Entrepreneur Middle East April 2016 | Building Momentum by Entrepreneur Middle East

Seeing your enterprise through to growth and maturity The five stages of the business lifecycle

Learning the ropes

The proâ&#x20AC;&#x2122;s guide to public speaking

Hisham Samawi talks enterprise proficiency, profits, and progressing as a brand

Practical tips for entrepreneurs who want to own their messaging

Building momentum HH Sheikh Saeed Obaid Al Maktoum The Chairman of AJSM Investments gets behind entrepreneurship in the UAE

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APRIL 2016 | entrepreneur.com/me | UAE AED20

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april 2016

CONTENTS

Hisham Samawi on wading into the UAE’s F&B sector

INNOVATOR: Learning the ropes Hisham Samawi talks enterprise proficiency, profits, progressing as a brand, and how there’s always a way to do things better.

HH Sheikh Saeed Obaid Al Maktoum

The how-to

#TamTalksTech

Theoretical and practical tips for entrepreneurs who want to own their messaging.

Gadgets and doodads that you might’ve missed out on, sourced by a tech aficionado. Yes, it’s okay to want them all… and no, it’s not our fault.

Building momentum

The Chairman of AJSM Investments gets behind entrepreneurship in the UAE.

56 Personalize your hardware, shoot and share sharper images, and improve your storage options.

The pro’s guide to public speaking

TECH: SHINY

hisham samawi Image credit: Sandrella Obeid

MONEY: YOUR MONEY

Is it time to exit? Four things to consider before selling your company, outlined for you by an entrepreneur who has already made that coveted exit.

april 2016 Entrepreneur

CONTENTS

april 2016

50 Entrepreneur Middle East celebrates the launch of the Levante with Maserati

Seeing your enterprise growth through and maturity

Make your life better by saying thank you

ASK A PRO

‘TREPONOMICS: SKILLSET

Keeping the fire alive Employee passion for work isn’t endless; here are seven ways to stoke the flames by Bayt.com’s Lama Ataya.

How the Chairman of AJSM Investments is backing the UAE entrepreneurial movement

Entrepreneur april 2016

CULTURE: LIFE

The five stages of the business lifecycle, outlined for entrepreneurs. Each stage highlights a unique set of obstacles to deal with and overcome.

Olympian and entrepreneur James Clear outlines seven situations when you should be conveying gratitude, and how it can improve your work situation.

The art of mentorship

Fresh territory comes with a host of new challenges

Shelling out

ESQUIRE GUY Ross McCammon says that the best mentors are the ones who lead by example without acknowledging they’re leading by example.

ASK A PRO

Six tips for expanding a homegrown business, from one of the region’s best known entrepreneurs.

DESIGN Entrepreneur and designer Catherine Sarr, the founder of Almasika Fine Jewellery draws on African cultural heritage to create her pieces.

CONTENTS

april 2016

Emerging market entrepreneurs from around the world trek to the 2016 Seedstars Summit

Family first

Business book rundown

Get your checkbook ready

Craftsmanship, e-commerce, and a whole lot of creativity

Securing continued growth for family businesses in the MENA region is integral to economic growth.

Amal Chaaban reviews a few business books for you before you hit the bestseller aisle. It’s true that not all executive material is created equally.

START IT UP: WHO’S GOT VC? ChefXChange, an online platform to search and hire chefs locally for private or corporate events, is back raising $2 million for its Series A round.

Q&A

Little Majlis, founded by Anna Bolton-Riley and Annabelle Fitzsimmons, brings the artisan scene online.

ECOSYSTEM

EDITOR’S NOTE By Fida Z. Chaaban

CULTURE: TRAPPINGS

Entrepreneur april 2016

TECH: ONLINE ‘TREP

‘Trep gear

Blending in… to the Middle East

The executive selection for the entrepreneur on your list that has everything. Okay, maybe for a little selfreward as well.

San Francisco-based app, founded by Akash Nigam, Matt Geiger and Evan Rosenbaum, garners regional investor interest.

90 The five factors of socioemotional wealth in terms of the family business

LIFE

MIDDLE EAST EDITOR IN CHIEF Fida Z. Chaaban editor@bncpublishing.net MANAGING DIRECTOR Walid Zok walid@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net DIRECTOR Wissam Younane wissam@bncpublishing.net PUBLISHER Nehme Abouzeid CREATIVE LEAD Odette Kahwagi MANAGING EDITOR Aby Sam Thomas STARTUPS SECTION EDITOR Pamella de Leon COLUMNIST Sindhu Hariharan COLUMNIST Tamara Clarke COLUMNIST Shoug Al Nafisi COLUMNIST Erika Widen EVENTS LIAISON Mark Anthony Monzon CONTRIBUTING WRITERS Lama Ataya Abdulla Barakji Mohamed Batterjee Amal Chaaban James Clear Shailesh Dash Jackie Fitzgerald Hassan Al Hazeem Shelina Jokhiya Suhail Al-Masri

Ross McCammon Rani Nasr Neil Petch Soukaina Rachidi Anna Roberts May Rostom Tarig El-Sheikh Mark Sephton Erika Widen

Images used in Entrepreneur Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock.

MIDDLE EAST

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Entrepreneur april 2016

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In addition to our print edition, we’re bringing you all sorts of industry news on our web mediums. Joining us online means getting relevant business and startup content in real-time, so you’re hearing about the latest developments as soon as we do. We’re looking forward to interacting with our readers on all of our social media and web platforms- like any thriving business, we’re looking to give and take. #TrepTalkME is already happening on all of our digi platforms, and all good conversations go both ways. See you on the web!

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EDITOR’S NOTE

All talk, no action

It’s time to inject some reality into the PR blitz around entrepreneurship

f you are heading up a large scale business in this region, and your company is trying to jump on the now-popular “I support entrepreneurship” bandwagon, then this month’s note is for you. Some hard truth: 1. Entrepreneurs are businesspeople. They are people who

are running serious businesses, they are not playing at running a business. Businesses need money to operate. Money comes from clients. That is the single most important factor that needs to be stressed. 2. Entrepreneurs are not a promotional vehicle. Some

of the multinationals operating in the Middle East are trying very hard to gain a reputation of being pro-entrepreneurship. That idea has become very fashionable in promotional circles over the past two years. You need to actually work with these businesses, not just “voice” support in a press release. Young enterprises need money to operate and to continue to scale. 3. You do have a budget. If

you’re going to craft some “CSR” type activity, why don’t you put your budget to work with a startup or a SME? It may take some creative thinking to do something impactful with a limited budget, but that budget, however small, is going to go a long way for a business that’s bootstrapping. Call up

Entrepreneur april 2016

a startup founder and ask them to craft a proposal for work- you’d be surprised at the multitude of options they can offer your company. 4. Giving away prizes isn’t supporting entrepreneurship. Please do not approach us

to contact our startups for your “startup competition” if you are not serious about awarding the winning company. Giving them some certificate and a prize like a tablet or a booth at your event is not supporting entrepreneurship, it is a PR move. How would you like it if one of these “competitions” gave your company a piece of paper and an iPad as a reward for your business model and enterprise ingenuity? It is insulting, and worse, it’s useless and does nothing to improve the state of the business.

entrepreneurial ecosystem, don’t be surprised when they decline to participate. A few entrepreneurs have come to me asking my opinion on being invited to participate in events that suddenly have a startup or entrepreneurship panel, and these founders are realizing that it’s all just a show for someone else’s benefit. These same founders are very aware of the fact that you suddenly decided you needed a few token entrepreneurs at your event, and this is why you’ve suddenly taken an interest in their work. This won’t win you any good will in the ecosystem. If you, as a corporate leader, want to really support the ecosystem, then at some point, you need to allocate some of your budget to doing so. Entrepreneurs are not a promotional tool, they are businesspeople who are trying to build commercially viable and stable enterprises.

5. There is always a way. If you have enough money to keep a glitzy PR agency on retainer, then you have enough money to support the entrepreneurial ecosystem. There are a few multinationals who are at the very least sponsoring ecosystem events, and that are actively trying to find innovative ways of working with startups. These companies are showing you the way it can and should be done. 6. Startups can sense your intentions. When founders get

requests to back something that is supposedly “supporting” the

Fida Z. Chaaban Editor in Chief @fida | @fidazchaaban editor@bncpublishing.net

innovator

HH Sheikh Saeed Obaid Al Maktoum

The chairman of AJSM Investments gets behind entrepreneurship in the UAE By Aby Sam Thomas Images by Xtremepics

ow, I think, is the right time to be an entrepreneur. When everything slows down, you open your business- it’s the best time. Suppliers will be more flexible, payments will be better, office rents are going down- setting up something new, [the time to do that] is today.” At a time when there seems to be a lot of questions being asked about the economic stability of the UAE and the wider Middle East, the above statement by AJSM Investments Chairman HH Sheikh Saeed Obaid Al Maktoum puts a different spin on the conversation in the region- and it’s safe to say that wannabe entrepre-

Entrepreneur april 2016

neurs would be wise to take note of this seasoned businessman’s words. As the man leading a company with interests in sectors as varied as real estate, technology, F&B and pharmaceuticals, Sheikh Saeed knows a thing or two about doing business in the UAE- AJSM Investments has been seeing rapid growth since its inception about four years ago, with revenues increasing by 80-100% in >>>

“Starting your own business –given all the facilities that you have around todayit’s 10 times easier to do it now than it was 20 years ago.”

april 2016 Entrepreneur

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“I think, personally, the right time to help someone is not in the beginning- it is actually [more needed] when they are about to fail.” Sheikh Saeed has a calm, charming demeanor, but when he talks about anything relating to entrepreneurship, his passion for the subject is almost tangible- it’s clear that this is someone who is eager to see more entrepreneurs rise up in the UAE. “Starting your own business –given all the facilities that you have around todayit’s 10 times easier to do it now than it was 20 years ago,” he notes. “The government is pushing for it, the services are there- it’s so much easier than before.” But shouldn’t one be concerned about the uncertainty in the market right now? Sheikh Saeed dismisses this contention, and points our attention instead to the advantages inherent in the current financial climate for the entrepreneur. “Failing today is less [of a risk] than failing in two or three years’ time,” he says, smiling. “It will cost you less!” In addition, Sheikh Saeed also explains how starting up a business, say, three years later as opposed to now doesn’t offer any guarantee of ease in the entrepreneurial journey ahead- according to him, the process (and the costs involved) will only get tougher in the years to come. AJSM Investments came into being after Sheikh Saeed and his four siblings decided to bring their respective family businesses together as one unit. Besides the “greater good” associated with pooling these companies together, Sheikh Saeed noted how coming together also allowed them to make bigger investments than what they’d be able to do previously- and thus enable better returns as well. Real estate development was at the core of the business when AJSM Investments

Entrepreneur april 2016

started out, and it remains an integral part of the company today, but diversification efforts are well underway, as is being showcased by its move to start a pharmaceuticals factory producing generic medicine. Sheikh Saeed is also particularly interested in the tech sector- one of AJSM Investments’ ventures in this space has been working with Idea Prodigies, a software development firm, to develop an app called MyHUBBER, which has been billed as “a multi-purpose mobile and web application for social networking, classifieds, and shopping.” Besides the app (which is expected to launch by the end of the year), Sheikh Saeed is also hoping to launch an Islamic crowdfunding website as well, tapping it as a platform to both fund businesses as well as to facilitate Islamic charitable giving not just in the MENA region, but around the globe. But his own ventures notwithstanding, Sheikh Saeed is also keen on facilitating the development of an entrepreneurial community in the UAE. This man is eager to see more startup enterprises in the market, and he’s putting his money where his mouth is- AJSM Investments is starting up an initiative called AJSM Hero to help nurture new businesses in the UAE. One part of the program is targeted toward university students, which will see them, over the course of a month, put forward business plans that will be evaluated by a jury put together by AJSM Investments, following which the winning idea(s) will be rewarded with both funding and coaching from the company. In addition, the AJSM Hero campaign will also be solicit-

ing ideas from entrepreneurs out of school- this, however, will be done on an ongoing basis through the year. Sheikh Saeed says the contest will be open to entrepreneurs of all nationalities based in the UAE, with the reasoning being that the expat community doesn’t have as many programs catered to them as Emiratis. “Emiratis have at least four or five initiatives from the government helping them, but non-locals don’t have anything,” he notes. “So we concentrated on that sector specially, so as to give backnon-locals are residents here, they are a part of our community, they are giving back, and so we have to support this part of the community also, not concentrate on only locals. Yes, I’m a local and I’ll support locals, but we are all one. Dubai is a multinational city, a cosmopolitan city… So why not help everyone? And this is the neglected part here, and so we are trying to contribute in our way.” But this competition is just the start of what Sheikh Saeed envisions with AJSM Hero- today, it’s an initiative that’s being spearheaded by AJSM Investments, but Sheikh Saeed hopes that AJSM Hero will evolve into something larger that the entire private sector in the UAE can get behind. “We are trying to build it up slowly into, insha’allah, some kind of foundation that all private sector enterprises can be a part of,” he says. “They can help not just financially- actually, coaching is more important than anything else. Most entrepreneurs go into a world that he does not know anything aboutand so when he has the support and expertise of other people, he’ll have that to back him up.” According to Sheikh Saeed, the importance of coaching and mentorship cannot be understated, when it comes to nurturing entrepreneurship in the UAE. While there are quite a few programs already being initiated in this regard, Sheikh Saeed notes that there’s a need for coaching that extends beyond an enterprise’s launch phase. “I think, personally, the right time to help someone is >>>

Taskeen Propertiesâ&#x20AC;&#x2122; Khalid Al Habsi winning at the Oman Entrepreneurship Awards

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not in the beginning- it is actually [more needed] when they are about to fail,” he says. “Maybe it’s a year ahead, or two years ahead, if he or she faces a problem, then start something with them. Keep following up. If he falls, pick him up. Help him. Guide him. Coach him. That’s the most important timebecause if he falls and does not find someone there [to help him up], he will stop.” Given his own experience in the business world, Sheikh Saeed is emphatic on the need for entrepreneurs to have a good support structure, be it in the form of family, friends or peers in business. “In the beginning, I was lucky,” he recalls. “I had a very supportive family. I failed quite a bit in a few small businesses at the beginning, and every time I failed, they were there for me. They were like, ‘Don’t stop, do something else, make it better.” So I always had support. And this is the best feeling, I think, you can have as an entrepreneur- having someone behind you, having your back. If you fall, someone will pick you up… The satisfaction one can get out of this is one of the best feelings you can have, and if I can, in some way, help even 1% of the community with something like this, I’ll be more than happy.” At this point, I quiz Sheikh Saeed on what’s his personal motivation to want to do things like this- what does he actually get out of supporting and encouraging entrepreneurs in the UAE? I’ll admit here that I was expecting a standard corporate response from him on this, but Sheikh Saeed’s rather innocent answer took me off guard. “Making people happy makes me

Sheikh Saeed is emphatic on the need for entrepreneurs to have a good support structure, be it in the form of family, friends or peers in business.

Entrepreneur april 2016

happy,” he says, in a matter-of-fact way. “I find happiness from seeing other people being happy.” It’s a simplistic statement, true, and one can argue that it is a bit naïve to even think that with respect to the business world. But it’s clear that Sheikh Saeed strongly believes in

this notion of his, and given the current disjointed nature of the UAE’s entrepreneurial ecosystem, maybe such a sentiment is what is required to bring it together as a more cohesive whole- and yes, the community will only be the better for it

HH Sheikh Saeed Obaid Al Maktoum, Chairman, AJSM Investments

Starting up smart

HH Sheikh Saeed Obaid Al Maktoum’s tips for entrepreneurs in the UAE

1. Don’t be afraid of failure

“People here don’t want to fail. They are happy where they are with their jobs, and not fail [by starting something new]. But the first thing about being an entrepreneur is that you have to fail to succeed. Don’t be afraid of failing once, twice, three times… Failure is something you can learn from.” 2. Look before you leap

“Take risks, yes, but take calculated risks. Because having smaller leaps [in terms of risk] will have lower costs, should you fail.” 3. Don’t try to go at it alone

“Hire the right talent and staff- it is the most important thing. An entrepreneur always has to build

a good team, so that they can work together. One hand cannot clap. Don’t be a one-man show.” 4. Be ready for the stress

“Look into ways by which you can manage your stress. Being an entrepreneur is a 24-hour jobit’s not like you go to your job, do your work, at 5, you’re home, and you forget about it. With entrepreneurship, you are involved 24 hours.” 5. Remember to keep learning “Always surround

yourself with people you can learn from. There’s no one that knows everything, so surround yourself with people you can get knowledge from… Always grow yourself.”

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Hisham Samawi talks enterprise proficiency, profits, and progressing as a brand By Fida Chaaban

e didn’t know the first thing about running a restaurant,” says Hisham Samawi, when recalling his and his brother Ashraf Samawi’s journey starting up the Middle East’s first Clinton Street Bakery Company in Dubai. “It looks really simple when you see a restaurant working, but one little thing goes wrong and you wouldn’t believe how much it impacts everything. Little problems get compounded, even if it’s something like our servers forgetting to ring in an order- it all creates a domino effect, it can lead to chaos!” And chaos it was, for a little while in the beginning, admits the entrepreneur. Samawi remembers a particular instance when the printer in the restaurant’s kitchen –which let chefs know of their patrons’

Entrepreneur april 2016

orders- stopped working. “It was like a bomb had exploded,” he says. “100 tables in the restaurant were about to not get their food! My brother was being the barista making coffee, and I was waiting tables. We kind of looked at each other, and at that point, we just wanted to shut the doors, get in our cars, and leave!” In the end, they were able to get the situation under control, but not without some valuable lessons on how to liaise with waiting hungry clients. During what Samawi refers to as their “amateur hour,” they kept the outlet in people’s good graces by doing table courtesy visits, and offering the waiting customers complimentary meals. Samawi laughs about these types of situations in hindsight, but those first few months of operations came with a steep learning curve for the brothers in matters of orchestrating staff and service flow, wastage and how it eats into what could potentially be profits, and operational standard development and subsequent implementation. >>>

“I never really liked to invest in other people’s projects, because I prefer to have more control and be more active in the investment.”

Image credit: Sandrella Obeid

Hisham Samawi

april 2016 Entrepreneur

innovator Clinton Street Baking Company in Dubai, UAE

Entrepreneur april 2016

Today, the co-founder is used to being confused for a waiter at his Dubai-based F&B enterprise, mostly because he often actually jumps in and shuttles meals- something that he has done ever since the enterprise opened. He’s also used to being confused for the outlet’s delivery driver and busboy, because, again, he’s performed those functions at his business too. Dubai’s first Clinton Street officially opened at Burj Views two years ago, and the co-founders recently signed on to launch the second outlet at City Walk- a 3,400 sq. ft. space that is scheduled to open in the fall. Being only the third city to have the original New York City concept, Samawi says that they wanted the outlet to “have a neighborhood feel,” hence their choice to opt for opening outside of a mall or hotel space. The brand was founded in 2001 by husband and wife team Neil Kleinberg and DeDe Lahman, and Samawi warmed to its homegrown dining experience by being a member of their frequent clientele. “I used to live in New York, right around the corner from the original Clinton Street. It was my neighborhood restaurant, so I saw it go from an obscure hole-in-the-wall to a New York institution with twohour lineups that I actually waited in to eat at.” Samawi, a graduate of Columbia Business School, had already made a name for himself in the art sector under MENA’s Ayyam Gallery. His sector trajectory shift meant a whole new education on what works and what doesn’t work. “I never really intended to get into the F&B industry. I was doing Ayyam Gallery when I came to Dubai. My family was living in Jordan at the time, and I first came here as an entrepreneur looking to find business opportunities

Clinton Street Baking Company in Dubai, UAE

since I’d heard so much was happening here. I didn’t know exactly what I was looking for; I thought when I saw the right business opportunity it would become obvious to me.” It did become obvious, but it was a combination of factors that led to the execution and launch of Clinton “It looks really simple when you see a restaurant working, but one little thing goes wrong and you wouldn’t believe how much it impacts everything. Little problems get compounded, even if it’s something like our servers forgetting to ring in an order- it all creates a domino effect, it can lead to chaos!”

