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This case was written by Assistant Professor Dr. Muhammad
Shehryar Shahid and Research Associate Yamna
Imran at the Lahore University of Management Sciences to serve
as basis for class discussion rather than to illustrate
either effective or ineffective handling of an administrative
situation. This material may not be quoted, photocopied
or reproduced in any form without the prior written consent of
the Lahore University of Management Sciences.
2014 Suleman Dawood School of Business, Lahore University of
Management Sciences
HUNTING THE HEFFALUMP:
A CASE STUDY OF FOUR INSPIRATIONAL ENTREPRENEURS
Entrepreneurship is like obscenity: Nobody agrees what it is,
but we all know it when we see it.1 On a breezy Thursday evening in
July, 2013, this striking quotation caught Dr. Shahids attention
while he was going through the literature on entrepreneurship, and
served to mystify
him even more. Dr. Shahid, an instructor of Entrepreneurship at
the Lahore University of
Management Sciences, had given his first ever lecture as an MBA
instructor the previous day. As
the class progressed, Dr. Shahid found himself swamped with
questions from the students.
Student X: Sir, do entrepreneurs have a unique set of traits
that makes them so entrepreneurial, and if they do, are these
traits innate or acquired?
Student Y: Professor, is it possible to condition oneself to
view the world through an entrepreneurial lens, and learn to think
like an entrepreneur?
Student Z: Sir, is there such a thing as entrepreneurial
thinking, a distinct form of rationality that sets entrepreneurs
apart from others?
These questions were all too familiar to Dr. Shahid. Time and
again, probing questions such as
these have been raised by aspiring entrepreneurs, on the hunt
for a magic formula for
entrepreneurial success, and in order to explore them, extensive
research has been done. So far,
however, no one size fits all theory has been developed which
offers an understanding of how do entrepreneurs think, behave and
exactly what is it that they do so well. Hence, though at that
time Dr. Shahid had tried his utmost best to address the
students questions, on reflecting back, he felt dissatisfied. The
puzzled expressions with which his students had left the class told
him
that they were still baffled. Consequently, he had spent the
last day deeply immersed in literature
on entrepreneurship, but his dilemma was far from resolved.
Therefore, in an attempt to tackle
1 Shaver & Scott, 1991, p. 24
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these questions and delve deeper into the minds of these elusive
creatures, Dr. Shahid took it
upon himself to explore the life stories of a few ordinary
people who did extraordinary things, so
that he could unearth secrets of entrepreneurship and share them
with his students. With this aim
in mind, he and his Research Associate shortlisted some of the
most successful and remarkable
entrepreneurs of the country, and embarked on a mission to
discover their life journeys. In order
to do so, they personally contacted them and conducted in-depth
interviews with them. These
individuals believed in finding something out of everything life
threw in their way, and managed
to emerge unscathed from even the most difficult of times.
Through his study, Dr. Shahid was
able to capture the vision, passion and persistence of these
truly remarkable entrepreneurs, who
had an immense amount of experience and insight to offer. Before
moving on to these incredible
stories which are the outcome of his study, an overview of the
current dynamics of
entrepreneurship in Pakistan has been discussed below.
ENTREPRENEURSHIP IN PAKISTAN
According to the 2012 report of Global Entrepreneurship Monitor
(GEM), the new business
ownership rate in Pakistan was 3%, which was lower than the
average rate for Asia Pacific and
South Asia (5%) and the established business ownership rate in
Pakistan was 4%, which was
lower than the average rate for Asia Pacific and South Asia
(10%).2 Factors contributing to the
poor business environment in Pakistan are rent seeking and its
three forms (corruption, bribery
and lobbying), lack of research and innovation, financial
constraints, poor legal framework,3
poor infrastructure, weak economy, poor governance, energy
crisis, terrorism and extortion. As if
these factors werent enough, female entrepreneurs in Pakistan
have to face additional formidable challenges that hamper their
progress and prevent them from realizing their
maximum economic potential, due to which only 5% of the
entrepreneurs in Pakistan were
women in 2012.4 Recently, however, there has been a growing
realization that entrepreneurs in
Pakistan need to be nurtured as they can play a pivotal role in
revitalizing the economy of the
country and allocating jobs since entrepreneurship leads to high
growth rates and opportunity
creation for the entire society, including the poor.5 The
urgency of the need for fostering
entrepreneurship in Pakistan is increasing over time
particularly due to its increasing population
size. Currently, Pakistan has a population of over 180 million,
and a population growth rate of
2%, due to which Pakistans population is expected to double in
the next 36 years.6 Additionally, the age-distribution of the
population makes a compelling case for promoting entrepreneurship
in
Pakistan. At present, the country is experiencing an
unprecedented demographic dividend. Almost 50 percent of Pakistan's
population is below the age of 20, and over 60 percent is below
the age of 30, as a result of which the working-age population
is swelling and the dependency
ratio is declining. This demographic dividend presents the
country simultaneously with an
opportunity and a challenge. If these young Pakistanis can be
successfully absorbed into the
labor force, the countrys demographic dividend could boost
economic growth and prevent social and political unrest. As opposed
to this, if this growing working-age population is not absorbed
2 Xavier et al., 2012, pp. 24-25 3 Haque, 2007, pp. 22-26 4
Xavier et al., 2012, p. 8 5
http://www.pakistantoday.com.pk/2012/05/31/comment/editors-mail/entrepreneurship-in-pakistan/
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http://www.dailytimes.com.pk/islamabad/02-Mar-2014/pakistan-s-population-to-double-in-next-36-years
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fast enough, it will put an excruciating stress on the economy.
Hence, since this youth bulge is expected to dominate the
population for another 30 to 35 years according to current
demographic
forecasts- and jobs are not being created fast enough- the need
to promote entrepreneurial
activities in Pakistan cannot be stressed enough.7
1. RAZAK DAWOOD: A TRAILBLAZER
Introduction
Razak Dawood- the man who initiated the success of Lawrencepur,
built the corporate giant
Descon Engineering, and co-founded one of the finest educational
institutions of this country-
earned his undergraduate degree in Engineering from Newcastle
University, and later did his
MBA from Columbia University, majoring in finance. This is
ironic because he was truly
passionate about marketing, which according to him is precisely
the reason why he did not major
in it. He wanted to major in something that he found challenging
and that he needed to learn.
This provides an interesting insight into his personality; he is
a self-aware man who enjoys
challenges, because he believes that they allow one to overcome
ones weaknesses.
Dawood pointed out that his engineering degree had endowed him
with an understanding of
analytical work. He, however, never practiced engineering in the
sense that the kind of work he
did was mostly related to management and marketing. For him, the
most significant part of his
education, which truly made a difference in his life, was his
MBA, particularly the marketing
courses, many of which he audited because he was just that
passionate about it. According to
him, two lessons from marketing that he is using even today are
product differentiation and
market segmentation.
Lawrencepur: Excuse me, but where are the women?
After completing his MBA, Dawood joined Lawrencepur on the
insistence of his family. This
was the starting point of his journey in the business world. He
noticed that there was very little
focus on segmentation and there were a lot of untapped segments
in the market. Dawood realized
that Lawrencepur was making suiting material exclusively for men
while there was nothing out
there for women, making the segment of female consumers
particularly attractive.
