So, here we consider the topic of how to think of a startup idea for a quick and competent startup of a business project in UAE or some other country and consider why it is so important to detail your business idea. Often, beginning entrepreneurs do not know how to think of startup ideas properly, and believe that one can formulate a business idea in two simple words (for example, "I’ll open a grocery store," "I’ll develop sites," or something like that). But keep in mind that it is very important to know how to think of new business ideas and to calculate the financing and implementation of the idea and achieve profitability, it is necessary to consider this issue in detail.
Mistakes made at the stage of investment planning for the organization and development of business are one of the most frequent causes of a start-up death. A briefly formulated business idea does not give a complete picture of your future project, and because of this shortcoming, at the initial stage, there is an understated view of the level of financing, which subsequently leads to wrong decisions, actions, and loss of time, money and even business. According to statistics, 80-90% of start-ups die in the first 2-3 years due to underfunding of a project. So how to achieve success?
The creation of a start-up business and its advancement to the stage of obtaining a stable profit includes two stages of financing:
- Investments before starting a business,
- Investments before reaching a break-even point.
Before you get a break-even point, it can take one, two or three years, and you should understand that, starting your own business, so that not to have disappointment from the entrepreneurial later. This must be clearly understood to determine how to plan your business idea implementation correctly.
How to think of a business to start in Dubai or other city? First of all, it is important to work out all the details of your business idea – target audience, geography, product line, competitive advantages, the proposed development strategy of the project.
Remember that the more highly developed your business idea is, the easier it will be to implement the next important step – the calculation of the necessary financing for a business project.
So, let's consider, the most important parameters of the formulation of business ideas, which will affect the initial investment. Let's consider in detail each of the parameters and how to think of an idea for a business.
1) What kind of goods do I produce (service I provide):
- What is its purpose?
- Where (in which region) I will implement my potential product (service)?
- How wide is my potential product (service) distributed in the region in which I intend to implement it?
2) What is the uniqueness of my product (service)?
The next step in how to think of new product ideas is to determine the uniqueness of the product/service. If everything is clear enough in the first point, difficulties often arise when formulating the uniqueness of a product. And, meanwhile, a clear understanding of the difference between what exactly your business project will produce as a final product and why it is better than a dozen already producing similar goods (services) firms will allow you to "roll out" business idea as quickly as possible: correctly formulate an advertising slogan and attract as many customers as possible in the fastest possible way. Correctly launched advertising company will save a lot of financial resources for other organizational events; and it will allow you to quickly get working capital (the more customers will be in the first days of your activity, the greater the financial flow will be created), besides, it will make your brand recognizable from the very first steps, create a reputation that will also serve as a good asset for the subsequent search for investors, etc.
3) Who are my customers – consumers of the product or service?
It is necessary to clearly understand who will be your consumer in UAE or your other target markets: the "middle class," low-income ones or VIPs. This is how our today's world works, there are both poor people who look for the possibility to pay less, and those who buy a single croissant and a tea for 15 dollars. Your solvency as a business owner is in understanding this difference (of course, this is not the only thing, but one of the most important ones).
4) Competitors.
They are also one of the important factors that influence how to think of a good business idea. True, it is often neglected by beginning entrepreneurs, who think that everything will be like that of Caesar – Veni, Vidi, Vici (came, saw, won). Underestimating competitors who have been working in this field for several years can be harmful and dangerous for the new business project: they already have a recognizable name, customer base, they have passed the stage of the break-even point, and, therefore, the main investment component already brings returns – the things you will get only in future!
5) A marketing plan is a plan for promoting your product (service), it should be detailed because a large part of the initial investment will be made up of an advertising campaign. We have already examined why this is so important. When developing a business plan, the costs of initial marketing and marketing for an already existing production process will be calculated, but the directions should be planned already at the current stage.
So, here we have briefly considered the main points of how to think of a great business idea. Having worked out your business idea in detail, you would see how your business project in Dubai or some other city really looks like; you will find out what is needed to realize it even at the initial planning stage, besides you will see opportunities, risks and how long it will take before you come to the break-even point.