Street. The first, says Samawi, revolved around the idea that the mid-market segment was underserviced, specifically in the breakfast category: “I always felt that Dubai was missing that great breakfast experience that I really liked in New York. People always complained that there was nowhere good to have breakfast.” The second factor that contributed to his interest in launching the business was that he was approached for investment in someone else’s F&B venture. “Around that time, someone approached me for investment in their restaurant. I never really liked to

invest in other people’s projects, because I prefer to have more control and be more active in the investment.” That invitation to invest got Samawi thinking about his own entrepreneurial interests, and the opportunity to bring Clinton Street to the Middle East. How did he manage to land the licensing rights? Initially, what clinched the deal with the owners -who were somewhat reluctant to expand borne from concerns that the brand itself wouldn’t stay true to its ethos- was “the fact that I loved Clinton Street and knew the brand inside and out. They cared about going with a solid foundation, rather than me just bringing the brand to the Middle East, opening up 50 locations, and focusing only on the money.” Once the deal was cemented, the Samawi brothers then learned that there was no brand manual that existed per se other than a 20-page brief, nor was there the usual guidelines in terms of operational standards and processes that one expects from a franchise agreement. “We aren’t really a franchise in the standard sense, as what we worked with was having our chefs trained onsite in New York, and that was pretty much it. Other than the menu, we basically had to develop all of this material from scratch. >>>

april 2016 Entrepreneur

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It’s more of a licensee agreement rather than a franchised outlet.” The 2,400 sq. ft. Burj Views outlet became an ongoing experiment of sorts with the brothers constantly working on streamlining processes, testing attempts to slash wastage and figuring out how to curb inefficiencies, and most importantly, stemming the flood of costs that eat into profit margins. “I think, as a business owner, it’s about how you run the business. It’s like, the food is good, the service is good, then generally, the revenue should be there, but then, how does that revenue become profit? Assuming you get 100 dirhams from a customer, you’ve got to figure out how to pay your suppliers, your staff etc. There’s so many places where that 100 dirhams goes to. By the time you’re through with that, you might not have any money left. That knowledge base has almost taken us two years to acquire. It’s almost like you don’t know what you don’t know, so you don’t know what to ask.” You also don’t know what will end up being cost effective and what won’t, until you execute a trial period and then do the calculations. Clinton Street’s delivery service option ended up being much more worthwhile for the business after outsourcing- which seemed counterintuitive until the numbers spoke for themselves. An in-house fleet of four delivery drivers proved to be a huge cost when Samawi factored in things like insurance, salaries, fuel charges, and the rest. “Our overhead was approximately 20,000 dirhams per month, and I did the math and found it was costing us 35 dirhams per trip. I knew there had to be a better way- I did some research and found a company called Any Order Delivery at a cost of 10 dirhams per trip. It’s also an added benefit because now we can do an unlimited amount of deliveries, and this is without having staff onsite waiting around for delivery orders during slower times. It was a seamless transition, and it’s almost a quarter million dirhams that we just saved!” As passionate as the founder is about his venture, he admits that at some point he needed a break after six straight months of 16-hour days. He had a full week of being disconnected digitally during his vacation to Burning Man in the U.S., and it gave him perspective. “Initially getting back after that week, I felt that I was out of the loop- a week is a long time in any business. Think about a week of emails, messages, anything, and then think about what can happen at your business in a week out of your control.” Did he escape the business completely during his time off? “When you actually take a step back, it makes you realize how over-controlling and over-obsessive we can be about every little thing. It will go on without you, if you’ve built it right.”

Entrepreneur april 2016

LEARNING ON THE JOB

Hisham Samawi’s key takeaways from his novice entry into the F&B sector “I never really knew how hard the F&B industry is… If a restaurant has the SOPs and manuals laid out, there’s no original thought that goes into it. I got maybe a 20-page description, and chef training. For someone like me, who had no experience in F&B, it was huge. Things like choosing a POS, finding your suppliers, contractors, etc. It’s all things you need to learn as you go.” 1. WHEN YOU’RE NEW TO THE INDUSTRY, YOU WON’T KNOW WHO TO WORK WITH “My first crack at development was a disaster: I had a designer and then he recommended me a contractor. In the beginning, you don’t know good designers and good architects. I had a horrible contractor and horrible kitchen supplier. Dubai went through a phase when you had so much demand in the market that all these subpar operators were in business even though they didn’t do good work. To put it in perspective for you, my contractor, kitchen supplier, MEP supplier, they’re all out of business now, and that tells you how bad they all were. We didn’t know any better, so this was the crap we ended up with.” 2. TRYING TO SAVE ON KEY ELEMENTS TO YOUR BUSINESS MAY COST YOU MORE IN THE LONG RUN “When I was pricing things out, I learned an important lesson. You shouldn’t cut costs on integral elements of the business. You really do get what you pay for, and while you don’t need to go with the most expensive out there, don’t skimp, because this will come back to bite you later. You might as well go with a quality job- if you think your contractor is giving you a really good price on something, there’s definitely a reason. Even going with somewhat cheaper equipment from a supplier has repercussions, as we found out later.” 3. BEING THE INDUSTRY’S NEW KID MEANS DOORS DON’T OPEN VERY EASILY “When you’re trying to find a location, it’s really hard when you’re

an independent operator. You’re not Alshaya or these established guys, you don’t know anyone at Meraas for example, and no one knows who you are. So you’re knocking all of these doors just trying to secure a location for your business, and you’re hearing no over and over again.” 4. THERE IS NO SUBSTITUTE FOR GOOD CLIENT-FACING STAFF “A lot of casual dining tries to go with cheap staff; I wanted to bring high quality food and service that you get at a high end outlet without this huge spend. Most of my initial launch staff was from South Africa, and yes, I’m paying more for my staff than someone in casual dining, but I think it’s worth it. Everyone says that you can’t make it work, but I think you can. At the end of the day, it’s about the overall dining experience, and being able to help guide the customer to what they want. Obviously if you have a rapport with your customer, you can suggest things and ultimately sell more food. Strong staff contributes to the business sustainability, because sooner or later someone will come along with better service. If you’ve got bad service and bad food quality, you aren’t going to last. Our food is really good and we have great service- that’s a combination that isn’t taken for granted.” 5. YOUR BUSINESS IS MORE LIKELY TO WEATHER MARKET SHIFTS IF YOU’VE BUILT A SOLID CUSTOMER BASE “One thing I’m learning to is to trust and believe in what you’re doing. One day you might have 150 people come, and the next day you might have 50 people, and then you try and understand why you have that swing. Numbers might go down and up, but you need to examine it in the long-term. I’m hearing that F&B in general is down 20%, and our numbers have actually increased slightly, and I think it’s that we’re still relatively new and people are still coming to try us out. We’ve definitely retained our customers that are coming in, so that’s helped us a lot.”

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The five stages of the business lifecycle Seeing your enterprise through to growth and maturity By Neil Petch

Entrepreneur april 2016

rom the moment you make the decision to set up a business, you’re in the “business lifecycle.” This will see you journey from idea to startup, and if successful, through to the growth and maturity phases. While it’s fair to say that business is never not challenging, a look at each of the stages of the business lifecycle highlights a unique set of obstacles to deal with and overcome. You will have to be flexible in your thinking and adapt your strategy as you move along. Indeed, different approaches are required for market penetration versus, for example, what may be required to achieve growth or retain market share. According to the recent Startup Genome Report, an estimated 90% of those startups that fail do so primarily due to selfdestruction. It was their founders’ own bad choices or lack of preparedness rather than so-called “bad luck” or market conditions that were out of their control. Understanding your position in the business lifecycle just might help you stay a bit ahead of the game here and defy the odds, as you anticipate the potential challenges and obstacles that are upon you or are on the way depending on what phase you are in or about to transition to. Simply put, as your business grows and develops, so too do your business aims, objectives, priorities and strategies– and that’s why an awareness of what stage of the business lifecycle you are currently in can be helpful.

STAGE 1 Seed and development This is the very beginning of the business lifecycle, before your startup is even officially in existence. You’ve got your business idea and you are ready to take the plunge. But first you must assess just how viable your startup is likely to be. At this stage, you should garner advice and opinion as to the potential of your business idea from as many sources as possible: friends, family, colleagues, business associates, or any industry specialists you may have access to. Ultimately the success of your business will come down to many factors– including your own abilities, the readiness of the market you wish to enter and, of course, the financial foundation in place (how are you going to finance your launch?). In some ways, this is the soul-searching phase. It’s where you take a step back and consider the feasibility of your business idea, and also ask yourself if you have what it takes to make it a success. STAGE 2 Startup Once you have thoroughly canvassed and tested your business idea and are satisfied that it is ready to go, it’s time to make it official and launch your startup. Many believe this is the riskiest stage of the entire lifecycle. In fact, it is believed that mistakes made at this stage impact the company years down the line, and are the primary reason why 25% of startups do not reach their fifth birthday. Adaptability is key here, and much of your time in

this stage will be spent tweaking your products or services based on the initial feedback of your first customers. It can even get to the point where you are making so many changes to your offering that you start to feel a bit of confusion. That’s just noise, and the main advice here is to power through the blurriness, because extreme iterations upfront will naturally seem confusing. Rest assured the clarity will once again come. STAGE 3 Growth and establishment If you’re at this stage, your business should now be generating a consistent source of income and regularly taking on new customers. Cash flow should start to improve as recurring revenues help to cover ongoing expenses, and you should be looking forward to seeing your profits improve slowly and steadily. The biggest challenge for entrepreneurs in this stage is dividing time between a whole new range of demands requiring your attention– managing increasing levels of revenue, attending to customers, dealing with the competition, accommodating an expanding workforce, etc. Hiring smart people with

complementary skillsets is necessary to make the most of your company’s potential during this phase, and so any good founder will be spending a lot of time directly involved in the recruitment process. It is essential that you start to come into your role as head of the company in this stage. While you’ll still be on the frontlines often enough, you need to be aware of how your expanding and highly qualified team is going to be taking over a great deal of the responsibilities that were previously tightly under your control. It is your job now to start establishing real order and cohesion as you mobilize the teams according to clearly defined and communicated goals. STAGE 4 Expansion At this stage you might feel there is almost a routinelike feel to running your business. Staff is in place to handle the areas that you no longer have the time to manage (nor should you be managing), and your business has now firmly established its presence within the industry. Here you might start to think about capitalizing on this certain level of stability by broadening your horizons >>>

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with expanded offerings and entry into new geographies. Businesses in this stage often see rapid growth in both revenue and cash flow as the blueprint has now been established, but be warned about getting too comfortable. In business, if you are not moving forward you are moving backwards, and without a constant, almost nervous itch or desire to expand, complacency can set in, and you might get caught off guard. There are, of course, two sides to this coin, with the other involving a risk of expanding too carelessly. While there is no crystal ball and it is very hard to get an idea of what will be the results of your undertakings, you can give yourself the best possible chance of continued success through careful planning. Look at your resources, be realistic about the effort and cost and potential returns, and always keep an expert eye on how expansion might impact the current quality of service you provide your existing customers. Remember, while having a successful business model behind you is undoubtedly an advantage, it is not a guarantee that it will work elsewhere within other markets, or that new offerings will result in the same success. The business graveyard is littered with organizations that took on too much and failed. Your task is indeed to take on new challenges as you look to constantly expand, but measure your risk and do your best to secure the company for all eventualities.

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STAGE 5 Maturity and possible exit Having navigated the expansion stage of the business lifecycle successfully, your company should now be seeing stable profits year-onyear. While some companies continue to grow the top line at a decent pace, others struggle to enjoy those same high growth rates. It could be said that entrepreneurs here are faced with two choices: push for further expansion, or exit the business. If you decide to expand further, you will need to ask yourself the same questions you did at the expansion stage: • Can the business sustain further growth? • Are there enough opportunities out there for expansion? • Is your business financially stable enough to cover an

unsuccessful attempt at expansion? And, perhaps most importantly, are you the type of leader who is up for the task of further expansion at this stage? In fact, many companies change leadership here, bringing in a seasoned CEO who is more fit to navigate the new challenges. Many at this stage also look to move on through a sale. This could be a partial or full sale, and of course depending on the company type (for example, public or private), the negotiation may be a whole new journey in itself. Navigating the business lifecycle Not all businesses will experience every stage of the business lifecycle, and those that do may not necessarily experience them in chronological order. For example,

while having a successful business model behind you is undoubtedly an advantage, it is not a guarantee that it will work elsewhere within other markets, or that new offerings will result in the same success.

some businesses may see astronomical growth right after startup, and the founders may decide to cash out right away, jumping straight to that “exit” stage. For many companies, though, there will be some sort of resemblance to the stages defined above, and awareness may help you anticipate what is coming next and how you can best prepare yourself and your team to maximize your chance of success. Making the right decisions at each stage is another thing altogether, however, and that will require your usual mix of gut instinct and practical business sense

Neil Petch is the Chairman of Virtugroup. Petch founded Virtuzone in 2009 before launching Virtugroup, a holding company that has a wider mandate of supporting startups from establishment; to successful market entry; and all the way through to exit. Petch is also the Chairman of DIFC-regulated GMG, established in 2010 with offices in Dubai, UAE and London, U.K., providing brokerage services for commercial and investment banks globally. His most recent venture, PrimalMD, was launched in the health sector and focuses on helping doctors addressing the root cause of illness rather than simply treating the symptoms. 34

Entrepreneur april 2016

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FIVE SIGNS OF A fading work passion 1. Fear of making mistakes

Keeping the fire alive

Employee passion for work isn’t endless, here are seven ways to stoke the flames

By Lama Ataya

job is a lot like a relationship: it’s fun and exciting at first, but after a while, the butterflies can turn into blahs. Not unlike relationships, an employee’s relationship with work begins with a honeymoon phase, and often has peaks, valleys and plateaus. And much like relationships, inevitably the honeymoon ends, and the employee’s fiery passion can fade to embers that require stoking to reignite.

Entrepreneur april 2016

When managers neglect to add extra kindling to the fire, they risk having their employees become overwhelmed, exhausted, bored, and can ultimately invite turnover into their business, and we all know employee churn is expensive. Considering these facts, it is in a manager’s best interest to invest in engaging their employees optimally and keep the fire always alive. Before that happens, keep an eye out for the telltale signs of trouble and take action to address them before they escalate.

If your employees are more concerned about the consequences of making a mistake than taking the risk, then failing, and learning from their failure, you have a problem. What we suggest is turning things around by celebrating employee failures. According to the Bayt.com Learning in the Middle East and North Africa Workplace poll, March 2015, 73% of professional respondents say their organization encourages people to openly discuss their mistakes and learn from them. An attitude like this gives employees the freedom to take risks, keeps the passion alive, and encourages entrepreneurial and innovative thinking. 2. Information is exclusive

A clear sign of trouble in the organization emerges when essential information becomes exclusive to a small elite of employees, particularly key information such as company and department objectives, performance and financial results, strategic plans, etc. Privileged insider information should have no value because there really shouldn’t be any in the first place. All information needed to plan, strategize, innovate, measure performance and succeed should be freely shared across the company. The good news is 72% of respondents says that they have a culture of transparency and honest communication

in their workplace, as per the Passion for Work in the Middle East and North Africa poll, February 2016. 3. Everything happens via email

If you notice that your employees are doing business exclusively via a computer screen, or communicating with each other that way, even when a phone call or face-toface meeting would be almost as convenient, that’s often a red flag. It may mean that they feel their jobs aren’t worth the extra effort that a face-to-face meeting, or phone call, requires. Face-to-face meetings are always the most powerful approach to building rapport and trust, so set an example yourself by meeting clients and teams in person whenever you can, and encouraging employees to do the same. Over time, your employees will see how much more effective the personal element can be. Build teams within departments, and throughout the entire company, to allow an open discussion of goals and obstacles. There are many exercises that can help teams to find their strengths and weaknesses. These exercises can remove barriers and blind spots and propel the team forward to ever new successes. 4. Employees don’t help each other

Look closely at how your employees interact among themselves. Employees who aren’t invested in your organization’s future usually won’t go out of their way to give pointers to the new hire or proofread a colleague’s report, for example. If this is happening in your company, start by matching up new hires with seasoned employees who can

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meet their obligations. But before you do, begin by examining how your own actions may have contributed to the problem. Do you find it difficult to delegate important projects? Do you insist on running every new idea through you before letting an employee pursue it? If you engage in behaviors like these, you may be making it hard for employees to own their own projects, or finish them on time. Seven tips on rekindling employee passion for work

If the aforementioned scenarios sound like your company, don’t despair. Deep down, employees are begging to regain a sense of hope and enthusiasm, but they need your help. If you make a genuine effort to follow these tips, taken from our Passion for Work in the Middle East and North Africa poll, February 2016, you will not only notice attitude shifts, but real changes in behavior among your employees. 1. Get to know each other

Employees are keen to work harder for a manager who takes a personal interest in them and engages with them on a personal level. 76.8% of respondents in Passion for Work in the Middle East and North Africa poll say their managers provide them with feedback and genuinely care about their professional growth and development. >>>

mentor and encourage them. The new hire will appreciate the personalized guidance and mentorship. Plus, the more experienced employees will soften when they see how fulfilling it can be to pass on their knowledge and expertise.

One-on-one mentoring by a peer/manager was identified as one of the most preferred methods of training by 30% of survey respondents, according to the Career Development in the Middle East and North Africa survey, January 2016.

5. Things just don’t seem to get done

When employees miss deadlines or other important milestones, your first instinct may be to dish out the consequences. By all means, hold people accountable when they don’t

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Face-to-face meetings are always the most powerful approach to building rapport and trust, so set an example yourself by meeting clients and teams in person whenever you can, and encouraging employees to do the same. Over time, your employees will see how much more effective the personal element can be.

72% of polled say they have a culture of transparency and honest communication in their company. 6. Give praise where praise is due

2. Provide opportunities for innovation and reward participation

The leading barrier to employee engagement is often a lack of strategy and competing priorities. You can circumvent this when you present the challenge with a structure for participation and a system for rewards and recognition. Encourage your employees to learn new skills. Learning a new skill is a great way to feel inspired again and will make them feel valuable. Your employees can read a new book recommended by you, browse industry blogs, take online courses, participate in crossdepartmental projects, be assigned a mentor, or simply be encouraged ask more questions on the job.

3. Celebrate together

Whether it’s a company lunch or a commitment to celebrating employee birthdays or engagements, these events provide employees with the opportunity to interact on a personal level with each other. They also serve as a great opportunity for boosting engagement levels in your workplace. 87.1% of professional respondents in the same survey mentioned above say that they have a healthy connection with their colleagues at work.

4. Make it count

It’s no surprise that people appreciate being recognized for a job well done. By complimenting deserving employees, your team members will be motivated to repeat their positive behaviors and overall morale will be improved. 82% of respondents say exceptional performance is recognized and rewarded at their workplace.

Do your employees know how their work contributes to the organization’s goals? Are KPIs understood and celebrated when targets are hit? How will their hard work be rewarded? Employees want to feel as though their work is meaningful – so let them know. In fact, 91.5% of respondents say that what they do adds purpose to their lives.

7. Build supportive teams

5. Listen

Privileged insider information should have no value because there really shouldn’t be any in the first place. All information needed to plan, strategize, innovate, measure performance and succeed should be freely shared across the company.

Asking employees for feedback and implementing their ideas may well be the easiest way to engage your workforce. If your employees feel they contribute to decision making, they’ll feel more entrenched in the team and committed to working toward organizational success.

Build teams within departments, and throughout the entire company, to allow an open discussion of goals and obstacles. There are many exercises that can help teams to find their strengths and weaknesses. These exercises can remove barriers and blind spots and propel the team forward to ever new successes

Lama Ataya heads the Marketing department at Bayt.com and within that role is also responsible for communications, content, community experience, and corporate social responsibility.