He still remembers the first time he tried bringing the female
line of clothing to store shelves. He
came up with designs in vibrant feminine colors and gave them
the brand name of Lyla. Then, he visited the prominent clothing
retailers of Lahore, including present day HKB and the famous
Bombay Cloth House in Anarkali. According to Dawood, The concept
of womens own line was alien at the moment and I was rejected
initially. After a lot of arguments, the retailers
agreed out of respect for my father, but told me that the
product was on consignment. I requested
that they give me a special part of the shop that I painted and
put streamers on in an effort to
attract customers. By the end of it I had picked 6 or 7 shops.
An advertising campaign hyped the launch of the line and enabled it
to be priced at a premium. Finally, the brand was launched
7 Planning Commission Government of Pakistan, 2011
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and proved to be so successful that the stores that were dubious
about stocking the product
initially never seemed to have enough of it.
Lawrencepur didnt just stop there. They continued segmenting
within the women range by introducing different classes of
products. Eventually they launched a line for children as well.
In
those days, the concept of readymade garments was alien, and
everything was unstitched.
Moreover, the market for children was almost negligible. Hence,
in order to help mothers come
up with ideas of how to make dresses, Dawood got Sears
catalogues and used them in the shops
to inspire them. Similarly, they introduced a line for lawyers
too that would cater to their specific
needs.
Dawood Hercules
All was not perfect for Dawood, as he soon had to leave
Lawrencepur, a city he adored so much.
For him moving from a rural area to an urban area was painful.
He loved the peaceful city of
Lawrencepur, with its open fields. However, due to a rift
between Hercules chemicals and
Dawood chemicals, he was called to Lahore to sort out the
problem and join Dawood Hercules in
1972.
Other than the rural-urban difference, another big change for
him was that he could not employ
his marketing skills anymore because according to him,
Fertilizer was the one product where demand far exceeded the supply
already, so marketing was unneeded. This was very different from
his tenure at Lawrencepur, where he was so heavily invested in
marketing. Nevertheless, he
learnt some valuable lessons from his experience here, such as
corporate battles, the importance
of legal structure, the importance of government structure, and,
most importantly, technology.
Establishing Descon came less as an opportunity for him and more
as a result of a family split,
due to which he was asked to leave Dawood Hercules. However, at
Dawood Hercules, Dawood
saw the process, machinery, and technology that enabled and
assisted production. He wondered
why the machines were imported and not made in Pakistan. To
analyze the feasibility of this
thought, he asked a lot of questions and went into the minute
details of the structure of these
machines, after which he reached the conclusion that their
production in Pakistan was very
doable. This insight was the building block of the engineering
giant that Dawood founded in
1977, now known as Descon Engineering Ltd., a company that
evolved from employing 4
engineers at its inception to 16,000 employees at present.
While leaving Dawood Hercules, he asked who would want to join
him in his new venture. At
that time, Dawood was not sure if he would even be able to pay
the engineers. Eventually, 4
engineers decided to join him. And so Descon came into being.
The 4 engineers sat down in an
open room, because Dawood couldnt afford to have a private room
for each employee. The chai-wala8 functioned as their informant and
typist as well. As Dawood recalled, This here was a group of people
with a high energy level, who had a conquer-the-world attitude.
Outside the door was the promise of tomorrow.
8 A young man who makes and serves tea.
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Descon: Fishing stage
Dawoods family name, his Dawood Hercules network, his
educational experience, and Lyla, all helped him greatly in
starting his own business. Nevertheless, according to Dawood, in
the early
stages of your enterprise, you never know. However, he claims he
never had any fears despite everything as according to him,
self-faith and optimism are prerequisites for being an
entrepreneur since an enterprise is essentially a leap of faith.
He doesnt deny that he faced a lot of problems indeed, but insists
that problems are to be treated as an adventure.
When Descon started, it was not even offering the right product,
but it kept evolving by learning
from its mistakes. He termed this the fishing stage of Descon.
One of the first things they tried was consultancy. However, Dawood
thought they were barking up the wrong tree, as there was no
potential for growth. Hence, after two years, Dawood decided to
change course
altogether and venture into contracting. Then the question
regarding which segment of the
market they were to target arose. According to Dawood, Your
vision always evolves. You can never think of an end-game. You have
clarity about the first few years but then it gets dark, and
as you move down, it starts getting clearer again.
It was in 1981 that Dawood and his team sat down and laid down
two important points that
formed the basis of Descons vision: they wanted it to be global
and they wanted it to be a long-term player. According to him,
Pakistanis dont understand the concept of long-term. Everybody
wants short-term gain. He explained that if you become a long-term
player, your strategy-
including your decision making- changes altogether, which leads
to a different approach to
business.
The first time Descon went overseas (to Abu Dhabi) in 1982, they
bid 30 percent lower than their
competitors, which even confused the Arabs as they knew Descon
wouldnt be able to make money off that job. However, according to
Dawood, he was not interested in profits initially. To
him, it was the long-term that mattered. He focused all his
energy on this project to deliver
exquisite results, which paid off in the end when the Arab
company appointed Descon for all its
future projects. Upon winning this contract, Dawood recalls
telling the CEO, Sir, the money I didnt make was my entrance fee to
hear what you just said. Dawood considers such losses investments.
According to him, this is exactly how a long-term player
functions.
First big break of Descon
In September, 1981, the National Refinery was putting up their
expansion project. The contract
was given to the Romanians, who were looking for somebody to do
the mechanical civil work.
Descon volunteered to work on this job. According to him, The
Romanians asked how many cranes do you have, I said none. The
project required about 30 cranes; I said I will buy them. I
even gave them a bank guarantee. I asked them to trust me,
because if I dont bring the cranes, they can cash the guarantee.
Many people deterred me from taking this massive and risky
project, provided at that time we had only 12 engineers. But the
hand of God is unbelievable, just
then an Italian company was finishing a Fauji Fertilizer plant.
So they were laying off all their
staff, which included the engineers, the field workers, and the
guys at the forefront. We
interviewed everybody getting off the job, we gave them the
appointment letters on the spot, and
called them back in 6 months. We got a readymade team.
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Post-startup
The unique selling point of Descon was that in its initial
years, there was no company that
offered general contracting services. There were many small
electrical and mechanical
companies, but none that offered all of the services. Apart from
the nature of the company itself,
what differentiated Dawood as an entrepreneur was his approach;
small contractors had a bad
reputation and were called thekadaars. According to Dawood, his
aim was to bring professionalism into engineering.
Thats not enough
The composition of the venture evolved with time. Starting off
as a general contracting and
construction company, Descon eventually added manufacturing of
various machines such as
boilers, heaters, and pressure vessels as well. However, Dawood
did not think that was enough.
They then stepped into design, adding value to their business as
they went along. Dawood,
however, kept insisting thats not enough. They continued to
include technology, and eventually got into Engineering Procurement
Construction (EPC).
To progress even further into technology, Descon teamed up with
the Japanese because the
technology they had was not available in Pakistan. At that time
they had about 200 engineers.
This partnership taught Descon a lot, and sure enough, it
increased Descons size and the number of engineers employed there.
Descon also appealed for license technology from Mitsubishi,
but
was denied. However, they tried again 10 years later, and became
an official licensee of this
technology.
LUMS
The journey of Lahore University of management Sciences (LUMS)
began simultaneously with
Descons initial years. Dawood was teaching marketing at the
University of Punjab in 1974 after he had completed his MBA from
Columbia. He taught there for 8 years until Syed Babar Ali,
a Pakistani businessman, educationist, philanthropist and former
Finance Minister of Pakistan,
approached him asking whether he thought there was a need for a
superior business school. Since
Dawood did not think the current curriculum was enough, he
joined hands with Ali, and they
pooled in Rs. 2.5 million each to build the school. 10 people
signed the initial documents and
applied to the government to request permission to build a
business school. The government
rejected this proposal and agreed to let them establish a
university instead of a school. This
foundation would not have been possible without a partnership,
since it required capital and
educational experience. This old LUMS campus (made up of 4 to 5
houses) is still standing
opposite Heritage Homes in Gulberg (but not as a university),
whereas the current campus of
LUMS is located in Defense Housing Authority (DHA). Initially,
the army allowed only a 3 feet
gap for entrance to this campus.
