SME ADVISOR issue 112 by SME Advisor Middle East

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ISSUE 112

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Achieving top performance in Qs 3 & 4

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sme advisor ISSUE 112

EDITORIAL COMMITTEE SME Advisor is delighted to announce that during 2015 we will be working with some of the leading names in the SME space key figures who have kindly agreed to take part in our new Editorial Committee. This panel will play a vital role in channeling the feature content of our magazine and ensuring that we are more topical than ever - analyzing and discussing the ‘real world’ issues of tangible value to our readership and bringing industry-leading expertise across the publication and its raft of prestigious related events. We are delighted to introduce the following SME personalities:

Avishesha (Avi) Bhojani Avishesha (Avi) Bhojani is the CEO of Bates PanGulf (BPG) Group. At the helm of the BPG Group since 1991, he is responsible for consolidating the Group’s interests across advertising, public advocacy, public relations, design, activation, media asset management and digital verticals, in the Middle East and North Africa region. He is also instrumental in the conceptualisation and execution of a number of strategic retail initiatives in Dubai such as Dubai Shopping Festival and Dubai Summer Surprises. Professor Val Lindsay, MSc (Otago), MBA (Victoria), PhD (Warwick) Dr. Val Lindsay is a Professor in Strategy and International Business, and Dean of the Faculty of Business at the University of Wollongong in Dubai (UOWD). She has a keen interest in teaching and research in the areas of international strategy, exporting, services internationalization, entrepreneurship, small and medium-sized enterprises, networks and clusters, and economic development. Essa Al Zaabi Essa Ali bin Salem Al-Zaabi is the Senior Vice President - Support Services at Dubai Chamber of Commerce & Industry, and the Director of the Dubai Chamber initiative, Tejar Dubai. He is a proven UAE leader and business entrepreneur, with the ability to rapidly mobilize teams to achieve organisational change and integration. A self-motivated team-builder and corporateperformance driver, he has held a number of key positions throughout his career that has reflected his passion and commitment to the development of UAE nationals as business professionals, young entrepreneurs and future leaders. Previously he has worked with the National Human Resource Development and Employment Authority, as the Director of Tanmia – Dubai Office, then became

the Vice President of Human Capital at the Dubai World Trade Centre, and later on the Deputy General Manager of the Emirates Institute for Banking and Financial Studies. His Excellency Abdullah Saeed Al Darmaki His Excellency Abdullah Saeed Al Darmaki is the Chief Executive Officer of the Khalifa Fund for Enterprise Development, a government entity that spearheads the support and development of SMEs in the UAE. His role is integral to the strategic planning and management of the organisation in alignment with the Executive Council’s objectives. With over 17 years of experience in Oil & Gas, Petrochemicals and Manufacturing industries, and a background in Sales & Marketing, he has held a number of leadership positions with governmental and private organisations in the UAE. Mohan Valrani Mohan Valrani came to Dubai in the year 1966 and has been staying in Dubai for last 48 years. Mohan Valrani is the Senior Vice Chairman & Managing Director of Al Shirawi Group of Companies, which is a large conglomerate in the UAE and one of the largest in the Arabian Gulf, with headquarters in Dubai (UAE). Apart, from his business activities, he is also deeply involved in social activities. He is the founder - Chairman of the India Club and on the Board of Trustees of The Indian High School and has been as instrumental in contributing to the success of these institutions. Roberto Mancone Roberto Mancone is the Global Head of Business Products for SMEs and MidCorporate for PFB Germany, PBC Int’l and Postbank. He is Chairman of the Global Credit Product, Deposit and Payments Executive

