If you are aspiring to start a company business in Dubai, it is vital that you also know what does not work in Dubai. Experts at Axiom Mark Consultants, put together top 10 reasons why companies fail in Dubai. Read on to learn how you can equip yourself to make sure your business is fail proof.
1. Lack of awareness of the local market
Dubai is a land of opportunities for people around the world. This makes many people from various countries to choose Dubai to start their company. However, many aspiring entrepreneurs fail to understand and research on the demography, culture and the working style of the nation and the impact it has on their business.
2. Selling Unwanted Products or Services
One of the primary reasons businesses fail is the gap between the product or service and the need of the consumers. It is important to do a complete survey of the customer requirements for your particular product or service and be aware of the potential demand of the local consumer. Understand, “No Demand, No Supply!”
3. Planning the Working Capital
Dubai is one of the most expensive cities of the world and many new entrepreneurs fail to plan their working capital based on the rising recurring expenditure. It is prudent for entrepreneurs to plan their finances, budget and their cost estimates based on the local economy.
4. Unrealistic Expectations
Business Experts at Axiom Mark Consultants cite that a primitive reason for the failure of many promising business is the unrealistic expectations on the entrepreneur’s part. Dubai is indeed a growing economy, but any business takes its course of time to establish and it is unfair to expect the business to make money from Day 1. Even an already established business has to be nurtured and given time to create awareness among consumers, when launched in a new territory.
5. Failure to adhere to the UAE regulations
Many Businesses fail to take time to understand and follow the UAE laws and regulatory Framework. The UAE Government follows strict and firm regulatory frameworks to govern company formations and functioning of companies in UAE. It is mandatory to follow the regulations, and not overlook important details that might lead to the cancellation of license.
6. Staffing Issues
Dubai is a multicultural environment and has a mixed ratio of people of all nationalities. It is quite challenging to find the right manpower suited for the particular business needs.
7. Choosing the right location of the business
Many entrepreneurs fail to realize that the location and positioning of their business plays a majority part in the success of their business in UAE. In fact, the first step in establishing a business in Dubai is to identify if the company has to be established as a Mainland Company or Freezone Company. Dubai has distinct zones for each kind of business, like Dubai Academic City, Dubai Internet City, Motor City etc.
8. Sustainability Issues
As mentioned earlier, majority of the companies started in Dubai are by expatriates and it has become a trend that if the businesses does not do well, they close it down and move on to their own country. This creates a lot of trust issues for consumers and they tend to believe and follow businesses which have sustained in Dubai for many years even though the newly launched product or services are much more competitive and innovative.
9. Adaptability to constant changes
Dubai is renowned for its rapid development and constantly evolving economic development. It is imperative for organizations to groom themselves and evolve dynamically along with the rapid changes in Dubai.
10.Set your goals straight
A strong leadership begins with the clarity of thoughts on what and why you do what you do? It is easy to get lost amidst the mass of opportunities and challenges that come along with it. It is important to identify your visions, set goals, plan and organize your business functioning.
Axiom Mark’s Business Consultants with their vast experience in setting up new companies and business setups across various domains guide you right from the beginning on the nuances of setting up your business in UAE and help you succeed in your business. Contact us to learn more on how to optimize your business and succeed in Dubai.