The vision here was to create a higher quality institution which
was integrally merit-based. The
curriculum was designed wholly by Razak Dawood and Syed Babar
Ali, where they used their
education abroad as a benchmark of quality. Moreover, they
themselves interviewed the first 2 to
3 batches of LUMS. Dawood recalls that they were just as
nervous, if not more, as the
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interviewees. Interestingly, the first student enrolled in LUMS
was a lady. As time passed and
LUMS progressed, they added the undergraduate program and
separated the business school
from the school of humanities. LUMS is also the pioneer of the
four-year undergraduate program
in Pakistan. The other institutions at the time offered two-year
programs but now the four-year
program introduced by LUMS is the standard all over the
country.
Vision and values
Success, to Dawood, has many dimensions. According to him, it is
not directly proportional to the size of your wallet or bank
account. There is success as a parent, a sibling, a spouse, a
citizen, and a member of the society. Success lies in creating an
institution. Real success is, then,
striking a balance in achieving success in all these dimensions.
He said, Suppose if you win the whole world but lose your soul in
the process. That is not success. The Quran has laid out some
things for us to do. Even if we win the whole world, but dont
follow the rules, we cannot be successful in the true sense.
Dawood also laid great emphasis on being a long-term player. In
every project that he
undertook, he was not worried about making money, but about
building a reputation and
bringing in professionalism, which proved to be the entry ticket
to his eventual success. Long-
term thinking also translated into how he dealt with challenges
and mistakes, and how he
managed his business. Dawood focused on building a sustainable
institution rather than a
company, and according to him, the key to developing an
institution is to develop sound and
connected HR policies. In addition to this, there needs to be
some segmentation within the
business. For instance, Descon has one company which does EPC
for gas plants only, while
another separate segment is responsible for power plants.
It may sound clichd, but Dawood gave a very real example related
to the importance of
believing in greatness: when Descons joint venture with the
Japanese came to an end after 10 years, the employees were
flustered. But Dawood said, So what? We can do the work ourselves!
He said, We Pakistanis dont dream enough. We daydream, but we must
dream greatness. We have got to think greatness all the way
through. Additionally, he believes in keeping your cool in the face
of adversity. According to him, even if he is worried about
business, he manages to remain composed. He said, This is short
and simple. Always maintain a cool exterior and dont let others see
you worried, or else you are open to being put down.
Towards the end of the interview, Dawood laid out a world map
that marked the locations of all
of Descons offices. He drew his finger in a straight horizontal
line across the map and declared fondly, This is my vision. To
establish Descon across the world, so that the sun never sets on a
Descon office.
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2. HAMZA TARAR: AN INTERIOR MAGICIAN
Beginning of an artistic journey through life
I am my business, I am CasaHamza- Muhammad Hamza Tarar, Chief
Executive Officer and Creative Director at CasaHamza.
Muhammad Hamza Tarar is the pioneer of CasaHamza, a top notch
interior designing brand.
According to Tarar, art had always fascinated him, and he began
to make tables out of
cardboards when he as young as four years of age. Moreover,
while growing up, he would
accompany his mother for shopping whenever the house underwent
renovations, and took a keen
interest in picking out pieces of furniture for the house. Hence
from the very beginning, Tarar
had been an excellent observer, possessed a fine taste, and had
been aesthetically charged.
However, Tarar is of the opinion that his advent into the world
of interior designing was entirely
accidental, since he never really intended to become an interior
designer, and with a finance
degree, he would have probably ended up in the banking or the
financial sector. Hence, it was
something that he stumbled upon accidently, and which eventually
enabled him to live the
American Dream.
Initially, Tarar enrolled into the Aitchison College, and then
went to the University of Miami for
a bachelors degree in Marketing and Finance. He had always been
an exceptional student, and graduated with a CGPA of 4.0 from his
university. During his freshman year, he helped a friend
design an apartment in Miami that was meant as a present for his
girlfriend. At the
housewarming party, people loved what he had done, and he was
approached by two other
people who were highly impressed by his work. They wanted him to
renovate their houses as
well. After that, there was no looking back.
During his sophomore year, Tarar was working as a full time
interior designer while
simultaneously pursuing his degree in Marketing and Finance.
Eventually, he ended up making
his first million dollars in his third year. My mother thought I
was probably dealing in drugs. An 18 years old making a million
dollars is unheard of, he said jokingly. He was charging $100,000
per house as his fee in Miami. Tarar then became a part of Fendis
design team as he was making use of their furniture while
renovating peoples houses. Thus from the very beginning, he had
thought of targeting the elites. He started to design for Fendis
showrooms all over the US. Being associated with such a top-tier
fashion brand built his credibility, and his
popularity accelerated. Tarar ended up becoming the first
Pakistani, and the youngest interior
designer, to be published in the Florida Design Magazine.
Taking the plunge
Soon after he graduated, Tarar traveled to Milan to meet Bernard
Arnault, a French businessman
and an art collector, who has been serving as the Chief
Executive Officer of LVMH Mot
Hennessy, a French brand house that owns brands like Louis
Vuitton, Fendi, Kenzo, Christian
Dior and Celine. Tarar wanted to bring Fendis furniture to
Pakistan, since he wanted to introduce Italian furniture in the
country. He stayed in Milan for six months, and learnt about
furniture manufacturing at Club House Italia in Forle, a city
around 2 hours from Milan. There
he learnt to work with stainless steel, leather, and the
machinery that would be required to
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manufacture the furniture in Pakistan, since he intended to
start his own furniture line here. He
brought 11 Italian brands to Pakistan, and simultaneously
started his own furniture line. Initially,
he was only carrying Italian furniture and bringing it to
Pakistan, but many people tried to
dissuade him. Who will buy a sofa worth one million rupees in
Pakistan, they would often ask. However, there was no stopping
him.
From the very beginning, Tarar calculated his affordable losses,
and had a marketing plan in
place. His degree in Marketing and Finance helped him
tremendously in targeting his specific
market, advertising, and deciding which magazines to target the
most depending on which ones
had the greatest coverage of his market. He had planned to spend
most of his money on
marketing, since according to Tarar, its all about marketing. If
one markets the products well, it creates a demand for them. In
2007, when he wanted to launch his business, he spent around
Rs. 2 million on marketing. Whatever money he had earned so far
went entirely into setting up
his business. He did not have to seek financial assistance from
anyone or seek any partnerships,
since from the age of 17 he had started to earn thousands of
dollars. Due to the extensive
advertising that he did through magazines and billboards, a hype
was created in Pakistan. Editors
of many renowned magazines began to interview him. CasaHamza was
created as a luxury brand
that targeted the elites of Pakistan.
Once he had built this image of a luxury brand, Tarar thought of
opening a furniture line of his
own that would match the designer furniture in quality, but
would be relatively cheaper. He then
set up his own plant, trained his workers, and imported the
required machinery from Milan. He
was the first in Pakistan to work with stainless steel and
introduce high gloss finish. Thus, he
brought the concept of customized modern furniture to the
country. At that time, competition
was not very fierce since most of the furniture showrooms were
selling traditional furniture, and
modern interior decor was a new concept, and therefore very
intriguing.