Committee of the Private and Business Clients Division of Deutsche Bank. He is Board Member of the Advisory Board of Deutsche Auskunftei Service GmbH, Chairman of Business Advisory Council of EFMA, member of ECGI (European Corporate Governance Institute) and Member of the Advisory Board of BAA, the Alumni Association of Bocconi University and SDABocconi. Yogesh Mehta Yogesh Mehta is the Managing Director of Petrochem Middle East. He graduated with a Bachelor of Science in Chemistry from National College Bandra in Mumbai, India. Over time he opened his own chemical trading business, which enjoyed fair success. He then relocated to Dubai in 1990 and within five years, he managed to establish a business by opening a state-of-the-art storage terminal for bulk and drum chemicals. Driven by passion and a need to succeed, he established Petrochem Middle East in 1995 with friend and business partner David Lubbock. Petrochem Middle East has since grown from strength-to-strength to become one of the largest independent petrochemical distributors in the Middle East. A self-made billionaire, his greatest attributes are mentoring and leading by example. Sultan Sobhi Batterjee Sultan Sobhi Batterjee is the owner and CEO of IHCC, the leading Hospital Construction Company in the Middle East and Africa, and Founder and President of Lifestyle Developers Ltd. He is a member of several social and economic associations including the Young Arab Leaders Society in Dubai, the young entrepreneurs committee Jeddah Chamber of Commerce and he is also a Board Member of the (EO) Entrepreneurs’ Organisation in the USA. He holds a number of academic honours including a Bachelor’s Degree in International Finance and Accounting from the Regent’s Business School in London and a Masters in Entrepreneurship from the Entrepreneurs’ Organisation/MIT and Strategic Diploma from Oxford among others.

FROM THE EDITOR MANAGEMENT Dominic De Sousa Chairman Nadeem Hood Group CEO Georgina O’Hara CEO - Business and Consumer EDITORIAL Group Director of Editorial Paul Godfrey paul.godfrey@cpimediagroup.com +971 4 440 9105 Editor Rushika Bhatia rushika.bhatia@cpimediagroup.com +971 4 440 9115 Event Sponsorship Manager Gill Fairclough gill.fairclough@ cpimediagroup.com +971 4 440 9120 DESIGN Head of Design Glenn Roxas Senior Graphic Designer Froilan Cosgafa IV Production Manager James Tharian Data Manager

Survival is everything… It’s an interesting business trivia fact that in the 61-year history of the Fortune 500, only three companies have ever occupied the No.1 spot - General Motors, Exxon Mobil and Walmart. Note that they all represent quite ‘old school’ sectors: there is no sign of the big trendy technology companies at this level. Apple are handicapped here by the fact that they neither have the phenomenal number of transactions of Walmart or the individual deal value of Exxon Mobil. Meanwhile, Samsung are in the higher echelons of the 500 ranking by virtue of being the world’s largest shipyard and maritime construction business, not because they make the joint-best smartphone in the world. So what does it take to achieve an annual turnover of USD485 billion? The simple answer is: time. Rome wasn’t built in a day, and you don’t get to the top of the Fortune 500 list in a year or even in a decade. You might get brand reputation - like Facebook, Uber or Huawei - but you don’t get the massive infrastructure and near-universal presence without generations of marketing initiatives, pricing wars and distribution triumphs. I mention this to underline the fact that for SMEs (and indeed for any business) survival is everything. You won’t get to enjoy real lasting success if you navigate the notorious pitfalls of Year One only to collapse with cashflow problems in the middle of Year Three. You won’t get to build a lasting dynasty if you fall out over a basic succession issue in Year Five. While there’s nothing ostensibly wrong with a business concept that delivers value for a few years and then fizzles away, that’s no way to build an enduring edifice that empowers employees and makes every member of the board an equity-stake millionaire. As we enter the summer months, this is a perfect time to plan ahead and create the strategies for longer-term success and growth. This in turn means taking a slight step back and evaluating the goals and objectives of Qs 3 and 4 in the light of their ability to deliver secure longer-term growth and pave the way to considered and well-founded progress. Keep in mind too that in the level below those super-giants at the top of the Fortune 500, the lower half of that list has a 37 per cent churn rate every five years. See you there? Enjoy this issue of SME Advisor.

