Working so hard for a big corporation provides very little assurance for the future. This is what a lot of loyal employees discovered during the global economic recession several years ago. The devoted their time, energy, and skills to their company but such devotion wasn’t enough to avoid getting sacked when downsizing was required.
It’s certainly no big surprise that many of the “casualties” of the economic recession resurrected with a heart for business. You can’t get fired if you’re the boss of your company. Success stories have shown how having your own venture, when done right, can pave your way to financial freedom.
If you’re considering becoming a business owner, it does seem like now is the perfect time to become one. So many people are trying it out, so why shouldn’t you if your heart is leading you to that path, right?
Success Doesn't Come Easily
Although it’s true that now is the prime time to launch a business, it’s important to acknowledge that not all businesses fly and soar to the heights of success. In 2015, reports reveal that only 50 percent of businesses thrive in their first year, and out of that 50 percent, only 66 percent live through their second year.
The numbers are rather discouraging. Experts in business setup in Dubai say that failure can be due to all sorts of variables. However, if you have the fundamental dos and don’ts down, the risk of failure automatically diminishes.
So, what are the dos and don’ts for first-time business owners?
The 8 Do's and Don'ts for First Time Enterepreneurs
1. Do be patient in takin the long route in setting up the business
As much as possible, avoid taking shortcuts because there are always lessons along the way when you go through the original long process. It’s crucial to learn these lessons to fully understand the relevance and differences among certain requirements.
For example, you may be considering a particular location for your first shop. You may be surprised to learn that trading license fees are different in the area you’re scouting compared to those in your community. You may also not be aware that there are different trading licenses for businesses – the kind depends on the nature of the operations.
Everything you learn from going the long route will be useful when it’s time to expand your operations.
2. Don't rush into decisions
Acting hastily usually ends disastrously for business owners because there’s no complete comprehension of consequences. When an important decision has to be made, it always helps to have enough time to study circumstances and to consult partners and knowledgeable people.
3. Do set aside a generous budget for marketing
One of the most reliable methods of getting a business off the ground and sustaining its good results is marketing. Ten percent of the operational budget is a good enough amount, but consider increasing it, especially when you take your marketing online.
Creating a buzz for your business will allow you to make more connections that will eventually prove profitable.
4. Don't let setbacks get you down
The business world is always evolving and, at times, the changes can be too overwhelming to approach. New business owners have the strong tendency to just pack things up when the odds aren’t in their favor. They automatically think of setbacks as losses.
Business specialists advise greenhorns, however, to turn setbacks into comebacks – opportunities to be better and come back strong. Optimism and the commitment to get things right make a huge difference in the business realm.
It’s essential to remember that problems always have solutions other than to quit.
5. Do be proactive
It’s imperative to be where the action is so you’ll have a full grasp of how the business is performing. Be present in the different areas of operations so you can assess the efficiency and come up with good ideas for improvement.
6. Don't stop learning
Business owners should always look for learning opportunities. Plus, there’s always a learning curve for new entrepreneurs.
Seeking to improve yourself will prepare you better for the uncertainty of the future. Likewise, it will provide you a bigger arsenal of solutions for issues that may come the business’s way.
7. Do take time to build connections
Connections are always crucial for business. These can help with marketing and even getting the best deals to keep your operations cost-efficient. It’s worth noting as well that through strategic networking, you can create “friends” even among your competitors. If their services are similar to yours but they are unable to meet the demands of some of their customers, they’ll have you in mind and recommend you.
8. Don't simply copy your competition - it won't be enough
This is a common business newbie mistake, but keeping tabs on the competition and doing as they do is actually a smart practice in business. The key here is to take note and be better.
Sure, it’s great to be as original as possible, but it will help your business a great deal to be aware of what other players in the industry are doing. This way, you can see where their weak points are and provide your market something that they are looking for. After all, focusing on what your market wants and delivering on it should always be the top priority.
With these dos and don’ts you can ensure a strong start for your business. With a strong start, success can come much faster and more easily.
About the Author
Raj Herry is the Founder and Chairman of Flying Colour Business Setup Services. His extensive experience comes from more than 15 years in the field of company incorporation for Dubai Mainland, all Free Zones across the UAE and offshore companies worldwide. He also owns several business centres offering furnished and ready-to-move offices in Dubai.