Entrepreneur april 2016

THE PRO’S GUIDE TO PUBLIC SPEAKING [THE HOW-TO]

THEORETICAL AND PRACTICAL TIPS FOR ‘TREPS

By Anna Roberts

hile the best of us can get tongue-tied on stage, a little bit of training and preparation with industry insider tricks can certainly help to increase the chances that you’ll succeed as a public speaker. These days, promoting your business means being interviewed (often live), participating in events relevant to your sector, and even staging workshops for business development. Even if you don’t plan on doing any of those things, honing your speaking skills and learning to own an audience will help you in a variety of situations. Whether you’re in the boardroom delivering a pitch, or jumping on a conference call with stakeholders, you need to know how to master your messaging. Concise delivery, confidence, and clarity of thought will help you come across as an entrepreneur who knows the business.

Entrepreneur april 2016

THE PRO’S GUIDE TO to PUBLIC SPEAKING

PART 1 Owning your opportunities

Five tips for public speaking Speaking at an event is a fantastic opportunity to take ownership of how your brand and its key messaging is presented to the public, but that’s often easier said than done. You may be asked to join a panel discussion, present a keynote speech, or review the financial year with stakeholders, and in each case, you have a short amount of time to clearly and concisely relay your knowledge and experiences to the audience. Here are five points to keep in mind when you’re preparing to go up on stage: 1. Jot down your key points Whether it’s parts of your mission statement, big statistics from a report or key people you want to recognize, make sure you have the essential details at hand when you’re on stage. You wouldn’t climb Mount Everest without taking a backpack full of supplies, so why sabotage your moment in the spotlight by not taking all the information you need to convey with you? That includes writing down numbers in their full form, so you don’t get confused with zeros, the phonetics to pronounce names (more on this later), and titles that people have.

translate your ideas and energy to the audience and through the physical barrier. That means using hand gestures that reach forward, and emphasizing your facial movements for emotion.

lights can turn your brain completely blank. Besides, being appreciative and recognizing others is a win-win situation to be in, and people always remember how you made them feel over what you actually said.

3. Wear appropriate clothing If you’re not comfortable being on stage, you may feel you want to blend in and hide in whatever the background color is. That is definitely not going to do you any favors when your audience could be anything from 2-25 meters away from you. Navy blue and charcoal grey are both a safe bet, but check with the organizer first to see what the setup is. Keep in mind that lighter colors show up sweat patches a lot more, and horizontal stripes can be terribly unflattering. If you’re sitting down on stage, make sure you have appropriate hemlines and trouser lengths, and most of all, embrace your chance to address an audience!

5. Slow down If you feel like your words and breath are getting away from you, slow down the rate at which you’re speaking to a speed where a person jotting down notes of what you’re saying would be able to follow along. Doing this will allow you to have a chance to actually hear the words that you’re saying, remain in control and let you brain slow down all the processes that are happening simultaneously. By doing this your audience will be able take all your words in, and follow along with all the points you are making, and in turn be able to recall them better once the event has ended. >>>

4. Say “thank you” Once you’ve been introduced onstage, the first thing you need to do is thank the person who introduced you, or acknowledge the event in a complimentary light. It may seem like it goes without saying, but the bright

if you’re addressing a large audience, your voice is going to need help getting across equally to everyone, so it’s essential you get comfortable with microphones. Find out what you’re going to be speaking with; is it a handheld microphone? Keep your hand gripping the microphone centered on the middle of your chest and in line with your heart.

2. Mic check If you’re addressing a large audience, your voice is going to need help getting across equally to everyone, so it’s essential you get comfortable with microphones. Find out what you’re going to be speaking with; is it a handheld microphone? Keep your hand gripping the microphone centered on the middle of your chest and in line with your heart. Use the other hand to add weight to the words you are using with gestures. Is it hands-free? The battery pack will need to sit in a pocket or onto a belt, and both of your hands need to remain open and relaxed between your belly button and your eye line, not in your pockets! Will you be at a lectern? Remember to keep your body language open so you can

april 2016 Entrepreneur

THE PRO’S GUIDE TO PUBLIC SPEAKING

PART 2 Pull it together Five rules to overcome stage fright “Just imagine the audience naked.” Easier said than done, right? It’s the go-to comment that many people receive just before they present to a live audience, but it’s the last thing you should try and do, because we all know that it doesn’t actually work. Your mind is working overtime to remember what you are supposed to say next, you’re trying to read the audience’s faces to see if they like what they’re hearing, and you wish you could curl up on the floor and wait for it all to be over and done with right this second. Banish the days of awkward visuals of your audience with five tactics to incorporate into the run up to your next big presentation. These rules will have your mind at ease and help you focus on clearly getting your communication across to your audience (and If you feel like your words and breath are getting away from you, slow down the rate at which you’re speaking to a speed where a person jotting down notes of what you’re saying would be able to follow along. Doing this will allow you to have a chance to actually hear the words that you’re saying, remain in control and let you brain slow down all the processes that are happening simultaneously.

maybe you’ll actually enjoy yourself up on stage). Remember, it’s a privilege to address an audience, so don’t take it lightly by going in unprepared. RULE A Remember that it’s not about you How can it not be about you? Well, let’s be very clear: you’re not there because you love the sound of your own voice, you’re there with a job to do– entertain, inform or educate the audience. So with that, take the pressure off yourself and focus on getting your information and emotions across to the crowd. If you’re worried about what the audience is thinking, simply put yourself in their shoes. First, ask yourself: • What questions would the audience like answered? • What background information do you need to give the audience for your argument to make sense? • What information can you share that is unique to your perspective? And remember, the audience are glad they are not up there speaking on stage, so they will be listening intently to what you have to say and supporting you along the way. RULE B Know that the audience is wearing an “articulate listening face” A lot of people have a very unemotional face when they are sitting in the audience, which should actually

“Of course you’re allowed to have stage fright. As soon as your talk is over.”

Entrepreneur april 2016

be described as an articulate listening face. When a person is listening, they are fully present in the moment and not thinking about anything else. That means they probably won’t be smiling at you or telling you to continue on talking. You’ve got to remember your audience is busy listening and taking in a whole load of new information; it’s your job to feed it to them by continuing to speak and offer up more food for thought. RULE C Keep in mind that you are the expert and people are there to hear your take on the subject When you’re on stage talking about your successes in your last financial year, or pitching your business to a new client, you’re talking about knowledge, experiences and emotions only you have felt. No one else shares exactly the same history or memories as you do, and therefore, it’s only a story that you can tell because it only comes from you. The upside here is that you won’t “forget” anything- you have a wealth of information to draw on. You are an expert in whatever subject you are speaking about– be it personal, professional or opinions on events. You owe it to the world to share your knowledge and experiences; they’re unique to you!

When you’re on stage talking about your successes in your last financial year, or pitching your business to a new client, you’re talking about knowledge, experiences and emotions only you have felt. RULE D Stop thinking in the subjunctive We all too easily create scenarios in our head that easily mirror a widespread professional fear– that we might embarrass ourselves. I’d like to propose you stop talking about speeches like they have an uncertain future. If you’re able to control 90% of the presentation, why think about what could go wrong? Your ideas, your words, and how you deliver that content have all been prepared and rehearsed so there’s very little left to chance. Many organizations reference the seven Ps: Prior Preparation

THE PRO’S GUIDE TO to PUBLIC SPEAKING Prevents Piss Poor Performance. This really can be a make or break strategy to be applied to most business scenarios, and one that can be adapted to your public interactions. RULE E Don’t underestimate the benefits of mental and physical preparation Start by upping your mental game:

doing this can change the way you see yourself, make a point of getting rid of all the negative comments you’ve conjured up in your head, and put the audience at ease that you know the subject matter and what you have to say deserves to be listened to and acted upon accordingly. Simple things can help you with this -read motivational quotes or affirmations

Mastering the media

Five tips for owning a live interview

“Fantastic news! We’ve booked you in for a live media interview tomorrow morning!” might just be the sentence to send any confident entrepreneur over the edge. You may have survived a round of financial pitching and secured your first client, but throw a microphone in your face and the studio lights can easily blind your thoughts and choke your words. That exact scenario has been described to me by some of the most seasoned CEOs, but it doesn’t have to be the script that plays out for you. Failing to prepare, as the old saying goes, prepares you to fail. So here’s a failproof five step framework that will focus your mind, have you speaking with confidence, and leave you wanting to stay in the studio for longer than your allocated time. Even if you don’t plan on interviewing any time soon, remember that prepping for a live interview is a lot like prepping for participating in a panel discussion or giving a presentation to a board- so give it go! 1. KNOW THE TOPIC YOU’RE GOING TO ADDRESS It may seem obvious, but having a thorough understanding of the subject

is essential. You’re being interviewed for a particular reason, from a new acquisition to a funding injection, and therefore have been brought on the show to convey that information to the audience. The interviewer is merely there to facilitate that information coming from you and conveying it to those watching or listening. Be well versed in any key messaging, as well as your website details and social media platforms. Radio interviews will generally allow you to take a small piece of paper in with a few notes but, when you’re on TV, you’ll only have your memory and at-hand knowledge to rely on. 2. RESEARCH THE INTERVIEWER You can guarantee that the presenter and producer would have printed off every detail they can get their hands on about you. They would have combed Google, and all social media platforms then established a framework for questioning. You normally won’t be able to find out the exact questions you’ll be asked beforehand, but you will be privy to the subjects they want to cover during the interview. This is where you can do some research of your own. Listen to podcasts of the radio show or watch

or just listen to your favorite song before you get out of the car in the morning- it can all boost your feelgood factor. That also goes for your morning routine; getting in some gentle exercise will settle the nerves that are overflowing, a light breakfast will stabilize your blood sugar and you’ll have time to make sure you’re in comfortable clothes and shoes. >>>

YouTube episodes of the TV program and you’ll be able to find out if they are emphasizing certain lines of questioning, what personality and speaking style you can expect, and what areas the interviewer is particularly knowledgeable in. It will also allow you to gauge the length of time you’ll be on the air, and who else has been featured or appeared on the show previously. 3. ARRIVE EARLY I cannot emphasize this enough. It doesn’t do you any favors getting flustered by running late before going on live radio or TV, and it certainly doesn’t put you in a good light with the presenter or journalist speaking to you. Remember, you’re in their house now and they dictate the rules. So, arrive with ample time to relax in the green room and have a coffee, read over your notes, sit in makeup if you’re on TV, and get your mind focused on the task at hand. When it is time to go into the recording studio you’ll be as prepared as you can be. There’s no rewind button in a live interview. 4. SPEAK TO THE PRODUCER OR DIRECTOR BEFOREHAND This will be your closest contact to the presenter before you go on live, and they will be able to let you know how the show is going,

if it’s running late and have to cut anything, the mood of the studio, and most importantly, if there’s been any industry developments that have just happened they want you to comment on. News and media changes by the minute so keep in mind that your time slot could be cut or extended based upon the day’s events. Just remember, this is a chance to get your brand and messaging directly to an audience so keep the light at the end of the tunnel in sight! 5. SELECT YOUR WARDROBE CAREFULLY TV cameras and strong lighting can be very harsh on even the most aesthetically pleasing of us, so there are a few rules to follow when you’re on camera. First, stick to block colors- no patterns. Navy blue and shades of charcoal are a safe bet. Nothing too tight if you’ll be sitting down as it will ride up, and take into consideration any company dress code policies you may have to adhere to. That also includes checking if there are any cultural sensitives or expectations of the audience; if you’re talking business and investment you wouldn’t wear jeans or a cocktail dress. For radio, remove any noisy jewelry, and make sure your clothes don’t rustle either. They may take a picture of you in the radio studio, so there’s no excuse to dress down.

april 2016 Entrepreneur

THE PRO’S GUIDE TO PUBLIC SPEAKING

PART 3 Put practical methods to work

Three ways to ensure your voice doesn’t fail you onstage Frog in your throat? Cat got your tongue? Regardless of the animal you want to put the blame on, having a moment where your voice fails you onstage can be a nightmare to many. It can happen to anyone- but only a polished and rehearsed speaker can recover! Here’s your chance to know better and do better next time you find yourself struggling to get words out, nail that difficult pronunciation and give your voice a chance to convey depth, meaning and impact. 1. Avoid eating or drinking right beforehand Just like you wouldn’t eat a big meal right before exercising, you don’t want to be chowing down right before you get on stage. Having a balanced meal a few hours before a presentation will line your stomach, help settle nerves and regulate blood sugar- but it can wreck havoc on your voice and throat. Dairy products in particular can line your throat with mucus, making it harder to sound concise and clear. Nuts on the other hand can get stuck in teeth even after you’ve brushed, and move around while you’re talking, or worse, tickle your throat. The other foods to look out for are citrus fruits that dry your mouth, while foods high in salt can also do the same. 2. Rehearse the Rainbow Passage This is a technique that is used by speech therapists around the world to cover all the sounds used in the English language. But it includes some fun things that many other reading passages don’t, like the syllabic m in ‘prism’ and the syllabic l in ‘Aristotle’. It’s helpful to read through the Rainbow Passage as a warm up prior to getting on stage or

once a week, in order to see where your tongue needs to hit to produce certain sounds or amount of air you need to amplify syllables. “When the sunlight strikes raindrops in the air, they act as a prism and form a rainbow. The rainbow is a division of white light into many beautiful colors. These take the shape of a long round arch, with its path high above, and its two ends apparently beyond the horizon. There is, according to legend, a boiling pot of gold at one end. People look, but no one ever finds it. When a man looks for something beyond his reach, his friends say he is looking for the pot of gold at the end of the rainbow. Throughout the centuries people have explained the rainbow in various ways. Some have accepted it as a miracle without physical explanation. To the Hebrews it was a token that there would be no more universal floods. The Greeks used to imagine that it was a sign from the gods to foretell war or heavy rain. The Norsemen considered the rainbow as a bridge over which the gods passed from earth to their home in the sky. Others have tried to explain the phenomenon physically. Aristotle thought that the rainbow was caused by reflection of the sun’s rays by the rain. Since then physicists have found that it is not reflection, but refraction by the raindrops, which causes the rainbows. Many complicated ideas about the rainbow have been formed. The difference in the rainbow depends considerably upon the size of the drops, and the width of the colored band increases as the size of the drops increases. The actual primary

rainbow observed is said to be the effect of super-imposition of a number of bows. If the red of the second bow falls upon the green of the first, the result is to give a bow with an abnormally wide yellow band, since red and green light when mixed form yellow. This is a very common type of bow, one showing mainly red and yellow, with little or no green or blue.” 3. Practice phonetics You don’t want to be tripping over important names or titles of people when you’re up on stage, so the best way to give your mind a step by step guide to getting through it is to rehearse beforehand and write out phonetically. Studying the way a word sounds not only helps with your ability to communicate accurately; it also helps you remember the words because it ties the words to muscle memory. As your mouth moves to sound out a word, your muscles are learning those words as much as your brain is learning the word. Writing down words over and over again you increase your ability to remember the word, and lastly, constantly re-reading the word helps you concentrate on pronunciation. A few websites to help you nail that pronunciation include Howjsay.com, Forvo.com and Dictionary.com

Anna Roberts, a UAE-based radio and TV presenter, is the founder of NUDGE, a communications advisory specializing in public speaking and media training. Talk to her on Twitter @ImAnnaRoberts www.thenudgeeffect.com

Entrepreneur april 2016

TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

When the inflection point for growth does arrive -whether achieved through increasing the number of revenue streams, number of products and customer segments, or expanding into new geographical locations- a business’ ultimate objective should be to build a stronger business model that can withstand economic downturns and dynamically adapt to new market trends and changing business environments. Good talent can be hard to find, so it is important to nurture available skills and hone them for higher roles. People in charge of all our branches have grown from within and they have a strong appreciation of where we have come from and where our vision is directing us towards in the future.

Fresh territory comes with a host of new challenges

Six tips for expanding a homegrown business By Hassan Al-Hazeem

s businesses prosper through growth, entrepreneurs are driven by their passion to excel and expand their businesses. Building and maintaining a local customer base may be the first step on the road to success, but having growth potential and becoming an international company is a significant feat that not all those who set out to accomplish it achieve. Ultimately, what differentiates even the most successful companies is the vision that drives them. A company’s vision should guide and align every decision and facet of business, well before a growth strategy has been defined and expansion plans embarked on.

Entrepreneur april 2016

Consider, for instance, Intercoil International’s expansion into the Kingdom of Saudi Arabia. Backed by solid feasibility forecasts, effective planning and a confidence in the market potential, our company’s ongoing expansion in Saudi Arabia signified a further step in our homegrown company’s long-term vision to become an international player in the bedding industry. A thriving real estate market, increasing religious tourism numbers and strong demand for premium bedding products have driven Saudi Arabian industry growth, warranting considerable investment and increased commitment from Intercoil International in the Kingdom. But this was not done entirely without challenge or setback, and below are some lessons we learned along the way for tackling international expansion.

1. Brace to beat the system

Many entrepreneurs believe setting up legal entities in the region can be challenging, although we believe it is a lot easier here compared to several other parts of the world where the laws are more stringent and sometimes even flawed. One should not be cowed by the legislative challenges as a reason to not expand. If geographical expansion is a key route to drive growth, one must be resolute in finding ways to overcome them to set up bases in new geographies. 2. Start lean

While the initial temptation to set up a larger infrastructure due to economies of scale can be strong, we believe entering lean is the best approach. Take for example setting up distribution centers in new markets. Outsourcing logistics and implementing an effective just-in-time (JIT) inventory approach allowed us to capitalize on warehouse space and increase efficiency while decreasing waste and associated inventory costs. Obviously this requires a strong understanding of the market, customers and forecast of

One should not be cowed by the legislative challenges as a reason to not expand. If geographical expansion is a key route to drive growth, one must be resolute in finding ways to overcome them to set up bases in new geographies.

In a world where economic boom and bust is becoming more frequent and investments are being made with greater caution, it is all the more important to look beyond the short-term economic cycles and gauge opportunities that lie further ahead.

demands, so be sure to have an innate understanding before expanding. Once a business grows and justifies scaling up, be prudent in building in-house capacities and resources. 3. Nurture talent

Good talent can be hard to find, so it is important to nurture available skills and hone them for higher roles. People in charge of all our branches have grown from within and they have a strong appreciation of where we have come from and where our vision is directing us towards in the future. While we continue to introduce new talent into the company and benefitting from expertise and best practices from other industries, growing internal talent sets that culture of reward that makes good talent more likely to stay with us longer. 4. Maintain a long-term vision

In a world where economic boom and bust is becoming more frequent and investments are being made with greater caution, it is all the more important to look beyond the shortterm economic cycles and gauge opportunities that lie further ahead. The Kingdom of Saudi Arabia may be going through a short-term

dip due to various politicoeconomic vagaries at the moment, but we believe it is a market that is fundamentally strong and will continue to remain one of, if not the most important potential markets in the region for us. 5. Respond to local opportunities

For a company founded in the Middle East, we have sufficient opportunities to expand in the region. Religious tourism in Saudi Arabia continues to grow and the Kingdom is building significant infrastructure to support it. Strengthening our presence with a new factory was a logical step forward and we are confident our hospitality clients will appreciate our ability to respond efficiently to their requirements. 6. Grow revenue streams

The Kingdom is an important market for hospitality and hotels, but it is equally an important retail market. Our new factory in Saudi Arabia enables us to serve our trading and retail partners even more effectively and efficiently- we offer them the advantages of stockholding and JIT deliveries that provide logistical and cost advantages.