Rajeesh Melath

Paul Godfrey Senior Editor Printed by Al Ghurair Printing & Publishing LLC

Head Office PO Box 13700, Dubai, UAE Tel: +971 (0) 4 440 9100 Fax: +971 (0) 4 447 2409

Rushika Bhatia Editor Talk to us: E-mail: paul.godfrey@cpimediagroup.com Facebook: www.facebook.com/SMEadvisor

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© Copyright 2015 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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STRATEGIC SME PARTNER

KNOWLEDGE PARTNER

Contents

“Pricing is closely associated with positioning. The position of your brand in the market will determine the price of your product or service.”

p14

“Keep your banker up to date with what is happening in your business and what you think will happen in future to your cashflow and ability to service the debt.” p62

ON THE FRONT COVER

07 Editorial Committee SME personalities bringing industry-leading expertise across the publication and its raft of prestigious events. 09 Editor’s Note Paul Godfrey explains why in business, survival is everything... 12 Data and decision making Our infographic section showcasing key trends shaping the SME marketplace. Ground level 14 Developing a marketing strategy. We present a simple, practical and relevant action guide to get you started. 18 Summer surprise? Proper planning can help you avoid the traditional downtime. Our top tips for a smooth seasonal transition. 22 Working with the public sector. We assess the opportunities, challenges and obligations. 26 Getting big – strategies for business expansion. This feature offers a raft of key initiatives designed to achieve growth.

sme advisor ISSUE 112

54 Creating tomorrow’s world: a profile of Majid Saif Al Ghurair A powerful conversation with the region’s leading business visionary.

CSR 58 Empowering social enterprises – C3 and its unique value proposition. We meet the initiative’s Co-Founder and CEO Medea Nocentini.

Finance 62 On the money: a practical approach to securing finance A detailed blueprint from regional experts at Moody’s Analytics. Country Focus 66 Qatar’s untapped potential. SME Advisor evaluates the business opportunities.

Business Banking 30 Time to deliver – Are you ready for Qs 3 and 4? Here’s a list of strategies that businesses will need to consider. Digitally Disruptive 34 Gateway to success: Jebel Ali Free Zone Authority. An exclusive interview the prestigious freezone’s CEO, Salma Ali Saif Saeed Bin Hareb. Movers & Shakers 38 The service imperative. We caught up with internationally acclaimed service guru – Ron Kaufman. 42 On a roll – Sumo Sushi’s growing empire. The Japanese family dining franchise shares its recipe for success.

Legal 70 UAE Companies Law: what does it mean for foreign investment? Experts from Clyde & Co. analyse the changing landscape. SME Event Calendar 74 Powerful new agendas for the future of public private partnerships. Key highlights from the landmark forum. 78 Honouring the top achievers. Etisalat’s Channel Partner awards celebrate the Champions of SMB sales - and announce epic new incentive and rewards programmes.

46 The future of hiring. A sophisticated new platform, Upwork, is revolutionising the online workplace. Here’s how…

80 Mark your calendar for Global Trade Development Week. What to expect at this global conference…

50 Jump! Leaping the hurdles to success. Tina Lund, the notable showjumper, gives insights on life, motivation and growth.

Tech Trends 82 Top apps to create a powerful business plan.

Data and Decision making

Corporate Social General outlook among businesses 55%

86%

95%

of business leaders believe that CSR is more important in light of the changing economic climate

of organisations in the Middle East look at CSR a very important or important component of their business strategy

believe that CSR activities contribute to increased business success

32%

42%

62%

of companies employ metrics to evaluate the impact of their CSR activities

say they have initiated activities after being positively influenced, most often from employees and customers

say that CSR is part of their founding mission statement

Causes that most businesses direct their CSR activities towards:

25%

Providing education

Offering food, clothing or shelter to the underprivileged

Environmental causes

What better time than the Holy Month of Ramadan to reflect on giving back to the society and integrating social practices within your business? We present compelling data on the regional uptakeâ&#x20AC;Ś 12

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Data and Decision making

Responsibility What can CSR do for your business?

