Beginning the journey towards a business requires knowledge and diligence. With the right constituents, a successful business can be forged.
Despite the lucrative aspects of starting a business, oftentimes, entrepreneurs find impedance in their path because of the idea of failure. In order to avoid business losses, one can ensure that some common business mistakes are avoided.
If you are an entrepreneur looking to establish your business in the UAE these are 5 Common Business Mistakes to Avoid, read on.
In this article, we will talk about the following;
- 5 Common business mistakes
- Why choose SPC Free Zone?
5 Common Business Mistakes to Avoid before starting a business
- A Poorly- Articulated Business Idea
Businesses, whether they are small, medium or multinational corporations, require innovative and convincing ideas. Whether you are thinking of setting up an import-export business in Sharjah or an LLC anywhere in the world, you will need a business plan.
A business plan parallels the thought process one undertakes to define a company’s goals. In time, a business idea needs to be redefined, recalculated and solidified for excellent results before being put into practical action. This step is crucial because the insubstantiality of business ideas essentially jeopardises the basis of a business.
Non-coherent ideas and a lack of clarity often lead to unorganised business processes. As a result, it is essential to remember that a business idea should clearly articulate the functionality of a business to potential investors and stakeholders.
If one cannot articulate a business idea, it is best to consult with an expert. A business plan forms the foundation of a business, and an expert can help you create a comprehensive plan.
- A Faulty Business Plan
Without a perfectly curated business plan, establishing a business can prove challenging. A diminished planning structure and lack of critical factors while curating a business plan can exert challenging effects on a business.
For novice entrepreneurs, it is imperative to remember that a business plan is the first step of a long journey. An absence of planning can have a negative influence on office culture and even supply chains.
The ideal option is to design it beforehand and make changes as the business continues to flourish. A robust business plan requires a well-curated management structure, vision and mission statement, standard processes and protocols. A business plan shapes the map of a business’s success, and one should design a complete checklist before beginning the design.
- Poor Research
Proper research for the business consists of numerous factors that include the validity of the whole business idea, understanding and good knowledge of the target customers, applicable laws and required taxes. All these factors are essential to include in the research so that one can make intelligent decisions regarding their business.
The knowledge about a business industry should be comprehensive. The use of materials, cost, and calculation should be up to the mark and accurate. If one is aware of the ground costs, one will be able to price their end-products correctly.
The result for business owners unaware of the costs will be a loss in profit, as pricing mistakes can negatively affect the business. This is why research is of critical importance.
- Poor Financial Planning
Good financial planning always draws a line of demarcation for entrepreneurs to continue their business or shut it down. The business budget should be their prime priority. Due consideration should be directed towards all possible expenditures, including taxes, labour costs and utilities.
One should be completely ready for all kinds of expenses and especially those which are unexpected. In this regard, research plays an essential role as robust planning of finances and budgeting requires thorough knowledge of unprecedented events.
In order to avoid mistakes in business, the budget must be planned for unforeseen expenses and confirmed projects. Entrepreneurs must stay away from guesswork and assumptions.
- Absence of a versatile value proposition
A business should stand out among several competitors in the same industry. The only way to execute this is to develop a high-quality idea that outshines everything. This is called a versatile value proposition.
In this regard, entrepreneurs need to consider “What makes their business different from others? What value are they bringing to the table?” The answers to these questions depend on factors such as product valuation, policy foundations, and company culture. Still, it should be something that will magnetise customers towards the business services.
The value proposition should be well-communicated with the customers of a business. Customer awareness and input into the product play a pivotal role and are the primary reason the value proposition should be visibly convincing. A business website can provide one with great support in communicating with the audience, mainly if it is built on SEO.
Why choose SPC Free Zone?
SPC Free Zone helps support free zone company formation by providing opportunities like obtaining dual licences for the mainland and the free zone. You can also take advantage of up to 100 visa quotas and maximise profits with zero paid-up share capital, 0% corporate and personal income tax, and 100% foreign ownership.
SPC Free Zone also provides an e-commerce and general trading licence for all commercial activities. We aim to give business owners the tools and knowledge they need to navigate their way.
SPC Free Zone is here to help with your business setup in the UAE!