In the end, it really comes down to recognizing market potential, knowing your capabilities, and assessing the opportunity cost of not expanding. If something does not challenge you, it most likely will not change you, so take a risk. But make it an educated one

TREP TALK ME

THE BUSINESS Styck app THE â&#x20AC;&#x2DC;TREP Co-founder Alexander Light Q How do you attract new users to Styck and how do you keep existing users engaged? A â&#x20AC;&#x153;We believe that Styck is of interest to people who want to increase the activity levels in their lives. The way we reward users for their achievements is a really strong way we differentiate our app. We have users ranging from ultra-runners and triathletes, through to people starting out on their journey. Styck sets shortterm and long-term consistency goals, and can therefore satisfy a number of needs. Our new rewards act as a great attraction for new users and retention of existing users. We consistently inform our users of new rewards and their activity achievements. We are always building exciting relationships with brands, and will continue to grow the rewards platform for users. Our goal is to help users in creating their first Trybe community. This helps users develop healthy competitiveness and group accountability; key components in developing habits. We have a strong focus on Alexander Light, co-founder, Styck app

our CRM and customer engagement, [by] combining informative email and push notification communication. We believe there is always a need to inform our users of developments we make, but also congratulate them on their achievements.â&#x20AC;? www.styckapp.com

Hassan Al-Hazeem, Managing Director and CEO of Intercoil International, succeeded his late father Abbas Ali AI-Hazeem, the founder of the UAE-based, family-owned business in 1999. Under his leadership, Intercoil International has become a leading manufacturer, distributor and retailer of total sleep solutions in the MENA region present in 23 countries. Prior to Intercoil International, Al-Hazeem worked for the Commercial Bank of Dubai for four years, acquiring comprehensive experience in finance and banking, and an in-depth knowledge of the UAE banking and credit system. april 2016 Entrepreneur

IN THE LOOP

Bird’s eye view

Plume Labs enlists feathered help

f you thought that pigeon post services were too passé for the smartphone era, think again! Pigeons are back as messengers in the streets of London, and this time, they are in-charge of carrying messages about a crucial concern for us all– air pollution. Those on London’s roads on March 14, 15 and 16, 2016, were greeted by a flock of pigeons, each wearing a backpack and tracking device. No, they weren’t spy agents of MI6, but the patrol team of a London-based technology company Plume Labs that works on wearable devices to track air pollution. According to a report in The Guardian, London’s air pollution levels have been alarming recently, with the city already having broken its annual European Union air pollution limit within the first week of 2016. To counter this, Pigeon Air Patrol was hatched by Plume Labs in partnership with marketing agency DigitasLBi and Twitter UK to raise

Above and beyond

British teen vrooms his way to victory at World Drone Prix 2016 in Dubai

an you recall what you were up to when you were a 15-year-old? Well, British teenager Luke Bannister may have no difficulty in doing so, since he and his fellow members of the Tornado X-Blades Banni UK team spent a weekend in March winning the first place and US$250,000 award in the inaugural edition of the World Drone Prix

Entrepreneur april 2016

awareness of air pollution in the city. For three days in March, a team of 10 trained pigeons wearing tiny backpacks with 25gram pollution sensors, were sent out by the company to monitor the ozone and nitrogen dioxide levels in the atmosphere. The campaign is a part of Plume Labs’ larger plan to recruit over 100 people “to fly with the flock” by wearing their own pollution sensors and help create a human-powered pollution monitoring network. The company has started a crowdfunding campaign to get people -ranging from cyclists, runners, walkers, and pram pushers etc.– on board to beta test a wearable version of the device, which is expected to complement the Plume Air Report, its mobile app, available on iOS and Android providing live pollution forecasts. One of the quirky aspects about this venture was that Londoners could actually ask the feathered vigilantes for the pollution levels in their area by tweeting at @PigeonAir, and wait for one of the social-media savvy creatures (named Coco, Julius and Norbert) to tweet back readings ranging from “Fresh” to “Very High.” Moreover, a section on the campaign website also has the pigeons professing their love for their HR team at Plume Labs stating, “Our backpacks are as light as a feather, and a vet’s on hand to double check we’re safe and sound.” Well, they sure are an engaged workforce out on a noble mission!

Scientists successfully test bionic finger with amputee

he day is not too far away when amputees will be able to perceive shapes and textures on touch, thanks to a team of Swiss scientists who have developed a bionic finger. The tool, expected to accelerate the development of touch-enabled prosthetics, is meant to be connected to nerves in an amputee’s arm thereby allowing for a textural touch experience. The findings of the research, a joint effort by scientists at Scuola Superiore Sant’Anna (SSSA) and the Swiss Federal Institute of Tech in Lausanne (EPFL), were published in March 2016 in the journal ELife. Dennis Aabo Sorensen, an amputee who lost his left hand in an accident, supported the team in testing the bionic finger implant, with Sorensen describing the sensations as “almost like what you’d feel with your own hand,” making him the first person in the world to recognize texture using a bionic fingertip. The study was carried out by wiring the nerves in Sorensen’s arm to an artificial fingertip equipped with sensors, which was machine controlled and made to move over different pieces of plastic with different textures. The feeling of touch originated when sensors generated electrical signals that imitated the human nervous system and delivered it to the nerves. According to EPFL, the experiment with Sorensen was found to be a 96% success rate, with Sorensen being able to feel the textures at the tip of the finger and also being able to tell the difference between rough and smooth surfaces. Further, the same experiment, when performed on non-amputees found that they were able to distinguish textures 77% of the time, leading the team to conclude that further research in neuro-prosthetics could help in enabling power of touch to industrial and surgical robots.

www.plumelabs.com

held in Dubai. Bannister’s team beat out 150 other teams to clinch the title, including local favorites Dubai Dronetek, who came in second. According to The Associated Press, the competition saw drones whizzing along the brightly lit race circuit at Skydive Dubai, with each of the machines manned by four pilots at a time, all wearing virtual reality goggles that allowed them to watch the sights from their drone’s perspective. Despite the complexities involved in the challenge, the 15-year-old champion of the first ever World Drone Prix was a picture of modesty after the victory, with

Bannister saying that controlling the drones was “like flying a jet fast.” But Saif Mohammed alSuwaidi, Director-General, UAE’s General Civil Aviation Authority, highlighted the intricacies of World Drone Prix 2016

the competition, saying, “It is not merely a flying game, but a sport that requires mental focus and accuracy to enable users to harmonize mental commands and hand movements to fly their drone.” Organized by the World Organization of Racing Drones (WORD), the World Drone Prix is a part of the UAE’s commitment towards drone technology. The UAE government has already established the Drones for Good Award in 2014, which aims to encourage and reward use of futuristic drone technology for practical solutions that can improve quality of life. www.worlddroneprix.com

Pigeon Air Patrol Image credit Pigeon Air Patrol Twitter account | world drone Image credit Dubai Sports Council

Pigeon Air Patrol

The silver medal of online media Raqami TV receives Silver YouTube Play Button By Erika Widén

www.youtube.com

n October 2014, Raqami TV was launched on Facebook, and three months later, it made its debut on YouTube. Although it was one of the three winners to be incubated in the Digital Incubation Centre (DIC) in Qatar, the Raqami TV team was informed that there would be no funding for the project, which was contrary to what was promised. That’s when Khalifa Saleh Al Haroon, founder of the I Love Qatar network, got involved with the project, as funding was a significant hurdle that Raqami TV needed to overcome. “This was the biggest obstacle that Raqami as a business model had to face, as the feasibility study showed that Raqami TV needed financial support for two years in order to produce shows, market them, and build an audience, which would then attract advertisers,” remembers Al Haroon. “The Raqami TV team then approached me for support. As I was building the I Love Qatar network and the YouTube network, I was interested in buying a significant stake in the idea and helping to fund the project. I’m glad I did, because the team has smashed expectations. We’re the first to receive the Silver YouTube Play Button, and we’re on the path to a quarter of a million subscribers.” YouTube provides awards to content creators, and the Silver Play Button is regarded as the first recognition of the group’s hard efforts.

“It’s a validation [that] we really need to continue on this journey. We’re also extra proud to be the first -as far as we know- in Qatar to receive it.” Raqami TV focuses on consumer technology such as smartphones, tablets, and wearable tech to name a few. In addition, there are a number of diverse programs such as Apptikar. “Apptikar, a play on words ‘App’ and ‘Ibtikar,’ which means innovation [in Arabic], which features a run down of hot apps. Mr. Q, a show I host where I unbox and take first looks at the latest technology, NashraTech [focuses] on latest trends and tech news, and more. We even have a new ‘knock out’ battle show where we pit mobile devices specs against each other.” Al Haroon mentions that while their content is all in Arabic, it’s a simplified classical Arabic appealing to a broad audience. “Our audience is really from all over the world; however, the majority is from the Arab region. We have large viewership from KSA, Egypt, Iraq, Algeria, and Morocco. About 80% of our viewers are males, and approximately 60% of which are 18 to 24 years old.” Undoubtedly, the success of

Raqami TV is due to team’s dedicated passion. “We’re Arabs, we love the latest tech, we’re early adopters, and our voice matters. We all believe in the cause, which drives us everyday. There are a number of reasons for why we’ve been successful: we’re doing something that hasn’t been done, we’re keeping things simple, we’re always friendly, we respond to almost every single one of our users, and we capitalized on using existing influential brands like Mr.

TECH

ally produced; hence, Raqami strongly believes they are assisting in closing the gap. “All our content is original. We observe the latest trends and product releases and we analyze, write, and produce different shows ranging from weekly tech news show, events coverage, products unboxing and reviews, to how-to videos,” says Al Haroon. Raqami TV has achieved a lot of positive reviews since it was first unveiled, and Al Haroon adds how they have a

Raqami TV on YouTube

Q.” Raqami TV’s vision is to become the one-stop shop for anyone who needs information in Arabic on consumer technology and how to use it. “Our mission is to help create a culture of informed technology and electronics consumers and make Arabic one of the languages of choice to obtain trusted and useful information about technology, and become contributors to a knowledge-based economy.” More importantly, market research shows a lack of Arabic content profession-

lot of ideas and big ambitions, which require investment and development. “I am hoping that we will get the attention of entities and investors looking to support youth, Arabic language, and Arabic media and content. We believe we can take Raqami TV to whole new levels with the right support and resources, to become the true media powerhouse we are all aiming for. There’s less than .05% of content online in Arabic. We hope that our content will change things.”

april 2016 Entrepreneur

in pictures GITR KSA

The Maserati Levante

Making an impression Entrepreneur Middle East celebrates the launch of the Levante with Maserati

uch like the Mediterranean wind that gives it its name, the 2017 Maserati Levante SUV saw its Dubai launch in March to be a striking affair, with the elegance and refinement of the event fully representative of the Maserati brand. With guests including names from Entrepreneur Middle East’s 107 Opinion Shapers of Commerce, Government and Industry featured in its Collector’s Edition in January, the exclusive privé

Entrepreneur april 2016

event held at The One&Only Royal Mirage had Umberto Cini, Managing Director, Maserati Middle East, India and Africa, unveil the Levante to the gathered audience. Billed as the “Maserati of SUVs,” the Levante has the distinction of being the being the first SUV to be made under the trident banner, and thus features all of the style, performance and panache one expects from the Italian brand. And if the success of this launch party is any indication, then it looks like the Levante is all set for a good run here in the Middle East. www.maserati.ae

Umberto Cini, Managing Director, Maserati Middle East, India and Africa

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Q&A WITH THE FOUNDER

Almasika Cowry Earrings with design sketch

Shelling out Entrepreneur and designer Catherine Sarr Almasika Fine Jewellery’s founder draws on African cultural heritage

orn in Paris and raised in a Beninese home, Catherine Sarr’s tryst with fine jewelry was a result of her frequent family trips to Benin as a youngster. These early memories prompted Sarr to start her own jewellery line, Almasika Fine Jewellery, which blends symbols of Africa’s cultural heritage with contemporary designs, creating ornaments of universal appeal. “Each outing there [to Benin] came with the reward of a dazzling show of jewellery adorning my mother, aunts and cousins, and trips to the market, where, for hours at a time, I would watch craftspeople transforming traditional materials into magnificent necklaces, earrings and bracelets,” Sarr remembers. The name Almasika was derived from two words: ‘Almasi’ meaning diamonds in Swahili, and ‘Sika’ meaning gold in several West African languages, and quite fittingly, one can see a notable fusion of gold and diamonds in the line. Besides bespoke jewellery, Almasika

Entrepreneur april 2016

has two other collections. Its debut collection, Le Cauri Endiamanté, was inspired by a popular cultural concept of African heritage long considered a symbol of good fortune- the cowry shell. In keeping with Almasika’s focus, the cowryshell shaped pendants in gold are studded with diamonds. Almasika’s Vallée de l’Omo collection is characterized by a simple band of gold over the upper arm, and it is Sarr’s interpretation of an ancestral ornament worn by residents of Lower Omo Valley in Africa. Debuting in 2014 at the Colette store in Paris, Almasika is based in London, and its works are available in Paris, London, Zurich, Florence and New York. Sarr plans to strengthen the brand’s U.S. presence and expand her venture into Middle East, Africa and Japan this year. “We are discussing with potential retailers to launch in the UAE this year,” says Sarr. While Almasika’s growth is still self-funded, Sarr reveals that advanced discussions are on

with “proactive” investors, and she aims to finalize the deal by the second quarter of 2016. Regarding her enterprise’s journey since its launch, Sarr says she is pleased with the strong uptake in sales, especially in the past six months, which she credits to public relations activities including mentions in leading fashion media. Several celebrities like American performing artists Andra Day and Zoe Kravitz have worn Almasika’s creations during public appearances, thereby bringing recognition to the brand and its African cultural theme. With respect to the business aspect of her company, as Sarr is based between Abu Dhabi and London, technology plays an integral role. While she is deeply motivated by the artistic side of her industry, the entrepreneur recognizes that at its core the business needs to make financial sense as well. “I am passionate about jewelry and design, yet I always make sure my decisions go through a financial filter and pass the ‘does it make sense’ test.” And her tips for aspriring ‘treps? “Write a business plan, have a mentor, and be relentless. My husband calls it PHD: passion, humility and dedication.” www.almasika.com

How has your background and previous work experience helped you with launching Almasika? After graduating, I left Paris for London where I promoted the art of craftsmanship. I worked for various luxury brands including several years at the heart of the diamond and fine jewellery industry at De Beers Group. There, I curated one-of-a-kind diamond jewellery collections giving me invaluable experience in international PR, marketing, jewellery production, diamond expertise, budget management, logistics etc. What is your creative process like in designing a product? It usually starts with a story (family, historical or fictive), or a mix of my imagination, my travels, pieces that I collect, books I read. I imagine a design that would represent a piece of history so anyone would be able to appreciate the design but also the story behind it. I have designed a pair a cufflinks following a walk on a beach, where I saw my husband and my little boy sharing a precious father and son moment. These diamond cufflinks are now one of our bestselling pieces. I am influenced by stories, symbols and heritage. What moment in your career was most discouraging, and how did you get back on track afterwards? The beginning of my career felt the most discouraging. I was moving countries and looking for opportunities. I used ‘felt’ instead of ‘was’ because looking back, I’ve always stayed positive and this period really defined who I am.

Catherine Sarr, founder, Almasika Fine Jewellery

THERE’S SOMETHING FOR EVERYONE AT THE SUN SIYAM IRU FUSHI MALDIVES AT A GLANCE • 52 acre island giving space and seclusion • Famous for continuous white sand beach surrounding the entire island • House reef with colorful corals and fishes • Ideal for couples & families • 14 top level restaurants and bars (endless options) • All of the restaurants are available for All Inclusive plan • Main restaurant has a separate area for families • Awarded 3 times with Best Spa • Awarded Best Kids Club in Maldives • Adults only pool • Large variety of over water & beach fronted villas • 45 minutes scenic seaplane flight

DEDICATED PASSION

P.O.Box 2036 Malé Noonu Atoll Republic of Maldives T +960 656 0591 F +960 656 0592 www.thesunsiyam.com

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Rafael Nadal

The executive selection

rom better goods to boardroom wardrobe bests, each issue we choose a few items that make the approved executive selection list. In this issue, we present the SS16 men’s collection by Lanvin, a fine timepiece meant to give you choice, and our suggestions for a fragrance to incorporate into your grooming routine.

Rules were made to be broken LANVIN HOMME SS16

This fine French House of fashion doesn’t believe in rules… and at no time has this been more clear than with Lanvin’s latest collection for the discerning man. Signature greys and blacks are interspersed with brights for the springsummer seasons in an attractive slew of textures and finishes, while staple elements are presented in a variety of fabrics with fastenings laid bare to accentuate an overall look. Under the eye of Lucas Ossendrijver, the Director

of men’s fashion at Lanvin, the attire’s message is supposed to evoke that of prized keepsakes- these items are meant to be worn, and worn again, and then yet worn again to become part of your story. With a nod to the “emotional” side of your attachment to looking good, you’ll find yourself pulling these crisp tops and form-free sweaters out time and time again. After all, the “rules” say you need to continue to update your look to an individual, and the SS16 lineup is made to break that rule- since these items are meant to be part of your message, not in addition to it. www.lanvin.com

Lanvin Homme SS16

Entrepreneur april 2016

Lanvin Homme SS16

OFF THE CLOCK

Lanvin Homme SS16

The RM 27-02

Lanvin Homme SS16 ON THE CLOCK

Lanvin Homme SS16

ON THE CLOCK

images © lanvin

‘Trep trimmings

Lanvin Homme SS16

Universal appeal

HUBLOT CLASSIC FUSION

For a timepiece that already boasts a loyal following, things are about to get closer to fandom. The Hublot Classic Fusion, made available in blue during the watchmaker’s SS15 presentation, is now available in what might end up being the most popular iteration yet: Racing Grey. If the smooth neutral isn’t reason enough to opt for the finely made timepiece, then consider that this is about as bespoke as you can get with a watch that looks this slick- you’ve got a choice of four dimensions, and three movements, and they all look pretty darn good.

Hublot Classic Fusion

www.hublot.com

Tom Ford Venetian Bergamot

Editor’s pick

images © hublot | tom ford

Tom Ford Venetian Bergamot

Part of the Tom Ford Private Blend collection, Venetian Bergamot is the latest fragrance that men across the region will be adding to their olfactory wardrobes. To develop the newest eau de parfum in his lineup, Tom Ford went to the heart of Italian

Calabria for the essence of bergamot, and then enveloped it in a fresh, citrusy note. As for spice, you’ll find that here too: black peppercorn from Madagascar, pink peppercorn, and essence of ginger are presented together in a warm arrangement. Good things do come in threes after all. www.tomford.com

april 2016 Entrepreneur

TECH

This month in our tech picks, you can personalize your hardware, shoot and share sharper images, and improve your storage options.

Let’s be friends

LG G5

LG introduces modular G5

LG pushed the boundaries of design with its first modular device, the LG G5. Featuring a slide-out bottom and a range of attachments called LG Friends, the phone itself can be personalized- a first for hardware. You can choose from a variety of add-ons like LG 360 VR, LG 360 cam and LG Hi-Fi PLUS to customize the device for your needs. All of the components can be managed using a single app and can be swapped at any time, making G5 arguably the most versatile smartphone available. Simultaneously, LG entered the world of virtual reality with 360 VR, a headset with a sharp display that’s compatible with 360 images as well as Google Cardboard content. Whether you’re looking for hardware that enables virtual reality, great photography or an exceptional listening experience, you can turn to the G5 (and a friend).

Entrepreneur april 2016

LG 360 VR

iPad Pro

The heavyweight

Apple’s new iPad Pro

The new 9.7-inch iPad Pro is here! Although it weighs just under a pound, the device is packed with features like Pro Retina display, Night Shift mode and True Tone display technology, making it quite the heavyweight. iPad Pro is outfitted with a 64-bit A9X chip that rivals most portable PCs, along with a four-speaker audio system, a 12 megapixel iSight camera for shooting live photos, 4K video, and a five megapixel front HD camera. Faster wireless technology keeps you

connected wherever you go with 802.11ac Wi-Fi with MIMO technology, and up to 50% faster cellular connectivity. Now with Apple SIM embedded directly in the new iPad Pro, it’s even easier to connect to wireless data plans right from your device when traveling in more than 100 countries. And, they didn’t skimp on accessories either, with Apple Pencil compatibility and a new Smart Keyboard cover designed especially for the 9.7-inch iPad Pro- it’s a total package.

