This Toolkit for your Start-up Home إقامة مستثمر في دبي outlines all the basic guidelines you will need to get your home business up and running. The goal is to ensure that you have all the relevant information and a structured approach in getting your business off the ground as soon as possible.
Business ideas and suggestions may come from many sources. You may have some ideas of your own based on your passion or you may recognize that there is a need based of discussions you have with others. A case in point, I recall when my children were younger we needed transport to pick them up from school (there was no school bus service). After discussing with a friend, he assisted us with picking up the children, and soon realized that there was a demand for such a service. There and then his new business was born.
In the school transportation service example given above, my friend conducted an informal survey by speaking with other parents, he was quickly able to determine the demand for such a service and the potential revenue to be generated. Depending on your business idea you may be required to do a combination of both informal and formal research, but the goal is to gather as much information as possible that will help you to make an informed decision on the business idea.
You may have several business ideas in your head and would have to make a choice on which one to implement. In making your choices consider the following:
- The size of the market – in terms of customers, revenue and growth potential
- Competitiveness of the market -how many businesses are already operating in that space?
- Who is your target audience? If a market is very competitive, as a new entrant, you may want to probably look to see if there is a particular niche that has needs that are not being met by the existing suppliers and get into it.
- What are customers looking for? (demand)
- Where are the customers located?
- How do you plan to reach them and serve them? (Your marketing strategy). More on this will be discussed in a subsequent article.
- If you are not producing your own product or service, who will be you supplier? I will suggest that you identify at least three suppliers to give yourself more room to negotiate and get the best deals.
- If you plan to import or export then you would have to enquire about licences with the relevant authorities within your jurisdiction.
Tip – Focus on the business idea that you are most passionate about. Because when things get challenging, it is your passionate that will give you the strength to stay in the business.
Since the focus of this article is on home based businesses, the assumption is that your business structure will be one of either a sole proprietorship or a partnership. Notwithstanding that, I will still provide a brief description of the three typical business structures for setting up and registering a business.
- Sole proprietor– this a business where there is a single owner. It is sometimes referred as a “one-man” business. You are the business and the business is you. As the owner of this type of business you have the responsibility for making all decisions. You receive all the profits and accept all losses.
- Partnership – this is an association between two or more persons who joint themselves together to form a business. You can partner with relatives or friends or whoever. You and your partners contribute to the business equally and share equally in the profits and losses. A limited partnership may have some different arrangements in terms of contributions and profits and losses.
- Corporation – a business structure, where the business has a legal identity that is separate and distinct from its owners. The owners of a corporation are referred to as shareholders. In some countries a corporation can be started by a single person. A key distinction between a corporation and the other types of business structures is that the owners (shareholders) have limited liability, in that they are not personally liable for the debts of the corporation. They share in the profit of the company through the receipt of dividends and stock appreciation.