Overwhelmed information on the internet about how to start new business in Dubai, might get a lot of entrepreneurs taking a wrong decision of setting up their business by skipping important preparatory steps. We always ask our start-up clients a nerve wrecking question : “Have you done everything that you need to do to ensure you get ROI before setting up your company in Dubai?”
If you are considering starting a business Here is what you should consider before setting up your company
Management or Business consultants help entrepreneurs and startups to incorporate a new business in Dubai or elsewhere, in an efficient manner and also assist existing businesses improve their performance and grow through finding innovative ways of conducting business matters. It’s not just in the private sector either – many firms work with public sector organizations to scale up their services and, where necessary, reduce costs and make savings.
‘Information is a source of learning and without learning, there is no earning’, whether you are the CEO of a multinational company or an entrepreneur in process, you simply cannot ignore the importance of information which is extracted from a specialized process called ‘Market. The process includes gathering information on a market, collecting data to identify a gap which can be utilized before your company setup in Dubai.
When the Idea Sparks: Light bulb or short circuit?
If you are planning to start a new business in Dubai or your mind just sparked with an amazing business idea, you might just be ready to get your shoes on and race the test run. However, we tell you that every successful entrepreneur takes a break to reflect on the plan: After all you want to be sure that your idea and plans work out for you in a profitable manner and not just putting in a whole lot of money in all the wrong direction and emptying your pockets. You would want things to work for you and your business in the long run. In simpler words: it is just now really important to understand if your ideas are feasible enough and find ways to get your plan on track to hit breakeven and turn profitable in the shortest possible time. This sounds really convenient and convincing, but how do you really ensure your idea and plan to setup your company in Dubai is not based on assumption and guess work? How do you know that the great idea that sparked in your mind is going to brighten your future like a light bulb in the dark and preventing it to short circuit and burn down your business in no time?
Every business has one goal in common and that is to make enough money to be financially viable, re-invest to scale up or expand and to be profitable to sustain. Many entrepreneurs and business owners fail to recognize the important of testing the waters and identify what will work for their business in a certain market. Your business is unique to you and so should be your plan to enter. It does not matter if you are a small scale entrepreneur or an existing giant in another territory: all successful businesses have a well-documented plan that is backed by intensive and scientifically conducted Market Research.
So what next?
Many SME entrepreneurs see a market research as “not needed” or “too costly” thinking that their business is not really in need of one. They simply rush to setup their business failing to realize that what works for others might not really work for them, especially in a diversified fast moving market like Dubai. This is exactly where things can only go wrong if you are not supported by luck. Well good luck than!
Why every start up needs a market research before starting a new business in Dubai
First, let’s get down to what exactly market research is?
Market Research simplified: Getting Market Research work for you
They say that all of us have magic in us but a few know how to be magical. This is exactly what Market research does: believe it or not but it brings out the magic in you to drive a great business or start-up
1- Getting to know your target customers
Market research in its true form is the process through which a business learns how to communicate a message, create value and position its business in the minds of consumers for its product or service. The information digging tools and techniques will primarily allow you to narrow down your target audience to whom you will be making a promise for the actual delivery but at the same time you will be getting to know your potential clients. It will give you a detailed insight such as customer’s buying power, buying habits, behavior and other various important emotional and psychological traits that will allow you to know your market in depth enabling you to have the most effective marketing strategy in place.
2- Realizing your true business potential
This is just one half of the whole process, the other half includes knowing your own potential while considering the resources at hand. This means that if you have a sufficient amount of capital, assets and network for your new business setup. An entrepreneur planning to take a huge financial risk can calculate and narrow down the risk by doing so.
3- The evolution of your idea, product, services and customers
A business in its early stages or an idea in its phase of incubation needs to figure out how the product or the idea can be developed according to the needs and wants of the targeted audience and how actual value can be communicated to the customer, even before you begin operations, market research will answer many of your important questions and clear your confusions.
5- Finding researched backed answers to questions that matter
It is no doubt a surprise that entrepreneurs are overwhelmed in the beginning with their passion of getting started with their business that they often forget to ask themselves questions that get you out of the comfort zone. If you have not really asked or do not have research backed answers, it is best to get on seeking advice before starting your business in Dubai
- What industry or market should I enter?
- What type of product should I introduce?
- Should I create a new innovative product or add value to an already existing one through my own brand name?
- If I create a new one, would it be accepted?
- If yes then how can I communicate its worth to the market?
- What group of people will be my actual segment in the market?
- Should I penetrate the market or focus on a niche?
- How can I surpass any competitors if present in the market?
- And lastly how can I turn my new business or idea into a profit generating machine.