Picture this

Canon’s new entry-level EOS DSLR

The EOS 1300D is an ideal start to DSLR photography. It has an 18 megapixel sensor, responsive handling, onboard Wi-Fi and dynamic NFC which allows you to snap the perfect image and share it immediately. EOS 1300D is all about capturing details with Canon’s DIGIC 4+ processor and a large APS-C sized sensor. Shoot scenes where people and items pop from a blurred background or detailed full

HD movies with a beautiful cinematic feel thanks to DSLR control depth of Surface Pro 4 field. EOS 1300D is packed with features like responsive auto focus and optical viewfinder that can turn a novice into pro in no time, and it’s ideal for shooting sharp sports and action images. From close-up nature shots, portraits and full cityscapes, this camera helps you create original photographs that you’ll want to share.

EOS 1300D

In a flash

SanDisk releases USB Type-C flash drive

SanDisk, a global leader in flash storage solutions, introduced the Ultra USB Type-C Flash Drive designed specifically for next-generation devices. The sleek, new drive features a USB Type-C connector for quick file transfer between USB Type-C enabled mobile devices, laptops and tablets. The drive is available in up to

128GB and delivers USB 3.1 performance of up to 150MB/ s2, making it SanDisk’s fastest and highest capacity USB Type-C offering. It has a retractable design to keep the connector protected and it’s compatible with the SanDisk Memory Zone app for Android that auto-launches upon insertion of the drive, allowing immediate access to your content. USB Type-C supported devices are expected to increase during 2016.

#TAMTALKSTECH Tamara Clarke, a former software

development professional, is the tech and lifestyle enthusiast behind The Global Gazette, one of the most active blogs in the Middle East. The Global Gazette has been welcomed and lauded by some of the most influential tech brands in the region. Clarke’s goal is to inform about technology and how it supports our lifestyles. See her work both in print regional publications and online on her blog where she discusses everything from how a new gadget improves day-to-day life to how to coordinate your smartphone accessories. Visit www.theglobalgazette.com and talk to her on Twitter @GlobalGazette.

april 2016 Entrepreneur

COMPLETE YOUR SPORTS KIT

IN THE LOOP Fintech at the forefront PayFort announces new MENA accelerator

Dubai Technology Entrepreneur Centre (DTEC)

Building blocks

Dubai Silicon Oasis’ DTEC welcomed 430 startups and created 2,470 jobs in 2015

n a year of sluggish growth for the region’s economy, Dubai Silicon Oasis Authority (DSOA) -a 100% government-owned free zone- has reported strong results for 2015, an indication of the UAE’s turn toward technology to diversify its economy. According to a DSOA release, Dubai Technology Entrepreneur Centre (DTEC), the free zone’s entrepreneurship support outlet, has managed to attract and house 430 startups from 59 countries since its launch in March 2015. DTEC also reported the creation of 2,470 new jobs in its target sectors, since its start of operations. Further, in line with its commitment to encourage innovative businesses, the center has also facilitated investments of AED51 million (from DSOA and other investors) for the startups that are a part of DTEC. Overall, aggregate investments in DSOA for 2015 have amounted to AED3.6 billion, with the revenues of the free zone said to have grown 16% over the previous year. The number of companies operating out of DSOA also increased from 1,391 in 2014 to 1,920 in 2015- a 38% growth. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman, DSOA, attributed the results to growth in UAE’s technology sector, a factor he considers crucial for the country’s diversification efforts. As per official data, nearly 78% of the companies operating at DSOA are technology companies, and the remaining 22% belong to a range of other sectors including commerce and services. Looking ahead, DSOA has forged strategic partnerships with vari-

ous multinationals for promoting entrepreneurship in the region. In partnership with Intel, DSOA plans to establish a facility in the Middle East to support the development of a Smart City Centre of Excellence within DTEC. DSOA has also signed a sponsorship agreement with SAP Training and Development Institute, under which space will be set aside to host up to three SAP innovation bootcamps. DTEC’s tech startups are also expected to benefit from free software and services made available through the Microsoft Biz-Spark Program, thanks to an agreement between DSOA and Microsoft Gulf. Commenting on DTEC’s upcoming projects to nurture entrepreneurship, Dr. Mohammed Al Zarooni, Vice Chairman and CEO of DSOA, also cited plans to expand the space designated for entrepreneurs at DTEC by adding 1,000 sq. m. of office space to its “Techno Hub” building, which will bring the total space for startups to almost 4,600 sq. m.

Dr. Mohammed Al Zarooni, Vice Chairman and CEO, DSOA

ccording to The Economist, financial technology attracted US$12 billion in investments in 2014- so yes, the fintech revolution is coming and the Middle East is not falling behind. At Wamda’s 2016 Mix N’ Mentor event in Cairo in March, online gateway PayFort announced the launch of its regional fintech accelerator Fintech Factory. Ignited by the increasing demand for fintech in the region, PayFort Managing Director Omar Soudodi says the accelerator was launched “in order for PayFort to continue meeting the demands of our merchants that use us across six markets in the region (and growing). We needed to innovate faster, and we realized we can’t innovate fast enough alone, thus investing and collaborating with fintech startups will enable us to meet market demands faster.” In the next couple of months, the first phase of companies will participate in the first run of the program. So what does it take to be eligible for the accelerator? Soudodi says that startups need to be in fintech and relevant to PayFort’s merchant base, and that it’s also open to SMEs in various business lifecycles from ideation to scaling and either pre-production to post production. And in return, what can prospective ‘treps expect from this accelerator? Startups can receive up to $100,000 during the first phase, with the opportu-

nity to possibly receive additional funds through Fintech Factory’s investment partners at later stages. Soudodi also adds, “Startups will be undergoing the due diligence process, at which they will be receiving an analysis of their current readiness from regulatory, commercial, marketing, financial, operational and technical [level] that will become their roadmap while interacting with Fintech Factory coacheseither PayFort personnel or Fintech Factory Advisors.” Participants will also be able to access PayFort’s

Omar Soudodi, Managing Director, PayFort

bank and merchant networks around the region. The accelerator is planning to onboard banks “that are willing to work with fintech startups,” and advisors from PayFort and experts from M&A, VC, regulatory and other industries and skills to support startups. Though the fintech accelerator would only intake between three and four startups per year, Soudodi assures us that they will constantly be on the lookout for startups and ideas that “solve a problem in this space, [and] display high relevancy in fulfilling a certain demand.”

april 2016 Entrepreneur

in pictures

Congrats are in order! Kuwaiti ‘treps graduate from MTB Startup School in Silicon Valley

n early February, 16 entrepreneurs graduated from MTB Startup School 2016, an acceleration program from the partnerships between Mind the Bridge (MTB), its MENA partner Kuwait’s Brilliant Lab, Kuwait’s Ministry of State for Youth Affairs, Zain Group, IE Business School, Al Hamra Kuwait, and Gatehouse Capital. Held in San Francisco, California (the new HQ for future Silicon Valley MTB activities), it welcomed ‘treps from Brazil, Kuwait, and Italy, and startups in early and later stages, as well as ventures from the education, virtual reality, SaaS and IoT sec-

tors. During visits to Stanford, Google and MobileIron, the students learned from lecturers and mentors on establishing an enterprise, and about Silicon Valley’s ecosystem. Among the lecturers were Brilliant Lab founder Neda Aldihany, FireMatter founder Matteo Fabiano, invisu. me CEO and co-founder Donna Griffit, Timelapse founder Oliver Roth. Launched in 2011, `aims to encourage entrepreneurship in Kuwait and the wider GCC by supporting new ventures, and connecting entrepreneurs with government entities and venture capitalists. www.brilliant-lab.com

MEET THE ‘TREPS Graduates of MTB Startup School 2016 Ajar Online Cloud service

app for collecting and paying rent via SMS and email BigHut Games Game development studio DIVA home An app controlled LED lamp to save and track energy

Mindesk An online collaboration tool for CAD modeling Oncase A solution

provider to analyze data for businesses Prodeaf A software solution to translate text and voice to sign language

Fitmeplus A video-chat platform for personal trainers Suati A platform for energy trading and management and customers InteriorBE A community

of interior design professionals Lotebox A workflow

management system simplifying cargo shipping and logistics processes

SiliconReef A systemon-chip solution for the sustainable energy market Nasser Story An edutainment app aiming to teach children Arabic using tower animation facilities

april 2016 Entrepreneur

TECH

“We expect to continually expand our MENA presence. Fortunately, this has been happening organically by direct virtue of the product’s viral nature. Our company believes that long-term sustainability is a direct result of cheap marketing and focusing on growth from within the product itself.”

From left to right: Blend App co-founders Akash Nigam, Evan Rosenbaum and Matt Geiger

Blending in… to the Middle East San Franciscobased app garners regional investor interest By Sindhu Hariharan

f making a mark outside the home turf halfway around the world were to be perceived as a breakthrough moment for startups, Blend -a group messaging app- seems to have reached a milestone. “Blend views MENA as one of the great upcoming areas for tech innovation. We’re excited to be bringing our product to users across the Middle East, especially to those who may not be avid users of more multimedia rich messengers, like users are in North America,” says Evan Rosenbaum, Blend co-founder. Despite being part of a crowded messaging app market, dominated by giants like WhatsApp and

Entrepreneur april 2016

Slack, the San Franciscobased Blend has caught the attention of MENA’s investing community in its recent round of funding. Blend raised US$6.3 million in June 2015 in a Series-A round led by New Enterprise Associates (NEA), a round that also saw participation from Al Nowais Ventures. Commenting on the raise, Blend co-founder and CEO Akash Nigam says, “When we started gaining organic traction in the Middle East, we wanted to learn more about the region, and how to best take advantage of the momentum. NEA introduced us to Saud Al Nowais [a UAE diplomat, who is a part of Al Nowais family] who has his hands in both the American venture space and the MENA venture space. We then had a couple of phone calls, and there was immediate synergy. The relationship has been flourishing and their value to help us expand internationally has been as initially expected.” Launched in 2013 by Rosenbaum with friends Akash Nigam and Matt Geiger, Blend claims to have over 250,000 daily active users on its app, and is now 20 employees strong with offices in San

Francisco, California and Bucharest, Romania. Blend started off as a trend/themebased picture sharing app, mostly for college students, and it has since then pivoted into a messaging app going beyond peer-to-peer conversations, with a focus on “groups” including groups of friends, families, coworkers etc. The app considers Generation Z and millennial audiences as its core market

Blend studies aspects that drive users away from other messaging apps, models key features of Blend based on these factors, and then works on building prototypes to incorporate them.

and its user base includes high schoolers, fraternities/sororities at colleges, and fans of any “verified” (celebrity) Blend users. “Our cut and dry differentiator is the public groups,” Nigam says. “Public groups can only be created by verified users and are open to anyone. It’s a one-stop shop for the respective celebrity’s fan base.” Notable verified users currently on Blend include singers Jack Johnson and Shawn Mendes, among others. The startup is highly focused on design and has a unique user-centric marketing approach. Blend studies aspects that drive users away from other messaging apps, models key features of Blend based on these factors, and then works on building prototypes to incorporate them. The marketing team also undertakes other innovative efforts, such as turning off spellcheck in the app for 72 hours, and analyzing data on the misspellings, which has earned them good media attention. In addition, the public groups feature Blend app

| MOBILE TECH |

Canadian University Dubai Students Develop Efhamni, An Emirati Sign Language App

also seems to be working in Blend’s favor. Verified users/ celebrities from various fields drawn in their “fans” to the platform. Speaking of the app’s game plan for the future, Rosenbaum, co-founder and CPO, Blend, say that they are currently developing “breakthrough experiences” for users. “We also have another big update coming later in the year that’s been receiving amazing feedback initial user studies,” he added. The app is currently pre-revenue, and hopes to pursue a native advertising model when the timing is right. And as for Middle East expansion plans, Nigam confirms that it is on the agenda: “We expect to continually expand our MENA presence. Fortunately, this has been happening organically by direct virtue of the product’s viral nature. Our company believes that long-term sustainability is a direct result of cheap marketing and focusing on growth from within the product itself. Therefore, when we visit places like

“It’s tempting to overbuild and overcomplicate new companies, products, and features. We’ve learned that the best features are those which are simple for users to understand while being quick to build.”

Dubai, rather than focusing on marketing ploys or efforts, we meet with a bunch of young users and mine for product feedback. Subsequently, we tailor the product roadmap with their feedback in mind. We’ve found this to be the golden path to our success.”

Tips for ‘treps Evan Rosenbaum, co-founder, Blend

“Our tips for entrepreneurs are firstly: think lean, build lean, pivot lean. It’s tempting to overbuild and overcomplicate new companies, products, and features. We’ve learned that the best features are those which are simple for users to understand while being quick to build. This provides your company with the ability to pivot quickly and adjust to real users. Secondly, don’t delay launching [and] get your product to market quick. You will learn more than you ever expected once you have real users on your product; issues you may never have foreseen suddenly come to light. Third will be to focus on design- as Dieter Rams famously said, ‘Good design is no design.’ We live this at Blend. A product needs to feel so natural to its users that it feels like it isn’t designed at all. The hardest component of designing is figuring out what to remove, not what to add.”

After attending a conference hosted by the UAE Deaf Association where they were exposed to members’ challenges such as access to education and employment opportunities, a group of students from the Canadian University of Dubai decided to make use of technology for social good. They put their plans in motion by participating in the Ripples of Happiness (ROH) program in January 2016, following which the team designed a mobile application Efhamni (Arabic for “Understand Me”), which teaches Emirati sign language. Nérimel Bessa, cofounder, Efhamni, says the app was created with the intention to promote a more inclusive society. “Emirati sign language is only five years old, and there are only two institutions that are teaching the language,” Bessa says. “Consequently, there are few people who have mastered the language, and this limits communication, education and employment opportunities for the deaf.” Hailing from different countries and different majors in the University, the 17-member Efhamni team counts diversity as their strength and hopes to make communication less burdensome for the deaf community by hosting video lessons of Emirati sign language with Arabic and English subtitles. Interestingly, the videos feature Emirati sign language specialists who teach the signals for words and sentences. As an additional feature,

English speakers can also learn to pronounce Arabic words as one can also hear the word in Arabic. Supported by mentors from the university and outside, and with AED 1,800 handed to them by Injaz UAE and The Coca-Cola Foundation during the ROH program, the team was able to come up with a working design in just six weeks and also came in second place at the challenge, winning US$7,000 in grants to grow the company. The student team has been able to record 30 videos so far and with 70+ downloads from across Egypt, Oman, Germany, US, France, and Saudi Arabia, the app has gained over 1,600 followers across their social media channels and has “made impressions” on over 10,000 Twitter users. “Before we started this project, we imagined the UAE as the only area that could benefit from this project,” Bessa explains. “Now we realize the possibility of improving the communities in all Arabic speaking countries. This way we hope to transform the lives of 11.2 million deaf people in all Arabic speaking countries, the same way we are transforming our community here in the UAE.” With the determination to take Efhamni beyond a college project, the team is keen to improve features by working closely with sign language specialists and linguists and also focus on getting their message across far and wide, through marketing efforts.

april 2016 Entrepreneur

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

2. WHEN YOU’RE RUNNING LATE Being late is the worst. It’s stressful for the person who is running late and it’s disrespectful to the person who is waiting. It might seem strange to thank someone for dealing with your hassle, but that’s exactly the correct response. Most people stumble in the door and say, “Sorry I’m late.” The problem is this response still makes the situation about you. Sorry, I’m late. Saying “Thank you” turns the tables and acknowledges the sacrifice the other person made by waiting. Thank you for waiting. Example: You walk in the door 14 minutes late. • Instead of: “So sorry I’m late. Traffic was insane out there.” • Try saying: “Thank you for your patience.”

Seven situations when you should be conveying gratitude Make your life better by saying thank you

By James Clear

don’t say “Thank you” as often as I should, and I doubt I’m the only one. In fact, I’m starting to believe that “Thank you” is the most under-appreciated and under-used phrase on the planet. It is appropriate in nearly any situation and it is a better response than most of the things we say. Let’s cover seven common situations when we say all sorts of things, but should say “Thank you” instead. 1. WHEN YOU’RE RECEIVING A COMPLIMENT We often ruin compliments by devaluing the statement or acting overly humble. Internally, you might think this prevents you from appearing arrogant or smug. The problem is that by deflecting the praise of a genuine compliment, you don’t acknowledge the person who was nice enough to say something. Simply saying “Thank you” fully acknowledges the person who made the compliment and allows you to enjoy the moment as well. Example: “Your dress looks great.” •Instead of: “Oh, this old thing? I’ve had it for years.”

Entrepreneur april 2016

•Try saying: “Thank you. I’m glad you like it.” Example: “Wow! 20 points tonight. You played really well in the game.” • Instead of: “Yeah, but I missed that wide-open shot in the third quarter.” • Try saying: “Thank you. It was a good night.” Example: “You killed your presentation today!” • Instead of: “Did I? I felt so nervous up there. I’m glad it looked alright.” • Try saying: “Thank you. I’m happy it went well.” There is something empowering about fully accepting a compliment. When you deflect praise, you can’t really own it. When you just say “Thank you,” you let the weight of the compliment sink in and become yours. Saying “Thank you” gives your mind permission to be built up by the compliments you receive. Getting compliments should be fun and enjoyable, but we often ruin the experience. There’s no need to sabotage compliments that come your way. Accept them with grace and enjoy the moment.

When we make a mistake, someone else often makes a sacrifice. Our default response is to apologize for our failure, but the better approach is to praise their patience and loyalty. Thank them for what they did despite your error. 3. WHEN YOU’RE COMFORTING SOMEONE When someone comes to you with bad news, it can be awkward. You want to be a good friend, but most people don’t know what to say. I know I’ve felt that way before. Often times, we think it’s a good idea to add a silver lining to the problem. “Well, at least you have…” What we fail to realize is that it doesn’t matter if you don’t know what to say. All you really need is to be present and thank them for trusting you. Example: Your co-worker’s mother passed away recently. • Instead of: “At least you have a lot of fond memories to hold onto.” • Try saying: “Thank you for sharing that with me. I know this is a hard time for you.” Example: Your brother lost his job. • Instead of: “At least you have your health.” • Try saying: “Thank you for sharing this with me. I’m here to support you.” Example: Your friend’s pet just died. • Instead of: “At least they had a long >>>

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

and happy life.” • Try saying: “Thank you for sharing that with me. I’m here for you.” In times of suffering, we don’t need to hear words to ease the pain as much as we need someone to share our pain. When you don’t know what to say, just say “Thank you” and be there. 4. WHEN YOU’RE RECEIVING HELPFUL FEEDBACK Feedback can be very helpful, but we rarely see it that way. Whether it is an unflattering performance review from your boss or an email from an unhappy customer, the standard reaction is to get defensive. That’s a shame because the correct response is to simply say, “Thank you” and use the information to improve. Example: “This work isn’t good enough. I thought you would do better.” • Instead of: “You don’t understand. Here’s what really happened.” • Try saying: “Thank you for expecting more of me.” Example: “I bought your product last week and it already broke. I am not happy with this experience.” • Instead of: “How did you use it? We made it very clear in our terms and conditions that the product is not designed

to work in certain conditions.” • Try saying: “Thank you for sharing your thoughts. Please know we are committed to becoming better. Can you share more details about the issue?”

est thing I’ve read all week.” • Instead of: “You’re an idiot. Let me tell you why…” • Try saying: “Thank you for the feedback. I still have a lot to learn.”

Nobody likes to fail, but failure is just a data point. Respond to helpful feedback with thanks and use it to become better.

Releasing the need to win every argument is a sign of maturity. Someone on the Internet said something wrong? So what. Win the argument by the way you live your life.

5. WHEN YOU’RE RECEIVING UNFAIR CRITICISM Sometimes criticism isn’t helpful at all. It’s just vindictive and mean. I’ve written about how to deal with haters previously, but one of the best approaches is to just say thank you and move on. When you thank someone for criticizing you, it immediately neutralizes the power of their statements. If it’s not a big deal to you, then it can’t grow into a larger argument. Example: “This might be good advice for beginners, but anyone who knows what they are doing will find this useless.” • Instead of: “Well, clearly, I wrote this for beginners. This might be a surprise, but not everything was written with you in mind.” • Try saying: “Thank you for sharing your opinion. I’ll try to improve next time.” Example: “Your statement is the dumb-

“i would praise you, but your value is beyond words.”

