The Intelligent SME issue 15

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Issue: 15 | Aug. - Sept. 2013

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No.1 Platform for Small & Medium Enterprises

Defying odds, RizwanSajan builds empire

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Corporate partnersStrategic alliance partner

www.dubai-gbs.com

Meet UAE’s business icons once a month

An insightful leader who constructed Danube to extraordinary success in a span of just two decades.

Building trust by hinging world-class doorsFrom Burj Al Arab to Dubai Metro, Dorma Gulf is the point of entry to Dubai's most prestigious projects.

Rizwan Sajan,chairman, Danube

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ContentsAugust-September, 2013

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11 Rare & Fabulous High-end luxury products for CEOs and

decision makers.

16 Transforming lives with online microfinance

Pi Slice, a unique web-based social platform, allows individuals, low-to-moderate income companies, entrepreneurs to take small loans from microfinance institutions in MENA through its website.

30 Business Announcements What's happening in the business marketplace?

Here are some updates that you might have missed.

34 Building trust by hinging world-class doors

Providing the much-needed safety around the UAE, Dorma Gulf ensures you’re tucked safely in your residence, a visit to Burj Khalifa, Burj Al Arab, or a safe Dubai Metro Trip. They have made doors for many high profile projects.

38 Shooting the corporate world! Reim El Houni, founder and ceo of Ti22 films,

gets off her director’s chair to share her entrepreneurial journey.

40 The hidden benefits of exporting through referrals

Several entrepreneurs still think they can 'go global’ for the price of a plane ticket and a hotel room, which is remotely possible. However, referrals and word of mouth publicity can get the ball rolling, writes Rami Rabia.

42 Brand me, brand me not! If Adam the consumer did not fall for Eve- the

brand, he would have never bought the idea of eating an apple -the product, writes Tony E. Saade, senior partner at Commfirm LLC.

Defying odds, Rizwan Sajan builds empireAn insightful leader who constructed Danube to extraordinary success in two decades.

Supported by

Be a Connector

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44 Before you demolish, let’s examine the option

How do employees and employers uncover the half-truths and imbalance of information on the insurance cover? Sandi Saksena reveals steps to contain costs and getting the right one.

48 Exercise smarter this summer While diet alone will not get you feeling healthy

and refreshed, exercise remains a crucial activity. But exercise during this season requires few specific precautions, read on to find out what you need to do.

50 If you fail to plan, you plan to fail It’s said productivity is never an accident, but

a result of intelligent planning. John Merrigan delves deeper on how companies can fail adversely without a comprehensive plan.

52 Weathering the storm UAE is a different market, but failure rates of small

businesses are known to be high. Mark Fisher writes on how companies can ensure that the seeds they have planted survive to bear fruits.

54 Understanding your firm’s cash position

An old adage suggests: revenue is vanity, cash flow is sanity but cash is king. Alyson Baynes, assistant director at Deloitte details how a company’s cash flow is an indicator of its health.

56 It’s time to flex your networking muscle

Networking, in today’s time, is when we get together with others to share information and build professional relationships - is like workout, elaborates Phil Bedford.

58 How brilliant is your business idea?

One of the main reasons businesses of all sizes fail in less than two years is not the lack of capital or opportunity, but ignorance and inadequate planning, explains Neil Petch.

64 Do you have what it takes to be a millionaire?

The achievers live by an entirely different set of rules, a different way of thinking, which makes all the difference, writes Anesh Jagtiani.

Gives your business an unfair advantage

As the region headed into the holy month of Ramadan, followed by festive celebrations, it offered us some time to take a deep breath, stop and look carefully at the achievements so far, and what needs to be done for engaging the community that we serve through our publication.

To begin with, we spoke to several business houses to evaluate their views of the market during the month. And, surprisingly, there was hardly any delay in new launches, tie-ups or any dearth of optimism,

which is in line with du’s recent attempt to boost the functionality of small-to-medium enterprises (SMEs) sector with a tailored package. Vikram Chadha, vice president-SME marketing, du (Pg 22), elaborated on how the ‘Business Advantage Plan’ focuses on attending both voice and data needs at economical rates for companies.

In the current edition, the ISME team has relentlessly explored insightful achiever’s stories to motivate and inspire our readers. We have portrayed an array of unique businesses: starting from a web-based social platform, which enables small-to-moderate businesses to take loans from micro finance institutions (MFIs) through its website, followed by a video production company catering to corporate advertising, and the renowned door manufacturing firm (Dorma Gulf). Besides, we have also featured a host of new experts who have shared their views on how referrals can become game changers in the exports industry, importance of branding, and why companies close down in less than two years due to ignorance and inadequate knowledge.

Finally, our cover story offers an up close and personal account of the man who constructed Danube from nothing, to one the biggest building materials company in the region- Rizwan Sajan, chairman of the company. A believer in consistence, determination and hard work, he enlightens us on what helped him earn success, glory in a short span of two decades. We hope it makes for an interesting read!

As always, write to us, send in your responses and ideas [email protected]

Samar ManzarEditor

Editor’s NoteSPI Groupwww.theintelligentsme.com www.spi-holding.comFollow us on twitter: @intelligentsmeFacebook: facebook.com/theintelligentsme

Publisher & CEO Shantanu A.P.Account Director Vijay G.Editor Samar ManzarAsst. Editor Nikhil PereiraConsulting Editor Utpal BhattacharyaExpert ContributorsAnesh JagtianiAlyson BaynesMark FisherJohn MerriganMichael J. TolanNeil PetchPhil BedfordRami RabiaSandi SaksenaTony E. SaadeZed Ayesh

Art Director Aneesh Varghese

PhotographersShibu ParameswaranArzai Zafar

Response and communications

Response Executive Evelyn V.B.MIS Executive Yolanda Pedemonte

Distribution Department

Jerry P. Sam

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SPI PublishingP.O. Box: 89735, Dubai, UAETel: 04-2659704, 04-2650312Fax: 04-2690566, [email protected] Disclaimer

SPI Publishing has endeavoured to bring out a publication that is reliable and informative. This is true to the best of our knowledge. The opinions presented are those of individual writers and not necessarily endorsed by SPI Publishing. The content in this magazine is protected by copyright law and is copyright to SPI Publishing unless credited otherwise, and may not be copied, reproduced or republished for any commercial purpose or financial gain.

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S U C C E S S I S A D E S T I N AT I O N

H AV E YO U A R R I V E D ?

WATCHES YACHTS DESIGNER JEWELLERY BOUTIQUE REAL ESTATE GADGETS EXOTIC DESTINATIONS FINE DINING

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Rare & Fabulous

Roger Dubuis unveils limited edition Excalibur 42 Precious Dial

Aug - Sept 2013Intelligent SME

Swiss watch-maker Roger Dubuis has unveiled the stunning Excalibur 42 Precious Dial limited edition collection, for watch

connoisseurs in the Middle East. These glamorous versions of the iconic Excalibur model feature unique dials crafted from materials such as mother-of-pearl onyx and lapis lazuli. The three versions of the Excalibur 42 Precious Dial are produced in a limited series of 188 pieces only. Each of them bear the prestigious, ‘Poinçon de Genève’. The Excalibur 42 Precious Dial is available in pink-gold and white gold with onyx or lapis lazuli dials. Each of the timepieces is encased in the characteristic 42mm case and powered by the RD622 automatic movement, which is built on 32 jewels, packed with a 52-hour power reserve. The Excalibur collection is a perfect example of the Haute Horlogerie and avant-garde spirit that embodies all Roger Dubuis collections, and has become an icon of the brand. Its 45 mm and 36 mm models are joined by the 42 mm version with an interpretation of the line’s signature codes. The Excalibur 42 watch challenges contemporary notions of elegance, using the power of its design to show its watchmaking pedigree and declare its unique identity. Roger Dubuis was inspired by the ‘world of the warrior’, while creating the Excalibur Collection. The collection is dedicated to nobility and control, and, is reminiscent of the world where chivalry and power were held in high esteem, a time wherein duels and combats were demonstrations of bravery. With its audacious designs and its extraordinary mechanisms, the 42 mm version retains the distinctive features of the Excalibur line: triple strap-attachment horns, an immediately identifiable fluted bezel, and Roman numerals stretched to the limit.

Lapis lazuli/Mother of Pearl/Onyx precious dialMovement: RD622 Self-Winding Components: 179 Case: 42mm white or rose goldThickness: 4.50mmJewels: 33Calibre: 13 ¾”Frequency: 4.0 hzWater resistance: 3Power: 52 hr

Excalibur 42 Precious Dial

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Rare & Fabulous


Jewellery reflecting nature’s beautyA new range of precious jewellery designed and

handcrafted by Mouawad is now available across the Gulf. Combining diamonds and multi-coloured precious

gemstones and boasting a sophisticated chromatic effect, the new Peacock collection is perfect to complement and adds a touch of colour to any wardrobe given any occasion. Only being released in limited numbers, the items of the new collection are all realized in 18K white gold and set with diamonds, citrines, sapphires, tourmalines and peridots. Matched in different combinations, the colourful stones create a graceful medley of bright white, deep blue, dark green, warm red, pink-violet and golden yellow, recalling the tones of the peacock’s plumage. Talking about the inspiration behind the new collection, Fred Mouawad, Guardian of the Mouawad Diamond Division, said: “Admired and revered for thousands of years, peacocks remind us of the wonder and creativity of nature-boasting resplendent plumes of iridescent blue, gold, green, pink and crimson-all for the love of love. Dainty, charming and alluringly romantic, the Peacock collection will captivate wearers and watchers alike with their unmistakable duende-a must have for any sophisticated jewellery collection.” The Peacock collection captures the colourful splendour of nature's most romantic bird in a striking and delicate range of bangles, earrings, necklaces, pendants and rings. Worn individually or combined to create a coordinated set, the pieces of the collection will grace a woman for every occasion and captivate during festive and social gatherings. With prices starting from to USD$ 6,950 to USD$ 47,200 the Peacock collection is now available in all Mouawad boutiques across the GCC.

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Rare & Fabulous

Firing up the new SLS AMG Roadster One must have seen an

unending list of open-top super sports cars, but

SLS AMG is among the few to persistently command a strong on-road presence. However, the major grouse with buyers is the speed of the top folding down. In the SLS AMG Roadsters case, it’s done and dusted with in just about 11 seconds. Quite impressive, given you get while cruising at speeds of 50 kmph. Apparently, the Mercedes Benz engineers and designers were given a single objective in the early stages of the development process for the SLS AMG: let your automotive imagination run wild. The result is hugely impressive supercar with the engineering attributes of a racing vehicle. With its purist style, lightweight design, fabric top and superior dynamic qualities, the SLS AMG Roadster delivers a fairly good

driving experience. Obviously, the doors open upward given the roadster is convertible, but that does not hamper its style statement in anyway. A bonnet measuring nearly two meters and a rear-positioned flat passenger cell lend this super sports car its incomparable charisma. With its AMG 6.3-litre V8 front mid-engine, the SLS AMG Roadster boasts of a commanding standard-fit 8-cylinder naturally aspirated engine. By switching to dry sump lubrication, design engineers made it possible to mount the engine deep behind the front axle. This was the only way to eliminate the need for the oil pan which would normally be located beneath the engine. In combination with the AMG Speedshift double-clutch transmission with Race Start function, the unit delivers a unique level of performance.

It is a thrilling, powerful and breathtaking experience. The vehicle’s outstanding dynamic qualities are enhanced by a lightweight aluminium frame and an extendable rear aerofoil which is deployed at speeds from 120 kilometres per hour. The kit inside the car is nothing short of impressive, but go for the add-ons and be prepared to spend 900,000 dirhams. However that is down to personal taste, the carbon fibre trim for example. Arguably the most striking on the dashboard are the ventilation outlets featuring a jet engine look. Other fancy bits include AMG sport seats with firm lateral support and excellent long-distance comfort, an AMG performance steering wheel and, in the centre console, the AMG Drive Unit with E-Select selector lever, reminiscent of the thrust lever in a jet.

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Rare & Fabulous

Panasonic opts sleek, tilt-shift lens for Lumix G

Panasonic has announced the launch of the LUMIX G Digital Single Lens Mirrorless

(DSLM) Camera featuring high photographic performance and sleek design with a tilt able LVF that satisfies all photographers. The DMC-GX7 realises high-quality image recording with real-to-life details through high resolution, image rendering and color reproduction. The camera makes complete use of the newly developed 16 megapixel Digital Live MOS sensor and Venus Engine. Images are rendered with highly sharp resolution, even images shot in low-lit situations or in full light. A high 25600 high ISO sensitivity can be selected to compensate for varying light conditions. “With the GX7, photographers across the region get a precession, compact camera with the Best MFT (Micro 4/3) sensor ever. Images rendered with highly sharp resolution even those shot in low-lit situations and the integration of the 90-degree tiltable LVF (Live View Finder) will intrigue users, along with the 3.0-inch large 1040K-dot touch-control rear monitor that also tilts up and down. This camera has been developed for photography lovers who are looking to shoot brilliant images and stunning

videos. The camera will be made available to the discerning consumers in the UAE by end of October,” commented Hitesh Ojha, deputy general manager, Digital Imaging, Panasonic, Marketing Middle East and Africa. The Contrast AF system on the camera

excels in both, speed and accuracy, by exchanging digital signals between the camera and the lens. A variety of extensive AF functions including Low Light AF, Pinpoint AF and One-shot AF enhances usability to comply with wide-ranging shooting situations.One of the most significant features of DMC-GX7 is integration of 90-degree tilt able LVF that lets users enjoy a whole new angle of view with flexible shooting style. The LVF boasts stunningly high resolution and approximately 100 per cent color reproduction for high visibility under any circumstances. The 3.0-inch touch-control rear monitor also tilts up and down. Furthermore, the DMC-GX7 allows photographers to use a maximum of 1/8000, fast shutter speed, for more impressive expression. The Optical Image Stabilizer (as effective as the MEGA O.I.S. in the conventional DSLM lenses) is built in the camera body, which makes it more enjoyable to mount classic lenses of the users’ choice. The DMC-GX7 also features full HD 1920 x 1080, 50p (50 Hz) smooth, high quality video recording in AVCHD and MP4 with stereo sound. The practical full-time AF and tracking AF is available in video recording

too. The cinema-like 24p video with a 24 Mbps bit rate provides richly expressive afterimage with overwhelming image quality. The motion picture quality is greatly improved thanks to the new Digital Live MOS Sensor. The DMC-GX7 incorporates Creative Panorama, Time Lapse Shot, Stop Motion Animation or Clear Retouch, in addition to the popular Creative Control mode with a total of 22 fascinating filter effects. The Stop Motion Animation allows producing unique stop motion video, and, the Clear Retouch function enables to erase unwanted part of a picture after shooting – both operations completes with ease in camera.Equipped with Wi-Fi connectivity and NFC technology, users can connect the camera to their smartphone/tablet anywhere at one-touch, which makes sharing images much easier. It is also possible to use a smartphone/tablet as a multi-capable remote shutter with a monitor. Dressed in magnesium alloy full-diecast frame in black or silver, is the throwback to the bygone era of cameras. An aesthetic path many manufacturers are going down.

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From the Entrepreneur

Transforming lives with online microfinancePi Slice, a unique web-based social platform, allows individuals, low-to-moderate income companies, entrepreneurs to take small loans from microfinance institutions in MENA through its website.

Pi Slice is a web-based social platform, which is a new tool for MFIs to raise funding. The firm has made efforts

to present a unique proposition to MENA individuals and companies, while trying to create a social impact via small online loans. Pi Slice loans give 'micro-entrepreneurs' an opportunity to develop their business activities, and, hence, improve their lives. Furthermore, it enables MFIs to construct a sustainable future for the industry. In March 2012, Genny Ghanimeh, the founder, negotiated a partnership agreement with Microworld from the group (PlanetFinance) to build and administer Pi Slice site. Jochebed Menon walks you through Pi Slice’s journey in the region.

Q: What was the wisdom, or, say, the thought process involved in setting up Pi Slice?