Initial obstacles Bring it on!
Tarars biggest fears at the time of the launch were that
firstly, it seemed that his products are too expensive for the
Pakistani market. Secondly, he had planned to launch CasaHamza in
the month
of July, which was risky since most of the people whom he
expected to show an interest in his
products are generally abroad during the summers. However, since
he had already spent more
than a year socializing and networking with people, he felt he
shouldnt waste any more time, hence, he decided to take the plunge
with a leap of faith.
Initially, Tarar had to overcome numerous hurdles. Particularly,
networking was an enormous
concern for him. Since there were no networking groups in
Pakistan, Tarar tried to socialize with
people whom he thought could help him with his work. When he
opened CasaHamza, he invited
all the big furniture makers to his store, unfortunately
however, more than half of them did not
even attend his calls, and out of those who did, only a few
eventually showed up. Moreover,
managing his finances was another huge stumbling block for him
initially, and it had become
very tough for him to keep track of his spending. He mentioned
that though a huge amount of
money was flowing in, much more was being spent, particularly on
marketing, which consumed
more than half of his revenue. Therefore, he hired a Chartered
Accountant to monitor his cash
flows, which made the money issue simpler.
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Creating a buzz
It was never an easy job for Tarar to attract customers
initially. His line of products targeted the
rich and elite class of Pakistan; therefore, reaching them or
getting in touch with them was
extremely tough. His main concern was: How do you meet these
people? However, Tarar had a plan: he threw the largest and most
lavish party at Dish, an expensive restaurant at M M Alam
road, back in 2007. He invited more than 400 people to the
party, which took place almost 6
months before the launch of CazaHamza, in order to create a
hype. Through this party he was not
only launching his products, but introducing himself as a brand
new interior designer in the
industry as well. Consequently, people started inviting him to
their places- brand marketing of
CasaHamza had just begun.
After that, Tarar started visiting different peoples houses, and
noticing their furniture, and the kind of designs they admired.
Many of them already had Italian furniture at their places.
Tarar
used to tell them about the kind of work he had done in the US,
and his efforts to bring the
culture of modern furniture to Pakistan. This excited them
tremendously, and they started to take
an interest in his products and showed immense admiration for
his work. Eventually, people
started to contact him personally, and book appointments.
Tarar believes that marketing is the main ingredient behind the
success of his business. From the
very beginning, he wanted to target the elites and the rich in
Pakistan. Having a major in
marketing, he did not find this task very difficult. According
to him, If someone could buy a handbag for four hundred thousand
rupees I thought people would be willing to buy a Versace
sofa for one million rupees. However, in a society like
Pakistan, where traditional brown colored furniture embellished
every other house, he had to create a demand for modern furniture.
He appeared in several TV shows as the media industry was booming,
and acquainted
many people with his ideas. He designed the sets of several
shows, and also designed for several
major fashion shows. Soon, people wanted to transform their
houses from a traditional, to a more
modern Italian based set up. He helped them get rid of the
perception that only brown colored
furniture looked well in houses, and propagated the idea that
black and white interior decor could
be far more interesting. In his initial years, his marketing
budget was around Rs. 2 million, which
he believed was integral for the success of his business. He did
not advertise his brand
CasaHamza; rather, he advertised himself like many fashion
designers do. He spends more
money on advertising his face for the company, rather than
featuring its products.
His service was, and still is, highly customized. CasaHamza does
not sell furniture; rather, it
offers an interior decorating service which is highly personal
in nature. This sets Tarar apart from
many furniture shops, which sell individual furniture pieces and
articles. After spending a huge
amount on marketing, he then continued doing free marketing. For
instance, using his
connections, he started doing segments on morning shows for
free. He used his face for the
promotion of the company, appeared in renowned magazines, and
became available for every big
event in the country.
A trendsetting strategy
Selling furniture placed randomly in a room was something Tarar
disliked greatly. Therefore, his
initial focus at that time was to provide people with a look of
properly furnished individual
rooms. In order to execute this plan, he rented a five story
building in XX DHA, on the service
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11
lane next to Khayban-e-Iqbal, and furnished each story with a
different set up, including living
rooms, bedrooms, dining rooms, etc. Therefore, he is considered
an innovator and trendsetter in
his field. Within 6 months of his launch, every other furniture
shop in the area had revamped the
way they placed their furniture. Tarar was able to tempt
customers to avail his services, since he
provided them with an opportunity to furnish their houses with
the most unique and exotic kind
of Italian furniture, that was not only aesthetically appealing,
but comfortable and long lasting as
well. Moreover, Tarar is of the opinion that people are very
sensitive about their homes, so
taking into account their own personal tastes and opinions
matters a lot at the end of the day.
Therefore, since the beginning and till now, he provides
personalized services for his customers.
Something for everybody
Tarar diversified his business and introduced a new line of
furniture which was comparatively
less expensive and more economical, and also came up with
various packages. For instance, in
one such package, the interior design of a one canal house was
done by him for around Rs. 4.5
million, which included curtains, chandeliers, furniture, etc.
All the residents had to do was to bring their clothes, we covered
for everything else, he said. In another package, for which he
charged around Rs. 3 million, he would do the entire lounge and the
couples room. He would also gift the bride a designer lehenga9 from
one of Pakistans top fashion houses, makeup package from Ather
Shahzad, 2 tickets to Dubai, a Rs. 50,000 spa package, and a
diamond set
from Damas. These economical packages became increasingly
popular, and CasaHamza, which
was previously associated with the elites, gained fame among
those in pursuit of cheaper and
more affordable packages. Currently, Tarar offers two packages:
CasaHamza ECON, a relatively
cheaper package, with furniture manufactured in Pakistan, and
CasaHamza LUX, which is his
branded, expensive and luxurious package. Therefore, he now
caters to both the groups, people
on lesser budgets, and those who crave a luxury house. According
to Tarar, this scheme has
proved to be a raging success.
The sweet taste of success
Tarars success arrived soon. Just on the second day after the
launch of CasaHamza in Lahore, a customer bought every piece of
furniture that would possibly fit in his house, which enabled
Tarar to earn a profit of Rs. 15 million! Since then, he has
designed over 563 houses, residential
projects, and several commercial ventures including Tony and
Guy, Depilex, and Sante. He has
also set up office buildings and multi designer stores in
various cities of Pakistan, including
Lahore, Karachi and Islamabad. Within the first year of the
launch of CasaHamza, he had
already made sales worth millions of rupees, and has been
experiencing a trend of perpetually
rising revenue ever since.
Starting from just one outlet in Lahore in 2007, Tarar now owns
several stores and restaurant
across the three biggest cities in Pakistan. In order to further
expand his market, by December
2014, he plans to launch 9 retail stores of CasaHamza, which
includes 2 in Karachi, 2 in
Islamabad, 3 in Lahore, 1 in Gujranwala, and 1 in Gujarat.
9 A form of ankle-length skirt, usually worn by women on formal
or ceremonial occasions.
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12
Competitors and leeches
Tarar is now considered one of the leading interior designing
names of the country. CasaHamza
was the first furniture shop to be opened in XX DHA, on the
service lane of Khayaban-e-Iqbal,
and this lane is now known as The Furniture Lane. Since 2007,
almost 12 to 15 furniture shops have opened up on this lane.
