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5 main reasons for the business failure in the UAE

Article image: 5 main reasons for the business failure in the UAE

Starting and running a business is always linked to a number of risks for an entrepreneur. Even with careful planning, businesses do not always manage to stay in the market. We seek the help of qualified specialists; we listen to the advice of marketers, we fulfill all the requirements for paying taxes and financial audit, however, sometimes this is still not enough. What are the reasons for the failure of business in Dubai, the UAE? Let's discuss this in more detail.

 

The reasons for the failure of business in the UAE and the world

According to statistics, 8 out of 10 enterprises-beginners stop their activity within the first one and a half to two years of their existence. Why? The experience of these enterprises can be invaluable for us. What mistakes have they made in business and how to avoid them? Most often, business failures are caused by very specific factors. Moreover, all these failures have a definite solution.

  • You do not understand who your client is. The ability to look at the situation with the eyes of your client is one of the key skills. You should carefully analyze the demographic data of users and target them. The key to your success is the understanding of what the buyer expects from you, what discomfort he/she is experiencing, what goals he/she is trying to achieve. Try to establish a trusting relationship with the client and remember how important the dialogue is.
  • You are not able to formulate a unique selling point. What stands you out of your competitors? What is your competitive advantage? The absence of uniqueness is the most dangerous threat for any business. In order to avoid this, you need to understand what value you can offer to the buyer. Stand out in the market, because merging with the mass you expose yourself to unjustified risk.
  • You failed to provide the buyer with a value proposition in a fairly convincing and concise form. Even if you understand what your uniqueness is, you have to bring this message to potential customers. Your wording should be laconic, reasonable and weighty.
  • Lack of a strong leader. Launching of your own business, we often fail to predict the difficulties that you will face in the future. You may have failures, especially if you are overloaded and do not know how to allocate responsibilities. First, you need to find out the reasons for your depressed state or excessive stress. Understand your anger, communicate with your employees. Be engaged in personal development — this is important for you as a professional and a leader.
  • You did not manage to create a truly profitable business model. Choosing a niche and the scope of your activities is extremely important. Use proven techniques and strategies to achieve your goals. Be dynamic and react to any changes in the market. This is the key to success.

In fact, the reasons for the failures in business in the world and the UAE can be very diverse. It is necessary to take into account the economic environment in which you will have to work, especially if we are talking about Dubai, UAE. The main mistakes in business allowed by entrepreneurs in the UAE are related to the wrong choice of niche or business model. For example, companies that provide brokerage services, printed publications, and clothing production have little chance of success in the UAE.

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