A: Pi Slice was founded on the principle of speaking from the core, which can be further simplified as one has to look within. Initially I was fed up with myself, evading responsibility and dwelling on a false life. To overcome this troubled-phase, I started a self-enquiry journey of removing all emotional and mental debris to reach the core. It was great to see it all in perspective, and how the drag on personal transformation affected my work environment. Many companies first figure out the “what” and the “how” of their products and services, but they forget the “why” behind. The “why” can be seen as your core

- what you stand for and the source that inspires your vision. Pi Slice started with the “why”! I wanted to serve and help micro-entrepreneurs by reaching out to them. Then I figured out the how. And, I had to figure out one layer of interface or outreach through the MFIs, then, determine an online platform to connect them to the rest of the world. Lastly, I figured out the “what” factor, which was providing them with a micro-loan of funds raised from different people and corporations around the world.

Q: The micro finance segment is not so well know in this part of the world. What led you to pick micro finance as the ‘chosen one’?

A: Our slogan is: “make life count”. I aspire to inspire others to help them empower their own lives and people around them. In the case of Pi Slice, empowering happens through employment, and we

chose microfinance because it is the bottom of the pyramid and by empowering this segment, we empower the whole society. Although the MENA region is the second youngest microfinance sector in the world, it has shown signs of maturity in recent years, characterised by the following developments: increased diversity of financial service providers (banks, microfinance banks, non-bank financial institutions, service companies, and NGOs); higher and deeper penetration levels, a widening pool of experienced human resources, improved credit risk systems, proliferation of mezzo-level non-financial service providers and supportive infrastructure such as business development services, credit bureaux, rating agencies, regional and national networks, introduction of supportive legal and regulatory frameworks and greater level of commercialisation with less reliance on donor funding.

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Within the region, however, the microfinance markets are in different stages of development with Morocco, Egypt, Jordan, and Yemen showing higher levels of maturity, while Iraq and Sudan are comparatively in nascent stages

Q: Could you explain the business model of Pi Slice?

A: The Pi Slice web-based platform plugs a long standing need of MFIs to source funds to customers. It is difficult for small institutions to provide transparency to the lenders. Such institutions rely in MENA on donations, and donors are not always informed as to where the money is really going. Pi Slice acts as one-point-of-portal broker between lenders and selected partner MFIs. Our platform provides detailed information to lenders on selected partner MFIs, through their social and investment performance, risk, outreach, transparency, regulation, sustainability, etc. We also follow-up on a regular basis with the MFIs through relationships built with the MFI network.

Q: Did you face any challenges in setting up the brand here?

A: Not really. In fact, one could say that Dubai is the friendliest environment in MENA for entrepreneurs to set up their business.

Q: Could you describe the company’s journey since its set-up?Pi Slice was launched on March

A: 14th, 2012 and since then the Planet Finance Group signed with us a partnership agreement to rebuild and administer the new site and back office through one of their subsidiaries Microworld.org. The official re-launch of new portal was set on the 14th of March 2013, and exciting developments are on the way.

Q: What would you characterise as proud accomplishments so far?

A: Establishing a strategic partnership with MicroWorld.org (a

Planet Finance Group subsidiary) is one of the proudest achievements for us. Its framework is unique-a connecting system that links individuals and companies wishing to provide finance to MENA based MFIs- which in turn use the funds to provide micro-credit to their

customers. Through this initiative, motivated individuals and companies can help MFIs in the MENA region to build a sustainable future for micro-entrepreneurs and a favourable ecosystem for macro development. MicroWorld.org, part of the Planet Finance Group, is a peer-to-peer platform that was launched 18 months ago in France. It has a similar model to Pi Slice, channeling funds from individual lenders and large companies to MFIs around the world, albeit so far with low penetration in MENA and until now only offering non-remunerated loans for individual lenders.

Q: Do you feel that being a woman in this area of business has been a challenging experience?

A: I get asked all the time about the challenges of being a female entrepreneur. I am not sure if women have more specifics to their challenges as entrepreneurs than men, but the challenges for women in any leadership position

I started a self-enquiry journey of removing all emotional and mental debris to reach the core.

The parties involved follow the steps as outlined below:

STEP 1 We meet a lender and then refer it to the MFIs. STEP 2 The lender registers and creates an account, which

includes submitting an application online or by downloading the forms in PDF format and presenting the completed forms to MFIs.

STEP 3 The lender activates account: the activation instructions are sent to lender’s email address once step 2 (registration) is complete.

STEP 4 The lender confirms identification: upon activation, the lender will need to send in an identification confirmation form.

All lenders will follow these simple steps:

STEP 1 A lender views micro finance projects via the web platform of Pi Slice;

STEP 2 The lender selects a project and gives the money to the chosen MFI;

STEP 3 The MFI passes the money to the customer; and

STEP 4 The MFI pays the fee to Pi-Slice.

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includehaving males in the team. Males are still not coping well with diversity in their work place, let alone reporting to a female. Women lead differently. Women also have their own personal barriers for success. They simply don’t believe they deserve it and accept to be sidelined, paid less, overworked, etc. If succeeding is about believing in oneself and doing one’s work with passion then being a woman is an asset. We bring heart and passion naturally to the equation, so better own up to it. Find who you are and be it; never settle for less.

Q: Could you elaborate on you partnership with MicroWorld, and how it benefits the micro-lending in MENA?

A: France-based MicroWorld, launched in 2010, is the newest subsidiary of the Planet Finance Group. Backed by several socially-minded, patient investors, and with support from both the network and a number of corporate and media partners, MicroWorld has developed a strong technology platform based on robust systems of the highest quality.Created in 1998, Planet Finance currently has activities in over 80 countries worldwide and employs over 1000 staff. The group offers a comprehensive range of microfinance services. Pi Slice’s partner MFIs are in a strong position to leverage this network and benefit from the potential synergies on offer. Each year, Planet Finance manages approximately 100 programs with around 200 MFIs, reaching more than four million clients. It has also conducted 478 rating missions, and MicroCred now runs five microfinance institutions. Planet Guarantee has been able to provide micro-insurance products to 188,000 micro-entrepreneurs.

Q: How does Pi Slice contribute to social empowerment in the region?

A: Driven by social impact, Pi Slice empowers micro-entrepreneurs, who are otherwise excluded from access to credit by formal banking institutions to start and grow

businesses, engage in income-generating activities. And, thereby, transform their own lives as well as those of others by becoming job creators rather than job seekers. By giving a small online loan, a lender can provide aspiring micro-entrepreneurs with a life-altering opportunity to overcome poverty, enter the formal economy, and proliferate available employment opportunities, thus accelerating development. This would not only enable MFIs to build a sustainable future for the industry, but also help shape the region’s future economies, communities, and competitiveness. In the region’s development process, the individuals and private sector is now presented with an unparalleled CSR channel to unlock the abilities of millions of unemployed youths, activate human capital in the labour force, and solve economic crises, hence actively contribute to the sustainable development of the MENA region. Today, Pi Slice unveils its MENA portal for individual and corporate investors, opening doors to a brighter future.

Q: What are the company’s plans going forward?

A: I am mostly excited about converting the private sector into micro-lending communities and showing how we can change the landscape of unemployment in the MENA region. Through its partnership with MicroWorld, Pi Slice managed to build a strong and robust backend system and become the first innovative online platform for micro-lending in the region. Innovation in social entrepreneurship, online micro-lending is fresh and inspiring with no competitors, but it also requires dedicated effort in educating the audience about it. In particular, Pi Slice has an ecosystem challenge on a MENA level: the online audience needs to be educated about the difference between charity and online micro-lending. Not to mention also that the online industry is relatively still immature in the Arab world and needs time for people to trust and get familiar with. But this challenge can be accomplished when we work hand-in-hand with the private sector.

Q: What’s next for Pi Slice?

A: A lot of things! Become a key player and a role model in the social entrepreneurship ecosystem and inspire/mentor/coach young people in social ventures, become a key player in micro lending across MENA. Furthermore, we want to become a key player in adding value for MFIs for their social impact next to their financial empowerment

Q: Any advice you would like to give young entrepreneurs based in the region on the basis of your personal experiences?

A: Yes, the only qualities young entrepreneurs need to cultivate in them to succeed are courage, resilience, and speaking from the core! Entrepreneurship is a journey into the unknown and uncertainties to manage on daily basis. Your core values are your support system, and they build the drive you need to keep going.


Entrepreneurship is a journey into the unknown and uncertainties to manage on daily basis. Your core values are your support system, and they build the drive you need to keep going.

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Get Informed

Dubai Chamber embraces over 7000 new firms in H1 2013 The chamber witnessed an investment accelerator of exports and re-exports amounting to AED 145.2 bn between January and June 2013, as compared to AED 136.2 bn during the same period last year.

In the first half of 2013, Dubai Chamber of Commerce and Industry recorded a consistent growth across all its operations,

with its members’ exports and re-export activities increasing by 7%, compared to the same period in 2012. The half year figures covering January 1 to June 30, 2013 highlight the continued strong performance of Dubai’s trade sector and the overall positive business environment and confidence of the business community. Hamad Buamim, director general, Dubai Chamber, said that the strong first half performance was due to recommendations from H.H. Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai, to stimulate Dubai’s business environment. Also, Buamim commented that Dubai’s trade sector has achieved record growth, while tourism has consolidated its position as a leading support sector in light of Dubai’s ambitious vision of attracting 20 million visitors by 2020. The director general of Dubai Chamber, said: “This year Dubai Chamber is striving to promote Dubai in international business arenas and we are in the process of signing agreements with a number of global businesses to open their headquarters in Dubai, which we know will boost FDI, strengthen our

business climate and enhance the competitiveness of our businesses in overseas markets.” According to the figures, Dubai Chamber members’ exports and re-exports amounted to AED 145.2 billion between January and June 2013, compared to AED 136.2 billion during the same period in 2012. The monthly total of May 2013 was the highest of the period, reaching AED 25.4 billion, while January was the lowest with a value of AED 23.5 billion. He further highlighted the commitment of Dubai Chamber under its mission to represent, support and protect the interests

of the business community, while pursuing its strategic objectives of creating a favourable business environment, supporting the development of business and promoting Dubai as an international business hub. During the same period, Dubai Chamber issued a total of 418,000 certificates of origin (COs), compared to 372,000 in the first half of 2012, equal to a 12.2% increase. Again, May recorded the highest number of certificates issued (74,000), while February registered the lowest (63,000). Between January and June, a total of 7,153 new members

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Get Informed

joined Dubai Chamber, registering a 5.5% rise on the same period in 2012 with 6,780 members. This increased the total number of Dubai Chamber members to over 145,000 by the end of June.

54 ATA Carnets issued during H1 2013 Dubai Chamber issued 54 ATA Carnets between January and June 2013, with an invoice value of AED 25.8 million, which is a growth rate of 145%, compared to 22 ATA Carnets worth AED 12.2 million issued during the same period last year. The upward trend clearly reflects the success of the temporary admission of goods system, which was launched in the UAE in April 2011. ATA Carnet is also helping to enhance Dubai’s position as a leading international destination for exhibitions and conferences.

Visiting delegations and overseas participation Dubai Chamber’s half year figures also show that during this time the organisation received 139 international delegations, comprised of 503 delegates (including government officials and businessmen), recording an increase of 15% compared to last year. Furthermore, Dubai Chamber also participated in 29 events around the world, in 22 cities in 20 countries, including the United Kingdom, France, Kazakhstan, Uzbekistan, Tajikistan, Jordan, Poland, Portugal, Qatar, Uganda, Colombia and others, with the objective of promoting Dubai as an international business hub and profitable destination for foreign investment.

Studying draft laws As part of its objectives to create business growth, Dubai Chamber studied, reviewed and followed up on 17 federal legislations. These include: the draft federal law concerning maritime law (2011), draft federal law amending law no. (24/1999) on environmental protection and development (2012), draft law concerning foreign investment (2012), draft federal law concerning arbitration (2013), draft regulations concerning

insurance brokers registration and profession (2013) and draft law regulating partnership between the public and private sectors in the emirate of Dubai (2013), as well as ministerial decisions. The organsiation has sent its recommendations to the Government of legal affairs department (Dubai).

Settling trade disputes and supporting business With the importance of settling commercial disputes amicably in the emirate gaining ground, Dubai Chamber received a total of 417 arbitration and mediation cases in the first half of the year. The organisation’s initiative Dubai International Arbitration Centre (DIAC), received 177 arbitration cases, while Dubai Chamber’s Legal Services department received 240 mediation cases during the same period. Meanwhile, the number of business councils and business groups operating under the umbrella of Dubai Chamber increased to reach 43 and 27 respectively.

Global expansion strategy As part of its new strategy to promote Dubai as a global business hub to foreign investors and to open up promising markets of the world for its members, Dubai Chamber inaugurated its second overseas representative office in the Ethiopian capital Addis Ababa. This follows the launch of its first

overseas office in Azerbaijan and is part of plans to open around 20 representative offices in key emerging markets.In the first half of this year, Dubai Chamber organised trade missions to the commonwealth of Independent States, visiting Kazakhstan and Uzbekistan to discuss investment opportunities in several promising sectors. Each mission included more than 20 businessmen from various industry sectors. Major successful events hostedIn May, Dubai Chamber organised the Africa Global Business Forum 2013 –which saw a participation of 4,460 global decision-makers and business leaders as well as over 40 African ministers, who discussed enhanced cooperation and joint investment ties over the two-day event. The highlight of the event was the attendance of H.H. Sheikh Mohammed Bin Rashid Al Maktoum and his decision to make this an annual event as the forum successfully served as a platform for Emirati and African businesses to network and exchange experiences. Meanwhile, Dubai Chamber, in cooperation with the Private Office of H.H. Sheikh Majid bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Authority, launched Tejar Dubai, a entrepreneur development programme that aims to help young Emiratis turn their business ideas into realities. In order to consolidate Dubai’s position as a global business hub, Dubai Chamber, in partnership with the International Chamber of Commerce (ICC) launched the first ICC Regional Banking Commission Middle East and North Africa (MENA), a chapter of ICC’s influential rule-making body for the banking industry. Dubai Chamber also hosted the regional launch of the ICC Uniform Rules for Bank Payment Obligation (URBPO), which is regarded as electronic letters of credit and an alternative means of settlement in international trade. The new rules will not only support the emirate’s banking sector but will also go some way towards sealing its status as the region’s leading banking and financial hub.

Hamad Buamim, director general, Dubai Chamber

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Get Informed

du has recently launched a Business Advantage Plan, a first-of-its-kind plan in the world for small- and medium-sized enterprises, to establish a one-stop shop service provider’s image in this particular segment. Highlighting two important needs of business customers, value for money and reliability, the new plan offers customers a subscription for five years of incremental benefits, price transparency including lower monthly fees, more national and international minutes, and, above all, providing a commitment to the SMEs with “the longer you stay, the less you pay”.

In an interview with ISME, Vikram Chadha, vice president-SME marketing, du, elaborated how the package is focused on attending both voice and data needs at economical rates for businesses. On the revenue front too, he further stated, the SME sector has been a huge contributor in

the 45 per cent sales growth seen last year. Following are the edited excerpts: Q: What was the idea in formulating the business advantage plan?

A: Since inception, du has been eager to support the SME sector since they provide the backbone of every economy. We released our business super plan in 2010, which promised to provide businesses with added value propositions and cost-effective solutions. The earlier version included only international and national minutes as part of the bundle. As per our customers’ feedback over the past months, we have enhanced this plan. Now, we have once again designed the product to make the plan very simple, more importantly the customer gets to

pay a lower monthly fee every year and yet enjoy additional benefits. Moreover, the benefits are built in automatically, an entrepreneur does not subscribe to anything. The cost of maintenance and customer loyalty is inversely proportionate, which means, the longer a customer stays, the lesser he pays. Throw in added and increasing benefits and the proposition is complete. The annual fees reduce every month over a period of five years. The SME customer starts at a 50 per cent discount in first year gradually rising up to 70 per cent discount in the fifth year, enabling them to sit back and enjoy further benefits. There is also a discount for employee-to-employee calling, which increases with every passing year. This clearly is a unique offering that will gain a lot of traction with our existing SME customer base, as well as with new customers.