Moreover, on observing Tarars work, many of the furniture makers of
the country have transformed their furniture, and have adopted a
more modern approach. Most
of them are Tarars seniors, who have inspired him throughout his
life. According to him, CasaHamza, and other leading interior
designers in the industry, such as Ahad, Zamana, and
Omer Nabi, have their own style. For instance, if a customer
wants a glitzy glam or whitish room, he would contact Tarar. On the
other hand, if a customer is interested in getting his home
done in a traditional way, he would go to Ahad. Hence, each one
of these leading interior brands
has its own forte, and they all maintain friendly ties with each
other.
However, there are some furniture makers that are not
competitors; they are copy cats. These
people generally visit his showrooms, work for him, and after a
while they start their own
businesses, copying his ideas. According to Tarar, they are not
competitors; they are leeches. For instance, one of his
ex-employees has designed a restaurant, Ol, where everything,
including the pillars, chandeliers, sofas, and curtains, are his
designs. Moreover, every time he
used to put his pieces of furniture at his stores, the next day
every other furniture shop in the area
would have copied it and put it up for display. Therefore, Tarar
has stopped putting his pieces of
furniture in his stores. According to Tarar, these copy cats
produce such hideous copies of such
beautiful products that it completely destroys the creativeness
of these products, which greatly
bothers him.
Running a business in Pakistan
Tarar spent his university life in the US, and designed some
houses there too. However, he is of
the opinion that running a business is not easy, irrespective of
whether its in Pakistan or abroad. He believes he just got lucky
initially, since he was studying at a private institution in the
US,
where no kid had a car less than a Jaguar. His friends loved the
way he had decorated his
dormitory, and asked him to do theirs too. Word of Tarars flair
for designing spread swiftly, since people in Miami are extremely
rich and had no issue with the amount of money he charged
for his services. However, in Pakistan he faced the greatest
difficulty in networking since in US,
there were networking groups for interacting and socializing,
whereas in Pakistan, there was no
such thing. Hence, he faced a huge networking barrier initially,
since social media was not
widely used in Pakistan.
Do it with passionor not at all
Tarar has always been fascinated with aesthetic and artistic
objects, and is generally very
observant. The first night he landed in Miami, his sister took
him to a hotel, Tela nos, by Philip
Stark, from whom Tarar is inspired greatly. According to Tarar,
Stark did mind-boggling and
crazy things. He believes this is how art is; a single room can
be an art installation. The theme of Tela nos was Alice in the
Wonderland; there was a hedge outside the hotel with a little
door
just like in Alice in the Wonderland, and while on the one hand
there were 40 feet long sofa
backs, on the other hand the tables were very small. There was
also a gigantic chess table, and
chairs inside the pool, which looked very abstract and
interesting. Tarar was deeply amused and
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13
loved this piece of work. He got hold of some architectural
magazines and articles, and
throughout the first few months of his college, learnt a lot
about interior designing. He then
began to come up with his own concepts, and discovered that he
had a good aesthetic sense. He
believes that throughout his journey, it is his passion that
always drove him. He firmly believes
that if you really want to do something, do it with passionor
not at all. Tarar also gave a word of advice that if anyone wants
to become an entrepreneur, he must start with something
small, and then make it big, since according to him, spending
too much money initially is
foolishness. Also, he believes that one must do some research
beforehand.
The essence of a lifetime
Tarar believes that one of the critical lessons that he has
learnt from his career is, Dont get used. According to him, when he
started spending huge amounts of money on marketing during the
initial years of his career, people starting asking him for all
sorts of favors, such as
sponsoring their events, lending pieces of furniture for their
TV shows, making VIP lounges for
their events, and designing sets for live TV shows. However,
soon he realized that he was being
exploited, and resolved to discontinue giving such favors.
Furthermore, he learnt not to spend too
much, and to always know how much money he should keep in his
business. He believes that
cash flow and managing ones accounts properly is what keeps the
business humming along. Therefore, ones money calculations should
never go wrong, and ones finances and marketing budget should
always be balanced.
3. JAVED IQBAL: A RAGS TO RICHES STORY
Introduction
Jaidi is a name which every Lahori is familiar with. It is the
pioneer of brands in the Paan10
business, which revolutionized the way in which the Paan market
operates. The mastermind
behind Jaidi is a humble individual named Javed Iqbal, who is
currently just 36 years old. A
married man and a father of 4 children, he set out on his
relentless pursuit at the mere age of 15.
Startup
Iqbal recalled the days of his childhood and the time when his
journey as an entrepreneur began.
It was in the year of 1992, when a 15 year old Iqbal took it
upon himself to do something for his
middle-class family. Not too fond of academics, he wanted to
enter the real world by setting up a
business from an early age. His family belonged to a military
background. His father, Malik
Awan, was a prisoner of war, and had fought in the battles of
1965 and 1971 for Pakistan. Since
they did not support his ideas, Iqbal was left alone to pursue
his unique passion for Paan.
Initially he was fearful as everything seemed murky and he had
neither a strong education, nor
his familys support to back him up. It was his immense passion,
he said, and his vision to revolutionize the Paan market, that
helped him through. It upset him a great deal when Paan
shops and the workers there were looked down upon and ridiculed
by the society. He wanted to
10 Betel leaves filled with various delicacies.
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14
change that. And so he did Iqbal turned an investment of a mere
Rs. 2000 into a renowned business with a worth of a whopping Rs.
250 million!
Iqbal did carry out some research before setting up his Paan
shop. He went around to different
Paan shops and observed how they were operating. Never enter a
business without proper research, he emphasized.
Name and location
Elaborating on the motivation behind the name Jaidi, Iqbal said
that he used to play cricket with his friends quite often and once
they randomly came up with this nickname for him. Iqbal
thought that it had a certain appeal to it, so when he set up
his business, he named it Jaidi.
The first hurdle that Iqbal came across was of location.
Although the prime locations for Paan
shops were Fortress and Liberty, Iqbal knew that he could not
compete with the already well-
established ventures over there. Therefore, he went on to set up
a Paan shop in H-Block,
Defense Housing Authority (DHA). It was a relatively new
residential area in the early 1990s
and had a great prospect for new businesses. Offering a
relatively untapped market and an area
unfamiliar with such delicacies, DHA was a golden
opportunity.
Challenges and innovations to overcome them
Back in 1992, Jaidi was nothing more than a small cabin set up
on a 4 square-feet piece of land
right outside a CD shop. Just like every other business, the
startup was the most taxing phase for
Iqbal, and he quite often missed out on the daily rental payment
of Rs. 100, simply because he
couldnt afford it. With the business struggling, he put up a
small section of cigarettes in his shop since Paan and cigarettes
are complementary to each other. Additionally, he also introduced
the
tobacco flavored Paan.
Two years into the business, Iqbal was finally able to hire his
first employee, a Chacha11 who
always stood next to his shop and would only leave for prayers.
One day, Iqbal asked the Chacha
to go and hand over a Paan and a few cigarettes to his customer
in the car parked in front of his
shop. Besides paying Rs.10 for the Paan, the customers tipped
Chacha an extra Rs.10. Chacha,
delighted by this, went up to Iqbal and asked him to hire his
services. Iqbal complied, and
Chacha became the first ever employee at Jaidi.
As Iqbal put it, 1996 was the most troublesome year for him.
