you are looking to solve doesn’t have to be the one that nobody else is tackling. It can just be the issue no one has ever dealt with effectively.
For Example, Uber, the app based taxi service that has revolutionized the way we think about going from one place to another. You can find taxi on your own but you will have to go out and wait or even back in 18th or 19th century there were horse carriages for private hire.
But now Travis Kalanick and Garrett Camp (founder of Uber) found an easier way. They utilized new technology (smartphone) to provide solution to an existing problem. Uber now operates in more than 500 cities with over one billion connections.
2. Find Your Niche
Consider your personal strengths; identify your passions, interests and hobbies. Passion is essential. Any business you start should make you excited, determined and ambitious so you can grow it in the longer run.
Don’t be in the business just for the sake of money because either you will give up soon or be quickly pushed out of the market by the people who genuinely care about the work they do.
For this, identify your skill sets e.g. you may be very organized or have great interpersonal skills. Also analyze the skills that you have acquired with time via education or work experience. Check your hobbies. What do you love doing? Is there an achievement that makes you particularly proud of yourself? You may have a childhood dream that you still find intriguing and would like to pursue.
Brainstorm like crazy and it will help you pinpoint towards a business idea.
3. Trust Your Gut, But Not At The Expense Of Your Head
You have to be really honest with yourself. Don’t be fooled by a flash of inspiration followed by plenty of nagging doubts. You can easily set your concerns aside just because they don’t fit with the version of events you prefer. Do not put blind conviction on one idea as it will be dangerous.
What you can do here is to try pitching it to other people. Narrate your business idea in one sentence and observe their response. Einstein’s great quote works here,
“If you can’t explain it to a six-year old, you don’t understand it yourself”.
If other people seem confused, you may need to re think. Why? Because the other person might be a potential customer and their reaction will help you determine whether you have a business opportunity or not.
4. Your Business Idea Should Be Scalable
SMEs in UAE comprise for 95% of the total enterprise population. Therefore it’s important to understand and ensure their scalability for SMEs prosperity. “Scalability is the potential of a business opportunity to grow and be applied to an ever-increasing market.”
Yes. All ideas start small. You have to understand its potential, grasp how it can grow in future and therefore plan ahead.
5. Don’t Be Afraid To Ask
Try getting insight from other people. The experience and ideas of other people whether business men or others are valuable which will help you in your market research and identify what other see as problems.
Johnny Laursen (founder of Benjamin media) explains it well, ‘it’s really quite simple: use your common sense, listen to people, and seize opportunities as they arise’.
UAE – The Best Place for Start-Ups
UAE is widely recognized as an “entrepreneurial hub” – a place that provides a great environment for starting a business. Whether you are going for mainland company formation or free zone company formation, UAE government allows entrepreneurs to focus on growing their business instead of getting bogged down by administrative tasks.
If you are looking to start business in Dubai or anywhere across UAE, contact our Dubai Business Setup Consultants at KWSME on 00971-(04) 871 4313 or send us your query on email@example.com.