Q: Were any government authorities involved in the formulation process?

du opens new gateway for SMEs

Vikram Chadha, vice president-SME marketing, du.

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Get Informed

A: The government authorities are not involved in the formulation policy per se. However, we always consider the UAE Government’s viewpoint, policies and support they provide to the SME Sector. They are very keen to grow the SME Sector in the UAE, and at du we continually support the government for any initiative on the SME Sector.

Q: Did you encounter any challenges in the course of bringing about this plan?

A: Any new innovation has its set of challenges, however, at du, we believe that this innovation will add a lot of value for our SME Customers. Time was also a crucial factor that the product engineering and IT group had to consider. It was also important that we launched this product in record time, and the teams have worked tirelessly to develop it in a short span of time. This highlights the level of motivation that we have at du, and our belief in raising the bar of our own standards. To eliminate the taboo of chance, several SME companies were involved through the different stages of development. This gave us the much needed confidence to come out with a unique proposition in quick time.

Q: What has been the response of SMEs towards this initiative?

A: Today, the entrepreneurs have clearly started looking at us a one-stop shop service provider. du is rapidly being perceived as an ICT player compared to a teleco. Moreover, the SME customers can relate with us as we are not only innovative, but a confident and reliable brand which has always offered best value.

Q: How different it is from the entrepreneur plan?

A: With the business advantage plan, customers enjoy monthly benefits that only get better every year, which include lowering monthly rates, free national and international minutes, national and international SMSes, and

data. It takes care of both: the voice and data requirements. Also, entrepreneurs also have an added benefit of subscribing to a smartphone at a low price, thus substantiating the value that the SMEs enjoy from du. The entrepreneur plan, on the other hand, is a complete package that helps a new entrepreneur in rolling out his business plans. It offers mobility, collaboration and online presence designed to keep them connected and focused on growing their business. du has collaborated with Microsoft to offer a three-pronged package to SMEs - mobility, online presence

One-time upfront paymentAED 2,200*

SmartphoneA voucher of AED 1,500 value to redeem for one of our

available smartphones.

MobileBusiness Mobile Connect Plan

DataNational data (1 GB) or Blackberry National Bundle

(10 GB)**

Hosted emailCorporate Professional 10+

(10 emails provided as part of the package

Domain Name Service.ae domain name registration and hosting for one year.

Hosted WebEconomy professional package with included web storage.

Website builderCreate, publish, and maintain your website with ease with

Webmatrix (a light weight web development tool).

*After the first 12 months, a monthly fee of AED 150 per month applies. Foreclosure fees of AED 400 if service is terminated before 12 months.

**Promotional Blackberry National Bundle (10 GB)is available for a limited time only.

and collaboration. With the entrepreneur plan, du empowers the segment to become a part of the digital economy within a matter of minutes. It entitles an SME for a smartphone voucher of AED 1500, a voice plan and a special data package offering, all within the bundle. Meanwhile du offers an .ae website domain name, a website builder template where the start-up can design a basic website. As a part of the collaboration tool, the customer gets 10 Microsoft exchange email ids as a part of the package, all this for a substantially low cost of AED 2200 per year.

Q: In terms of scope, how does the new plan contribute to du’s revenues/growth?

A: For the SME customers and for the large business men too, it is one of our ‘hero’ products. They have been key contributors in the growth and success of du. The value proposition has been fruitful enough to yield us a 45 per cent rise in sales last year. This year is also looking bright as we are expecting to grow by 35 per cent.

The Entrepreneur

Plan

26


Meet the CEO

Defying odds, Rizwan Sajan builds empire

When Rizwan Sajan was ranked seventh at the Forbes Middle East top 100 Indian Leaders in the UAE, he riveted the world with a story of inspirational triumph over staggering odds. Losing his father at 16, shouldering household responsibilities by working part-time at a steel company for a salary of INR 800 a month, he moved to Kuwait at 18 in his uncle’s building materials company. Lost everything again during Iraq invasion in 1990, and starting afresh with AED 100,000 savings to construct the renowned brand Danube. In a span of two decades, he went from being an unknown person to one of the most celebrated business icons in the UAE, becoming a self-made billionaire. In an interview with ISME’s Samar Manzar at his lavish Jebel Ali office, Mr Sajan said that hard work, determination, providing quality service and a little bit of luck earned him success.

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Meet the CEO

ISME: What shaped you as the person you are today?

RS: My father’s early demise affected my education. I was forced to discontinue my studies to support my family being the eldest child in the family. I left the Somaiya college in Mumbai after completing the 11th grade when I was offered a job at my dad’s company. It was a part-time job for a meagre salary of INR 800 per month. However, the plus point was that they offered flexible working hours to help me complete my degree. I used to attend college in the morning, from 7 am to 10 am, and then worked from 10 pm to 6 pm, followed by running my personal business around 6 am to 11 pm. It was determination from day one, and those struggles shaped me as a person.

ISME: How did you come to Kuwait?

RS: After my father’s death, I wrote to my uncle in Kuwait asking for a job in his company. I explained to him that being the eldest son of the family I should be taking up the household responsibility and a job would be more beneficial than any monetary help. My uncle, who was my father’s cousin and a multi-millionaire in Kuwait, asked me to stay put until I completed 18 years of age; at that point I was 16. From his response I felt that he was mostly trying to disregard my request. So, I did not pursue that course anymore, and, in fact, forgot about the entire episode. But my uncle, on the other hand, sent me a letter on my eighteenth birthday enquiring whether I would be still willing to take a job in his company. At that time I was earning about INR-2,000-2,500 a month, which included receipts from my part-time job, a small business I owned and dad’s tiny pension amount. It was a nothing more than a hand-to-mouth situation. However, this job was like a blessing in disguise, which offered me an opportunity to earn KWD150 (approximately INR18,000) in those days.

ISME: What kind of business was your uncle running?

RS: He was into building materials too He was my mentor, and whatever I have learnt about the business in the initial, formative years, were his teachings. He’s the one who taught me everything from scratch and kept me in his house for six months. Over the years, I established myself in his company, wherein I would easily run the daily functions in his absence too.

ISME: During the 1990s, the Gulf war broke out, and things turned haywire in your career.Could you elaborate on how the invasion affected you personally and professionally?

RS: We had to leave everything and return overnight! It was the second roller coaster of my life, the first being my father’s early death. After I migrated to Kuwait, I managed to make a decent living despite starting from scratch. I got my sister married, bought a flat in a posh locality of Mumbai (Bandra) and a car, but everything changed during the invasion and I was back to square one. I distinctly remember that during those years

I used to earn approximately AED 20,000-22,000 a month, which was quite acceptable for a 27-year old lad. But after the invasion, all our goods were stolen by the Iraqis, and we had nothing to take home. Left with no options, I moved back to Mumbai and started a business once again, drawing INR35, 000-40,000 on a monthly basis. It was a manageable living, but nothing beyond average. Now, during those days I had a friend running a hardware business in Dubai and he offered me a job with a salary of AED 3,000 per month, and a 25 per cent commission on sales. What did I have to lose? I didn't have a job in hand anyway. I accepted the offer on the spot and he promised to send me the visa as soon as possible. A lot of people find it extremely difficult to step down once they have achieved something in life. In fact, people I have interviewed during recent times are hell-bent on packages; nobody is really willing to take up challenges, seldom factoring they have to prove themselves before making demands; high salaries are a bi-product of good performance

ISME: How did you manage a shift from hardware to the building materials business? What was involved in setting up Danube?

RS: By the time I landed in Dubai in March 1992, the condition in Kuwait was slowly and steadily getting back to normal and work had resumed in full swing too. Moreover, my business contacts were back in town and they started placing orders with me for building material once they came to know that I was working in Dubai. As time passed, cement, sanitary fittings and furniture were exported from my new workplace to Kuwait. Including the commission on sales, I began to earn about AED 8-10,000 per month. However, this didn’t last long as businessmen in Kuwait went back to doing direct imports, which eventually dried my earnings completely. Meanwhile, I went back to trading in small hardware, but made a suggestion to my friend-cum-employer that we could expand the building material business and trade in wood, by

I used to earn approximately AED 20,000-22,000 a month in 1990, which was quite acceptable for a 27-year old lad. But after the invasion, all our goods were stolen by the Iraqis, and we had nothing. to take home.

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Meet the CEO

tapping on the experience and contacts I had. But, this proposition called for a million dirhams investment. Not convinced about the returns on this risk, he refused. And, thus, we parted ways. I had saved AED 100,000 in one year and started my own business. I told my wife, who was very supportive all along, that I wanted to take the risk and start something of my own. Although I was easily employable for AED 5000 at that time, I felt starting something of my own was worth taking a shot.

ISME: Did your wife set a deadline for you?

RS: The deadline was as long as I can sustain with the AED 1, 00,000 savings. I invested AED-60,000-70,000 was spent on setting up the business-buying a car, house, trade licence, and sponsorship fees.

ISME: While you were scaling up, did you face any challenges?

RS: Yes, I didn’t have the money to pump into the business. A particular bank made me wait for several hours for the clearance of a letter of credit, and eventually

denied it. Few years later, the same bank approached me to do business with them. And, this is life, things are initially tough, but eventually they fall into place with hard work.

ISME: Two decades later, you have 38 offices across India, China and Gulf. It is a testament of your determination. What is the annual turnover of your company?

RS: Approximately, AED2 billion. Determination, hard work, luck and right people have made the difference.

ISME: What are your goals in terms of expansion over the next five years?

RS: We do have expansion plans, but we don’t plans to venture into completely new areas either. Basically, it’s retail and wholesale sectors that hold major interest for us. In the retail segment, we have recently started the Danube Buildmart, which is still in the developing stage, but offers huge scope for our growth. My son manages Danube Buildmart.

ISME: Your firm has always been

A sales man, meanwhile, will not see himself growing if he keeps switching from building materials to electronics or IT. Okay, you can be a salesman, but you won’t see tremendous growth if you hop around too much.

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Meet the CEO

into B2B segment. What prompted you take a plunge in the B2C sector with Buildmart, a tough space given the cut-throat competition from big boys like IKEA, etc?

RS: Firstly, you don’t have to do anything in a Buildmart. We found a gap in the market that a customer looking for tiles, garden fitting, wall paper, or, even bathroom fittings had limited options-Deira, Sharjah market, or Dragon Mall. We have a professional designing team looking after the needs of every single customer, say, for instance, a person looking out for wallpaper will be professionally shown how the design would look after installation. He would be given the feel of using the wallpaper at his home even before making a purchase. . Similarly, an interior store where people like you or me can sit down with professionals and talk about their needs, pick products where quality is guaranteed, and prices are economical.

ISME: Are you replacing the interior designers, or complementing them?

RS: We are complementing them. We don’t do interior designing in a detailed way. A designer will give you a detailed explanation, but we help you in the feel and look of products (tiles, wall papers, etc)

ISME: Let’s get into the guts of your business, how many employees are working for Danube?

RS: Approximately 1800

ISME: What qualities do you look for when you’re hiring an employee?

RS: Firstly, it’s their integrity and willingness to work hard. In our company, we believe in training an employee first hand to make him better employee. For instance, several of them have risen from being a manual worker to managerial positions. We believe in grooming in-house talent.

ISME: What are your life’s learnings so far? What advice you would give to young entrepreneurs based on your

personal experiences?

RS: Firstly, decide what you want to be in life (area of interest) and stick to it, hopping professions is one of the biggest mistakes. For example, 80 per cent of the CVs received by us have people jumping jobs very often, and changing professions. These people waste 10-15 years of their life and reach nowhere. A sales man, meanwhile, will not see himself growing if he keeps switching from building materials to electronics or IT. Okay, you can be a salesman, but you won’t see tremendous growth if you hop around too much.

ISME: You mentioned earlier that labourers have succeeded to become managers in Danube.What are these values and ethos that bind employees to this firm?

RS: We believe in building integrity and earning trust from our customers. These values are passed on to every employee. A sweeping glance across Dubai’s market will have you notice plenty of building material companies, but what sets us apart is the trust factor. Our customers know that if they face any problem with our services or products, the company will ensure it’s rectified.

ISME: What is the recognition Danube has received thus far?

RS: We have been honoured with several awards, and the Dubai

Quality award is one of the special ones amongst all. Now, let me tell you, it’s not so easy to earn this trophy. We have nine assessors from the government department stationed in our office for three consecutive days, and they check every single department. These inspectors, who are experts in their own fields, check every single document to understand our working processes. No amount of verbal dialogue would cut in if there’s no available document to support the claims. For an ordinary building material company like ours, it was quite an honour to compete with corporate giants like Nestle and Microsoft.

ISME: What role does family play in your life?

RS: My wife has been supportive all along. To set up a business, you’ve to work 14-15 hours a day, and life gets difficult if you have a nagging wife. I don’t even know when my son grew up. Looking ahead, my son will take care of the firm. Also, I’ve a younger brother who’s closely involved with us. For the second generation, I don’t see any problem. The whole business is within the family, that is what Danube is, and they will take it forward. Further, the relationship within the family is very good.

ISME: Are you involved in any kind of CSR activities?

RS: We distribute 30,000 meals every year during Ramadan, other than sponsoring children. Last year, when we went on a picnic, a very smart labourer was asked to write a score in English. He was hesitant because he didn’t know the language. Following this incident, 100 labourers were assembled and questioned on their proficiency in the English language; the results were staggering, as90-95 of them were ignorant. To overcome this barrier and offer an opportunity for them to earn a promotion, we’ve started a community centre to train all these blue-collared employees in English. Instead of giving money, it would be more beneficial if we can change lives.

We’ve started a community centre to train all these blue-collared employees in English. Instead of giving money,it would be more beneficial if we can change lives.

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Business Announcements

Dubai Chamber of Commerce honours top exporting companies

Dubai Chamber of Commerce and Industry recognised its top exporting members

between January and May 2013 in an exclusive SME Exporter of the month ceremony at its head office. Hamad Buamim, director general, Dubai Chamber, presented their representatives with a certificate of recognition and an SME Exporter of the month trophy. Speaking about the event, Buamim said, “since the inception of our SME Exporter of the month initiative, Dubai Chamber has awarded more than 40 companies. These have been high performing enterprises, which are leading by example and helping to drive growth in Dubai’s trade sector.”

“Trade is a pillar of Dubai’s economy and our SME members play an essential role in its growth and development through their exports and re-exports. Our SME Exporter of the Month initiative encourages our members to improve their performance, which in turn helps to accelerate the emirate’s economic growth,” he added. The recognised companies are: ME Global International for obtaining the highest export value in January; Royal Golden General Trading for achieving the highest number of markets exported to in February; DIA 33, a recent start-up which reached the highest export value in March; Schneider Electric for applying for the highest

number of certificates of origin in April; and Ashour Trading FZCO for being the company with the highest export growth rate in May. Top officials of the recipient companies expressed their gratitude to the authoritative body for the support provided to them. They said that the recognition encourages positive and healthy competition, which yields benefits to their company and helps to increase the overall competitiveness of businesses. Dubai Chamber launched the SME Exporter of the Month initiative in 2009, under the name SME Exporter of the Quarter. The initiative was changed in 2010 to make it a monthly event due to its popularity and success.

Gulf Capital picks 100% stake in luxury foods importer

Abu Dhabi-based investment company Gulf Capital has announced a 100 per cent

acquisition of Chef Middle East, an importer and distributor of high-end, specialty and fine food products from around the world. The firm has bought a 100 percent stake from Vintage Holdings in Chef (established in 1995 across Dubai as a regional supplier of the fine foods to the hotel, food services, casual dining and airline industries). The latter services more than 1,000 customers in the UAE, Qatar and Oman, the company’s press release stated. Through a leverage buy-out structure funded by a combination of equity and debt from Abu Dhabi Commercial Bank, Gulf Capital has acquired the shares and assets of Chef, including its 5,000 square meters warehousing facilities and headquarters at Dubai Investment Park, its distribution centres and cold storage facilities across the UAE, Doha and Muscat, as well as its modern fleet of 50 temperature-controlled trucks.