10% Better relations with the community and key stakeholders

29%

10%

Improves corporate reputation

believe that CSR activities contribute to increased business success

What the employees are saying? 90%

feel that the corporate sector has a moral responsibility towards CSR

8in10

professional executives believe that CSR activities are having a positive impact in the region

67%

say they will continue working for an organisation that lets them volunteer during working hours

95%

would like to be more involved in community-based activities

75%

think they are more likely to work for a company that contributes in some shape or form to a cause

95%

express that it is important to them that their company is socially responsible

Consumer preferences 50%

of consumers globally are willing to pay more for goods and services from socially responsible companies

88%

of consumers in the MENA region prefer products and services from a socially responsible company

Sources: Bayt.com, Consult and Coach for a Cause (C3), YouGov, The Nielsen Global Survey on CSR, Mercer â&#x20AC;&#x201C; CSR and Sustainability Policy and Practices

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GROUND LEVEL

Developing a marketing strategy Top tips for SMEs

In today’s fiercely competitive business landscape, it is pivotal for your business to understand the basic principles of marketing in order to stay ahead of the curve. An effective marketing plan helps your business communicate its value proposition to customers in a structured, timely and competent way. Here’s a simple, practical and relevant action guide that will get you started…

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” – Peter Drucker

All marketing needs a strategy and a goal. Aimless marketing is ineffective and costly. For example, you want to post a banner? Send an e-mail to a list? Start a newsletter? Good activities, but have you got a solid reason for doing them? Have you evaluated what you want to achieve? A well-defined marketing plan will answer all these questions and give your business the boost it needs. Let’s look at the fundamental steps that will guide you in the right direction –

Establish the ground rules

Before getting started, consider the following basic ground rules – a. What is the timeline? Set a deadline for when your marketing plan should be ready and operational. Give yourself sufficient time to put this together and don’t rush into it. Moreover, keep a date assigned to revisit the plan and tweak it according to the evolving needs of your business. b. Who is in charge? In larger organisations, this would typically be under the remit of a CMO. Assign the responsibility of drafting the plan to a specific person or department within your business and make them accountable for its proper completion. Of course, the www.smeadvisor.com

GROUND LEVEL

Cost is a major factor for SMEs and determining the amount of money you have to work with prior to developing campaigns will be quite helpful.

implementation of individual tasks within the plan will depend on the nature of the job and organisational hierarchy. c. What are the resources available to you? In other words, define the marketing budget you are working with. Cost is a major factor for SMEs and determining the amount of money you have to work with prior to developing campaigns will be quite helpful. When allocating costs, don’t forget to take into consideration internal costs such as the number of staff hours dedicated to each task, in addition to external costs.

Define your target market

Your target market essentially is your most likely buyers. In order www.smeadvisor.com

to create a focused approach, you need to define a narrow segment within the market, who are people that you are looking to reach. Create a one-paragraph description of your target market and explain it accurately i.e. based on age, gender, income or any other relevant demographics.

Identify your differentiator

What makes you stand out in the market and gives you an edge over your competitors? It is important for you to fully understand the USP of your business so that you can share it confidently with your customers and use it to devise effective marketing tactics. If you aren’t completely sure about the USP

of your business, speak to some of your top customers and ask them why they prefer you over others. See what kind of common themes emerge. You can also do the same with senior management within the business to get some clarity.

Understand your objective

It is important to ascertain what you are trying to achieve as part of your marketing activities – this is the foundation of the entire marketing plan. Enlist the goals of your marketing plan and be as specific as possible. For instance – “Increase sales of Product XY by 10 per cent in Q2” or “Increase traffic to the company website by five per cent over the next three months”. 15

GROUND LEVEL

Pricing is closely associated with positioning; they go hand in hand. The position of your brand in the market will help you decide the price point for your product or service.

Try to come up with measurable goals so that you can check your progress and know when youâ&#x20AC;&#x2122;ve successfully achieved them. Ideally, your marketing plan should not have more than three primary goals.

Invest in market research

Carrying out competitive and market analysis gives you a wealth of information about your customers and competitors, and informs you about your current market position. Moreover, it helps you shape your overall marketing strategy. Research can be primary or secondary and can be gathered at a fairly low cost from sources such as governmental organisations, trade associations, online studies, university researchers and so on.

