Question from Job Seeker:
I have lately been considering opening my own business. As you know, the situation hasn’t been very steady in the Middle East, and that is greatly affecting the job market. So I could really use your help in guiding me through the ideal steps before launching my business.
Answer from Bayt HR Guru:
It is great to know that you are considering launching your own business, and you’re not the only one. A recent survey on “Entrepreneurship in the Social Sector and Arab Springs” (March 2012) conducted by Bayt.com, Stanford and YouGov revealed that there is widespread interest in business ownership with about 40% of professionals from across the region saying that if given the choice, they would prefer to be self-employed or own a business.
As far as the reasons are concerned, 50% of professionals said that they started a business because they wanted greater independence. The second and third most popular reasons are tied to economic necessity and reasons: 27% said it was because they could not find a job at that time and 20% said because of higher income. Below are some key steps that could greatly help you establish your own business:
1- Know what you want
For you to start your own business you have to identify what it is that you want and like. Starting one’s own business is a big decision that comes with a lot of responsibilities. The business and industry you choose are the ones you will be working in for the next 20 years if not even your lifetime! What skills do you have that you could make great use of in your new business? What areas do you excel in? What is the job you will wake up to every morning with a lot of excitement? These are just some of the questions you should ask yourself that will help you indentify the type of business you want.
2- Know your limits
Starting a business often comes with a set of limits or challenges; some you know before launching and some you come across unpredictably when putting in practice. It is essential for you to know – and we are not trying to bring you down - that a lot of businesses in the region tend to fail. According to Bayt.com ‘s survey “Entrepreneurship in the Social Sector and Arab Springs” (March 2012), most professionals agree that the key barriers that prevent them from starting their own business are: lack of financing, inability to self-finance, and fear of failure.
Other reasons stated by the professionals include economic uncertainty, the lack of entrepreneurial skills, and strict government regulations. To avoid failing, make sure that once you have chosen the type of your business, it is time to identity the limits imposed by the relevant industry, or in the country you will be operating in, or even those of financial trait.
3- Do a market study
Study the market where you will be running your operations; study the industry itself and the targeted audience. Check the offer/demand balance and the economic situation in the relevant countries and/or in the region as a whole. Assess the market size – current and future, as well as its growth rate and profitability. Highlight the market trends, study the industry cost structure and your prospective ROI. Identify your distribution channels and the key factors of success etc. (Many of Bayt.com’s Research Reports can provide you with insightful data on the different markets across the MENA region).
4- Plan and organize
Put an organized action plan that you can follow for an effective launching. Here’s a basic checklist you can use for your start-up:
- Assess your strengths and weaknesses
- Establish business and personal goals
- Identify the financial risks
- Determine the start-up costs
- Do market research
- Identify your customers
- Identify your competitors
- Develop a marketing plan
- Create your business (register your name, incorporate the business, etc.)
- Prepare a business plan
- Line up suppliers (if applicable)
- Set a starting date Make sure everything is checked and double-checked; cross your fingers and finally…
5- Take-off
Now is the time for your ‘baby’ to see the light and what a great moment that is! Smile, greet, and let your optimism in the future of your project and your great attitude glow. Remember that such an adventure has its ups and downs, so keep your chin up no matter what and do your best.
“Three rules of work: Out of clutter find simplicity; from discord find harmony; in the middle of difficulty lies opportunity.” – Albert Einstein
Good luck.