Speaking about the buyout, Dr Karim El Solh, CEO of Gulf Capital said, "we are excited to be exposed to the thriving food and consumer sector in a growing niche through a highly reputable market leader, such as 'Chef'.” He further added that the strong underlying growth of the sector is driven by positive market fundamentals that continue to fuel the upward trend in the economy,

including a booming population; growth in non-oil sectors such as tourism, manufacturing, transport and logistics, and services; and an increase in consumer spending. The food and beverage market is estimated to be worth over AED6bn in the UAE and forecast to grow by 7-10 percent per annum. Also, Richard Dallas, managing director - Private Equity at Gulf Capital, elaborated: "We intend to work with the management team on enhancing the sophistication levels and professionalism of distribution and logistics in the region to help our customer base operate in a more efficient and reliable manner." Chef supplies some of the world's leading food products from many European countries as well as Australia and Japan in the dry, chilled and frozen categories including cheese, chocolate, poultry, egg products, oils, vinegars, spices, pickles and condiments. It currently has 2,000 products and has a comprehensive temperature-controlled supply chain operation.

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Dubai Smart government bags UN ‘public service’ award

The Dubai Smart Government (DSG) department won an international award at the

United Nations’ public service awards 2013 in the category of ‘promoting whole-of-government approaches in the information age’ for the western Asia region. This international recognition of excellence in public service was presented by Wu Hongbo, under-secretary general for economic & social affairs at the UN. The award was received by a team from the communication and business development department at a special ceremony in Bahrain on 23 June 2013, also known as United Nations Public Service Day. Previously, the team made a presentation to the visitors of the exhibition held on the sidelines of the ceremony which focused on the electronic shared services (ESS) and smart phone applications provided by DSG to government entities in addition to the official portal of the government of Dubai

(dubai.ae), which offers eServices to the government’s entities in one place. Commenting on the award for DSG, Ahmad Bin Humaidan, director-general of this government body, said: “This award is the fruit of co-operation with our partners of government entities in the eTransformation process since its start in 2000. We were also delighted to note that the UN Secretary-General Mr. Ban Ki-Moon in his welcome message on this occasion said that the winners of the UN Public Service Award have set an example in improving delivery, promoting accountability and that our innovative approach to public governance was building a better future for all.” Bin Humaidan added: “During our nomination process to the UN, we showed how our ESS were adopted and used across 56 government entities in Dubai to achieve back-office operational efficiencies and significant cost savings for the government, which

translated into streamlined and automated customer services that entitled us to gain the satisfaction and trust of customers. In addition, we get regular delegations from brotherly Arab countries wishing to make benefit from how to create centrally managed ESS and redirect cost savings towards other public welfare schemes. They have also helped us reduce our carbon emissions due to a single highly utilized infrastructure for multiple government entities resulting in a smart government that is also environmentally sustainable in line with the criteria that are taken by the UN into account while recognizing the efforts of the winners.” Bin Humaidan asserted that DSG, which always aims at bringing satisfaction to all individuals of the society, would continue to enhance the existing ESS while responding to the requirements of the new stage of smart government, by supporting its partners with its modern infrastructure, secure government information network, sophisticated platforms and government resources planning systems. Its MyID initiative, which was recently launched in collaboration with the Emirates Identity Authority, allows customers a unified access to all eServices provided by Dubai government entities via smartphones or the Internet by means of only one identification that eliminates the need for customers to register with each government entity separately, he said, adding that the initiative would become operational in October this year. The UN Public Service Awards 2013 is an international event designed to promote and support innovations in public service delivery worldwide. The awards are open to public organizations of all kinds, including governments and public-private partnerships involved in delivering services to citizens. The winners of these awards receive a trophy and a certificate of recognition during the UN Public Service Awards ceremony.

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Etisalat reports 6% jump in Q2 net profit

Etisalat, UAE’s leading telecom operator, posted a six percent consolidated increase in its net

profit to AED 1.97bn ($536m) in the second quarter of 2013, after royalties increased. The company said in a statement that revenue grew 20 percent to AED 9.9bn in the same period last year, while revenue from international operations grew by 50 percent. It added that Etisalat's aggregate subscribers grew to 143 million. Focusing in UAE, the revenues of AED 6.303 bn for the quarter were 12 percent higher than in the second quarter of 2012 and five percent higher than the previous quarter. The company said the growth

in revenues was primarily due to customer acquisition and an increase in the revenues of data and handsets sales. Revenue from international consolidated operations grew by 50 percent to AED3.513bn, representing 36 percent of consolidated revenues. Ahmad Abdulkarim Julfar, CEO of Etisalat Group, said: "The outstanding performance of Etisalat UAE and the positive performance in Asia are reflected in our Q2 results.These results demonstrate that group is absolutely on the right track and able to continue to add value to its subscribers, shareholders, employees and the communities it serves."

Dubai sets up new centre for Islamic banking

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and chairman of

Dubai Executive Council, recently launched the Dubai Centre for Excellence in Islamic Banking and Finance as the first initiative to turn the emirate into world's

capital for Islamic economy. Students will be offered to study for a master's and foundation certificates in Islamic banking and finance through the centre, which will be a segment of the Hamdan bin Mohammed e-University.

"The launch of the Dubai Centre For Excellence in Islamic Banking and Finance is a significant boost to the Islamic economy sector in the UAE, and a major step forward in the economic development agenda of Dubai," said Sheikh Hamdan in a WAM press release. The announcement follows the unveiling of a plan in January by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, for the emirate to become the "global capital" of the Islamic economy. "Through this partnership between HBMeU and the emirate's initiative: 'Dubai: Capital of Islamic Economy', we underscore fruitful cooperation between the different sectors in the UAE based on investing in the best international expertise and experiences of Islamic economy, in order to benefit this sector, in general, and to consolidate the global economic stature of Dubai, in particular," Sheikh Hamdan elaborated. The enterprise included a Sharia council to supervise standards in Islamic finance, an arbitration centre to solve disputes in Islamic contracts, and a drive to boost production of halal food in Dubai.

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Success Story

Building trust by hinging world-class doorsProviding the much-needed safety around the UAE, Dorma Gulf ensures you’re tucked safely in your residence, a visit to Burj Khalifa, Burj Al Arab, or a safe Dubai Metro Trip. They have made doors for many high profile projects.

Q: What inspired you to join DORMA?

A: It was an easy decision to join a company with such a strong brand, high quality product and global recognition. Also, DORMA was already known to me from my experience as their customer in the UK.

Q: You’ve spent quite a few years in the company. What experiences have you gathered working in the company that has had a deep impact in your life?

A: I have grown with the company for the last 16 years. I have gathered plenty of learning throughout this period and it continues. One of things that I have learnt is to be prepared to adapt to any market conditions or environment. You have to have the flexibility to adjust quickly to market movements, in either direction, depending on the conditions. I have also learnt that if we are to work in the MENA region, we need to set our goals and visions high.

Q: The ethos of DORMA and its history is quite interesting, dating back to 1908. Could you shed some light on the values of the company for the benefit of the SMEs?

A: Values –We value integrity, responsibility, innovation, performance

35


Success Story

Integrity – We do what we sayResponsibility – We take ownershipInnovation – We encourage creative ideas Performance – We strive to outperformQ: An impressive list of projects has been executed by your company. What would you characterise as the ‘X-factor’ of your company that sets you apart from competition?

A: In the Gulf and MENA market, the main drive, unlike Europe, is the new construction activities catering to the ever-growing population across the region. As the region evolves and becomes mature, the opportunities in all sectors mean tremendous growth potential, which is not found any longer in the more developed markets of Europe. The Gulf market also has the vision to challenge architecture without any restrictions, allowing not only excellent design but an atmosphere of high motivation and fulfilment of progressive visions for its people and visitors. The GCC building sector continues to be vibrant due to strong population growth, increased government spending on construction, sustained domestic and foreign investments, surging oil prices, high growth forecasts and mega economic growth plans for each country. Abu Dhabi, the capital city of the UAE, in particular with its vision 2030 plan, has set its prime focus on building sector in residential, hotels, schools and hospitals. It clearly indicates the strong business potential, along with Saudi Arabia and Qatar contributing around 89 per cent of the actual GCC building construction spend. In the GCC, the demand for doors has gone up exponentially over the last decade, despite a slump in the market post crisis. If we look at the growth figures for over the past three years, the market has had a demand for an average of 14 million doors, comprising a mix of various types of doorsIn the GCC, KSA tops the list as the largest user with an annual average demand of 7.3 million doors, followed by the UAE with 3.5 million doors, while Qatar grabs a share of two million doors, and Oman crossing one and half

million mark and Kuwait earning a whopping share of 0.9 million doors followed by Bahrain with 0.2 million doors. The UAE is one of the most competitive, dynamic and emerging economies in the GCC region, attracting a major share of the region’s foreign investments. The UAE construction industry is expected to witness a CAGR of around 20 per cent from 2010 to 2013, according to Trade Arabia Business Report, November 2011. Building projects tops the list in terms of the overall construction project value in the region. Building projects, such as offices, hotels, residential buildings, retail, airports and educational facilities, drives the population needs and growth. The GCC is expected to make a major contribution to the global construction market with approximately 5,045 on-going building construction projects worth an estimated value of US$1,820 billion, according to a study done by Ventures Middle East titled ‘New technologies utilised in the GCC market’. Our company is quite adept at merging form and function as evident in the contour designs incorporated in each of our products. In the Gulf, we have

been at the front-end in opening doors to the best addresses, from hotels to airports, and banks to passenger liners. Our milestone projects includes Burj Khalifa, which has our products installed with smoke control doors, hardware for all types of openings, including wood, steel, aluminium, glass doors and shower doors, plus eight automatic revolving doors serving as the main entrances of the building. Some of our other projects include Meydan Racecourse and Dubai Metro. Most of our products come from worldwide factories, ready to be shipped to customers. For specialised products like revolving doors, sliding doors, sliding folding glass systems, where products need customisation in line with site requirements, we get components in kit form, and assemble as per required specifications in our facilities in Jebel Ali, Dammam in Saudi Arabia and Kuwait. In a project, DORMA is involved in every stage of its development, right from design to the final product delivery. Our project management team works in conjunction with architects and designers at the design stage, thus, integrating products into the design of any building. Quality and innovation are two basic elements that serve as the fundamental core values of DORMA. Hassle-free is another core value because the company believes in the value of making things easier. We aim to provide integrated solutions, making ‘holistic’ another pillar of our brand strategy. Last but not least, a strong passion for design and architectural excellence is deep-rooted in the brand’s DNA and determines “design and aesthetics” as essential for the brand.

Q: In June, the company announced that it had achieved ISO 9001:2008 certification for its facilities in Dubai. Earlier this year, it has also opened a flagship showroom in the city, known as The World of Access, which is a new feather on you cap. Could you elaborate on how these factors would help the company spread its footprints across the region?

A: Many companies in the region

The Gulf market has the vision to challenge architecture without any restrictions, creating an atmosphere of high motivation and fulfilment of progressive visions for its people and visitors

36


have obtained ISO certification in the GCC, although not in our specific sector. We also realised the need for obtaining the quality certification, as part of the UAE government’s endeavour to safeguard the interest of the end users. Initiatives by Dubai municipality and Dubai quality awards play a vital role in justifying the importance of quality and risk assessment, which is the reason standards like ISO 9001, ISO 14001 and OHSAS 18001 have gained importance in the region. We have also taken into account the rising concern over fire safety and building security in the region. With the implementation of our quality management system, which is certified to the international standard of ISO 9001: 2008, the firm has ensured that our processes are capable of delivering products and services in line with regulations of the UAE and the region. As you are aware, Dubai is growing rapidly and continues to be one of the top global cities in the world. In fact, we are the first company to introduce the idea of novel showroom in the region. This brand experience centre is far more than just a product exhibition – it opens up a new 360 degree brand experience, and is destined to be implemented worldwide in order to make our brand accessible and tangible. The showroom, which was opened last month, is a concept beyond a shop for our product portfolio. It will also serve the architectural design community with information, guidance and direct experience on doors, hardware and access technology. Furthermore, it will also provide accredited continuing education programs, instructional sessions, product and service introductions, and additional events serving the design community. With this showroom, we aim to maximise our customer focus and translate the acquired market insights into holistic solutions, offering the very best in access solutions.

Q: What are the challenges being faced by the company as of now?

A: Every building has doors,yet the challenges are different. For

a hospital it needs to be a barrier free door to open with the least amount of effort, while in a football stadium, we need a solution, which can take high amount of abuse; similarly, in an airport, we have to ensure that a door has to be able to take care of high traffic, or in a simple home, give privacy, yet open up to a hospitable welcome. So, the challenges vary from project to project, but we are quite adept at merging form and function in the contour designs. We are advocates of a principle called ‘being left-handed’, which dares architects and designers to dream, and in turn spend sleepless nights trying to make their dreams happen! This is how we create benchmarks in our industry. After all, doors are the first visual impression a customer gets of your business and it’s vitally important that they operate reliably and efficiently.

Q: Could you give us an example of how you convert ideas into concrete steps that improve the economic outlook of DORMA?

A: Our re-organisation from a product division to a sales channel two years ago in line with our 2020 vision is the best recent example of making concrete steps to reach and serve our customers more effectively. This has already started to show through on our profitability.

Q: What are your plans for the future?

A: The company is always focused on strengthening and expanding its leading position in the field of premium access solutions and services. Presently, the projects in executing phase are the ones in King Abdullah Financial District , KSA, Dubai International Airport Terminal 4 and Doha International Airport where deliveries are under progress. We also have expansion plans in the coming months to spread wings to countries like Morocco, Egypt and Jordan. As a company, we are growing quite well, both organically and inorganically. Our total sales in MENA region exceeded US$68 million in the last fiscal year.

In addition, we had a major acquisition in Door Service Center in Kuwait to strengthen our market position in the region and to offer integrated services to our customers for all door technology needs.

Q: How does your company tackle competition?

A: Competition is not our focus, but our customers are! We keep an eye on them, of course, and with our own USP’s and global and local strengths, we remain the industry market leaders in this region. We welcome any equal challenge as that always keeps us focused on being the best.

Q: In terms of capacity, how much growth have you seen in a year? And, what could be the forward looking guidance for the next year?

A: Through the last five years, we have seen an average growth of seven per cent growth per year and we expect to grow at around 12 per cent per annum in the next five years, particularly in the top four markets regionally.

Q: Talking about your human capital strength, how many employees you have working in GCC?

A: We have 281 employees in the Mena region as of June 30th 2013.

Q: What would you characterise as your most proud accomplishments so far?

A: I’m proud to say that we have many, but the one that pleases me the most is that we have a high loyalty and trust from our customers and staff. And, we continue to invest in this region to improve that factor all the time.

Q: Any advice you would give to young entrepreneurs?

A: Always look behind numbers, seek advice, be prepared to take ownership and learn from mistakes and success and look after your employee.

Success Story

38


Success Story

Shooting the corporate world!Reim El Houni, founder and ceo of Ti22 films, gets off her director’s chair to share her entrepreneurial journey with ISME’s Nikhil Pereira.