Set marketing objectives Three-step summary

Derive marketing initiatives

Evaluate based on a set of objective metrics

Develop a pricing strategy

Most businesses will already have a detailed pricing strategy in place within their business plan. However, it is critical to integrate your pricing strategy within your marketing plan. Pricing is closely associated with positioning; they go hand in hand. The position of your brand in the market will help you decide the price point for your product or service. So, is your product positioned as a luxury item in the market? If yes, then offering the lowest price isnâ&#x20AC;&#x2122;t ideal as it will impact the image of your product. The price of your product should match its perceived value in the market.

Prepare your promotional plan

The promotional plan traditionally is the core part of a marketing mix. It enlists all the activities you will undertake to communicate with your customers. This includes a wide www.smeadvisor.com

GROUND LEVEL

returns, deadlines, assigned managers and other details, and will ensure that everyone is up to speed. It also allows each department to manage their tasks efficiently and stay on track.

range of activities that could help you impact your target market such as direct marketing, e-mail marketing, customer-focused events, loyalty programmes and so on. Choose a combination of activities that best suit your business and its overall marketing objective. At the same time, try not to mix up too many activities to complicate your offer. At this stage, it is most likely that you will have to go back to your marketing budget and tailor your programmes accordingly. Once you have a list of activities, you can prioritise them based on cost. Using an integrated approach will help you stay cost effective, while still differentiating yourself in the market.

Create a clear, strategic plan of action

As an extension of your promotional plan, create a document which entails comprehensive information on each of your marketing activities. This would include their individual objectives, costs, projected www.smeadvisor.com

Include your online marketing strategy

In today’s technologically advanced world, this is the most important element of your plan. An article on Forbes.com by Dave Lavinsky explains the four critical components – • Keyword Strategy: identify what keywords you would like to optimize your website for. • Search Engine Optimization Strategy: document updates you will make to your website so it shows up more prominently for your top keywords. • Paid Online Advertising Strategy: write down the online advertising programmes will you use to reach target customers. • Social Media Strategy: document how you will use social media websites to attract customers.

Once you have a central storage location for this information you will be able to make queries to glean the information you need to make wise marketing decisions,” explains Jeremy Cohen in his article on marketing.about.com. This doesn’t necessarily mean that every marketing initiative has to be quantified in terms of revenue. You can also measure impact in the form of qualitative factors such as creating awareness, changing perceptions, creating demand or enhancing loyalty and retention. Note that you may need to go into further details of each of the above elements depending on the size of your business, its objectives and long-term vision. Finally, remember that a good plan is one that has been implemented well, so create a plan that is most viable to the needs of your business and don’t be afraid to seek out external help when required. Good luck!

Set up evaluation metrics

This is by far the most critical step out of all. Measuring the impact of your marketing activities helps you understand what’s working and what’s not. So, you know what to reinvest in next time round. The type of metric you will need to use really depends on the kind of activity. For instance, using a database is a great way to capture insightful trends. “Start by designing a database to keep track of individual marketing efforts and the leads and sales they generate. Make sure you include fields to track the dates of your campaigns, campaign descriptions, the number of leads generated and sales made.

For an online version, please visit: www.smeadvisor.com/2015/06/ developing-a-marketing-strategy/

GROUND LEVEL

Summer surprise? Will your business go on hold during July and August or will you choose to see the summer months as a catalyst for growth? Proper pre-planning can avoid the traditional down-time and smooth the seasonal transition - or would you rather succumb to the usual threat of a significant dent in turnover and activity?