6. WHEN SOMEONE GIVES YOU UNSOLICITED ADVICE This shows up a lot in the gym. Everybody has an opinion about what your technique should look like. I think most people are just trying to be helpful, but hearing someone’s opinion about you when you didn’t ask for it can be annoying. One time, someone pointed out some flaws in my squat technique in a video I posted online. I responded by sarcastically asking if he had a video of himself doing it correctly. Somewhere deep in my mind, I assumed that if I reminded him that his technique wasn’t perfect, then I would feel better about the fact that mine wasn’t perfect either. That’s an unnecessary and defensive response. The better approach? Just say “Thank you.” Example: “You know, you should really keep your hips back when you do that exercise.” • Instead of: “Oh really? Do you have a video of yourself doing it so I can see it done correctly?” • Try saying: “Thank you for the help.” Pointing out others faults doesn’t remove your own. Thank people for raising your self-awareness, even if it was unsolicited. 7. WHEN YOU’RE NOT SURE IF YOU SHOULD THANK SOMEONE When in doubt, just say thank you. There is no downside. Are you honestly worried about showing too much gratitude to the people in your life? “Should I send a thank you card in this situation?” Yes, you should. “Should I tip him?” If you don’t, at least say thank you. Say thank you more often

James Clear writes at JamesClear.com, where he uses behavior science to share ideas for mastering your habits, improving your health, and increasing your creativity. To get useful ideas on improving your mental and physical performance, join his free newsletter JamesClear.com/newsletter. To have James speak at your entrepreneurial event contact him jamesclear.com/contact

Entrepreneur april 2016

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

READ BETWEEN THE LINES BUSINESS BOOK RUNDOWN By Amal Chaaban

ust because an author demonstrates great sales doesn’t mean their business advice is applicable in the boardroom or even good for practical application otherwise. Our reviewer takes a look at some of the titles getting hype recently and gives you the executive summary. Before you hit the business bestseller aisle, read these reviews to see which of these known books are actually worth your while.

Snakes in Suits: When Psychopaths Go to Work Paul Babiak Ph.D. & Robert D. Hare, Ph.D.

What do you do with an employee who hits all the right notes with all the right people but is in fact creating such a toxic workplace that it is more of a detriment to have them there than it is a help? How do you spot the employee who is manipulative and abusing their co-workers in a myriad of little ways? Paul Babiak and Robert D. Hare seek to educate us about how to spot

Future Brain: The 12 Keys to Create Your High Performance Brain Dr. Jenny Brockis

One of the most underused tools in a human being’s arsenal is their brain, or so Dr. Jenny Brockis would have us believe. Dr. Brockis continues the work she began on brain fitness in two previous books in this new work, where she continues to push the boundaries in how neuroscience can provide the perfect tools to navigate our increasingly complex society. During the introduction, Dr. Brockis takes some time to discuss how current work environments are not conductive to great

Entrepreneur april 2016

brain fitness. Instead of a continued lamentation, she moves into how to change things to make it better for brain fitness and therefore more productive. Some of the 12 keys material is information that everyone should already know (or already knows and don’t apply), and the author takes the time to stress the importance of each segment thoroughly. Pick up Future Brain when you want to improve your performance and keep your mind functioning in top form.

the psychopath in our midst (or our hiring pool) so that your company has a chance at surviving an encounter with one of these people. Using science, Babiak and Hare provide you the tools to recognize these problem employees before they cause complete and utter chaos in your company. HR managers should use this book as a guide in what to look for, and how to navigate the management of their resident staff psychopath.

Leadership BS: Fixing Workplaces and Careers One Truth at a Time Jeffrey Pfeffer

Leadership is a term bandied about with alarming regularity and casualness in today’s business world, and whether or not the essence of real leadership exists in an organization is a matter of debate and subject to personal opinion. Into the fray comes Jeffrey Pfeffer to create not only transparency in how leadership should work, but also to dispel the myths that act as conventional wisdom. Using a combination of research findings

and basic common sense, the author provides some much needed clarity on what he calls the “leadership industry” and proceeds to dismantle it. This book is a must read for people both in senior positions, and those looking to make the move into a leadership role. In order to be a true leader, you need to be willing to dispel the myths surrounding that role and Leadership BS is a book that can take you there.

Primed to Perform: How to Build the Highest Performing Cultures Through the Science of Total Motivation Neel DOSHI & Lindsay McGregor

Corporate culture is a critical building block in performance, and according to the authors, too many corporations are losing out. Why? Because companies sometimes don’t understand that why people work is directly related to how people work. Part one of Primed to Perform breaks down the six main motivators for people who work and introduces the science of “total motivation” (referred to as ToMo). Part two of the book discusses the science of motivation

and performance, the latter broken down into two types: tactical and adaptive. The discussion surrounding tactical and adaptive performance is fascinating and provides real insight on how to get the best of both, paired with the idea of total motivation to create a high performance culture in the workplace. Some parts of this book tap into how to get the best out of every employee while keeping happiness and motivation at the forefront- a true formula for success.

Six ways to get rid of junk for a more productive workspace By Shelina Jokhiya The only way for the clutter to disappear off your desk and out of your life is take some time to learn new habits to keep your office organized. It took time for your office to become that cluttered so it will take some time to declutter it, but with these handy tips you can get there sooner. Start now by reading over these questions and making note of your answers: 1. How does my office make me feel? 2. Clutter is OK when _________ ? 3. My office would be clean if I only had more time/money/space/_______? 4. How do I feel when I throw stuff away? Was your answer to question one something like, “I feel like I’m being crushed by the piles surrounding me?” My answer is, “I feel happy and more productive.” The important thing is for you to see what the underlying cause of the clutter is in your life right now, and

what you can do to make your office feel like a more positive experience. Now that you have established the root cause, it’s time to work on decluttering. Keep in mind that decluttering is an ongoing process and takes time: 1. Pick a location Start with one location such as the top desk drawer, your desk area, or a cupboard. Focus on that region and only move onto the next one once you have fully completed decluttering and organizing that area. 2. Keep supplies at the ready Get ready with supplies such as a dustbin, recycle bin, shredder, folders, labels, markers, and a box for donation or maybe for selling. 3. Deal with the paper using FAT This stands for File, Act or Toss. While

decluttering the paper, decide whether you want to File it away, Act on it by passing it to someone else or dealing with the matter then and there, or Toss it (or recycle). Use this acronym for your emails as well. 4. Create a home As with every declutter and organizing project, every item in your life must have a home. Before you make a home for the item, consider whether it is useful, valuable or important. If it isn’t… then you know what to do. 5. Give back the excess No one needs two staplers and four yellow highlighters. Put back the excess stationery into the cupboard or to the administrator. Only keep what you really need and use in your office. 6. Schedule time Book time in your calendar to declutter your office every week. Choose half an hour in the middle of the week. Never do this on the last day of the week in the afternoon as that is always when people suddenly remember deadlines! april 2016 Entrepreneur

TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

The Esquire Guy on the art of mentorship By Ross McCammon

entorship is a beautiful thing, but only if it’s beautiful. Only if it’s pure. It’s beautiful and pure if the intentions of the protégé are clear -to learn- and if the intentions of the mentor are clear- to teach. Now, the teaching has a lot of implications. The knowledge itself offers an advantage. And that advantage can lead to better jobs and more money and more power for the protégé (or mentee, as we won’t be referring to it). But all of that should be irrelevant. The protégé wants to know things. The mentor wants to give answers. The protégé gets the knowledge. The mentor gets the satisfaction. (And there is nothing more satisfying in the professional world than answering easy questions.) One thing: This isn’t about company- or organization-sponsored mentorship programs that facilitate structured relationships between mentors and protégés. This is about something unadulterated by rules and guidelines and regularly scheduled coffees. This is about the kind of mentoring that happens because an experienced person (might be a boss, might not) and a less experienced person establish, implicitly or explicitly, a vague relationship based on a common truth: that knowledge should be passed along.

“The shortcoming of the structured mentoring relationship -where mentoring is on the checklist for you to be promoted- is that it becomes a transactional relationship,” says Oliver Kharraz, co-founder, COO and chief medical officer of ZocDoc, an online medical care scheduling service. Everyone we talked to is skeptical of structured mentoring. It has value, but its value is limited. What we’re talking about is mentorship that is so pure it might go unacknowledged. But if it goes unacknowledged, how do we know how it’s supposed to work? WHAT A MENTOR CAN’T BE

First of all, a good mentor shouldn’t be too friendly. Encouragement is overrated. “The best thing a mentor can do is give honest, supportive feedback that is focused on brutal facts,” says Gina Bianchini, former CEO of Ning and founder of Mightybell, a collaborative online platform for creative projects. “I worry about the emphasis on mentoring, because it’s a little like, ‘If I find a mentor, they’ll take care of me; they’ll show me the ropes; all I have to do is lean back and follow them.’ That’s not the way the world works, and I think that’s a dangerous expectation to set for anyone.” The way the world works is not

like that at all. And a mentor should be a representative of the real world. A mentor should test a protégé as much as assist. If you’re friends with the protégé, you can’t be a mentor. You are a more experienced friend and you can occasionally offer advice to that friend, but if you hang out socially on a regular basis, you are not a mentor. What a prospective protégé should do is find the person (again: could

KEY TECHNICAL MATTERS A mentor should never refer to the protégé as “my protégé,” because it’s condescending. Mentorship is 34% less effective if delivered while patting the protégé’s head. It’s 72% less effective if delivered while patting your own head. Mentoring is pointing at a door without saying, “Go in.” It’s pointing at a path without saying, “Go there.”

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It’s pointing at a boat without saying, “Row.” Mentoring can seem pretty vague and unhelpful, if you think about it. A mentor should answer a direct question with a direct answer followed by a related truth. If the protégé asks: “Who determines the optimal frequency for producing or ordering products?” The mentor might answer: “A cross-functioning team should set

production and ordering schedules. … Also, hope is a waking dream.” To reinforce the concept of mentorship, that philosophical truth should be attributed to a person wiser than you: Aristotle, Steve Jobs, the Papa John’s guy, your mom, Snoop Lion (née Dogg). Related: “Ain’t no fun (if the homies can’t have none)” is sage business advice, if you think about it.

spare your feelings. A jerk is not going to be kind (a quality that is overrated in mentorship). Mentors don’t need to be kind- they need to be right. Here’s some sample dialogue between a protégé (P) and a mentor (M) who is concerned about the protégé’s feelings: P: I’m thinking of switching gears and becoming a lawyer. M: Follow your dreams. Here’s some sample dialogue between a protégé and a mentor who is not concerned about the protégé’s feelings: P: I’m thinking of becoming a lawyer. M: That’s idiotic. If you’re a prospective protégé, you want the second mentor. Because mentor No. 2 is right. THE ETIQUETTE OF MENTORING

be a boss, but doesn’t have to be) who is professionally admirable but not all that affable. A good mentor should be a little intimidating. A good mentor should be someone whose success is equaled only by reticence, with no time wasted on niceties. A good mentor should be kind of a jerk, frankly. Because if a jerk is willing to help you out, then you know the insights will be valuable. A jerk is not going to say things that aren’t true in order to

There are plenty of etiquette pitfalls when it comes to being a protégé. You want to be deferential but not obsequious. You don’t want to be overbearing. You want to send a thank-you note after a particularly helpful conversation. But for the mentor, etiquette is a much more abstract idea. If kindnesses aren’t all that important, then what decisions are there to make? For the mentor, etiquette is as much about anti-etiquette. You don’t want to be overly friendly; that sort of thing can be looked upon as ulterior and can be a waste of time. You don’t want to seek out

the protégé, because that sort of thing can seem very ulterior. The only rule of etiquette for the mentor is rectitude. It doesn’t work if the mentor has anything up his sleeve. And rectitude has a way of making the etiquette fall into place. WHY THE BEST MENTORS DON’T EVEN KNOW THEY’RE MENTORS

If you are successful and utter the occasional pithy truth in casual conversation, you will be looked upon as a possible mentor. You might not know you’re mentor material, but you are. When someone asks to have a meeting to discuss a possible job that you have nothing to do with, that’s mentorship. When someone asks to “pick your brain,” that’s a request for mentorship. (Side note: We really need to stop using this “pick your brain” metaphor. I’m not sure there’s anything that sounds less appealing than brain-picking.) When someone says, “Would you please be my mentor?” that’s weird, because that’s not how mentorship works. Most mentorship is incidental. The best mentors are the ones who lead by example without acknowledging they’re leading by example. The ones who are the best at it are the ones who don’t even know they’re doing it. If you’re friends with the protégé, you can’t be a mentor. You are a more experienced friend and you can occasionally offer advice to that friend, but if you hang out socially on a regular basis, you are not a mentor.

See this article in its entirety at Entrepreneur.com

The Protégé A Checklist Have at least five years less work experience than the mentor. Be eager. Be affable. Ask questions, but not too many. Be complimentary, but not sycophantic. Be solicitous, but not overeager. Want the mentor’s job someday. Want the mentor’s car someday.

Be deferential. Be not clingy. Be loyal, but not at the expense of one’s career. Never say no. Be as smart as, but not yet as wise as, the mentor. Do not tweet at the mentor. Do not give out the mentor’s email address.

Do not start dressing like the mentor. Do not start laughing like the mentor. Do not adopt the mentor’s hairstyle. Do not pose as the mentor at parties. Do not commit a crime for the mentor- but briefly consider it.

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Sellin’ it street style Palestinian entrepreneurs in Australia hit the sweet spot with knafeh

elentless, driven and focused.” That’s not just how Knafeh Bakery founder Ameer El-issa describes entrepreneurship in general, but they are also characteristics evident in his journey of building the mobile restaurant serving a namesake Middle East dessert- knafeh, a creamy sweet treat topped with pistachios and sugar syrup. Palestinian siblings Ameer and Joey El-issa, popularly known as “The Bearded Bakers” in Australian food circles, decided to launch Knafeh Bakery in October 2014 in Sydney. The decision was a result of being overwhelmed by the demand for the special knafeh served at their family restaurant- a creation of their mother’s unique recipe. With a background in architecture and hospitality, Ameer considers the shipping container-turned-bakery (decorated with street art) an amalgamation of both disciplines, resulting in a one-of-a-kind visual dining experience. “We purposely looked for a shipping container where the entire front could be open to put the whole process, from order-taking, preparation, baking, and right through to final delivery on show.” The team credits the design to inspiration drawn from a variety of places– street bakeries of Jerusalem, street food scenes from Brooklyn, New York, and even architectural facets of Berlin. Adding to the quirkiness is the roof of the “bakery,” which serves as a stage that often features musicians. Having made a name for their authentic knafeh in Sydney and more recently Melbourne, Knafeh Bakery has set in motion the process of making New York and Beirut their next stops, and is also keen on the UAE and London markets as well. The self-funded eatery has earned all their recognition through word-of-mouth and social media, while on the business front, an “aggressive

reinvestment strategy” is used that involves pooling income back into the business to support growth. However, the F&B venture is quick to admit facing its own share of challenges in its novice days. Be it stock management issues or struggles in meeting sudden spikes of demand, Ameer says he has inculcated a major learning from those phases: “Preparation and processes gave us scalability and were the difference between a good night or a bad night.”

IN BRIEF

Ameer El-Issa, co-founder, Knafeh Bakery What do you think about the boom of food trucks in UAE?

Diners are now on the lookout for new experiences. Going out to restaurants is no longer an occasional treat and restaurants are numerous, so food trucks provide a point of difference. It provides a non-pretentious, family friendly activity that caters for everyone, and people find comfort in going back to basics. For these reasons, food trucks are a much welcomed, and in turn, increasingly popular, option for all people to enjoy. How do you ensure that your company runs efficiently?

Having defined systems and procedures, and ensuring everyone knows Knafeh Bakery

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their role and sticks to their station. Whilst the team make it look like it is all singing, dancing and fun, there are very defined processes in place that are essential to allowing us to deliver the large number of orders we take in each service. What are your three tips for an entrepreneur to start a business?

Firstly, follow your heart. Your belief and passion in your business are what will drive its success. Without the belief and passion, it just becomes a job. Second, experience breeds expertise. A strong foundation and understanding of the industry that you are entering will separate the “hobby” businesses from the serious players who make a name for themselves. It’s important to know your market, your approach, your message (or brand positioning) in order to succeed, and experience is what will help you define these. Finally, put it on paper. By writing things down, you solidify them for yourself, and your team when the time comes to employ staff. Write a business plan. A marketing strategy. Your systems, processes and procedures. And include contingency plans, and risk management as well. Too often we plan for the good, but planning on how to mitigate the bad can mean the difference between failure and weathering the storm– whether it be bad business reviews or bad financial decisions.

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Is it time to exit?

Four things to consider before selling your company By Tarig El-Sheikh

’ve learnt -and continue to learn- a lot about establishing and running a business, having started a couple of companies over the last few years- with some of them failing spectacularly, one “making it,” and another whose fate is yet to be determined. Having said that, the most recent development in terms of the ventures I’ve worked on has been the merger of our company, Beneple, a human resources platform catered to SMEs in the Middle East market, with Finsbury Associates, a financial services company based in the UAE. Given my experience with this acquisition (which, interestingly enough, happened after Beneple had been operating for only eight months), here are four things to keep in mind before considering the sale of your enterprise:

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1. Always keep your eye on the ball- run your core business as though there’s no sale process happening in parallel This may sound counterintuitive, but it’s actually not. This rule also applies if you are raising external funding (which is, technically, the sale of a stake in your company), or a full exit. Throughout the sales negotiation process, it’s important to make sure that the business continues to run (and ideally, grow as well) in parallel with what’s happening in the background. Now, it’s important to understand that this can It goes without saying that “locking in” your company’s most critical assets is of paramount importance, and it has a direct impact on your negotiating position and the ultimate offer price. The assets will naturally differ from the type of business you operate in, but generally speaking, it’s good practice to tie your most important employees to the business.

indeed prove to be challenging, especially when trying to balance what feels like an all-consuming sales project. But doing this is critical! Because it demonstrates to the potential purchaser that they’re buying into a growing venture and ultimately helps strengthen your negotiating position. While raising capital for both my last startups, we had an average 35% month-on-month growth, which really helped demonstrate the strength of the management team and cemented our asking price as well. Making sure your business is running profitably is also important in case the sale falls through. At the same time, if the company stutters with its operations while the founders are trying to sell it, such actions can also really hurt its sale price. A friend of mine was at the final stages of closing the sale of what was at the time his hot new restaurant business, but he dedicated so much energy to the sale that revenues slowly declined over the months of negotiations, and ultimately spooked the buyers. 2. Lock in your company’s most critical assets It goes without saying that “locking in” your company’s most critical assets is of paramount importance, and it has a direct impact on your negotiating position and the ultimate offer price. The assets will naturally differ from the type of business you operate in, but generally speaking, it’s good practice to tie your most important employees to the business. I remember at one startup, there was a mad rush to have all of its early employees sign agreements that would allow them to be transferred to the new acquiring entity. Any

new owner could require you to stick around for a transition period (or maybe they won’t), but they will want your main employees and assets to be around for the continued operations. Make sure all assets (including employees) are appropriately locked in, and don’t disrupt the company while it’s in this delicate transition. 3. Make sure you follow best practices, and execute due diligence Much like an interview or even a date, an acquisition process requires both parties to walk a two-way street. So, from your company’s perspective, you need to ensure that you’re doing all your due diligence when moving along this process. I’ve seen, firsthand, the benefits of having solid and well documented systems in place, and in a format that is easily digestible by the party performing the due diligence. In my last enterprise, I ran an extremely detailed and well organized process (granted this was drummed into me, having spent many hours in a due diligence room in my banking days), and this helped me demonstrate to any buyer that they are investing into the processes that are already in place (and part of the company culture modus operandi), rather than having just one individual who is holding all “the keys.” This literally impacts the final pricing. One other thing: be as honest as possible in all your negotiations! There’s no point hiding a material aspect of the business from any potential purchasers. Disclosure of all risks in a quantifiable manner should be your goal. Also, don’t forget that in the same way a potential purchaser is carrying out

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their due diligence on your company and its management team, you should be carrying out your due diligence on them and what they have promised to bring to the table as well. So if the deal is a cash and equity swap, then you should be checking the long-term financial health of the purchaser and whether or not they can close.

www.usa.visa.com

be as honest as possible in all your negotiations! There’s no point hiding a material aspect of the business from any potential purchasers. Disclosure of all risks in a quantifiable manner should be your goal. 4. Have a plan for after the sale- both in terms of finance and time Selling a company is a transfer of assets whereas selling your passion is a transfer of emotions. It’s a subtle difference, but it’s an important one to keep in mind when thinking about a potential exit. If you’re selling for financial reasons, then you’ll need to ensure you plan financially for the future. Doing a majority equity deal today is great for your retirement planning when the acquiring company IPOs, but how do you feed yourself between now and then? If you’re “selling your passion,” then you need to bear in mind that you’ll be shifting away from working 60+ hours per week, and so, you will need to plan ahead to manage all that extra time and drive appropriately. It helps in avoiding seller’s remorse!