The film business is not a blockbuster industry in this part of the world, at least not on the same

scale as Hollywood or Bollywood, but that doesn’t stop companies based in Dubai to produce superior quality products. Being home to a varied array of businesses, from big boy conglomerates to the small enterprises, production houses are just in a developing state here. Nonetheless, a bold production house, Ti22, has executed some inspiring projects across all sectors. Majoring in creating corporate videos for longstanding UAE brands and its involvement in international projects speaks volumes of the brand Ti22. “Our customers are important to us and we ensure that they feel understood and work with us throughout each stage to achieve a desired product. We care about producing creative emotional videos,” said Reim El Houni, founder and CEO of Ti22. Kick-started two years ago, Reim and her team were prepared to burn the midnight oil, and they managed to do so efficiently, “We have often won projects because of our willingness to take on the challenge that others have shied away from. To give you an example, our first video for ENOC was produced from start to finish in 10 days, as similarly for TEDx Abu Dhabi. Mind you, all these have been award winning videos,” added Reim paying tribute to her testimony. Her works have found favour with the New York Festivals International Television & Film awards jury since 2009. Reim was bitten by the entrepreneur bug early in life, but decided to take up a full time job when she moved to Dubai six years ago. It made sense, given she was

39


Success Story

in charge of programming at Dubai One (a local TV station), assuming the post of an executive producer. The three-and-a-half-year stint empowered Reim to grasp a wealth of knowledge. However, it’s not as though Reim had no clue about shooting a winning video. She had tasted success before she took up the job at Dubai One. “I was fortunate to attract a couple of clients and produce videos for them. Those videos went on to win the prestigious New York Festival Awards, which made me realise that I had a solid foundation to build a company on some day.” Eventually, she quit the refuge of a full-time job, and decided to revisit the idea of owning her own company. “I came across Virtuzone that helped me in acquiring a trade licence and the company was officially born in January 2011,” recalled Reim. “We have been very fortunate in attracting high calibre clients. The majority of our work has come through referrals and word of mouth, while the remainder is after potential clients have seen our work and wanted similar videos for themselves,” explained Reim. Moreover, she has captured some big names in her frame such as Roger Federer, and the entire Ivory Coast National Football team. Other than making video corporate

profiles for ENOC, Petrochem Middle East, United bank Limited and Dubal to name a few, Reim’s humane angle reflects strongly in some inspired work she has done towards breast cancer awareness. So, what measures have been taken to tackle competition in this field? Reim believes her international experience helps in tackling competition. “At times, we do feel it’s a competitive market. Nonetheless, I keep reminding myself that the industry is in fact much smaller than it seems and my UK work experience has been handy in achieving this goal.

Competitors are aware of their peers and I usually end up finding myself against the same usual suspects in a pitch situation,” she stated. Besides competition, dealing with stealing of ideas and expressions is another threat being posed at production houses. Reim, however, believes that the market as a whole is quite safe creatively. “Many clients are happily imitating as opposed to innovating. We do our utmost to help clients through that journey and encourage them to follow new trends and offer new ideas that can have larger impact,” she noted. According to her, coping with financial pressures have been quite a task. “Through referral, my first major client, ENOC, was confirmed within two months of officially starting Ti22 Films. Whereby I was able to recoup my costs and build from there. It has been a challenge as I try to grow the company, but I think the company is at a point now where I am close to three years of operating with a strong portfolio of work, strong list of clients, including the likes of Dubai Civil Aviation Authority, BASF and LG Electronics, along with a list of accolades and awards. This serves as enough of an inspiration for me to take Ti22 to the next level and look for necessary funding or investment opportunities to get us there, “Reim summed up.

I’m proud to say that we have many, but the one that pleases me the most is that we have a high loyalty and trust from our customers and staff.

40


The hidden benefits of exporting through referrals

Business Exports

Several entrepreneurs still think they can `go global’ for the price of a plane ticket and a hotel room, which is remotely possible. However, referrals and word of mouth publicity can get the ball rolling, writes Rami Rabia.

An old adage suggests that people love to buy, but hate being sold to. It reminds me of a Dubai-

based food exporter and his futile attempts to get the attention of a large importer running one of the biggest retail chains in a target market. His cold approaches and numerous samples sent to their office were all to no avail. The samples would just rest on the office floor along with the dozens of other samples the company

receives on a regular basis: unopened, eventually fading

into the background environment of the office.

Even after months of follow ups,

there wasn’t a touch of progress made

on this new buyer’s attention

let alone an actual order. And, he finally

got a breakthrough after several months at an exhibition. The owner of a large retail chain entered his stand, unaware of the history between the two companies, and was completely fascinated by the product range and brand position of the exporter’s products. The latter wondered how they never got to know each other. To cut a long story short, the exporter ended up signing a large order at much more favorable commercial terms than he could have ever imagined. The owner of the retail chain, on the other hand, felt excited that he had just found the next new product for his retail chain. What was the difference between the two scenarios? This isn’t a story about why companies should invest in exhibitions while there is clearly much merit in conducting these activities as part of a company’s export marketing mix. This story is more about the psychology of business. The

by showing that he cares enough about the latter’s business to refer new products. Secondly, this helps to expand his distributor’s business, leading to more sales for the original exporter. Within the local export community, the exporter is living by the philosophy of ‘givers gain’, where businessmen work genuinely with the spirit of helping others, and gain the most out of the experience – through a reciprocal benefit. The trust and credibility build through giving referrals within his local network of exporters increases the chance of him receiving equally strong referrals from this network. By giving first, the community will give back to the exporter. The activity of referrals is not an isolated one and works best when exporters are engaged with other export marketing activities. Many manufacturers and exporters attend exhibitions where they meet hundreds of potential business partners. While the conversion ratio to actual sales may be quite low, but all the contacts gained through this activity are potential business partners for the future at a right time. What better way for an exporter to keep in touch with potential business partners than to help them find new products by referring local exporters to them? Eventually, the exporter has a much stronger relationship with the importer and may lead to a successful business relationship, not leaving aside the reciprocal benefit of actually giving referrals to others. The benefits of community practices for exporters have far more reaching benefits than simply referrals. It is also an opportunity to learn about how other businesses are run, how best practices are being used, how new manufacturing processes are being implemented, how trade barriers

41


Business Exports

exporter was able to exhibit his credibility and reputation as a quality manufacturer, which made him the target to be ‘discovered’ as opposed to just being another company doing the same thing. Now, how does a businessman supposedly replicate this stroke of faith in a systematic way for each of his target markets without going through an exhaustive approach? According to various statistics, it takes five to 10 times more resources to sell to a new customer than to sell something new to an existing customer. I believe this is why referrals in exports work so well. People love to discover things or get recommendations on what sells from people they trust than being sold things directly. Importers are no different, especially, when they are constantly bombarded with unsolicited emails and cold calls from foreign companies trying to seek out a new distributor. There is clear empirical evidence of the benefits of referral groups within a company’s export marketing mix. One such example of these ‘communities of practice’, whose members share a common interest in a particular area, is Business Networking International (BNI). Members of BNI achieve a 20 per cent- 30 per cent higher closing ratio of leads from referrals than those originating through other channels. This is based on data from BNI members that operate locally in unrelated sectors, and may have less in common than a group of exporters sharing a common profile of target importers. Let’s consider the benefits of exporting through referrals within a community of practice containing manufacturers, who exports in the following circumstances: Distributors and agents in different countries are always looking for new and exciting products to increase their product portfolio and sales. A current supplier (exporters) can assist in this goal by introducing them to new products and giving them trusted referrals from other local manufacturers. This has a couple of advantages for the exporter. Firstly, it strengthens the already established relationship between the exporter and his importer

are being overcome, how to best pitch your business, how to gain credibility and build trust with business partners, and so on. Of course, for the above scenarios to materialise in the current business reality of competitiveness and a capitalist business culture there needs to be rules of the game and a community which is self-governing where accountability is intrinsically built into the system. There needs to be a community that promotes a sense of trust and credibility between the local manufacturers. Companies need to understand the capabilities and quality of other exporters, take time to build relationships with each other and make them comfortable enough to refer business. However, a system of this kind thrives only in a right environment and culture within the group. This is where the likes of business referral systems like BNI, the Referral Institute and other industry-focused or mastermind groups come into play. By providing the environment and nurturing the culture of referrals, it will establish a mechanism where every member within a community of practice is accountable to everyone else and, therefore, the consequences of losing your credibility within the group is greater than any commercial gains. With BNI for example, groups are formed with only non-competing businesses and strictly adhered to a weekly meeting schedule, which makes members more accountable to each other. With the above in mind, it is hard to believe that most exporters don’t actually have a strategy for exporting through referrals. Then again, most exporters understand that there are great benefits to having such a strategy. The question remains who will take it upon themselves to set up such a community within the industry?

Rami Rabia has been consulting in the export development field for the past six years, assisting SMEs and large companies to develop their export strategies. He has worked in both developed and emerging markets on developing strategic government initiatives to help expand multilateral trade. Rami has an Executive MBA from Cass Business School, City University London. He can be reach at [email protected]

42


Brand me, brand me not!SME Branding

If Adam the consumer did not fall for Eve- the brand, he would have never bought the idea of eating an apple -the product, writes Tony E. Saade, senior partner at Commfirm LLC.

I have been branding for as many years as I can remember. Maybe the first brandingjob I did was to colour the

backseat of the school bus because it was too plain for a long journey. However, as years passed by and opportunities to work on many brands came across, both demanding and easy, I developed a few commandments and ethos that are as simple and interesting as the idea of colouring the bus backseat. Following are seven commandments, consume one each day of the week and makesure you don't overdose:

At the beginning, there was a brand: The truth: “If Adam the consumer did not fall for Eve- the brand, he would have never bought the idea of eating the apple -the product.” Everything starts with a powerful brand and then moves on to interesting products. I always advise my clients, who want first to create a product out of a business idea, to sit back and think about this truth and the importance of building the brand foundation, personality and then moving on to product design. Our mind would find it difficult or less appealing to consume a product if it is not convinced by the brand and the name behind it. The more our mind is convinced, the more brands can charge premiums, yet still we’d buy and consume them in a bulimic way.

Brands are like human beings: We all learned in marketing 101 about the product life cycle. This is the simplest way to tell us how good your products are. I always believed in this concept, and became more convinced that brands act and react like human beings over the years. They have

43


SME Branding

feelings, mood swings, egos, colors, bad or good smells; and I amnot talking here about the fantastic smell of a Hermes bag. At Commfirm, we always think about brands, especially in the build up stage, as human beings. This allows us to get closer and more personal, and build brands which come from our gut feelings rather than from boring text books and recycled strategic tools.

Branding is a dreamy, messy process: For me, the best branding ideas come in the plane when you are confused with the simple task of choosing between chicken and meat. They come under the shower, too, mixed with your annoying voice- in my case. They come between downloading,uploading, bbming, whatsapping, fbooking, tweeting or simply waking up in the middle of the night to find that you slept all night long on the couch using your book as a pillow. If you think that the most creative, original and amazing branding ideas come while you systematically plug your laptop, connect your wireless mouse, prepare your espresso, sit straight in your chair and feel so proud about yourself, then I am sorry to tell you: better find a clinical job because branding is a dreamy messy process. It starts at awkward moments and situations, goes on and on until the penny drops and wakes everyone around you with a big WOW.

Simple is strong, simply: Believe me, this is not about performing brain surgery, nor figuring out how theIsraeli-Palestinian conflict could end. It is being strong by being simple. But it requires talent to achieve simple and make it strong. Thinking simple in terms of branding is not an easy task. It is one of those situations in life that you think are easy to do, but then you get the ‘duh’ moment. No one wants complications in his life and this applies to brands. As branding experts, we create brands for human beings to enjoy and consume. We don't create them for gods and extra terrestrials. The more simple a brand is, the more

chances there are a consumer will sense it, engage with it, and keepit in his/her long-term memory. I love the French language because the words “Simple” and “Simplot” are actual opposites. So do you want a brand that is simple, orsimplot?

“My brand is my logo”: If branding is a dreamy messy process, then many times I was awakened by nightmares featuring clients boiling down this great task to simply “designing” a logo. Throughout the years, I got many requests to ‘create a brand.’ The best so far are:

“Habibi, do for me three or four logos. It is enough.” “I appreciate the strategy and your creative tools, but we can do this internally. You seem to know Photoshop well, so please, a logo and couple of business card designs will do”. “You are too expensive. I have engaged a fantastic Mac operator. This guy is an art director, copywriter, and will design all my collaterals. He is amazing”. “Please create the logo first and if we like it, we will assign you to work on our brand personality if needed”. “Look at this logo, isn’t it fantastic? I want to copy it but in red colour and different curves. You know your job, I do not want to get into legal troubles but I want my brand as powerful as this one”. “Who is going to see the brand strategy, the brand DNA, personality and all that Jazz?People see logos, business cards, letterheads, signage, etc, so spare me the time and the money and GIVE ME A LOGO”. My answer to all of the above throughout the years has always been: “yeah, and we sell by the kilo, so if you buy two logos, we’ll give you the third one for free. Plus, we have a special promotion on the previously rejected logos, so take advantage”!

Research me not: I know this will get me into trouble, but I am sure many agree with me that although research is powerful, the most honest and trusted branding study is the one

that you get from people outside a confined environment, when they are not under pressure, guided, followed or supervised. Many times, I sit in malls and look at how people walk, interact and react with the busy environment around them; what makes them stop in front of a window, decide or not to go inside, buy or simply look around. As human beings, we are so unpredictable, and hence whatever the research findings show, there is always a big chance it will fail. When Steve Jobs was asked how much market research was conducted to guide Apple in its incredible string of new product successes, he responded, "None. It isn't the consumers' job to know what they want.”

Brands’ sweatshops: We have a saying in Arabic, which I will try to translate: “get your bread from the baker even he eats half of it”. This applies so well to the branding field, where every second person is a branding expert, knows how to create brand strategies and design systems. The guiltiest of all are the advertising agencies, who act as branding experts and take the role of branding companies. Clients, on the other hand, are to be blamed as well as they should entrust these specific tasks to a branding firm, not to an ad agency; same as a media plan should not be handed over to a branding firm. Do clients react like this because the branding services are given as a reward on top by ad agencies, discounted or free of charge? Or, is it because some branding companies charge astronomical prices? Brand me. Brand me not? This is the question we all agree upon.Believe me. Believe me not? This is the question we all disagree upon!

The guiltiest of all are the advertising agencies, who act as branding experts and take the role of branding companies.

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Before you demolish, let’s examine the options

With healthcare costs rising each passing day, isn’t it important for everyone to have

health cover, regardless of the size of their company? Indeed, it is! SMEs run on slim margins and do not have the cushioning provided by liquidity that larger companies enjoy. A host of options, levels of cover conditions (country) are available, which determine what is right for you and your budget. However, the only factor not in control is the impact your health

conditions have on the cover you can get and cost. Now, insurance like any other business is complicated to the uninitiated and choosing the right policy means that you need to thoroughly understand the nuances of the various policies on offer. According to personal experiences, SMEs in the UAE choose medical products on the basis of affordability, convenience, reliability, simplicity to list a few.

I get these queries all the time:

Budget- I need to buy health insurance for my employees, but it needs to fit in company budget.

Premium stability - I may have cash flow issues, and so I must have stability in my insurance premium, which would help me in forecasting its settlement year-after- year.

Comprehensive quality product - My employees are my assets. I want to ensure their

Insuring Business

How do employees and employers uncover the half-truths and imbalance of information on the insurance cover? Sandi Saksena reveals steps to contain costs and getting the right one.

AIG SME Insurance Solutions

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We understand that customers are the centre focus of small businesses and that even the smallest incident can interrupt your daily operations; this is why we at AIG believe that it is not about replacement or repairing, it is about restoring your business to its original capacity.

You can relax in the knowledge that our fast, reputable claims handling service will get your business back up and running promptly, just give us call and we will handle the rest.

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The information contained herein are not complete descriptions of the products and services, but are for general informational

purposes only. These products and services are underwritten by American Home Assurance Company, a member company of

AIG. Certain names, words, titles, phrases, logos, icons, graphics or designs may constitute trade names, registered or unregistered

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The Intelligent SME.indd 1 12/11/2012 2:07:15 PM

46


Insuring Business

loyalty by offering them and their family health insurance to provide them with ‘peace of mind.

Convenience, service - I am too busy to look for and compare all insurance products every year. I just want to choose and keep the right one. I own and manage my company. I have no time to spend dealing with insurance issues. Why can’t you get rid of jargon, three letter acronyms and legalese, so I can just understand what is possible or not. What to watch out for? Before you opt for a policy, there are several points you need to get clarity on. For example, in group medical, the business owner must know if there are any waiting period, or maternity, dental, eyes covered, whether pre-existing diseases are covered from day one, and what are the exclusions - regions covered, nature of work (hazardous occupations) excessive travel.