Financial problems had still not
alleviated and Jaidi wasnt making enough profits to cover the
rental costs. On the verge of selling his business for Rs. 20,000,
Iqbal was persuaded by his friend not to go ahead with the
transaction. Around the same time, the Cricket World Cup of 1996
was in full-swing and Iqbal,
being the out-of-the-box thinker that he is, exploited this
opportunity by setting up a small
television outside his shop. On each match day, people came in
huge flocks to watch cricket
which brought Jaidi into the limelight. When this came to
Pakistan Tobacco Companys (PTC) attention, they approached Iqbal
and offered to sponsor his business. Knee-deep in rough waters,
he took up the offer immediately and PTC helped him buy out the
CD shop at a rent of Rs. 4000
per month. From a cramped, dirty cabin, Jaidi had now taken the
shape of a small, well-kept
shop that sold multi-flavored Paans and every single brand of
cigarettes.
11 Literally translates to uncle, can be used when addressing
older men.
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15
Fascinated by the outcome of his decision to place a small
television for cricket lovers during the
World Cup, Iqbal started making special arrangements for special
occasions, such as Eid,12
Basant13 and Independence Day. He was always thinking of ideas
that would help him maximize
his customer base. He would decorate his shop in green and white
lights on Independence Day
which attracted a young and vibrant crowd, which was the target
market segment of his business.
Iqbal soon realized that people were as concerned with the
outlook of his shop and product as
they were with the quality of the product itself. He couldnt do
much to change the quality of his Paan, so he focused on the
presentation and hygiene of his shop and product.
Always on the hunt for new ideas, Iqbal came up with a smart
business strategy which set Jaidi
apart from its competitors. Other outlets only had Meetha14 and
Tobacco flavored Paans,
however, Iqbal decided to take it up a notch and introduce new
flavored Paans. According to
him, Jaidi now boasts about 25 to 30 different flavors of Paan-
a feat unmatched anywhere else
in Lahore.
Iqbal was always looking for ideas that would enable his product
to appeal to the aesthetic sense
of consumers and soon he realized that this could be done by
improving the packaging of the
Paan. Therefore, he outsourced the entire process and started
importing custom-made wrapping
for his product from China, which was a unique and a
cost-effective way to present his product
in trendy and appealing wrappers. Iqbal emphasized the profound
impact of such minute
intricacies.
A move to sponsorships
Eventually, Jaidi started offering soft drinks upon the arrival
of several sponsors such as
PepsiCo. and Coca Cola. With a reasonably strong financial
framework, Iqbal was the first
person in the vicinity to have a large television screen set up
in his shop so that his customers
could enjoy watching TV while buying his products. This idea
took off again in the 1999 Cricket
World Cup when people would just stand by his shop, gazing at
the screen, while continuously
ordering Paans, cigarettes and soft drinks.
Juices and milkshakes
Jaidi soon ventured into the domain of juices & milkshakes.
According to Iqbal, he went out
with his friends to juice shops quite often, and felt that their
juices were ridiculously overpriced.
Unhygienic conditions, in which the juice was made, also
discomforted Iqbal since he had a deep
liking for hygiene and quality. He went over to several outlets
in the city to observe the
operations, taste the product, and develop a network that would
help him set up his own juice
business. Finally, equipped with substantial market knowledge
and insight after an extensive
research of 4 years, Iqbal incorporated an entire section of
juices and milkshakes into his product
portfolio. He was not afraid of failing and taking an initial
plunge into this river of uncertainty,
but at the same time, he was sensible enough to analyze the
market beforehand. He said, Before jumping into the unexplored
ocean, one must gauge its depth.
12 A Muslim festival. 13 A kite flying festival celebrated
during spring. 14 Literally translates to sweet.
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16
Upon finding out that other vendors earned 50 to 70 percent
profit on the sale of juices and
milkshakes, Iqbal made it a point to keep the prices relatively
lower in order to attract a strong
clientele for the new products. His immediate focus was to set
up a loyal customer base, which
would not wander off to other outlets when he gradually
increased prices. Eventually, Jaidi built
a reputation of offering products that gave its customers the
best value-for-money.
The success of his juices & milkshakes venture enabled Iqbal
to save up enough money for
setting up a cold store for fruits. This enabled Jaidi to have a
continuous supply of all types of
fruits throughout the four seasons since he had a substantial
backup of these fruits at all times,
and would otherwise even import them if the need arose. An
employee was responsible for the
purchase of such items in bulk and Iqbal emphasized that he
himself remained in contact with the
suppliers and the market.
Additionally, the shop was further extended and renovated 5 to 6
years back to give Jaidi a
contemporary and fresh outlook. With large glass windows, a
plasma television, and an
immaculate setup, Jaidi finally took the form that he had dreamt
of, Iqbal stated. He works there
from 7 p.m. to 7 a.m., even though he doesnt really have to.
Having a strong passion and love for his business, Iqbal went on to
say that sitting idle at home leaves him dissatisfied and he
wants to remain engaged in the work that he loves. He said,
Sitting idle makes me exceedingly restless.
Iqbal has put in place a stringent process for hiring employees.
Potential workers have to go
through several procedures before being hired, such as the
interview, screening process,
employee profile, bio data setup, etc. This rigorous process
ensures that only the best people are
hired for the job and guarantees a quality check of the
employees, which facilitates greater
efficiency of the business.
Jaidi further expanded into a catering business for various
functions, such as weddings, college
events, etc. According to Iqbal, Jaidi is also the sole supplier
of Kulfa ice-cream to the Pearl
Continental Hotel in Lahore. This shows how well-organized and
streamlined Jaidi is, keeping in
mind the strict and exhaustive process through which any
external vendor has to go through for a
hotel like the Pearl Continental.
Upcoming plans
With his brother Hafiz Muhammad by his side now, Iqbal stated
that he plans on expanding his
business into more competitive areas such as Fortress and M.M.
Alam. When inquired about the
late timing of his expansion plans, he immediately replied, In
order to meet your competitors head-on, you need to first earn a
name for yourself. Unlike other companies which start focusing on
expanding their businesses prematurely, Iqbal is of the view that
it should be
undertaken only when one has a strong foundation in place, and
that can only be achieved step
by step rather than overnight.
Iqbal further stated that he wanted his business to attract so
many customers that it enjoys the
same reputation as Cuckoos Den, Butt Karahi, etc. and becomes a
renowned tourist attraction within the city. Even currently, Jaidi
is often visited by foreigners within the area who are left
licking their fingers because of the unique taste of their Paan
and the supreme quality of their
juices and milkshakes.
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17
Iqbals children are studying in different schools within DHA and
once they are done with their studies, he plans to utilize their
technical skills by integrating computerized information system
within the business framework for greater efficiency. Jaidi also
has a Facebook page and has
over a 1000 followers.
Towards the end of the interview, Iqbal shared his ultimate
goal: coming up with Tetra Pak Jaidi
juices in the market and creating a monopoly for them. On being
asked if he believed he could
achieve such a goal, he responded in a crisp voice, I was alone
in my struggle for Jaidi and not even my parents supported me. They
told me that selling Paan would get me nowhere and that it
wouldnt even be enough to feed myself. With just Rs. 2000 in my
pocket, I have built this empire. I am now the richest man in my
family. Ive proven everyone wrong. And there is no reason to
believe that I cant do it again. It all depends on your spirit!
4. MUSARRAT MISBAH: A MAKEOVER FOR THE MAKEUP INDUSTRY
Introduction
Musarrat Misbah, a makeup artist and a human rights activist, is
one of the few leading female
entrepreneurs in Pakistan. This is quite a feat for a woman in
the predominantly patriarchal
society of Pakistan where successful businesswomen are rare.