Go cashless to stimulate economic growth Visa and Moody’s study highlights positive impact of electronic payment on GDP

oving towards an economy dominated by cashless transactions can bring tangible benefits to both emerging and developed economies, according to a study comMOODY’S ANALYTICS missioned by Visa Inc. and conducted by Moody’s Analytics. The study entitled The Impact of Electronic Payments on Economic Growth has found that a rise in use of electronic payment methods such as credit, debit and prepaid cards in the UAE added US$3.7 billion to the GDP, and created an average of 14,170 jobs per year in the economy betweenBenefit 2011All and Electronic Payments Parties Involved in Many 2015. The UAEWays also reported the electronicpoint payments a sixWithin percentage in-ecosystem there are two main end-parties: buyers crease in card usage with the (consumers) and sellers (merchants). The country placed atpayments sixth from spot, evolution to electronic cash checks of has impact changed theon behavior inand terms the of, and in some cases the relationship between, conGDP, among the 70 counsumers and merchants. triesThethat formed part payment of the availability of electronic systemsGlobally, leads to a virtuous study. the economic research cycle whereby increased consumption estimates thatproduction, electronic leads to increased more jobs, payment transactions greater income, and, ultimately, fueled stronger economic growth. an aggregate $296 billion to Although the study does not specifically GDP, while raising explore the reasons for thehousehold incremental growth in GDP attributable to cardand usage, consumption of goods there are a by number plausible explanaservices an ofaverage 0.18% tions: The advent of electronic payments has per year and creating avgreatly aided consumers’ abilityan to optimize consumption decisions by giving them secure erage of 2.6 million new jobs, and immediate access to all of their funds on annually, over the five-year

study period. Mark Zandi, Chief Economist, Moody’s Analytics says that the study clearly points to a scenario where countries with large increases in card usage also saw larger contributions to overall growth in their economies. The report highlights that going beyond the aspect of convenience, digital payment modes help activate economic growth globally by contributing to a more stable business world and enabling greater financial inclusion is less cash and check handling in the system, for thehave access to a large pool of cusand they tomers with guaranteed payment. Electronic consumers. payments play a critical role in the rapidly Explainexpanding e-commerce environment where ing theby cash or check is not usually payment an option. for benefits countries in Benefits to Consumers and Merchants going cash-payments provide access » Electronic financial resources. Consumers less,tothe using cash or checks may be limited report notes in the amount of funds they have for that particular “electronic payments transactions. With cash, consumers limitedtransacto the funds help reduce are paper they have on hand. Merchants may tions, the checks costfortobigbe reducing reluctant to accept ger transactions of the risk central banks ofbecause providing of nonpayment. Electronic payments notes and coins, and also inaddress both of these issues: They crease taxconsumers revenues through provide with access to all available fundsof or lines credit for a the reduction theofgray given transaction and they give mereconomy, or transactions

not accounted for in official statistics.” A regional analysis of the findings reveals that the Middle East experienced a relatively lower impact of these instruments, with card usage adding around 0.09% to GDP in the region, while average jobs added per year stood at 9,000. In the larger MENA region, Saudi Arabia benefitted by an addition of $3.43 billion to the country’s GDP and 12,470 jobs and in Egypt, payment cards stimulated $0.1 billion to the GDP and created an average of 2,300 jobs. The report recommends that countries must simplify regulations

Part II: The Value of Electronic Payments: Less Friction, More Efficiency

deposit (debit cards) or a line of credit (credit cards). Merchants also benefit because there

Consumption

chants peace of mind about payment

Decline in Inventory

Greater Income 4

guarantees, provided they follow appropriate payment procedures. » Access to credit helps calibrate periodic income with continuous consumption. Wages and salaries are typically paid weekly, biweekly or monthly. Consumer spending, however, has no time profile. Putting food on the table or fixing a broken-down vehicle should not have to wait for the next paycheck. Credit smooths out the consumption of durable and nondurable goods by lessening the around payments need todigital wait for paydays. In obtaining credit, consumers generally have to improve the financial three options: bank loans, store credit infrastructure behind such or credit cards. Credit cards are more convenientsystems, and offer lower consumer payment which in transaction the former two turn wouldcosts, leadas to greater involve paperwork, hassle and a poconsumption expendituretential transaction-by-transaction period.need in most thewaiting current » Cardseconomies. provide consumers the means global to participate in the digital economy. In most cases, online shoppers are

Increased Production

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Tarig El-Sheikh is an experienced entrepreneur and finance professional with a 15-year track record across emerging markets in building global businesses, technology startups and finance. El-Sheikh is the co-founder of Beneple (formerly known as Aythan DMCC), an HR and health management platform that was successfully acquired in August 2015 after only eight months of operations. april 2016 Entrepreneur

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What I learned from

my equity crowdfunding campaign

By Jackie Fitzgerald

unning your own business is a lonely place, and reaching a point in which your business begins to sink under its own success is both gratifying and terrifying. This is where I found myself about six months ago, as the founder of Homes or Houses, a company that specializes in the sourcing and renting of properties for U.K. expatriates and foreign buyers investing in U.K. property: running around like mad, trying to keep my business operating smoothly and struggling to keep up with its unexpectedly rapid growth. I needed to raise capital.

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I initially avoided thinking about raising money, with the hopes that my need for it would be satisfied by a sudden surge in revenue or a major shift in our cash flow management, but neither was likely. However, you can’t simply sweep your business’ need for funding under the rug. The reality is you will eventually reach a point in which an injection of external capital is necessary to take your business to the next level.

www.collaborativefund.com

We wanted to somehow allow our customers to have an opportunity to literally become co-owners of the business. Equity crowdfunding lent itself as an ideal vehicle for making this happen. Our customers were happy about the opportunity to invest in our business

Around this time, a former colleague, Sam Quawasmi, who is the co-founder and the Managing Director of the Dubai-headquartered equity crowdfunding platform, Eureeca, approached me about the idea of raising funds through his platform. To be frank, I was initially not into the idea of crowdfunding my business. So I took a look at my options. A bank loan? This is pretty much just as unlikely in the U.K., where we are based, as it is in the MENA region; banks simply don’t have the risk appetite to finance startups and SMEs. Given my industry and the current development stage of my business, securing a venture capital investment seemed equally unlikely. And even were it to be possible, I had no intention of relinquishing the amount of control required by raising VC money. Quawasmi eventually convinced me that equity crowdfunding was the right option for me. A large portion of our customers live in the UAE, and Eureeca is regulated by the UK Financial Conduct

Authority, so they seemed like a good fit. I decided to give it a go. After spending time with the Eureeca team getting my campaign ready to go, or “fit for funding,” as they say, in terms of financial documentation and marketing materials, they said I was ready to launch. I was even more apprehensive at this stage. Would people invest? What if the campaign flopped? 27 whirlwind days later, we were fully funded, having raised US$413,000. I then opted to enter “overfunding,” which meant that we could continue receiving investments. A day later, we broke the half million mark! A few days after that, we had raised over $600,000, 150% of our initial target. This included a $200,000 investment from a local UAE institutional investment firm. Seeing the money come in at such a pace was, frankly, surreal. It really validated my business in my own eyes, and since much of the investment was coming from my clients, it served as confirmation that they were happy with the Homes or Houses service to the point they wanted to financially invest in our future success. Despite my initial reservations, I can now say that I am sold on the concept of equity crowdfunding. Aside from the very obvious speed and efficiency with which we were able to raise over $600,000, here are my takeaways about equity crowdfunding that I took from campaign:

Sesame Street is joining Silicon Valley too Sesame Workshop launches venture capital fund

taying true to its founding roots of educating children, Sesame Workshop, the non-profit organization that brought Sesame Street to the screens, has introduced Sesame Ventures, a venture capital arm that will invest in startups geared towards children’s educative products and services. Partnering with VC firm Collaborative Fund -which has backed startups like AltSchool and Lyft- the fund, which is called Collab+Sesame, described its focus as “childhood development,” with plans to invest up to US$1 million in early-stage startups and support in future rounds of financing. Besides financial backing, startups will also have the opportunity of working with Sesame Workshop and utilize its resources of expertise and research of children and families, as well as networks of similar organizations and international reach. And ‘treps, Sesame Workshop will also “consider” letting startups utilize Sesame Street characters too (according to Wired), if that helps. So what’s the eligibility for prospective startups? According to the website’s release, as long as it aligns with Sesame Workshop’s mission of “helping kids grow smarter, stronger, and kinder,” startups can be focused on “education, media, family development, social and culture development, food, health and wellness.” The announcement followed six months after it took on a five-year deal with HBO to get back on its feet after its loss in recent years ($11 million in 2014), giving it the market opportunity in mobile devices. Given the years it has upholding its mission, it seems Sesame Workshop is now stepping up its outlets to help kids grow smarter. www.collaborativefund.com

1. Backend preparation and support A lot goes into is a successful raise, from fine tuning financial documents and setting an investable valuation, to distilling your value proposition and honing your pitch. Equity crowdfunding plat- >>>

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forms such as Eureeca want you to get funded, so they do their best to get “fit for funding.” Their insight, expertise, and hard work are great assets to an entrepreneur raising capital. 2. Customer buy-in Homes or Houses is a clientfacing business and we take great pride in our efforts to create a loyal customer base. We wanted to somehow allow our customers to have an opportunity to literally become co-owners of the business. Equity crowdfunding lent itself as an ideal vehicle for making this happen. Our customers were happy about the opportunity to invest in our business, and I would recommend that entrepreneurs use equity crowdfunding to tap into this extremely valuable source of investors. Don’t be shy. Given the makeup of our client base and our interest in enabling our customers to invest, we wanted to use a platform that offered international reach. In our case, Eureeca’s positioning in Europe and the Middle East was ideally suited for this

3. Strategic investors The prevailing notion about crowdfunding is that it is reserved for what are being dubbed as “armchair” investors, or unsophisticated investors that don’t offer strategic value. We secured a sizable investment from an institutional investment firm, which is certainly on the sophisticated side of the investor spectrum, and they will be aiding us in our establishment of a Dubai-based office this year. Additionally, we secured numerous investments of well over $10,000 from

knowledgeable and wellconnected people in the UAE. We are confident they will provide strategic value as we continue on our journey. 4. International market reach We are a U.K. business, but we cater to clients that live outside of the U.K. Given the makeup of our client base and our interest in enabling our customers to invest, we wanted to use a platform that offered international reach. In our case, Eureeca’s positioning in Europe and the Middle East was ideally suited for this, as this positioning can be leveraged by entrepreneurs trying to build a customer base in a new market or plant seeds for future market expansion. 5. Marketing and lead generation Clients are the lifeblood of our business, and we have heretofore relied solely on word-of-mouth to build our client base. Our campaign greatly multiplied our wordof-mouth capabilities and generated quality PR coverage, which directly resulted in people getting in touch about using our service. We also had the opportunity to pitch to 100 investors at a live Eureeca event. Not only were they potential investors, they were also potential clients who may be interested in buying U.K. property. Whatever your preconceived notions about equity crowdfunding may be, I recommend that you explore the option the next time you raise. You just might find that it’s well suited for you and your business. I know I did!

Jackie Fitzgerald is the founder of Homes or Houses, a company that specializes in the sourcing and renting of properties for U.K. expatriates and foreign buyers investing in U.K. property.

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Trading up! ICC Qatar to host its first workshop on trade finance in Doha

nternational Chamber of Commerce (ICC), Qatar Chapter -a regional business chamber of the Paris-based ICC- is organizing a Banking Workshop on May 23-24, 2016, in Doha. According to ICC Qatar, the workshop is primarily a recap into the past year, highlighting major issues and decisions in the banking sector during the period and will also take a look at the road ahead, given the dynamism in Qatar’s economy. Believing that the trade finance sector goes beyond mere document verification, ICC has structured its workshop to address best practices in the realm of trade finance, risk management, credit administration, and other compliance functions of banks. The agenda includes sessions on issuance, confirmation and amendment of documents, letters of credit, documentary credit financing and document management by banks. Besides addressing latest developments in the field, the workshop will also allow delegates to put forward their concerns and find solutions. Gary Collyer, MD, Collyer Consulting (a banking consultancy firm) and a former banking executive with stints in HSBC, Citibank and ABN AMRO, is leading the workshop. ICC anticipates the workshop to attract participation from bankers, importers and exporters, logistics personnel, insurance sector, among others. www.iccqatar.org

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Family first

Securing continued growth for family businesses in the MENA region

By Shailesh Dash

n an era of hefty marketing budgets and clever advertising, we tend to believe that corporate icons such as Microsoft, Apple, Coca-Cola and Walt Disney, together with banking giants like JP Morgan, Citi and Goldman Sachs, define our global economy. However, in reality, it is a more private, low profile subset of the business world that turns out to be the main driver: family businesses.

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Family-owned businesses are the backbone of global economy, contributing nearly 70-90% to the world’s GDP, and accounting for nearly one third of the Fortune 500 companies. These firms represent more than 70% of the overall businesses in many countries, thereby playing a crucial role in economic growth and workforce employment. For instance, in the U.S., around 85% of the enterprises are family firms, generating 50% of the GDP and 60% of the employment. In France and Germany, the figure is more than 50% while in the U.K., family businesses contribute over 30% to the GDP and offer employment to one third of the population. From a regional perspective, the dominance of family-owned businesses is far greater in MENA (compared to globally), thanks to our long history of trade and entrepreneurship coupled with a culture that honors family ties. Family businesses account for 90% of the companies in the Middle East, generating nearly 80% of the region’s GDP, and employing more than 67 million personnel (70% of the workforce in the GCC). According to Ernst & Young, the top 10 family businesses generated approximately US$88.5 billion to MENA’s $1.5 trillion GDP in 2012, and they employed nearly 221,740 people. These impressive statistics clearly demonstrate that this business model is the essence of local societies and regional economies. Most importantly, the family-owned businesses (both globally and in MENA) have thrived for

many generations, despite economic downturns, wars, family feuds, and other challenges. A comparative analysis of the Credit Suisse Family Index vis-à-vis MSCI (a broad index of publicly traded firms) indicates that the family firms have outperformed publically traded firms on the back of an entrepreneurial mindset, long-term thinking and quick and flexible decision making coupled with a greater commitment to jobs and the community. family businesses should also overcome the restless entrepreneur syndrome, and let go of emotional attachment to businesses that are no longer viable or part of the long-term plan.

It is also important to note that regional family firms also vary considerably in size and shape, from very small enterprises to multinational conglomerates, with thousands of employees and multi-sector interests. Further, SMEs form the backbone of family-owned businesses in the region, accounting for 80%-90% of the family firms and collectively contributing more than 30% of all private sector employment in the MENA. Accordingly, SMEs are the lifeblood of most GCC economies, generating employment for growing youth population and facilitating economic diversification by acting as a seedbed for innovation. However, in spite of their significant contribution to economic development, the MENA region remains among the least effective at cultivating a SME friendly business environment. Family-owned SMEs face substantial barriers to growth and sustainability

performance of family businesses graph source thomson reuters | importance of family businesses in the middle east source e&y

ranging from limited access to finance, unfavorable regulatory environment, lack of business management skills and market linkages needed to grow and succeed. Gladly, the regional governments have recently made SME support as a top priority and enormous resources and efforts are being devoted for the cause, both by the government institutions and the private sector. For instance, in the UAE, several state-backed enterprises such as Dubai World, Khalifa Fund, Dubai SME, the Chambers of Commerce and the Mohammed Bin Rashid Establishment for SMEs were established/revamped to offer financial and business management support services to the SMEs. From a private sector perspective, the capital raising options available for family firms have also evolved in the past few years, with family firms exploring private equity and IPO listing as viable options in addition to the traditional bank lending.

performance of family businesses (base - 100)

Despite these initiatives, regional family-owned SMEs still have a long road ahead before realizing their full and true potential as support measures often suffer from poor coordination and limited execution capacity while the products and services provided lack suitable terms, capital structure and sustained business as-

sistance. Therefore, there is a need for an integrated and coordinated support model that addresses these barriers and creates a flourishing environment for the SMEs. Also, given that MENA region has the lowest rates of entrepreneurial activity amongst women (at merely 4% of the population), targeted efforts are needed on

importance of family businesses in the middle east

multiple fronts to capitalize this unexploited source of economic growth. In addition to challenges related to size, GCC based family-owned businesses are also contending with rapidly changing internal fundamentals largely driven by uncertain global economic environment and increasing competition from both regional and worldwide firms. Accordingly, many firms may find themselves cash constrained over the next few years, as their businesses will demand management attention and capital to survive and prosper in a more competitive environment. Moreover, the family firms may also >>> A holistic business plan based on managed growth and long-term goals coupled with a transparent financial and operational reporting will allow business owners to attract capital while a robust succession plan and governance system will assist in conflict resolution and ensuring fairness amongst family members.

Shailesh Dash is the founder, CEO and Board Member of Al Masah Capital. A veteran of the MENA alternative investments sector, Dash has over 20 years of alternative investment experience. In 2010, he started Al Masah Capital which has successfully raised over US$1 billion and established itself as one of the fastest growing alternative investment management and advisory firms focusing on the MENA & SE Asia region. Before Al Masah Capital, Shailesh had managed $4 billion of assets and executed 14 IPOs and five trade sales. In addition, he created the second largest PE business in the MENA region (extrapolated from rankings of PEI Asia) and served on the boards of 12 companies. april 2016 Entrepreneur

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face hurdles posed by the transfer of company control to third generation. Therefore, it is imperative that regional family businesses focus on building a scalable and sustainable organization through adoption/ implementation of corporate governance principles. A holistic business plan based on managed growth and long-term goals coupled with a transparent financial and operational reporting will allow business owners to attract capital while a robust succession plan and governance system will assist in conflict resolution and ensuring fairness amongst family members. Moreover, family businesses should also overcome the restless entrepreneur syndrome, and let go of emotional attachment to businesses that are no longer viable or part of the long-term plan. in the UAE, several statebacked enterprises such as Dubai World, Khalifa Fund, Dubai SME, the Chambers of Commerce and the Mohammed Bin Rashid Establishment for SMEs were established/ revamped to offer financial and business management support services to the SMEs.