Examine you options

Choice of categories - Choose a more comprehensive plan for yourself and the senior management and lower plans for employees. For instance, regional plans including GCC, MENA and the Asian sub-continent, or worldwide coverage plans excluding USA, global coverage plan (including USA), annual limits per person per year. Each policy has its own finer points and they should be aligned with your business needs. The insurance industry uses precise definitions of the limited conditions covered by a policy in order to manage the cost. The legal and medical language used often leaves consumers unsure about what was covered and as a consequence consumers have sometimes found their particular sickness was not covered by their specific policy. My recommendation is to discuss your requirements/ queries with a broker, let them do the ‘homework’ and come back to you with all the options/answers. If the premiums and conditions are not reasonable/acceptable, speak with the underwriters of the provider

to explain the finer nuances. Don’t reject or accept blindly. While price is the determining factor in most cases, one should look at a good quality company with the following factors: International standing, ranking

in the list of the biggest Fortune 500 companies. The size of the company brings stability along with it.

• Extensive hospital and clinic network in the world, and more importantly in the GCC. This means that their medical cards are accepted worldwide, even the most basic health insurance plan should offer UAE as well as one home country, in its area of coverage and it should also have global coverage for emergencies.

• ‘Direct Billing’, ‘pre-existing conditions’, and ‘chronic conditions’

• Personal accident cover and well-being cover.

A note of caution: Medical underwriting among others is one of the basic deciding

factors for premiums. It’s usually believed that hypertension and diabetes are common and a part of modern day stressful lives. People feel that they are being treated unfairly by medical insurance provides when their premiums are higher than the healthy normal public or if cover is refused for ‘pre existing conditions’. Hypertension is considered one of the contemporary diseases as a result of the changes in the life styles. It is called the silent deadly illness, as it is not accompanied by any symptoms at the beginning.

Factors increasing the chances of hypertension are:

• Hereditary • Unhealthy lifestyle such as

eating fat – rich foods and excessive consumption of table salt

• Obesity and lack of activity • Smoking • Alcohol drinking • Excessive consumption of

beverages such as coffee and tea

• Using some drugs such as contraceptive dugs and non-steroidal anti-inflammatory drugs

• Repeated exposure to psychological pressures and emotions.

These are cases of high blood pressure resulting from specific diseases such as: kidney, liver, or heart diseases, disturbances of the glands or the increase of minerals in the body. New figures from International Diabetes Federation (November 14, 2012) suggest that 18.9% of the UAE population are living with diabetes. The diabetes rate in our country is the second highest in the world. So, if you are part of this fast growing segment of the population you will be rated, accept it and get covered.

Sandi Saksena is a financial planning counsellor with over 15 years experience in advising on life, disability and critical illness insurances. She focuses on exit planning for SME owners, working with accountants and lawyers to provide holistic solutions. Sandi can be contacted by email ([email protected]) or by mobile (0506517963).

Hypertension is considered one of the contemporary diseases as a result of the changes in the life styles. It is called the silent deadly illness, as it is not accompanied by any symptoms at the beginning.

48


Fit CEO Powered by:

Exercise smarter this summerWhile diet alone will not get you feeling healthy and refreshed, exercise remains a crucial activity. But exercise during this season requires few specific precautions, read on to find out what you need to do.

Holding a position as a CEO or a crucial decision maker in any organisation demands you to spend

long hours with a laptop or confined to your office cabin, thus leading a sedentary lifestyle coupled with worsening food habits. It leads to an imbalance between what we eat and what we consume, resulting in poor health and obesity. A judicious mix of watching our diet and helping our body consume what we need, through regular exercise, is all we have to do to stay healthy and fit. Exercise requires will and commitment. A gym provides very

supportive supervised environment but there are perfectly workable alternatives around the home or the office and even while driving around. On can make full use of furniture and other infrastructure available at home to do all the components of fitness like warm up, stretches, cardiovascular training, strength training, and

Exercisers should drink plenty of water and avoid drinks containing alcohol and caffeine.

finally, cooling down stretches. Exercise in summer requires some specific precautions. High heat and humidity change the way our body reacts while exercising since exercise itself causes the body temperature to rise. During strenuous activity, a person's body can generate 15 to 20 times the amount of heat it normally produces. High ambient temperature and humidity slow the evaporation of sweat, thus slowing down the rate at which the body cools down. This can be dangerous. While exercising the heart works two to four times harder to move blood into the vessels,

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Fit CEOPowered by:

which dilate as the body heats up. Exercising in high temperature surroundings increases stress on the heart, and this can be dangerous for those with cardiac conditions. Pushing the body too far in extremely hot and humid conditions can lead to cramps, heat

exhaustion, and heart attack or eventually cause a stroke. Studies have shown exercising in hot and humid conditions are less effective. Excessive heat keeps workouts from reaching maximum intensity, which results in less conditioning of the muscles.

1. Is abdominal exercise the best way to reduce the mid section?

It is wrongly believed that when muscles are exercised the fatty tissues in the immediate area are “burned up”. In fact exercise utilises fat from all over the body and not from any one specific area. However, by exercising the abdominal area or any other specific area you do tone up the local muscles.

2. Is exercise only twice a week enough to maintain an adequate level of fitness?

For the first three days that a person is immobile, they loses about one fifth of their maximal muscle strength. Immobility also adversely affects other parameters of fitness like flexibility and endurance. Thus after 48 – 72 hours one must again use the muscles to re-establish desirable effects. While five days of exercising a week is ideal, at least three non-consecutive days a week will maintain an adequate level of physical fitness.

3. Is “work up a good sweat” when exercising essential to lose weight?

Sweating is merely the body’s way of cooling and lowering temperature to prevent overheating. It does not help you reduce weight. Thus, while you may weigh less immediately after a workout, this is only due to water loss. Replace the lost water and you regain the weight.

4. Do we burn more calories jogging one mile than walking the same distance?

You expend the same amount of energy whether you walk or jog a mile, since in both cases you are moving the same weight (your own body) over the same distance. The speed does not matter. Of course, if you jog rather than walk for 30 minutes, you will cover more distance and consequently burn more calories in the same time.

5. Is it true that if your breathing does not return to normal within minutes after you finish exercising, you’ve exerted yourself too much?

This is true. Exercising should be moderate, enjoyable and refreshing. In about five minutes or so after exercising your breathing should return to normal, your heart should not be pounding (you should not notice it at all) and you should not feel drained. In fact you should begin to experience a ‘feel-good’ sensation.

Top tips from VLCC health experts

Limit physical activity between 10 a.m. and 2 p.m. the hottest part of the day. Avoid or limit exposure to direct sunlight. Wear light-coloured clothes, which reflect heat more efficiently. Wear sweat-absorbing material, especially inside shoes so that perspiration is drawn away

from the body effectively Drink plenty of fluids, preferably plain water, before and during the workout Build up the pace slowly so that the body has time to adapt

Overheated tissues are also at greater risk of injury. One of the most important precautions to take in hot weather is to remain adequately hydrated. Exercisers should drink plenty of water and avoid drinks containing alcohol and caffeine.

It is best to:

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If you fail to plan, you plan to fail

It’s said productivity is never an accident, but a result of intelligent planning. John Merrigan delves deeper on how companies can fail adversely without a comprehensive plan.

Corporate Governance

Every organisation will have its own format and process for producing an annual business plan. The purpose

of this article is to provide some essential steps on how to make the plan, and the process behind it, work for you and not the other way around. It comes from the basic truism that a strong business plan is fundamental to good governance, and that: “if you fail to plan, you plan to fail”.

Why prepare a plan? Preparation of a business plan is essential to align stakeholders in your business internally and externally. Internally, the plan

is the key document to drive the business and the team on a daily, monthly and annual basis. Externally, banks, investors and others need a business plan to show them where the owners intend to take the business in terms of growth and profitability. A comprehensive business plan and historical financials are essential to value a business for sale, to attract new partners or to seek external finance. The sooner you install business planning processes, the sooner it is ready for those opportunities.

Connect the plan to vision A good business plan is not

a stand-alone document but a logical output of the owner’s vision. Therefore, take time to articulate a clear vision for your business with specific objectives for the next three years. During the preparation of the plan, keep checking that it stays connected to the vision. Lastly, you cannot expect your team or partners to properly evaluate the plan and sign-up to it, unless you have articulated your vision for the business AND communicated it to them.

The basic elements of a business plan The precise format and content

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John Merrigan is a seasoned senior manager and company director with extensive experience in wide-ranging industry sectors. His career spans more than 25 years in multinational, SME and family businesses, internationally and in the Middle East Region. He advises and supports small and medium organisations to successfully implement fit-for-purpose strategies in corporate governance.


of your business plan is specific to the needs of your business and the resources available. The internet is a rich source to download templates but as a minimum, it should contain the following basic elements: • Vision statement • Core strategies • Detailed build-up of revenues

and costs (be careful to incorporate seasonal fluctuations)

• Income / profit & loss statement (three years)

• Balance sheet (three years) • Cashflow forecast (12 months) • Break-even analysis

Risk management & contingency planning Good governance requires that the annual business plan is assessed for the attendant risks and to plan for contingencies. Take an objective look at the forecast numbers and list all the risks in the business that could impact the plan. These could include loss of key accounts, suppliers failing, currency risks, country risks, cost escalations and so on. List those risks in a document and assess the probability of them happening: high / medium / low. Then, list possible responses or options you have to manage the business in the event that one or more of these happen and incorporate the final document into the plan. This process will give you peace of mind, and the list, essentially a basic risk register, should be reviewed regularly throughout the 12 months of the plan.

Challenge the plan Business plans can lack objectivity or may be too ambitious. To address this, the written plan should be challenged by colleagues, trusted advisors or friends who often come up with incredibly helpful advice and insights that may have been missed. Cost assumptions or revenue projections can be sharpened to make the plan more challenging, realistic and achievable. Yes, it can be a daunting

to take on board all the inputs as far as possible, and to discuss and resolve points of disagreement openly. The final written plan should be signed and formally approved by the board and/ or owners.

Performance management The business plan drives two aspects of performance management. Firstly, the preparation of monthly management accounting information, showing variations to plan, is a formal check on progress against the plan milestones so timely corrective action can be taken. Secondly, individual performance objectives for your team, normally prepared during the month of January, should connect directly to the business plan strategies and metrics. In turn, managing the performance of your team against their accountability and / or bonuses is objective and transparent.

Manage the process Careful time management of the planning process will ensure it gets done and will not distract you unduly from the daily operations and making money. It should take around eight weeks to complete the process so the final plan is ready and signed-off in December, ready to guide your business in 2014. Now is the time to put a business plan time-table together for the process, involving your team or advisors so they play their part. Stay on track and commit! The preparation of a comprehensive business plan is a key enabler for the success of your business and visible evidence of good governance. Investing time and effort in the process will engage your team, align your stakeholders and be an essential tool to keep you on track! Don’t fail to plan, and Good luck.

The preparation of a comprehensive business plan is a key enabler for the success of your business and visible evidence of good governance.prospect to share the plan for all sorts of reasons but if you don’t want to share the plan and get the benefits of an outside perspective, the question must be asked and honestly answered, why not?

Align stakeholders Engaging key staff, investors and directors in the planning process is critical, not only for the formal approval and documentation of the plan but more importantly, to ensure commitment and alignment to the plan. By involving key stakeholders in the process early on, they will make their contributions most effectively and put their skills and talents right behind it. Be careful

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Weathering the stormUAE is a different market, but failure rates of small businesses are known to be high. Mark Fisher writes on how companies can ensure that the seeds they have planted survive to bear fruits.


One third of small businesses fail before they are two years old, according to the Small

Business Administration in the US. And, the figure is well over 50% once they attain the five-year mark. While the UAE is a very different environment, failure rates of small businesses around the world are known to be high and everyone operating one here needs to stay alert, ensure that the seed they have planted survives to bear fruit. Over a longer time frame, the northern English saying ‘clogs

to clogs in three generations’ is also apt; meaning that successful family businesses often do not last, with owners ending up wearing peasants’ shoes just like their grandparents.

Here are seven tips to ensure your business is one of those that does survive and prosper:

Financing: When the global economic crisis struck Dubai five years ago, many fine businesses came crashing down. Sometimes this was for no other reason than

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Mark Fisher is vice president, corporate communications, at NASDAQ Dubai. He has worked as a solicitor in Hong Kong and the UK.

that cash flow temporarily dried up and they had failed to either save for a rainy day, or make plans to secure alternative financing. Whatever the future holds, today’s Dubai business owners should ensure they are able to survive such a setback to their business.

Right staff: You‘ve had the great business idea and you have the energy, ambition and many of the skills to make it succeed. But you can’t do it all on your own. Sometimes business owners fail to put enough time and effort into recruiting the right people for key jobs, and then leave dead wood in place for too long. Avoid this mistake before your entire business becomes rotten.

Corporate governance: Putting clear procedures in place and being sure to follow them is vital. Reporting lines are a good example; no one should be allowed to take decisions unless they have been approved by executives with the right level of authority and competence. Otherwise disaster could result. Clarity over who can make payments and for what amounts is also crucial.

Succession planning: Determining in advance who will take over a company if the owner passes away, or at least how and by whom the decision will be made, is critical. Many companies become

Market research: Surprisingly, many companies fail to carry out adequate research in their operating market. They neglect to take note of what their competitors are doing and what their customers want. This carelessness often results from early success, which can give owners the illusion that they know what to do without proper analysis or strategising. This trap should be avoided.

Sensible expansion: Growing too fast and in too many ways is a common mistake, which is also often a result of success coming easy to begin with. If a business works in Dubai, it does not mean that the model can simply be transplanted to Abu Dhabi, let alone Muscat. And don’t assume that just because people buy your tennis racquets, they’ll want your jogging shoes as well.

Know the regulations: Company owners can be so busy focusing on growing their business that they overlook tedious-seeming details such as free zone regulations, tenancy obligations, and labour laws. This can lead to serious problems suddenly emerging that had been entirely preventable. It’s essential to ensure that someone in your company is on top of these issues, if you do not have time yourself.

With Dubai’s business climate in better shape than for many years, the prospects for SMEs are looking good. Many will be in the vanguard of the emirate’s expansion. By following simple rules to keep on track, you can greatly increase the odds that yours will be among them.

rudderless and lose their way, or fall prey to in-fighting among family members, once the original leader is no longer present.

Growing too fast and in too many ways is a common mistake, which is also often a result of success coming easy to begin with.

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Understanding your firm’s cash position

SME Finance

An old adage suggests: revenue is vanity, cash flow is sanity but cash is king. Alyson Baynes, assistant director at Deloitte details how a company’s cash flow is an indicator of its health.

We’ve all heard the saying “Cash is king” but what does this really mean and how

do you apply it to your business? Put simply, a company must be able to generate cash in order to survive – a business without cash is unable to function. Similarly, a company focussing only on revenues or profit may still come up short if it is unable to convert profit into cash. In addition, a business that understands its cash position can often reduce its requirement for external funding by extracting liquidity from its current operations. For SMEs in particular, whilst many banks now purport to be increasing the level of funds available for use, the actual

lending activity and total value of finance extended- has seen little change. It is, therefore, important and more cost-effective for SMEs to be as self-sufficient as possible, and if additional finance

is required, to be able to clearly explain the cash needs of the business to a potential lender/investor in order to maximise the likelihood of success. So how can an SME develop this understanding and once acquired, how can this knowledge be utilised to help optimise the cash position of the business? Following key tools explain both the diagnostic element and the associated levers that can be implemented by an SME to allow it greater control over the cash in its business:

Bank reconciliations– reconcile your cash balance per the bank with your cash balance per your

general ledger. If differences exist, determine what they are and understand how they have arisen. In doing so, you will be able to determine how to resolve them, and more importantly, what effect they might have on your real cash position. Bank reconciliations should be completed at least monthly – many large corporates reconcile their accounts daily.

Restricted cash – determine if all the cash held by the business is available for use. Often,

businesses are required to reserve cash sums for a specific purpose, for example a workers’ fund, or a customer deposit. While these amounts consist of cash held in the company’s bank account, they are not necessarily freely available for the business to use in settling

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SME Finance

normal operating expenses. Little can be done to avoid restricted cash balances, especially if due to a legal requirement, but identifying and monitoring the total value will provide greater clarity over a business’ total cash position and funding needs.

Intra-month cash movements – many businesses generate strong cash flows but

still require short term funding at certain points in the month due to large fluctuations in the cash balance. If possible, businesses should look to limit the size and frequency of these fluctuations to maintain a smoother cash profile throughout the month to avoid the need for short fall funding. This may be achieved by simply changing the timing of certain payment runs, raising invoices earlier in the month or adjusting the credit terms extended to customers.

