Questions you should ask yourself before starting your own business
WHERE ARE MY CUSTOMERS?
There needs to be a certain number of people willing to pay money for your product or service so your business can survive. Start by determining what need your business is filling and who your target customer is. Then research the size of your potential market and examine whether it’s large enough to support your business.
WHO’S MY COMPETITION?
There’s probably already company doing something similar to what you do. That doesn’t mean you should give up on your idea, but you do want to identify your competition — and determine what will make your business different. Start by exploring your competitors’ strengths and weaknesses, how well they serve your target market, and whether there’s any indirect competition that may impact your business. You can also use these competitive and market analyses to help flesh out a more comprehensive business plan.
WHAT DO MY CUSTOMERS AND INVESTORS THINK?
Talk to lots of people and ask for honest feedback. Pitch your idea to potential customers, potential investors, and people in similar industries. But keep in mind that you’ll want to balance your quest for feedback with the need to protect your idea, especially if you might apply for a patent. Reveal just enough to outline the concept and the solution it provides, but keep the details of how the product works to yourself. If you do want a more in-depth conversation, consider using a Non-Disclosure Agreement.
WHAT KIND OF SKILL SET DO I HAVE?
At the start, running your own business requires you to be a jack-of-all trades. You’ll also need a basic understanding of finance, marketing, and the current technology in your field. You can always seek out further information in those areas, but the more experience and skills you can bring to the table, the better your chances of success.
HOW MUCH WILL IT COST TO GET STARTED?
The one-time costs to get your business off the ground can range from AED10,000 to AED80,000, depending on the type of business you want to start. Those startup expenses can include paying for licenses and permits, purchasing data or taking trips for market research, fees to accountants, and even the hiring and training of your first employees. You’ll want to estimate all the expenses you’ll incur to begin.
With the interest in entrepreneurship at record highs, you may be considering embarking on your own business adventure. Asking and answering these questions can help you decide if your business idea is good, and if you’re in a position to execute it. We at Fardan Al Fardan can guide you through these questions and help you choose between the best alternatives.