Don’t worry, the good news is that sufficient research through by an expert will allow you dig even deeper and getting a clearer picture.
The Wheel in action: Getting your new business in Dubai on track
So before considering to setup your company in Dubai, let us have a quick insight into how the market research is conducted.
Knowing your audience is always important but research purpose and agenda has to be precise and clear before you actually start and focus has to be on one variable at a time or limit.The process includes various steps which are favorable and important for some business types while for some they are not necessary.
What do you do when you already know your customers? Do you still need to conduct a Market Research?
The answer is simply ‘Yes’. For example introducing an expensive watch for elite class customers segment won’t require you to research your target audience as your audience’s scope, potential and buying pattern is very clear. The focus of research is shifted on the product itself and how its added value would be justified through the right communication methods. It would be more important to collect information on how you will attract people who love Rolex and Cartier, to view your product as a bigger priority. This is further clarified in these steps of the market research process;
Market Research Process
1)Defining The Problem and Becoming Future Ready
UAE is enriched with opportunities and a new business setup in Dubai in particular may have a lot of opportunities for success. However, to walk the road to success you must first identify the challenges that you may face and have a solution beforehand. The first step involves knowing what you plan to learn from your research and defining the problem at hand in order to filter down your data gathering process and find what’s actually going to be specific to your needs.
You being in the startup process cannot afford to waste your time and money on finding something that’s either not important or relevant to your business needs. This would ensure that you take the right and necessary actions for your business setup and no effort goes to waste in finding solution to any unfavorable situation.
Speaking of challenges, it is also important that the market research will help you create a crisis management plan by analyzing how demands may experience anticipated change by the same target market over time. In short words the Market research takes measure to analyze how future ready your business actually is and what you could do to adapt to meet the trends of the future.
Having a Market Research Expert will give you the other side of the picture and get you thinking outside the box of problems that may have not been visible or apparent from your point of view.
2) Developing the Market Research Plan:
After you’ve examined all potential causes of the problem before your business setup in Dubai and have used those questions to boil down exactly what you’re trying to solve, it’s time to build the research plan. Your research plan can be overwhelming to create because it can include any method that will help you answer the research problem or explore an opportunity.
To help you develop the research plan, let’s review a few techniques the experts us to conducting research:
- Interview prospects and customers. Oftentimes, you get the best feedback by using this tactic because you’re going straight to the source. This might take the form of a focus group or one-on-one interviews. Market Research experts use your defined research problem to help select the right people to interview.
- Conduct a survey using an efficient tool.
- Run user tests on your website or landing page. This is a cost effective study that can provide a lot of insight and data into how your customers or potential customers behave or respond to something, whether it’s new messaging or branding or a modified product or service you are thinking about offering. Simple tests can go a long way in discovering user behavior. Use heat mapping tools, such as Hot Jar, and website analytics tools, such as Google Analytics or Hub Spot analytics, to track results depending on what data you need to collect.
3)How the market research expert wins the race for you
Once you have used your chosen tools to collect data and developed your plan, now it’s time to execute them to collect the desired data in numbers. Various online and offline techniques can be used from online surveys to group observations to get to the desired findings.
You may think that since you know now how to develop a market research, to loosen the reigns and simply get your horses running. Well, but running does not mean winning entirely, and that is where we recommend you engage an expert who has a massive pre-worked data, resource and time to do things the right way. After all you do not want to end up wasting your time to figure out all these things and instead, focus on setting up your business.
4)The Real Deal: Analyzing Data & Developing Real Time Reports:
Once you have your data, it’s time to interpret what exactly it means as data would be mostly in quantitative form and it has to be converted into qualitative to derive meaning from it. You need an overview that comes through the summary of the study, including the process that you followed, the results, conclusions, and what steps you recommend taking based on those results. Even if you don’t need a formal market research report, be sure that you review the study and results so that you can articulate the recommended course of action.
Your research is complete. It’s time to present your findings and take action. Start developing campaigns, put your findings to the test and get going.
Staying in Trend with your new Business in Dubai
Business environment, challenges, opportunities and trends are constantly changing, which means that your research is never over. The trends you discovered through your research are evolving. You should be analyzing your data on a regular basis to see where you can improve. The more you know about your buyer personas, industry, and company, the more successful your marketing efforts are the more successful your business will be.
Understanding the Difference between a Market Research & Feasibility
Market research involves many elements in your business life cycle including political, technological, cultural, sub cultural, economical, geographical, topographical, mortality rate, age grouping needs, average income per-capita, demand for productivity or services, competition, crime rate, unstable militia, overthrowing of governments and in some rare cases corporate espionage.