Going forward, the business environment for familyowned firms will remain conducive with evolving capital raising options and government’s emphasis on SME sector. However, it will be equally important that family businesses focus on scalable and sustainable operations by eliminating or curbing restless entrepreneur syndrome, letting go of emotional attachments to core but less profitable businesses, and institute guidelines that provide clear lines of separation between family and business activities

Entrepreneur april 2016

The five factors of socioemotional wealth in terms of the family business By Mohamed Batterjee

IBER is an acronym used to describe the five elements that combine to make socioemotional wealth (SEW). These elements rein supreme to family firms, overshadowing the financial aspects: Family Control, Identification, Binding Social Ties, Emotional Attachment, and Renewal of the Family Bond. Family firms often make decisions that aren’t sound economically (from a financial perspectives), but they are considered high utility maximizers to the family firm’s SEW. 1. Family control Families make decisions to reject acquisition offers, eschew employment of nonfamily upper management, going public, and becoming a part of larger cooperatives. While the decisions don’t necessarily appear correct from a profit-driven perspective, they opt to reject these offers all the same. This is most often done in order to maintain family control of the enterprise. 2. Identification As many family firms bear the name of the family or are heavily associated with the family, these firms often decide key matters from a viewpoint that is rooted in protecting their legacy. Identification with the family firm colors these choices, rather than pure financial performance. 3. Binding social ties As families have relationships within society –commonly found in the GCC family firms- many judgments are made to continue to frequent local suppliers or partners even if lower cost alternatives can be found elsewhere. These judgment calls are also influenced by the local environment, and a family firm’s desire to support and keep small businesses operating, as they are all part of one shared community.

4. Emotional attachment Many decisions within family firms are based on emotional attachment between the relevant family members. It may be the case that a course of action is pursued to satisfy the requests of one family member, while in other scenarios decisions are avoided or stalled to protect family members. 5. Renewal of the family bond The renewal of family bonds to the firm through dynastic succession is of paramount importance. The succession process and passing the business from one generation to another is part of family firm tradition. Families habitually avoid deciding to sell often because of this bond, and in order to keep the business as a source of income, employment, and power for future generations of the clan. These five factors, part of the family firm pursuit of SEW, increases both the sense of family member belonging and their stewardship-like behavior towards the firm. It’s worth mentioning that SEW also emphasizes the long-term view over short-term gain, and the patient capital of family firms. The very same drivers of SEW also contributes to develop the mesh-style relationship between family firms and the communities around them, while simultaneously contributing to improving the overall brand of family businesses.

Socioemotional Wealth and Business Risks in Family-controlled Firms: Evidence from Spanish Olive Oil Mills, Administrative Science Quarterly | Volume 52, pages 106-137, March 2007 Gomez-Mejia L et. al http://asq.sagepub.com/content/52/1/106.abstract Socioemotional Wealth in Family Firms: Theoretical Dimensions, Assessment, Approaches and Agenda for Future Research, Family Business Review, February 2012 Berrone P et. al http://fbr.sagepub.com/content/early/2012/02/03/0894486511435355#cited-by

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Shafin Anwarsha, co-founder and Head of Product, Giraffe, the South African startup that won the global track at 2016 Seedstars Summit

Come together

Emerging market entrepreneurs from around the world trek to the 2016 Seedstars Summit (And yes, MENA startups made the cut!)

iven that events in the Middle East for startups and entrepreneurs are often said to be derivatives of similar themed conferences in the West, I was quite curious to see if this were true, first-hand, with my attendance at the 2016 Seedstars Summit in

By Aby Sam Thomas

Lausanne, Switzerland. As an annual event focused on promoting startups in emerging markets around the world, the summit was the culmination of the efforts made by Seedstars World (the parent organization behind Seedstars Summit) in sifting through more than 3,000 applicants from

Seedstars Summit 2016

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around the world this past year. The startups that made it to Lausanne were already winners in their own righthaving won Seedstars pitch competitions in their respective locations, the 54 finalists were now in Switzerland for their chance at winning up to US$1 million in investment. Now, the prize on offer was the first thing that stood out to me at this event- I can’t recall a Middle Eastern event that had a similar sized amount to give away to entrepreneurs, and that in itself was enough to make Seedstars Summit stand out, at least in my eyes. Launched in 2013 by PierreAlain Masson and Alisée de Tonnac, Seedstars World’s global competition has seen its impact and influence scale up quite quickly- the contest

visited 20 countries in 2013, and in 2015, it touched down in 54 countries. According to de Tonnac, who today functions as the CEO of Seedstars World, the growth the event has seen is reflective of the changing dynamics of the world’s economies. “The competition is getting bigger and bigger, the number of people attending [the summit] is getting bigger and bigger, because it’s becoming, really, the topic- by last year, half of the global GDP was in emerging markets,” she explains. “It’s no longer a side topic.” But why did Seedstars focus on emerging markets in the first place? “Because we ourselves are entrepreneurs, and we believe we should be investing in these markets,” de Tonnac replies. “And we are building companies in these markets- so we are the first entrepreneurial advocates of these markets. And we needed a network, and we realized that it was very difficult to build this global networking community of entrepreneurs who could support one another and connect one another. So, the first year, we realized, after a kind of one-year market research, that there was a real need to connect these entrepreneurs in terms of visibility, in terms of connection (because that’s kind of the unfair advantage to help them scale), and finally, in terms of investment.” It is to fulfill this need that Seedstars Summit came into

“the first year, we realized, after a kind of one-year market research, that there was a real need to connect these entrepreneurs in terms of visibility, in terms of connection.”

“we needed a network, and we realized that it was very difficult to build this global networking community of entrepreneurs who could support one another and connect one another.” The hall at 2016 Seedstars Summit

being, and it’s safe to say that this mission remains at the core of the enterprise even today. For instance, consider the pitch competitions that happened prior to this year’s finals in Switzerland- startups from around the world (and this includes locations as varied as Ramallah and Rio de Janeiro) got a chance to strut their products and services on a local level at these events, which certainly helped in terms of amplifying their visibility. Then, the winners of these competitions (who, by the way, were selected after a rather strict process) made it to Lausanne, where Seedstars put them through a two-day boot camp that trained them on everything from developing their business models to improving their pitching skills. This was followed by an investor forum, where these entrepreneurs got to meet and interact with investors from around the globe- these included one-to-one meetings facilitated by the Seedstars team, where they had paired investors with startups in industries/sectors that might be relevant to them, and vice-versa. Finally, on the last day of the competition, the finalists presented their ventures to an audience of more than 800 attendees, with the eventual winners

securing funds and prizes from companies that included AP-SWISS, Hublot and the lastminute.com Group. So, with respect to the aforementioned three needs that de Tonnac wanted to fulfill with Seedstars: this year’s edition seemed to have checked all of the right boxes. Another appealing aspect about the Seedstars Summit –and a trait that other events would be wise to emulate- was the rather dogged drive of its organizing

team to make this an event where the startups were the priority- everything else, be it the sponsors or the press, were, at least seemingly, secondary. The limelight was on the startups, and as the co-founder, Masson (who was also a judge for this year’s edition of the competition) indicates that this was a deliberate move on the part of the organizers. “I’m an entrepreneur myself,” he reiterates. “This competition, this project, Seedstars, was built by entrepreneurs- people that understand what are the needs of entrepreneurs. We literally call them and say, okay, what do you need exactly, how can we help you,

how can we support you. So, we have, obviously, the big categories in how we support them, like, media attention, which is very important, especially in these regions. Investments, definitely. Access to corporate partners. And then there is the global network- the Seedstars family. The moment you are a part of this family, you can go to 60 countries around the world, and you will have someone to talk and help you, etc.- which, from my point of view, [is needed] in order to expand a company. So, there’s a business value, and a personal value as well. We benefit from this network, and we share that >>>

Seedstars Summit 2016

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with them- and that’s maybe the most important part of being a part of the whole project.” And this global village mentality was rather easy to spot at this summitthe camaraderie among the entrepreneurs at the event, regardless of whether they were from Kampala or Kiev, was quite a sight. With respect to the MENA region, startups from the Arab world definitely made their presence felt at the 2016 Seedstars Summit- two of them, the Jordan-based Yaqut, an Arabic e-book platform, and the Moroccobased Omni Up, which offers free Wi-Fi in exchange for watching video ads, were among the last nine finalists in the World Track of the competition, but they lost out on the Grand Winner title

to the South Africa-based jobs platform, Giraffe. Having said that, those cheering the MENA region at Seedstars had a reason to celebrate all the same- Omni Up’s Sales & Marketing VP, Loan Duong, was declared Best Woman Entrepreneur at the event. But regardless of how they fared at the competition, all of the MENA entrepreneurs I talked to at Seedstars had only positive things to say about their experiences at the summit. “It was much better than I expected,” admits Emile Harb, who was representing his startup, the Lebanon-based Merchandiser, at the event. “I met 70 nationalities [here], I’m so happy to actually hear the experiences of all these startups, because we really relate to many of them. Also,

“The competition is getting bigger and bigger, the number of people attending is getting bigger and bigger, because it’s becoming, really, the topic- by last year, half of the global GDP was in emerging markets.”

the Seedstars team itselfthe mentors we had, some of them drastically changed some of our thoughts, or our preconceived thoughts, our business model, because of their massive experience. I really wasn’t expecting this level of feedback and commitment from these guys, and so far, it’s been amazing.” Peter Abualzolof, co-founder of the Palestine-based Mashvisor, agreed with Harb, noting how Seedstars’ international scope can be extremely beneficial for businesses wanting to scale beyond their launch markets. “I want to get Mashvisor international exposure, and this is something that definitely gives you that,” he says. “I mean, we’ve met and are meeting with investors from mostly Europe at this point, and also an American investor… So, for us, it definitely gives us a benefit- I think that’s kind of the most focus for us.” With comments like these being parroted by several entrepreneurs from around the world at the event, it was easy to under-

The Morocco-based Omni Up’s Loan Duong won the Best Woman Entrepreneur title at 2016 Seedstars Summit

stand why all of them were happy to put forward their unconditional support for future installments of Seedstars Summit- and it’s safe to say that the global startup ecosystem -and especially that of emerging markets- will only be the better for it MENA represent! Startups from the Arab world

www.seedstarsworld.com All of the below startups had won local Seedstars competitions to attend the final ceremony in Lausanne: Mashvisor | Palestine A real estate analytics startup based out of Ramallah www.mashvisor.com SolarizEgypt | Egypt A solar power generation company providing green energy solutions www.solarizegypt.com Merchandiser | Lebanon A management tool to automate the merchandising process www.codefish.com Yaqut | Jordan An e-store for books and publications in the Arabic language www.yaqut.me AlemHealth | UAE A startup providing tech solutions that connect doctors across borders ah.netlify.com io Grow | Algeria A CRM system for social selling, integrated with major social networks www.iogrow.com Omni Up | Morocco An advertising solution that provides free Wi-Fi in exchange for video ads www.omniup.com

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dressing some of the issues that small brands face here.” The online boutique cultivates a community through its calendar of events, monthly newsletters, a forum and blog, with each store having a direct URL that can be personalized. Given the number of GCC ecommerce marketplaces that have launched, it can be perceived as an industry with a low barrier entry- which Bolton-Riley agrees with: “Competition is healthy and keeps us on our toes. The more that online shopping is embraced in the region, the better it is for the industry. The co-founders, former colleagues, have both worked in the design and construction industry in Dubai since 1999, and developed the enterprise after noticing the opportunity, coupled with a desire to get back to their design roots.

Craftsmanship, e-commerce, and a whole lot of creativity Little Majlis brings the artisan scene online

f you’ve been in the UAE long enough, from Art Dubai to Design Days Dubai to the Ripe Food & Craft Markets on the weekends, you’ll notice the slow-but-steadily growing art microenterprise scene in the country. Seeing the huge market for crafts and handmade products and the talent of local artisans, Anna Bolton-Riley and Annabelle Fitzsimmons launched Little Majlis, an online community and e-commerce boutique platform for art, edibles, and craft and design products from GCC-based brands and

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By Pamella de Leon

independent artists and designers. The co-founders, former colleagues, have both worked in the design and construction industry in Dubai since 1999, and developed the enterprise after noticing the opportunity, coupled with a desire to get back to their design roots. Bolton-Riley says the website took a while to develop, but LittleMajlis.com went live in October 2012. Besides the typical costs of setting up an e-commerce business in the region, the duo also had a reserve budget and utilized their own skillsets for ongoing operations such

as graphics, accounting, blog content, and social media. And now, the self-funded startup is looking into accelerating their growth, with investor discussions ongoing and a plan for securing funding over the next few months. One can’t help but point out international and regional platforms with similar concepts, and Bolton-Riley asserts that their USP is the platform’s sense of community and support it provides to vetted sellers -with advice and support offered if and when needed- as well as its focus on the GCC and “ad-

However, money alone does not guarantee success. We are close to our sellers and customers, and this cannot be easily replicated by people without our strong local reach and network.” Certainly, the co-founders’ attitude towards building the Little Majlis community is a “constant drive” for them, so how does it onboard new vendors, while continuing to foster loyalty and purchase behavior among customers? The numbers of sellers vary as they move to and away from the region (quite a peculiar but unsurprising effect of being a transient place for most expats), with only a few taking a creative break or time out to improve their brand. However, from having less than 20 shops to their current count -just under 300 active sellers, at the time of writing- Fitzsimmons remembers how when they first started, they were

EXECUTIVE SUMMARY LITTLE MAJLIS CO-FOUNDERS ANNA BOLTON-RILEY & ANNABELLE FITZSIMMONS

www.littlemajlis.com

“There’s a wonderful entrepreneurial spirit here in the Emirates, and so it’s a fantastic place to start a business. We’ve found people to be incredibly generous in offering advice and support, so never be afraid to ask or to listen. Like any other new business, have passion for what you do and perseverance to get through the tough times.” Annabelle Fitzsimmons

actively looking for sellers to set up, but now most sellers contact them. With regard to the customers, customer service is prioritized, with a message service to directly contact sellers and options to leave feedback. Little Majlis’ dedication for interactivity is derived from its marketing strategy. Early on, the co-founders made a conscious decision to “think outside the box” when it came to promoting the platform, and through trying different strategies they’ve learned what works best for the business. “For example, a year ago, we launched an in-house collection of Little Majlis branded Made in UAE products,” says Fitzsimmons on their efforts, which include attending crafts markets for brand awareness. Today, its current customer base is made up of mostly women aged 25 to 60 years old, with most sales from GCC-based consumers, although there is an increase in customers who are based abroad. On that note, the UAE’s entrepreneurial community

is still a source of support, with Bolton-Riley commending the supportive camaraderie, but there’s still a tendency for some small businesses to be, as she aptly says it, “protective of their turf.” Having said that, she says she can relate to this emotion, given the amount of time, energy and money that has to be put in to build a niche business in this region. However, Bolton-Riley says they constantly encourage Little Majlis makers and sellers to support each other: “We can only exist because of the amazing shopkeepers on the platform, and are very aware that we are stronger if we all stand together, [and] the same can be said for the wider SME community.” Indeed, united we stand

“It takes time to build a good business and the man hours invested are going to be greater then you have ever experienced before. However, if you believe in your idea, and have a solid plan of how you are going to achieve it (bearing in mind that this will change, so being open minded is essential), then you will achieve your goals.” Anna Bolton-Riley SELLING ON THE SITE “There are no membership fees to use the website, but we charge sellers fees to operate a shop front. We don’t publish our rates and prefer to issue a no obligation information pack to approved sellers. Our approach to charges has been an ethical one and our fees are competitive when compared to other marketplaces in the region and abroad. Once a shopfront is open, we issue a Starters Kit of customized graphics, post shopkeepers’ stories [on the blog which is] full of tips and advice to make the most of their online shop and are always available to answer their questions. It’s a supportive environment.” ROI “Our key focus -like any community related platform and those involving e-commerce throughout the world- has been building a customer base and great supplier and buyer experiences. The value we have therefore created is Little Majlis’ focused community of people

Little Majlis co-founders

interested in and passionate about artisan offerings. And that is huge. We are also focused on the bottom line, but this is a marathon, not a sprint.” OUTSIDE HELP “We dove into LittleMajlis.com with a business plan, a belief in our concept, a can-do attitude and not too much thought. We very rarely doubted what we were doing, which has been a blessing in allowing us to move through the tough times. However, in hindsight, it may have been a wise move to engage a business coach prior to starting the journey. This would have allowed us to think outside the box from the onset and really cement where we wanted the company to go. However, it’s never too late, and revisiting the business strategy three years in has been a tough journey, but one that has really allowed us to refocus and readdress Little Majlis’ path, and the outcome has been very positive. We’ve recently spent some time with a business coach, which has been an enormously beneficial exercise in revisiting our business plan and taking action to meet our goals.” STARTUP SHOUTOUTS “We’re impressed and inspired by Be Super Natural. Hayley Mac has turned her passion into a business. We first met her on the weekend market scene, and in the matter of a few years, she has grown a large following, opened BeStro, a raw food restaurant, and is now branching out to catering and online delivery.”

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THE PROCESS “I would be lying if I said it took us 3-4 months,” Naïm says. “As founders, we are always in ‘raising’ mode, may it be for funds, partners, customers, employees; you name it. However, we officially and actively started fundraising in October of last year.”

ChefXChange founders Marc Washington and Karl Naïm

Get your checkbook ready ChefXChange is gearing up to close a US$2 million round By Pamella de Leon

year after raising US$500,000 in its seed round with angel investors and individual investors, ChefXChange, an online platform to search and hire chefs locally for private or corporate events, is back raising $2 million for its Series A round. Its $1.5million is from anchor investor Cedar Mundi -a joint venture between Spain-based Mundi Ventures and Kuwait-based International Financial Advisors- a fund created through Banque de Liban’s Circular 331 initiative, which promotes commercial banks to invest in startups. Karl Naïm, co-founder, MDEMEA and CEO, ChefXChange, recalls how the startup has been in talks with UAE-based VCs since December 2014 to “raise awareness” and not fundraise, given that he and his co-founder, CFO and MDAmericas, Marc Washington, were new to the market. However, the co-founders soon learnt of the relatively small ecosystem and heard “As founders, we are always in ‘raising’ mode, may it be for funds, partners, customers, employees; you name it. However, we officially and actively started fundraising in October of last year.”

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about the Circular 331 initiative. This is when Naïm stresses on how important it us to nurture business relationships- ChefXChange has known Mundi Ventures due to its involvement with food and tech accelerator DIGEATALL, the same initiative which the startup was selected for in San Sebastian, Spain in September 2014. Mundi Ventures joined as the first non-Lebanese fund to be a compliant of the Circular 331 initiative, although Naïm says money was not the reigning factor when he went about selecting investors. On the contrary, it’s the strategic support in mentorship, connections and market entry that matters, and Naïm notes how investors both in the seed and Series A round either had a tech or F&B background, and “a lot of patience and trust in the team.” Speaking of the team, that was one of the factors that motivated the startup co-founders to seek funding: “Nothing is more daunting than seeing your bank account cash balance drop, and knowing that if you don’t replenish it sooner than later, you might put your biggest asset, your team who bled and sweat for you, out of a job.” At present, the startup is at $1.8 million, with $200,000 remaining to be raised.

WHAT HAPPENS NEXT Building up the startup’s team is one of its top agenda. That said, hiring is rightly on the forefront, as the co-founders have new cities in mind, and a planned move of headquarters to Beirut. A team of five is ready to take charge of entering the market in Kuwait, Qatar and Bahrain, while an-house tech team is in the works to improve the platform. ChefXChange also wants to up its marketing strategy implementation, which, Naïm says, “requires a fair amount of funding.”

STARTUP PITCH TIPS CHEFXCHANGE CEO AND CO-FOUNDER KARL NAÏM

1. MARKET THE PRODUCT. “Pitching is more of an art than a science. I had a few pitches that went horribly wrong and others amazingly well. It all depends on who you have facing you, how you connect. The most precious advice I can give is not just know your company and metrics inside out, but as important, know who you are meeting with, find common points, interests, connections.” 2. Know (and like) your potential investors. “Fundraising is a seduction game. At the end of the day, whoever invests in you will be sharing your journey and it will be an easier ride for both if you ‘like’ each other.” 3. Don’t forget to sell the people behind the product. “And then, on top of that, I would add the standard advice such as don’t just market your product, but more importantly, the founding team [and] showcase vision, drive, and commitment.”

How can the GCC become the world’s sixth largest economy by 2030? Removing trade and investment barriers could boost the GCC’s GDP by US$36 billion. Read EY’s latest Growth Drivers report which discusses how the GCC could become a global economic player by operating as a single market. Visit www.ey.com/growthdrivers and follow @ey_mena.