Entrepreneurs with a blank slate in front of them have three choices when deciding what kind of business to set up: they can either do something that no-one’s doing in the market; bring a brand to the country that doesn’t currently exist; or improve upon an idea, challenging the competition – and often crowded sectors – head on.

“The only way to really be successful is to solve customer problems,” said Karl Feilder, serial entrepreneur. “Those problems can be ‘real’ – such as inventing a better toothbrush – or ‘perceived’ – such as how to store all of your music collection in a device the size of a packet of cigarettes.

“A business solving real problems is probably quicker to get to profitability. Persuading customers that they have a perceived problem and only you can help them frame and solve it takes time, marketing, and money,” he added.
Spotting a gap in the market for a high-quality nail salon came from personal experience, for Shabana Karim, who established The Nail Spa in 2002 – one of Dubai’s first nail salons in a now-booming sector.

“One should start by thinking very hard about problems in one’s own day-to-day experience,” she said. “It’s nearly impossible to solve problems that you haven’t experienced first-hand. Ask yourself what change you would like to see in your community that would make your own and other people’s lives a bit better. And once you find that problem, make it your mission to go about solving it.”

Getting started

Karim is an educator by profession, who, after teaching for 12 years, felt the time was right to set up her own business. Today there are 10 Nail Spa outlets across the UAE, and the entrepreneur also established her second brand, the Marquee hair salon, in 2013.

However, spotting a gap is just the first step, and one which is “only part of the challenge facing new start-ups,” Feilder continued, “Finding the right team, funding your research, establishment, and then growth to profitability, and the inevitable challenge of finding the first customer are all mountains to climb.”

Feilder started his first business 25 years ago, working with his team of friends for seven days a week – unpaid for a whole year – investing all the money they could find. Five years later they sold this first business- a software company called Network Manager- to Microsoft.

“I think you really have to first look inside yourself,” he said of spotting a niche. “Look at what you care about, what makes you happy, and what will make you get up a 3 o’clock in the morning with an excited smile on your face.
“The MBA textbooks will tell you that you can invent something from a flash of inspiration, or copy another idea and make it better, or even just bring an existing idea which is present overseas but not here – over the last 25 years I have tried all of these, with considerable success,” he continued. “All of them are viable ways to find a niche, but at the end of the day finding something that lights a fire in your heart – that is the right way to do it!”

Checking out the market

Market research is often crucial for entrepreneurs looking at ways to break into a market, or set up a business offering that no-one has thought of before. For Karim, international research was key as she was already familiar with the offerings in the UAE.

“As a beauty consumer in the UAE, I was already very familiar with the existing offerings in the market, and their limitations. I therefore directed my focus internationally and travelled extensively, carefully studying and learning about the global industry with a view to introduce best practices from abroad to the region,” she said.
Feilder, meanwhile, advises a ‘hand’s-on’ approach to market research: “My advice is ‘get out there and try to sell it’. The best market research is quick and, to be blunt, pretty dirty. Once you have an idea, a prototype, or even a well-rounded presentation and brochure, you should simply get into the market and start selling,” he said.
“The first 10 meetings might be hard, but you will learn what the market doesn’t like about you or your new business. And the next 10 might be hard too. But sooner or later, with your never-ending supply of enthusiasm and determination, you will find a customer who says ‘yes’!” he continued, adding that if one customer says “yes”, “you will soon find plenty of others so long as you know a) what problem you are solving for the customer and b) why he or she thinks you have the best way of solving it.”

Advice for aspiring entrepreneurs

For Karim, aspiring entrepreneurs should make sure they have a “thorough understanding” of the needs and behaviors of their target consumer.

“You have to know your competition and your customer inside out, and ultimately work towards introducing something superior to the market you are addressing,” she said. “With competition in the beauty industry continuously on the rise, we still strive to stay on top of this – our success depends on it. We continue to listen carefully to what our clients have to say, whether it’s negative or positive, and make sure that we’re offering something of value they can’t get elsewhere. Customer advocacy is key.”

Starting a business is one of the “hardest things you will ever do in your life”, Feilder said, “If you can’t face being rejected, and can’t face meeting customer after customer, day-in and day-out, then just don’t do it,” he added.

“My best advice is not to spend much time researching the market on the Internet or in theory. The best test is always, always, to get in front of potential customers and watch and listen to what they say. You will have about two minutes to capture their attention, and then listen to what they tell you. Learn from them, and improve your story for the next customer.”