Profit to cash conversion (i.e. cash/profit) – determine how successful

your business is at converting accounting profits into hard cash. While various profit metrics can be used, the key is to exclude any ‘non-cash’ income and expenses (for example depreciation), and compare this with the cash generated over the same period. Simply put, a conversion ratio which is less than one indicates cash is currently trapped in an illiquid form (usually working capital – see below) within the business and could be extracted. In this case, it is important to identify where in the profit to cash conversion cycle the road blocks exist and then to determine how to alleviate them.

Working capital cycle – one of the likely road blocks in converting profit to cash relates the business’

working capital cycle. This comprises the period of time from ordering and receiving inventory, through to paying suppliers and receiving payment from customers. From a cash flow perspective, in the ideal situation, a business would not pay its suppliers until

it received payment from its customers. However, this is rarely commercially acceptable and so a business instead needs to minimise the period between these cash outflows and inflows. A few areas to consider:

Review of credit terms – both extended and received. Can you stretch your suppliers

for additional payment days, and can you contract any terms issued to customers? By prioritising customers and suppliers according to how critical they are to the business, you can identify who you can push the most in terms of credit terms without destabilising the business.

Empower credit control – credit control is often seen as a purely financial activity, but given most

customer relationships are held by the sales or operations staff, these individuals must be involved in following up payment of outstanding invoices. These staff could be further incentivised by paying bonuses not only based on sales but on sales receipts. This should improve the level and speed of debtor recoverability.Understand inventory needs – many businesses associate holding lots of inventory as a sign of a business’ prosperity. However, the more inventory on hand, the more cash is tied up in an illiquid form, and the higher the risk of something adverse happening to that inventory. Aim to minimise the amount of inventory held by understanding your supplier lead times, seasonality in your business and trends in customer demand. This may also help reduce how much is spent on warehousing and storage.

Capital expenditure – while from an accounting perspective, the cost

of purchasing a capital item is spread over many years by way of depreciation, the actual cash flow impact of acquiring a new piece of property, plant or equipment is usually much more immediate. As such, capital expenditure can have a highly disruptive impact on a business’ cash position. Before committing to any new capital expenditure, determine whether any viable alternatives exist to outright purchase, for example leasing, or reconditioning existing assets. Consider the payment terms, and whether any vendor financing exists – while the rates may be higher than a short term loan, the repayments should match against the additional income being generated and the asset itself will usually act as the guarantee. Also assess what benefits are expected to be realised – be they additional revenues or reduced costs. This will allow you to determine the expected return on investment, and therefore whether it is worth pursuing, before actually spending any money.

Leakage – outside of the core operations of the business, what else is the business’ cash being spent

on? Examples include shareholder drawings or distributions (i.e. dividends), management fees and financing repayments. Whilst some of these are contractual, others are more discretionary, and even if the total value paid does not change, having a smoother payment profile across the year could ease the cash impact on the business. As the above shows, relatively simple measures can greatly increase visibility of your business’ cash position and give greater control to the management team. Accordingly, regardless of the size or complexity of your business, having a deep and detailed understanding of your current and forecast cash position is the only way to truly assess the health of your business and in doing so, safeguard its future.

One of the likely road blocks in converting profit to cash relates the business’ working capital cycle.

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It’s time to flex your networking muscle

We are all born with muscles. They are enough to get us to operate normally,

walk, lift, and run. However, if we want to achieve fitness for abating rigors of life like ageing, poor eating habits, or even become a professional footballer, then, one needs to do something more. Challenging your muscles to grow by regularly working out is one the methods to be adopted. And, this won’t really be an easy experience because it requires effort, commitment, accountability and education in the form of training or coaching. In the simplest of terms, what we have naturally is not always enough. Growing our business by relationship is the same. We can all do it naturally! For instance, turning up at professional gatherings might lead to opportunities. Providing good customer services has high potential of generating referrals from satisfied clients. A Harvard business review study suggests only 8% of satisfied clients will refer us, if asked. That’s a lot of “mights”.For many companies, businesses resulting from networking/word of mouth/referrals/leads are a nice extra as they already have in place a large marketing, advertising budgets or they can afford sales teams to cold call. For the smaller companies (innumerable in the UAE), especially in the free zones namely

Sales Strategy

Networking, in today’s time, is when we get together with others to share information and build professional relationships - is like workout, elaborates Phil Bedford.

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Sales Strategy

the SMEs or soloprenuer business/freelancer, the business generated by networking/relationships/ word of mouth/referrals etc can be the difference between survival and failure, often up to as much as 90% of their business (average of 70%). In these specific cases, my advice is that the networking muscle needs to be trained for performance and not left to do what it does naturally – to chance and hope. In a conversation with one of my clients the other day, Warsha Joshi from Platinum VA, I learnt that a lot of ideal businesses are closing down. She was explaining how this situation offers opportunities to start referring and helping people all over the place. This is not a coincidence. It deals with the fact that she now finds herself surrounded by a group of highly motivated people who are helping her to succeed with referrals and advice? People she also helps and advises in return because she believes in them and their business. What doesn’t always appear obvious is that most business people actually have these people in their networks around them to start with. They fail in recognising because they have not opened their eyes to the opportunities, and have not been trained to look for- never really flexed their networking muscles (properly). Developing these opportunities requires an investment in time, education and resources with the catalyst of “mindset” to bind it together. Now, many people consider networking as meeting as many people as possible, getting their business card and selling them a product or service, which could also be called cold calling face-to-face. This approach, meanwhile,

An experienced business trainer, Phil Bedford brings over a decade of experience to his role as master franchisee for the Referral Institute. His expertise and experience of working with both companies and networking associations, coupled with a passion for training have helped him immensely. He regularly appears as a speaker in the UAE and abroad, educating people on how to build their business by word of mouth and “Creating Referrals for Life.”

is like digging up a fruit tree to carry away the find, a one time hit, rather than watering and caring for the tree to reap regular fresh fruits that could last for years. Leave alone the opportunity of exploring other trees to bare fruit and often even better fruit. Warsha has learnt that by thinking of others and, especially, being strategic about the people in her closest network, she is using her time and resources more efficiently. She is working less and getting more return on investments and return on relationships. Networking and referral marketing are muscles that need to be worked. As with any muscle, the correct technique needs to be employed in the exercise to prevent damage (bad word of mouth or inappropriate referrals). It also

As with any muscle, the correct technique needs to be employed in the exercise to prevent damage (bad word of mouth or inappropriate referrals).

needs to be worked regularly to ensure it gets stronger (immersion –a way of life). My tip for this month is to look at the people you are surrounded by. Jim Rohn said, “We are the average of the people we surround ourselves with”. Look at the five people you spend the most time with. Add their income together and then divide by five. Normally, our own income will be within $2,000 of that average. Why? It’s because, unconsciously, we became the average of what we are surrounded by. It makes sense, therefore, that if we want to grow our business by relationship, then we need to start hanging around successful people (more successful then us). Moreover, people who like to help, share and possess a positive mindset, especially if they are also connected to the people we need to be associated as clients. Some people are natural networkers, while others need help. In my experience, whatever level we start at networking once can always take it to another level just like our individual ability in a sport. David Beckham, everybody would agree, is an excellent footballer “naturally” and could always have played a good game at any level, but to be the best and earn a living he needed to take it up a few notches. We can choose the level of our success in business and life. Practice does not make perfect. “Perfect” practice makes perfect.

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What's left unsaid!

How brilliant is your business idea?

One of the main reasons businesses of all sizes fail in less than two years is not the lack of capital or opportunity, but ignorance and inadequate planning, explains Neil Petch.

Achieving success rules the mind of all business owners and entrepreneurs while setting up their

companies. As a company formations specialist, every day I come across ambitious individuals who hope they have what it takes, and definitely a brilliant idea, to

build a thriving company. But contrary to popular belief, hoping and sheer will are not enough to take an idea – no matter how great - off the ground! In reality, you need to review the fundamentals of your business in a realistic, dispassionate manner to ensure your business is truly on a

growth track. There is no one-formula-fits-all for business success, but I can tell you that the main reason businesses of all sizes - and especially the small ones - fail in less than two years is not the lack of capital or opportunity, it is the lack of knowledge and adequate

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What's left unsaid!

planning. There’s no two ways about it. Knowledge in any business, particularly knowledge about how to plan and run your business, makes the difference between success and failure. So, my advice to all those thinking about starting out a new venture: don’t go into business without getting the basics right. Be ready to take a long, hard look at the fundamentals behind your business and take the time to plan. Need some cues? Start with the checklist below:

Know the market How big, in terms of share or potential financial gain, is the current market for your product or service? Is it a new or a mature market? Are there any factors impacting your industry favourably or unfavourably at the moment or in the near future? Who are your clients? Who is your competition and what are they doing? Is price or service the key differentiator in this market? A lot of these questions can be answered with desktop research, and the answers to these types of questions will give you a big advantage in getting an understanding of the opportunities within the marketplace, the demand for your product or service, and, importantly, they will validate - or not – the assumptions you made initially.

Know the clients Ask all the questions you can think of about your potential clients. This knowledge will give you additional insight into how your own process and service should be structured. It will help you tailor your product or service offering the best possible fit. It will also inform the way you communicate with your clients.

Know your goal Goals are central to everything we do! Unfortunately, they are also easy to lose sight of... So, take a minute and jot down what your goals are. Once you have that clarity, you start by mapping out step by step what you need to be doing to achieve them. Every business is different. You

may have no problem in generating enquiries for your products or services, but you may be reluctant to take on new clients because you feel you are already struggling to allocate the time you currently have. You may be looking to attract new clients in a particular sector and your marketing strategy needs to be revised. Well, whatever your issue is, it’s important to know that when setting a goal, you must always look at your business as a whole, not one aspect in isolation.

Know your abilities Once your key goals are set, you need to maintain your focus and steer yourself and your business in that direction. Map out your course, and ensure that each

Neil Petch is Chairman of Virtugroup, the holding company behind Virtuzone, one of the most dynamic and fastest growing company set-up operators in the region.

Ask all the questions you can think about your potential clients. This knowledge will give you additional insight into how your own process and service should be structured.

day you’re taking a step in that direction. It takes enormous work and discipline to keep that level of commitment, when every day may feel like a struggle. Small businesses have advantages over large companies when it comes to customer relationship, knowledge and speed. You are closer to your customers, understand their needs better than themselves and you’re fast in responding and providing the services and solutions they need. But that’s just the obvious... Once you got the fundamentals right, it’s time to get innovative and create a bigger advantage for your business. Think BIG. Bigger than your ‘big’ business idea. There’s no room for complacency on the way to success!

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Bosses: The good, the bad, the uglySales & Marketing

A majority of the business challenges engender from a dearth of decision making skills

at the top management in large organisations. And it is quite common in our part of the world where the most undervalued asset is human capital. Usually, the talent at the top is not the best find because entrepreneurs struggle with financial resources, and are pushed into hiring mediocre managers and supervisors, and which ultimately gets reflected in the not up to mark performance of businesses. Another factor is that the value of compensation is not a true indication of the hired person; It is very challenging when it comes to recruiters that have the mandate to hire the right individuals for top management positions in SMEs. In a number of instances, the

compensation fixed is not the true value of the hired individual’s skills. A bad manager could have serious negative implications to a company’s client list, reputation and business. A wrong hiring can be beyond fixing and it can not only close down a business but can have ramifications beyond that with legal and financial implications, which could further affect an owner’s life of the business and its legal obligations. When hiring top managers for organisation, we should look for signs if the person can lead the company while sitting at the top of the pyramid under all circumstances. It may not be possible to detect the shortcomings or the strengths in a candidate in one or two short interviews, and which makes me a strong believer of longer probation

period- six months or more- based on international studies. A new employee will take a minimum of three months to understand how things work in a new environment. In fact, most new employees are unproductive in the first quarter; they are not their self in the first few months of their employment as they get used the new environment. However, once they start getting used to their surroundings, one should start looking for those signs that I am talking about, including the person’s ability to work hard, giving leadership or having a human nature. Bad and ugly mangers are usually negative individuals. They do not try to find out the solutions to problems, but look for causes for the clichéd blame game. They withhold information from others, as they are insecure, and try to get by using personal rapport rather than merit or performance. They are also poor listeners; they think they are always right and hate being challenged.They blame everyone else for their problems but themselves and have an excuse ready when a finger is pointing towards them. Even worse, They treat their subordinates badly, and believe in managing them by instilling fear of punishment; while on the other hand, they treat their superiors as if they are their secret enemies; back stabbing is a normal practice for them. And to crown it all, they tend to claim credit whenever and wherever they can. Bad managers are those that take wrong decisions unintentionally due to lack of knowledge or experience. However, ugly managers make bad decisions on purpose as they are unethical. These ugly managers play favoritism, supporting colleagues loyal to them personally, while hitting hard those that challenge them. They do this to keep a control over the enterprise. Additionally, they pass judgments

A bad manager could have serious negative implications to a company’s client list, reputation and business, explains Zed Ayesh.

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Sales & Marketing

and go to any extent to benefit themselves financially and non-financially. One of the indications of an ugly manager is that they claim to know much more than they know; ignorance can be fatal for business and much more. Good managers are hard to come by. They are more of leaders than managers, taking pride in themselves and their team and what they do. They enjoy shouldering responsibility and nurturing the business by valuing the team. Managers possessing the aforementioned skills are most valuable and significant assets of any enterprise, and can lead businesses to success.. Such managers seek fulfillment and satisfaction in the things they do and the way they do it. If you are a business manager, owner, leader and a decision-maker in your organisation, below is a list of things you could do to make sure your firm runs seamlessly, and achieves its goals.

Manage expectations: One of the most important things to remember while managing others, both subordinates and bosses, is managing their expectations from day one. It requires managers to be clear about what they expect, when they expect it, how they expect and from whom they expect. One should clearly detail their requirements as part of the screening process, which would help in understanding whether an employee can deliver or not. In addition, setting boundaries for staff is also crucial.

Provide proper tools: To get results and not allow excuses;employees must be provided with proper tools for getting their job done. Many SMEs cannot provide all necessary tools, as they have limited resources; however, minimum tools should be provided. Furthermore, these provisions enable managers to hold employees accountable for the results, and, thus, manage business outcomes.

Nonstop training: Good managers view themselves as trainers, coaches, team captains and leaders. The most powerful tool they can provide their subordinates is

Zed Ayesh has over 20 years’ experience in management and business development. He is currently the managing director of Flagship Consultancy based in Dubai, and works with clients on many aspects of the business from strategic planning, business development, marketing strategies, pre-sales and sales management, across different sectors such as government agencies, real estate, media companies, manufacturing, contracting, engineering firms, retail and shipping companies.

training and coaching on site or at the job.. These trainings can be executed internally as well as externally. Investing in grooming the capabilities of employees is a hallmark of good managers, and they should not worry about losing them after investing either. It should be known to employees that the longer they stay with such an organisation, the more they will gain and the better they become. No employee will leave a job that he or she knows can help them perform well.

Mistakes are allowed: Allow your employees to make mistakes, which should be dealt in a good way and used as opportunities for training and improving business; of course, we are not talking about ethical mistakes or things that are done on purpose or done repeatedly.

Empowering staff: Empower your staff to make decisions at their levels. Many large and small organisation in our region are handicapped, as they are unable to empower their staff. This is clearly visible at customer service points while talking to frontline staff; they seem powerless and cannot make decisions to fix any issue related to customers. One should allow their staff in taking care of business and empower them through support, training and coaching.

Appreciations: Show appreciation for your team members, bosses or subordinates by thanking them. These are small gestures but go a long way in helping productivity. Many people still haven’t experienced the power of the expressions: please and thank you. These have the power of magic. Appreciation should be genuine, not an empty program like we see

in many places.

Listen first: While managing people, conflicts normally arise among teammates, employees, customers, and vendors.. Moving an organisation forward means good managers are good listeners; they don’t only hear things but they also listen;they listen to stories from both sides in case of conflicts, they listen to suggestions from staff, particularly frontline staff that deal with customers; they help in making educated decisions. They don’t worry about listening or accepting ideas and solutions from other team members, irrespective of their positions.

