Keeping up with global news can be frustrating these days! Last week, Dubai warned that 70% of businesses set up in the emirate might shut down in the next 6 months due to COVID-19 repercussions. India announced that 70% of its startups will run out of money in less than 3 months. In Seattle, the word is that 50% of its startups are in danger of shutting down in the next six months too. In a world ruled by uncertainties, an economic crisis in the making, and many jobs on the line, global discussions stipulate a rise in new businesses formation. Wether ruled by fear or by seizure of a new opportunity, it is worth stopping for a minute and asking: is it a good time to launch your own business?
First, before you venture forward with your business, you need to carefully study, assess and research if there is a genuine need (or demand) for the product or service you are planning to offer. If not, you’d better check how you can pivot (a term used in the startup world meaning to shift, alter, and/or change a business strategy) in order to position your business as an offering in demand.
Second, do not just follow trends and active markets. Do not join a booming industry solely for the sake of seizing an opportunity that may (or may not) come flying by. Instead, carefully study and assess your market and your proposed solution; make sure you create a product-market fit. Think of the long run: you do not need a business that dies as soon as the COVID19 crisis is under control again. Think of a sustainable, scalable, and profitable business!
Third, think digital! No matter the industry and the focus of your startup, always think digital. Remember, the world is undergoing a digital transformation that is here to stay.
Fourth, assess resources and keep an eye on the market. During times of crisis, it is common to witness cheaper labor, assets, and resources and to witness more flexible regulations and governmental support. In Dubai, Commercity - the first free zone dedicated to e-commerce in the Middle East and North Africa (MENA) region - is in development to support and host online retailers, Dubai technology entrepreneur campus - DTEC launched a free license and registration for a full year, and DIFC announced DIFC Innovation License free of commercial license and registration fees. At the same time, Abu Dhabi Hub71 declared covering startups' office rent and housing costs for two months.
So, it is a good time to launch that business idea you have in mind?
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