Misbah lived a comfortable albeit
not a luxurious life at her parents home. Born on November 25th,
1959 in Karchi, she is the eldest sister amongst 6 sisters and 2
brothers. Her family always laid great emphasis on good
moral and ethical conduct. Her father, Misbah-ud-din Khan, was a
successful businessman in
Karachi who owned the first shariah15 complied pharmaceutical
company in Pakistan, and her
mother, Anisa, was a social worker and philanthropist. It may be
hard to imagine, but Musarrat
Misbah, the creator and owner of Depilex, a successful beauty
salon, clinic and institute, did not
always envision herself opening a business venture of any kind.
Rather, she always wanted to
become a doctor. However, the turn of events was such that she
got married at the early age of
17, due to which she could not complete her FSc. and her dream
of becoming a doctor remained
unfulfilled. It was only after her divorce when she had to raise
her small son, Khurram Khan, as
a single mother, that she felt the need to go out and earn a
living to provide for herself and her
son, instead of relying solely on her parents resources. Though
she was very passionate about earning her own living and providing
for her baby son, at that time she had no clue how she
would achieve this goal. The easiest option for her would have
been to get married again, but she
decided against it.
Misbah eventually finished her FSc, FA and graduation. It was
Misbahs father who one day came to her with advertisements of
diplomas related to beauty and skin care in the UK and urged
her to apply. She applied to 5 schools and decided to register
in the first school that offered her
acceptance. Though she had to leave her son with her parents
while she completed her diplomas
in the UK, it was a sacrifice she was willing to make in order
to pursue her new mission to start a
business venture. During her stay in the UK, Misbah gained some
work experience by doing
15 Code of law derived from the Holy Quran and traditions of the
Holy Prophet.
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18
relevant internships and worked with beauty salons and clinics.
This taught her a great deal about
the management and operations of this business.
Startup
When Musarrat Misbah came back to Karachi in 1980, her father
set up a hair salon for her in a
small apartment on Tariq road. That was the inception of
Depilex, a name very well known in
England for its cosmetic products and equipment. Due to her
entrepreneurial knack, she thought
it would work. Though her father equipped it with the necessary
infrastructure, it was up to
Misbah to cover the running costs of the business. Initially,
she did look to form partnerships
with other people. However, soon she dismissed this as one of
the worst experiences of her
career and from then on chose to work alone. She did not have a
formal business plan per say
and initially relied on word-of-mouth promotion. She would visit
all the apartments in her
building, knock on peoples doors and inform the women in the
neighborhood about her professional beauty parlor, Depilex, which
was a pioneer in its field.
Challenges
When asked about the initial hurdles that she faced, Misbah
narrated an incident that took place
when she was in the early stages of promoting Depilex in the
neighborhood. While she was
going from door to door in the apartment building, a lady told
her that she was a bad influence
and brought shame upon the women in Pakistan, and slammed the
door in her face. This came as
a shock to Misbah, who embraced this as her advent into the
practical world where she would
continuously have to endure obstacles like this, particularly in
a society which in the 1980s was
not very welcoming towards budding businesswomen. However,
Misbah kept her spirits high
and continued to greet the lady warmly whenever they ran into
each other. Eventually, one day
that woman visited Misbahs salon and was surprised to see the
professional environment of the salon and was even more surprised
to learn that Misbah was highly qualified and educated in her
field.
Another major challenge for Misbah was that she had to face
considerable difficulty when it
came to dealing with revenue and income tax information, the
technical knowledge of running a
business, and the customs department. She was riddled with these
problems since the first year of
her business, therefore, she sought professional help by
outsourcing her finance and IT
departments. Over the years, however, she learnt how to manage
these departments herself and
hired her personal staff for these departments as outsourcing
them was costing her more than she
could afford in the beginning.
Another obstacle for Misbah was that she embarked upon her
venture at a time when the trend
towards grooming was minimal in the country. As her parlor
progressed locally, Misbah started
promoting Depilex in popular magazines of the time. These
included The Mag, SHE and Akhbar-e-Jahan. She also offered to do
makeovers of models posing in magazine shoots free of charge in
return for credits in these magazines. A similar barter strategy
was seen in her deal
with the Pakistan television network as well where Depilex was
given makeup credits in shows
like Neelam Ghar and the Bolan Awards in return for free makeup
services for their actors and hosts. Before the inception of
Depilex, there was no concept of getting professional makeup
done, and the artists and models used to apply their own makeup.
Musarrat Misbah very
creatively changed the norms of the society and created a want
for her services.
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19
Among other problems, Misbah also had to deal with the Pakistani
culture of people asking for
favors because of the influential positions they held in
society. Getting forcible requests of free
services is nothing unusual in her business. However, things got
out of hand on one occasion
when a group of ladies walked into one of her salons, and racked
up quite a bill. When the time
came for payment, they refused, since they were related to an
influential personality, who talked
to her on the phone, and threatened her of dire consequences if
she did not waive the payment.
However, Misbah stood her ground and got the payment, but at a
high cost. The tax authorities
made her life miserable for the next three years and she had to
ask people of note to intervene. In
hindsight, she realizes that it was a mistake on her part. The
expedient thing would have been to
waive the payments and consider it a cost of doing business.
Over the years, Misbah also learned the hard way to protect her
brand name. A few years back, a
man took a stay order on the name Depilex, and started using it
for his own business. When Misbah started fighting the lawsuit, the
other side employed every delay tactic possible to ensure
that the case dragged on for as long as possible. After 4 years,
the high court ruled in Misbahs favour, and commented in the ruling
that the plaintiff should not have used the name for the few
years that he did. The matter is now pending in the Supreme
Court. There have also been
instances of people using Depilexs name in the US and other
countries. Therefore, Misbah now ensures that the name and logo of
Depilex is registered in a foreign country before handing out
any franchise.
Growth
With the passage of time, trends began to change as more players
entered the market and the
market dynamics turned in favor of these salons as actors and
models began to rely on
professional salons. Hence, Depilex and the others started
charging for their services, but being
the first and the most credible, Depilex remained the market
leader.
The next goal Musarrat Misbah set up for herself was to start a
training institution of skin care,
beauty and makeup application. When asked about her motivation
behind this, she replied that
she wanted to impart what she was fortunate to have learnt and
many around her, by virtue of
their humble backgrounds, could not learn without spending a lot
of money on foreign diplomas
in health and beauty. With this aim in mind, she started
teaching. She also affiliated Depilex with
various international organizations including City and Guilds
and made her employees and
students sit in such exams and achieve various prestigious
foreign certifications whilst sitting in
Pakistan. Most of the distinguished makeup artists, hair
dressers, and photographers of the
current generation have been taught and trained in Depilex under
Musarrat Misbah.
Misbah has not only earned a sound reputation for herself and
Depilex, she has also changed the
dynamics of our fashion and grooming industry. At the time when
the Pakistans film industry was booming and theatre was being
introduced here, Depilex offered their services and
monopolized the backstage makeup and hair department. In
addition to this, Depilex was also
responsible for grooming the Pakistan International Airlines air
hostesses. Today, Musarrat Misbahs clientele includes celebrities,
politicians and the VIPs of the country. She has also had the
privilege of working with renowned personalities such as Lady Diana
and Jamaima Khan.
Depilex is acclaimed not only nationally, but internationally as
well, and Misbahs makeup artists are often invited abroad for their
services on various occasions.
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20
Soon after Depilex had gained a sound reputation, Misbah
diversified her business and launched
a beauty clinic. She had a panel of doctors who would come and
visit her salon on assigned days.
She had a psychiatrist, gynecologist and dermatologist as well
as other specialists on the team.
