As we have discussed in detail about the setting up process of a business in Dubai in the previous blog, it is essential to know about the various mistakes that an entrepreneur makes when starting their new business. Business setup after well aware of these mistakes will help you out in the easy business setup process. Business planning along with keeping in mind the common mistakes that an entrepreneur makes will help them to set a clear cut idea about the proposed business. Starting a new business is the dream of many of us, but many are stepping back due to the unexpected challenges and setbacks.
As mistakes are an inevitable part in every work or businesses, some mistakes are costly and can ruin the whole effort of the entrepreneur. In this blog we will detail some of the most common mistakes entrepreneurs can make when starting their new business. This will be a guide to most of the budding entrepreneurs who chase behind their passion for an own business in Dubai.
Common Mistakes During Business Setup
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Lack of Market Research
Market research is inevitable for starting a new business. Lack of market research will leads entrepreneurs to make misinformed decisions. Market Research gives detailed information regarding the market including the demand for the product or service, consumer behaviour, purchasing power which are crucial for entering into a new market.
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Choosing the wrong Jurisdiction
Selecting the wrong Freezone or Mainland can incur additional costs as well as administrative issues. Each area or jurisdiction have its own rules, regulations and benefits. One needs to have a detailed analysis or study about all the locations and choose that particular jurisdiction that is apt for their business.
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Compliance to Legal requirements
There should be a thorough understanding of UAE laws and regulations and adhere to its strict compliance. Failure to comply will result in significant delays and legal complications.
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Failure to adapt to cultural differences
Dubai is a culturally diverse city, having all the nationalities. Understanding the local customs is essential.Failure to adapt with cultural differences will lead to misunderstandings with customer, suppliers and employees.
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Lack of Financial planning
Since Dubai is a bit expensive for living, it is more expensive for starting business too. Underestimating the cost can ruin the whole finances. Therefore entrepreneurs must consider their initial investment needs and all the expenses that may incur and prepare a budget accordingly.
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Neglecting Registration Requirements
Registration of a business in Dubai involves certain formalities and submission of documents, failing to comply with any of the formalities may incur additional cost and penalties. Entrepreneurs can make use of a business consultant for company setup in Dubai.
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Lack of local business network or partnerships
Businesses need to build up a strong relationship with other businesses in the area that could help us for the smooth operation for the business. Participating in corporate events, exhibitions, seminars can build valuable connections and healthy relations.
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Lack of proper marketing and branding
In a competitive market like Dubai, businesses should have an outstanding marketing and branding and invest in outreaching to a mass market. Make use of the digital platforms for marketing, adopting digital marketing, content marketing, collaborations can lead to reaching a wider audience segment.
Conclusion
Entrepreneurs who are planning to start their dream business in Dubai, should at least focus on Market research, legal compliance, networking and marketing to kickstart their business with ease. Proper analysis of the competitors as well as being aware of the set of mistakes that can occur will give you the confidence for running your business. Collaborating or partnering with a third party like business consultancy will help you establish your business, thereby focusing on the key aspects of the business.Â
