The success stories of entrepreneurs making it big with a small idea are plenty, especially in a country like the UAE, where SMEs contribute significantly to the economy.

Undoubtedly, after hearing all these stories, anyone with a hint of an entrepreneurial streak has thought of going it solo at some point or the other. The problem, however, often lies in getting started.

The "right" idea

What it is it that makes one idea successful over another?

According to Najla Al-Midfa, senior manager, entrepreneurship development, Khalifa Fund for Enterprise Development, the key lies in execution rather than the idea itself. "In today's world, especially in consumer-driven businesses, innovation is in the way you deliver the service/product."

Loulou Khazen Baz, founder of the online skills marketplace Nabbesh.com, agrees, saying that while the idea is important, it's not everything. "There's a saying that it's better to invest in a B idea with an A team than an A idea with a B team." Baz, who had previously won AED1 million on reality show 'The Entrepreneur' continues: "The best ideas can fail if the people aren't right," she adds.

Characteristics for success

If it's the person that makes the business, what defines a good team leader? Al Midfa points out that there are a few traits that are common among successful entrepreneurs:

Passion: Why do they want to start their own business? If it's just to make some extra cash, "it shows". Those that are doing it because they are passionate about their idea make for successful entrepreneurs because they give the business all they've got. 

Flexibility: Entrepreneurs need to be flexible and adaptable. This is sometimes difficult to maintain a balance of the "two-edged sword" since on one hand, they should be persistent and tenacious, never giving up on their business, but they do need to make changes when necessary. 

Daring: If there's one thing entrepreneurs need, it's to have the courage to take risks when necessary.

Observant: To be truly successful at starting up a business, entrepreneurs need to be able to spot opportunities and see the potential in everything. 

Receptive:  Unlike some who feel they "know it all," successful business owners are those who listen to feedback given to them and take it into account, making changes where necessary.

Venturing out

In the UAE market, Al-Midfa explains, a lot of new businesses are more opportunity-driven rather than need-based.  This just means that entrepreneurs here look to provide a product or service that may already be out there but have found a way to do it better, either based on their customer service strategy or in the way they present the product or service.

However, when it comes to aspects of launching a business, there's no better place to get advice than from those that have already made it. Entrepreneurs in the Emirates do have a lot of support, through official networking groups or the tight-knit entrepreneurial community.

Here are a few of their comments on different aspects of running a business:

Discovering your niche (and staying innovative)

According to Shabana Karim, founder and owner of The Nail Spa, this is absolutely essential and not just at the initial stage of launching a business but also in "maintaining that niche". She points out that while entrepreneurs might roll out a new initiative, they have to be prepared to be innovative and creative when competitors enter the market. She set up 10 years ago, when it was the second nail salon/store in the city. Since then, there are numerous competitors and the idea is definitely not unique. She says they've had to "keep on top of technology" and be aware of advancements, such as social media.

Finding funds

It's one of the major things to think about before getting into business. Baz from Nabbesh.com says the one thing to note is that it's always best to be realistic with the numbers. "If you think you need X amount, you will probably need 2 or 3X." She points out that entrepreneurs tend to downplay the numbers but that's not a good idea as the "last thing you want is to run out of cash".

Taking risks

Karim notes that "you need to have that courage to take the plunge" but at the same time make sure it's a "calculated risk," putting in a certain amount of research and planning into the analysis of the market.

© Zawya BusinessPulse 2013