This was important because if someone came up to her with weight
concerns, there was a limit to
which she could solve their problem, since their issue might
have been due to psychiatric
reasons, which only a psychiatrist could have resolved. Women
would also come to her with
their unmarried daughters, who had gynecological or
psychological issues, but were afraid to go
to proper hospitals due to fear of social stigma. Her clinic
provided a very comfortable
environment for these clients, since she had managed to convert
her business into a one stop
solution for them.
Misbahs initial office was on Tariq road, Karachi. Then she
opened up a few more branches, but these branches were not
sufficient to cater to the increasing demand. She recalled that
brides
would come from far off places like Azad Kashmir just to get
their makeup done for their big
day. This is when she realized that she needed to open up more
branches and now Depilex has a
network of over 30 branches across the country; including
Karachi, Lahore, Islamabad,
Gujranwala, Gujrat, Peshawar, Sargodha and Sialkot. On average,
each branch has a working
crew of 20 to 25 qualified people.
As demand for Depilex grew further, Misbah felt the need to
expand her customer base and so
started franchising her salon to her most trusted and longtime
employees, mostly females, who
had been with her since the advent of her business. Misbah would
further train them, provide
them with the premises and equipment, and tell them to deliver
back a certain percentage of the
profits, while the remainder profits were to be kept by the
owner of the branch. However, as with
any business that delves into franchising, the question of
quality assurance arose. Therefore, in
order to ensure that the brand equity is not diluted, strict
quality control standards are maintained
and the owners of the franchises need to meet stringent criteria
pertaining to not only hair and
beauty service, but also branch cleanliness, customer service,
etc.
Seeking to expand further, Musarrat Misbah came up with the idea
of opening Depilex Men in
2003. She realized that there was a huge population of men who
were very particular about their
looks and appearance and were willing to spend money on grooming
services. Thus, she is a
pioneer of the men care industry in Pakistan.
Leaders go first, copycats follow
As far as competition is concerned, she believes that she has no
competition. Rather she is a
competition for everyone else since no other beauty salon has
more than one branch in Pakistan,
whereas Depilex has branches in Gujranwala, Mirpur, Gujrat and
also in Dubai, UAE, Chicago
and the UK. Over a span of 33 years, Depilex has established
over 30 branches across the
country and has evolved into not only a beauty clinic, but an
institute as well. Musarrat Misbah,
being the pioneer of professional beauty salons in Pakistan,
enjoys a great deal of comfort in
becoming a brand name today and states that the market is bound
to copy her ideas and
innovations. However, despite this, Misbah prefers to invent and
innovate in her field and
continues to provide various certifications to young women and
men who wish to learn the art of
makeup, hair and skin care. Apart from this, she also teaches
them to have a good moral standing
and a proper code of conduct. She learnt these values from her
parents and considers them an
integral part of ones life if one wishes to succeed.
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21
Smile please!
Depilex Smile Again Foundation was also founded by Musarrat
Misbah in 2003. The foundation
treats victims of acid attacks. Till date she has treated 526 to
527 patients. She takes great pride
in giving a "new life" to these women. She stated that the idea
to start this foundation came to her
when one day in 2003 a young girl clad in a burqa16 entered her
salon and asked for help. She
states: I thought she was a beggar so I told her to leave. But
she persistently kept asking me to help her and then she removed
her veil to reveal her badly disfigured acid burnt face. It was as
if
the earth had left my feet me and I sat on the couch completely
shocked and astonished. This
completely changed my life and I made it my mission to help
these acid burn victims.
This was the start of her philanthropic career. She feels that
one should be grateful for all the
blessings of life and must never complain about minor issues
experienced in everyday life. After
the initial shock of seeing the girl's mutilated face, she
decided to establish the Smile Again
Foundation and made it her mission to do whatever she could to
help instill these victims with
confidence through psychiatric therapy and plastic surgery. Her
initial step for setting up this
organization was an advertisement in the newspaper urging such
victims to gather at her salon.
The response was overwhelming. About 42 girls/women came right
away for treatment. Smile
Again provides treatment to acid attack victims all over
Pakistan by providing 50 free cosmetic
surgeries annually to people who cannot afford it. Smile Again
works to make these women feel
hopeful again and teaches them to be brave enough to face the
world and try to find work at
places like customs department, call center operators, etc.
where physical appearance is
insignificant. Yet if these women face difficulty in finding
work elsewhere, Misbah trains them
at the Depilex institute to become beauticians.
Misbah admits that most customers are reluctant to be around an
acid burnt victim and complain that they come here to relax. My
reply to such clients is humble that they can attend
another salon since I do not have an option to send these acid
burn victims to any other place.
They work for me and are a part of this organization. According
to her, now that the organization Depilex has an extended business
and is earning huge revenues, she can afford to
lose such clients who do not want to be attended by these
victims.
Apart from this, a certain fraction of the profits earned from
Depilex is spent on the treatment of
these victims and for creating opportunities for them. Donations
from customers and other
people are also used to send acid burn victims abroad for
plastic surgeries. She said: Smile Again has now spread to all four
provinces of Pakistan. It has changed me in every regard.
Before I used to wear jeans but now I dress in traditional
Pakistani clothes such as shalwar
kameez and do not wear jewelry as often. It really has made me
simpler in life and I dont really care about worldly things or
earning higher profits after setting up Smile Again Foundation.
My
business is on auto pilot now and my focus is now solely on
Smile Again and my daughter Rida
now handles the runnings of the Depilex salon and institute. It
has changed me in almost every
aspect.
16 A long garment worn by Muslim women to cover themselves in
public.
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22
Upcoming plans
Her future plans include conquering the area of Sindh, since it
is still an untapped market. She
sees more and more franchising in the future and expansion of
the business both locally and
globally. On top of everything, she sees herself working toward
her Corporate Social
Responsibility Program, something she is tremendously passionate
about. Her concluding
message to young entrepreneurs was: First of all, whatever field
you choose you have to have the knowledge and qualification and
once you acquire that you need to set yourself goals, set
your goals according to your priorities, be organized in your
field to get better and to be
successful. Success at times comes easily, sometimes it comes
with difficulty, sometimes luck also
plays a role but if you are working hard, are consistent and
love your work then nobody can stop
you from achieving what you want.
SOMETHING TO CHEW ON...
Having taken a stimulating voyage through the lives of these
entrepreneurs who were at the top
of their games, Dr. Shahid now strived to connect the bits and
pieces to be able to grasp the big
picture and comprehend the predominant traits and cognitive
processes of this breed. However, it
was proving to be much more difficult than he had anticipated as
these entrepreneurs exhibited a
wide array of characteristics, attributes, thought processes and
philosophies, which compelled
Dr. Shahid to ponder over some intriguing questions: While
reflecting upon the personality traits
of these successful entrepreneurs, do some noteworthy patterns
and similarities emerge? Did
they possess any exceptional qualities that set them apart from
the rest, and if they did, what
were these? How did they make decisions, and how does that
contrast with a managerial
mindset? What is that one thing in their lives that these
entrepreneurs never compromised on?
And most importantly, is there even such a thing as a distinct
entrepreneurial mindset? With all
these nagging questions already looming over his mind, Dr.
Shahid found himself staring at
another narrative, given as follows, that he had just come
across in the literature, adding further
to his state of limbo.
"The entrepreneurial Heffalump is a variegated sort of animal,
which appears in different
habitats and in different forms. It also appears to have
undergone some evolutionary changes or
mutations since the first reports of its existence were made
public by Heffalump hunters in the
past. So it is not surprising that there is disagreement about
the nature of the beast.17
17 Wilken, 1979, p. 11