A feasibility study on the other hand gives a statistical analysis of a cost approach which includes your fix assets, fixed variable cost and operation cost that makes up your budget. It shows your breakeven point as well as your profit margin for your internal organization.
Why a feasibility study is Imperative after Market Research
The term “Feasible” means something or some action that is likely to succeed.
Any idea that is about take shape as an incorporation need its viability to be determined and to see how the market would react to the upcoming service or the product. Many products or services that are introduced may be beneficial to the market that the new business setup introduces it to, but it is not a rare occurrence that the target audience would reject it. Or, maybe the product or service that is being worked for is already in the market and the competitor might have a loyal audience market for his products.
In some cases like such, where the product has its presence already in the market with a loyal customer circle, new business has to be ‘introduced’ in a way that the audience would at least consider it on ‘trial’ leading them to actually use the new service or product. Some products or services might merely be undoable in the market, some products might workout but the investment that would be required might raise a red flag, leading the project to shut down even before the initial stages end. Another reason could be ‘resources’, where the required resources are just not available or might not have enough finances to afford those.
Starting a new business in Dubai, can be overwhelming and with so much competition you want to be sure you not only stand out but also understand how your business is going to make profits in the long rung.
Some key benefits include:
- Narrowing business alternatives
- Success rate enhancement
- Identifies the problem alongside identifying the solution
- Bugs in the business model are eliminated
- Assessing the real demand in the market
- Recognizing potential cash flow
A Common Mistake among Start Ups
The biggest pitfall entrepreneurs make when launching a startup is not knowing the difference between assumption and fact. Without market research, everything is guesswork. Entrepreneurs that plan to start their business in Dubai often work closely with their first customers so they can understand how to make the product better, which is definitely a good thing to do. However, often you need to cast a much bigger net to get the full scope of a market. With that being said, the importance of market research and engaging a market research expert cannot be overlooked if your aim is to sustain and grow.
What to Expect from a Management Consultant
When setting up a company in Dubai, or elsewhere, a management consultant would play a huge role in the incorporation process. They help businesses improve their performance and grow by solving problems and finding new and better ways of doing things. This all may seem a lot for your initial run in the business world and having creative and experienced professionals to help you in all the initial steps of your company setup in Dubai. The ADAM Market Research and Consulting division addresses the needs of both SME and Large Scale businesses by providing
- Market Research
- Feasibility study
- Business Plan Writings
- Business valuations
- Preparation of Investor decks
- Distributor search
Our experts have are dedicated to you and help you gain more exposure to the industry and assist in eliminating errors in operations.
How Dubai Business Advisors Simplifies your Entrepreneurial Journey
Since 2002, our Dubai Business Advisors at ADAM Global (Dubai) have continued to maintain the legacy of providing up to date and trusted advice to both foreign and local entrepreneurs including clients from the industrial sector.
Our experts and advisors have worked with and advised some of the leading industry players in the region and have played a pivotal role in their business growth. Our client centric business model, in addition to our local expertise and extensive industry knowledge, consistently creates and adds value to our clients.
The aim of the company since its inception has been to simplify the business journey offering in-house bespoke service offering a single window solution to address corporate needs. These include but are not limited to;
- Corporate Advisory and Consulting
- Market Research for GCC
- Company Setup
- Warehouse and Industrial Setups
- Company Registration Services
- Registration of trademarks, Copyright and patents
- Product Registration
- UAE Visa Services
- Corporate Bank Account Opening
- Financial Free zone Consulting
- Offshore Company Formation and Holding Structures
- Foreign Market Entry
The Company also has been a recipient in multiple awards categories across the domains of corporate advisory & business setup services!
It is a part of the world’s largest network of professional networks , ADAM Global (UK) Limited, a British entity of global independent and multi-disciplinary firms.
Whether you are an entrepreneur wishing to start your business in UAE, an SME, a wealthy international family, a multinational or an established blue-chip company: our highly sought and trusted advice will ensure you have everything you need to start or expand your business in Dubai.
Find out more on why do you need a business consultant?
Contact our Market Research Expert For your new company
Ms Shikha Syal is the Head of the Market Research and Consulting Division at ADAM Global Dubai.Many businesses are interested in accurate results that will ultimately help drive business objectives and focus. Ms Shikha prioritizes during each study that protocols are followed to ensure a company’s outcome is one that will help increase profits, visibility or whatever the final objective may be. She is a gold medalist from SP Jain School of Management and a certified Blue Ocean Strategist. She can be directly contacted on email@example.com
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Blog Contributed by: Marketing Team ADAM Global