Fair but firm: Being firm is to make the same rules and policies for all the staff members and lead by example. This doesn’t mean rules and polices cannot be changed, but these should be changed for all. Equality helps in creating a professional and clean work place.

Communication: Good communication helps in overcoming many deficiencies. It can help them eliminate many problems, deal with their staff, bosses, customers and vendors in the most appropriate way.

Empathy: Always have the human touch! Understand, support, lead, train, coach, help others, show compassion toward others, and listen patiently to overcome professional hurdles. Without empathy, managers cannot lead others for a long time; humans are made of feelings that are controlled by life events: sad, scary, worry, joyful and happy ones.

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Leadership

For leadership, follow footprints of a courageous Leaders are tasked with making on-the-spot decisions, mostly without a clue of the outcome, but those made with courage against vacillation succeed in winning hearts and minds of their team, clients and board, writes Michael Tolan.

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Leadership

open to hearing the best solution, and it’s ok if it does not come from me”. Courage, competence and confidence are magical ingredients that leaders today can demonstrate to win over business, employees, challenges and innovation opportunities. For those familiar with the sci-fi series Star Trek, the central character ‘Captain James T. Kirk’ is often found pushing the limits. His character enters into battles that seem unwinnable, voyages to new frontiers that seem unreachable, and questions the norm without question normally. His persona is imbued with inexhaustible courage, confidence and competence that defies the odds and wins the day. He is not afraid to ask others for suggestions, but is willing to take responsibility for his decision to act upon those recommendations. Is this an endorsement of the sci-fi character of a fiction series in the face of a real life challenges that business owners must face everyday? Surely, the practical leader will understand that reality dictates real solutions and often there is no time for consensus or perfection. People understand this, and the message here is to leverage your own leadership style by insuring that you’re being seen trustworthy because you are a reliable, competent and a courageous leader. Once your clients and team members get this, they might just be ready to follow you anywhere. The emergency is their future. Win their vote and you will also win. Once you have that much support, you might then be bold enough to go where no one has gone before… Re-invent the future with confidence, and allow others to want to follow your lead.

Michael J. Tolan is a speaker, writer and corporate mentor and board advisor to several organisations. He is the creator of Mission I’m Possible series of motivational workshops through FirePowerLeadership.com and is the Chief Inspirational Officer of the World Class Academy of Excellence (Follow him on Twitter mtolan@worldclassgroup).

No one would willingly follow a coward who is outwardly unsure, full of fear and acts like an incompetent wimp. Leaders today are tasked with making on the spot decisions, very often without a clue of the outcome, but those made with courage vs. vacillation will win over the hearts and minds of their team, clients and board. Courage may be defined in a number of ways, making it possible for the captain of a business to relax when the answers are not within their backgrounds expertise.It takes courage to engage and trust others, it takes great courage to delegate and trust the outcomes for leaders today. Courage may be demonstrated by asking for input from others, team members and experts who may have reliable experience and judgment. In other words, it takes courage to let go and allow the best possible resources to offer up solutions, making the statement that “ I am

Ask yourself whom would you readily follow without question, and if you find yourself in

the center of a crisis emergency where you personally were almost traumatized and disoriented by the suddenness of it all. In emergency, people usually tend to trust the ‘brand of the emergency personnel uniform’, the Fireman, the ambulance crew, based on the perception that they are the experts to help us out. Moreover, their background training makes them highly competent to deal with the crisis. Therefore in saying that, trust seems to follow perceived or earned competency, which enables the rescue personnel to wear the hat and be the heart of courage. This glimpse into our very nature can inspire and guide leaders today in business in many ways to be more effective and more powerful leaders. In the emergency scenario, we boiled it down that people would follow on the basis of trust factor.Who would you trust? The person you perceive to be the most competent. You believe their instincts, experience, boldness, courage, have the potential to make you feel steady and grounded, as if everything will be alright. “Courage is the first virtue,” said, “the most important, because with courage, all other virtues are possible.” No one would willingly follow a coward who is outwardly unsure, full of fear and acts like an incompetent wimp.

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Leadership

Do you have what it takes to be a millionaire?

The achievers live by an entirely different set of rules, a different way of thinking, which makes all the difference, writes Anesh Jagtiani.

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Leadership

Did you know that the first secret to becoming a millionaire in real life is becoming one in

your mind? That’s right, being a millionaire starts with thinking like one. The achievers live by an entirely different set of rules than we do, a different way of thinking... and that’s what makes all the difference. So how can you imprint the ‘millionaire’ mindset on yourself?

Now, what’s a mindset? Basically, a mindset is a collection of habitual thoughts and beliefs that lead to a consistent way of thinking, which permeates your conscious mind. It causes you to behave in ways that are consistent with these thoughts and beliefs and, hence, achieve results. Now, considering that a mindset is based on habits, which means that you can change your mindset through consistent habits of thought. Here are a few thoughts to begin with:

Anesh Jagtiani is the CEO of Empowering Leaders Group (M. E). He is a professional speaker and trainer. His leadership program helps managers motivate and retain their top people, improve their effectiveness in communication and maximise the bottom line of companies. He is also a TV anchor of a show called TOP GUNS on ZEE TV where he has interviewed the 12 most successful Indian entrepreneurs of UAE. He can be reached at [email protected] or www.elgme.com.

Of course, there are other thoughts that can help you to develop this mindset, but these alone will help you to uncover most of the others and to start seeing results. The mind is a body part just like any other, and it can be trained with consistent and persistent exercise. And, just like the muscles in your body, it might seem like an uphill and unsinkable battle at first, but training the mind will become a natural habit in

1. Ideas can be sold for more than products or services

2. Time is more valuable than money

3. Don’t work for money, let it work for you

4. Don’t ask how much does it cost, but ask question how much can I make with it.

5. A winner never quits and quitters never win

6. Follow your passion and the money will follow you

7. Selling and promotion is the key to wealth, and a lot of fun

due course. Moreover, your mind is most alert and open to influence in the morning. As the day wears on, your mind is bombarded with all kinds of thoughts and ideas that cloud it from receiving new ideas. It gets less effective in the later part of the day. For best results, keep your affirmations (above) on your bedside table and read them aloud every morning. In addition, training the mind is just like training the body! A certain amount everyday is better than doing one grueling session and then slacking for a week. It’s also more important to do a little bit consistently than to do a lot inconsistently. So, there’s no need to kill yourself with an hour of affirmation a day. Commit instead to reading the seven affirmations every day until they become a permanent part of your beliefs and begin to influence your actions. When this happens, start developing more empowering thoughts based on the way that millionaires think, and repeat until your mind is conditioned for the results that you want.

In addition, training the mind is just like training the body! A certain amount everyday is better than doing one grueling session and then slacking for a week.

1 – 2 OctOber 2013 | Abu DhAbi NAtiONAl exhibitiON cOmpANy (ADNec) Abu DhAbi – uNiteD ArAb emirAtes

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Networking opportunitiesImportant business events across the globe

Events Calendar

MATERIALS HANDLING & LOGISTICS 2013Date: 10.09 - 12.09 2013Venue: Dubai International Exhibition Centre

The UAE logistics industry is set on a high growth path, spurred by the huge amount of infrastructural and commercial projects either already underway or in the pipeline. The Messe Frankfurt trade show will focus on crucial and important factors in the large amounts of handling and logistics in Dubaiwww.messefrankfurtme.com

PAPER ARABIA 2013Date: 24.09 - 26.09 2013Venue: Dubai International Exhibition Centre

Paper Arabia 2013 is a platform for the Middle East and African buyers to meet, source and discuss everything and anything in the paper sector. Many of the world's biggest and best paper suppliers will be exhibiting at this event.www.paperarabia.com

LIGHT MIDDLE EAST 2013 Date: 07.10 – 09.10 2013Venue: Dubai International Exhibition Centre

Light Middle East is an event that showcases Lighting Design and Technology. It’s one of the largest exhibitions in the region for the lighting industry. The 2012 edition presented 220 exhibitors from 22 countries showcasing over 350 international brands and welcomed 4,557 trade visitors from

72 countries. www.lightme.net

CITYSCAPE GLOBAL 2013Date: 08.10 - 10.10 2013 Venue: Dubai International Exhibition Centre

Dubai is at the centre of property development and Cityscape Global 2013 is an event dedicated to discuss the various factors that go into building a well planned city, enroute a glittering skyline. www.iirme.com

FUTURE RETAIL 2013Date: 08.10 - 10.10 2013Venue: Dubai International Exhibition Centre

Future Retail is the Middle East’s premier meeting of international retail leaders. In 2013 it will define what it takes to optimise retail business in the MENA region and abroad, providing strategic insight into the industry’s most critical challenges, including location planning, partnership building and marketing &communication avenues.www.futureretail.ae

FUTURE CITIES 2013Date: 08.10 - 10.10 2013Venue: Dubai International Exhibition Centre, Dubai

Future Cities 2013 will focus on the pillars that create the foundation of a Future City: Security, Water & Waste Management, Tourism & Hospitality, Transport, Energy Management, Disaster Relief and

Green Building.www.cityscapeglobal.com

FUTURE BUILD 2013Date: 08.10 - 10.10 2013Venue: Dubai International Exhibition Centre, Dubai

FutureBuild is an international conference and networking event dedicated to the design of the built environment 2030-2050 and beyond. It will investigate what radical and transformative technologies and ideas might be being employed by that date, with a focus on the whole building, energy systems, communities and occupants. FutureBuild is a platform for the discussion of the challenges, innovative solutions, paradigm shifts, significant step changes, emerging technologies and unconventional ideas needed to create a built environment that is adapted to future needs, while basing these on solid projections and scientific methodologies. www.future-build.net

ADIHEX - INTERNATIONAL HUNTING & EQUESTRIAN EXHIBITION 2013Date: 04.09 - 07.09 2013Venue: Abu-Dhabi National Exhibition Center - Adnec, Abu Dhabi

The Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX) is held under the patronage of His Highness Sheikh Hamdan Bin Zayed Al Nahyan, Ruler’s Representative in the Western Region, and Chairman

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of the Emirates Falconers’ Club. This national event will play host to camel auctions, saluki beauty contests, art competitions and traditional hunting and equestrian activities. Visitors will have the opportunity to purchase the latest camping, hunting, equestrian and weaponry equipment from over 500 brands. Plus view a designated heritage area to acquaint visitors with the deep-rooted traditions of Abu Dhabi and the UAE. www.adihex.net

POWER + WATER MIDDLE EAST 2013Date: 23.09 - 25.09 2013Venue: Abu-Dhabi National Exhibition Center - Adnec, Abu Dhabi

Power + Water Middle East is the leading event in the region for power & water industries. Held in partnership with Abu Dhabi Water and Electricity Authority (ADWEA), the 2012 event welcomed 108 exhibitors from 18 countries and over 2,800 unique visitors from 47 countries. The 6th edition of Power + Water Middle East takes place 23rd – 25th September 2013 at the Abu Dhabi National Exhibition Centre and features workshops, conferences and exhibitions.www.powerandwaterme.com

MIDDLE EAST WORKBOATS 2013Date: 30.09 - 02.10 2013Venue: Abu-Dhabi National Exhibition Center - Adnec, Abu Dhabi

Saudi Aramco has chosen the

Seatrade Middle East Workboats & Offshore Marine event to launch its Global Workboat Technology Forum and reach the international audience that attends the exhibition and event. With the aim of promoting the latest innovations in the Workboat Sector, the one-day Forum will see a number of technical papers presented that will encourage audience participation and offer a platform for knowledge sharing and discussion with the possibility of new business developments with industry leaders. www.middleeastworkboats.com

SAUDI FOOD-PACK 2013Date: 15.09 - 18.09 2013Venue: Riyadh, Saudi Arabia

Saudi Food-Pack 2013 is the 3rd international exhibition for food processing and packaging. The trade show will give exhibitors the opportunity to network and close deals with decision makers in this growing sector. www.recexpo.com

SAUDI MARINE SERVICES SHOW 2013Date: 14.09 - 15.09 2013Venue: Riyadh, Saudi Arabia The International exhibition of ship building, marine, offshore, machinery and equipment will showcase the latest ship building, repair & maintenance technologies, products and services which also include the offshore rig maintenance latest techniques. The participating key decisions makers

Events Calendar

Networking opportunitiesImportant business events across the globe

are including ports, ship building companies, dry docks, ship owners, marine repair & maintenance companies and the professionals from operations and maintenance departments with major local & international shipping lines and offshore rigs. www.saudimarineshow.com

INFDEX - INTERNATIONAL FURNITURE & DESIGN EXIBITION 2013Date: 19.09 - 22.09 2013Venue: Doha Exhibition Center, Qatar

INFDEX 2013 will be a gathering of regional and international industry designers, manufacturers and decision makers, creating an environment bursting with unrivalled opportunities to earn profit in the Middle East’s most stylish and affluent design market. www.indexexhibition.com

MEDHEALTH & WELLNESS 2013Date: 23.09 - 25.09 2013Venue: Oman International Exhibition Center, Oman

The first Oman Healthcare Conference aims to address the present and future state of the Sultanate’s healthcare sector. It serves as a platform for industry experts and stakeholders to share and discuss tangible solutions to the variety of healthcare issues and encourage collaborative efforts for the development, improvement and growth of the Sultanate’s healthcare industry.www.medhealthoman.com

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Summing up

Column

The Critical BalanceUtpal Bhattacharya on why balancing risk and reward is a must while undertaking any business, more so under special circumstances.

Entrepreneurs understand best about risk and reward when, occasionally, a business opportunity

comes calling on their doors without notice. Those who are quick decision makers make the best of these; but these also come with their high risks and can be catastrophic if an entrepreneur is not able to take a balanced view or hold his greed in check. Recently, I had been working with a mid-sized infrastructure company on a limited mandate of creating a market expansion plan. In the course of research, we landed upon a cross-border opportunity, which offered strong revenue potentials to my principal. However, the opportunity was in a new area, where my principal had no experience, and that meant high risks on two fronts: entering a new country and in a new area. The rewards in the project opportunity were extremely lucrative. However, our principal had to take a decision weighing their reward and risk options, and came to a decision that that they would rather do the project by setting up a local joint venture company with a partner that understood the business as well as the terrain. It meant sacrificing near 50 per cent of their revenues, but reducing their risks by nearly 80 per cent. Balancing risks and rewards is absolutely essential while making business decisions. However, working a successful consortium goes beyond the matters of financial risks and gains. It also involves how best one could combine the strengths of two or more partners of different cultural and working backgrounds for achieving a common objective.

Playing on strength of partners is not difficult, but avoiding their weaknesses, sometimes, is not easy. In this case also, as our principal identified a strong joint venture partner to undertake this project, we discovered that there was a lot to work on setting up an operating structure where roles and responsibilities are clearly defined and financial obligations and rewards set in the contract between the partners as also with the project owner. I keep harping on hiring the right consultants to stitch together such deals. Sometimes small and medium enterprises find top consultants very expensive, and then they try and get these documents done in-house to save on costs and thus, end up drawing up contracts that are inadequate with potential ramifications. In our case, our principal was bent on hiring the right financial and

legal advisory firm, although the JV partner had their own ideas. But ultimately, we were able to settle on a consultant group that had cross-border experience on advising such projects from taxation to political nuances: the choice of the right consultant further reduces risks in any project even if that means making payments upfront. The long and short of it is that it would have been simple for our principal to reject the cross-border investment opportunity, as it was not in their area of expertise, but instead they decided to take a plunge by taking limited risk with the aim of extending the area of their business expertise. The limited risk they took is the cost that they would have anyway incurred acquiring knowledge in a new area of work. So, in other words, our principal was able to cover most of their investments in one way or the other in this cross-border transaction and justify the risk and reward benefits to their shareholders. As I have always maintained, a balanced approach is generally a win-win.

So, in other words, our principal was able to cover most of their investments in one way or the other in this cross-border transaction and justify the risk and reward benefits to their shareholders.

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The Intelligent SME issue 15

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