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GROUND LEVEL

All too often, the sales pipeline of an SME has a fatalistic flavour when it comes to the summer months. There is a sense that it simply isn’t worth trying to secure business growth targets at this time of year. Yet this means that in reality, your business is actually working on a ten-month calendar, depriving itself of eight valuable weeks of potentially productive transactions. Of course, summer can be a difficult time to lock down business: there is no doubt that the ‘throughput’ from sales pipelines is thinner, there are various staff vacations, along with the risk that people are simply less focused. So there are basically two necessary approaches when it comes to sustaining healthy levels of business. These are • Putting in extra initiatives and ‘smart’ tactics that enable you to deliver a level of business commensurate with a usual month. • Developing ‘summer strategies’ that are specifically tailored to customer needs during the summertime In both cases, you will have to develop the sales process effectively. Increasing the number of opportunities (upping the so-called ‘numbers game’) and evolving creative sales strategies are the fundamentals for a successful summer. Creating a summer focus If you are looking to build the level of business, it’s a case of ‘getting back to basics’ and re-addressing some of the factors that you’ve probably started taking for granted. For example, you can • Create a range of customer incentives. It may be the case that in return for better business in the summer months, you have to opt for volume over margins. This entails making special offers in a structured and cost-effective way. If you are going to create some kind of offer, set the stage earlier in the sales process by pre-arranging an ‘upcoming’ promotion in August (for example) and then offer the promotion/

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incentive no later than the first week of July. Then it will not be seen as seasonal ‘desperation’ setting in at the last minute - and it also fits in with the potentially lower budgets that your customers are also forced to live with in the summer months. • Get the customer working on your behalf. If you are offering a special price, in return for the discount, can the customer allow you to use their offices for a summer ‘walkin’ promotion? This is especially effective in a retail or wholesale location and will allow you to showcase your products and services to the people who deal with your client - ie, you’ll create further contacts ‘downstream’ in the supply/demand chain. • Use ‘stratified selling’. If your sale is complex or has multiple points of contact during the sales process, it can pay to create a ‘team’ sale that incorporates everyone from your support team, through to client managers, the Sales Director and even the CEO. So, during the sales process, each person develops a relationship with their counterpart in the client organisation - and importantly, at the end of the sales process, everyone attends the final sales call. • Invite key clients and ‘platinum’ prospects to your office. By agreeing to visit your office, clients and prospects have already entered into a ’soft’ sales agreement. Not only by meeting the team, but by creating the emotional commitment to physically visit your office, the odds of success are increased. This is especially true if your offices or facility boast advanced or unique technology - or are in a very smart part of town. • Increase the frequency of sales meetings and heighten competition. Given the urgency with which you need to secure extra business, it can be a good idea to split the sales team into groups and bring them together every three days.

GROUND LEVEL

This not only creates a healthy spirit of competition, but allows a better chance to brainstorm and compare notes - perhaps one team member has the perfect answers that another team is lacking.

the summer is the unplanned ‘disappearance’ of the client contact normally placing orders with you. Tackle this in advance by frontending product demonstrations and sales calls, so that there is smooth product flow-through during staff absences and holidays.

Understanding what summer means to your customers It’s possible that during the summer months, a percentage of your customers will be constrained by similar factors as those impacting your own business. The question is, how can you help them navigate these dilemmas and continue to buy from you? The first thing to do is ask them what their constraints will be. It may be that you have a complete answer to their concerns and can proactively prevent these from jeopardizing your business during the summer months. For example -

Maximising peak performance Apart from doing all you can to sustain levels of commercial business during the summer months, the other critical factor is to ensure that operational activities are not impacted by unnecessary costs provoked by the extreme summer heat. The servicing and repair of premises and vehicles can be a major drain on business efficiency and resources, and some forethought can prevent a good deal of cost, delay and frustration. Key remedial measures include -

• You can help clients bond more effectively with their markets by introducing specially-customised summer product lines. Even if you are not in sectors such as food and beverage, you can still include lifestyle affinity offers for holiday and leisure packages, change colour-ways and create summer-styled support collaterals. In other words, make your product the obvious seasonal choice. • Look at previous years’ sales histories and determine which clients have longer payment cycles during the summer months. Agree terms in advance with them so that you can proactively create a financial buffer against those invoices which will be extended from 60 days, to, eg, 120 days. This shows willingness to extend credit and therefore bond better with client businesses, while ensuring payment at an agreed longer settlement date. You might want to take out Trade Credit Insurance (TCI) to protect your business against any further unexpected payment delays. • Plan your sales calls around client holiday timings. A major factor in lost volumes of business during

• Investing in shaded carports for all company fleet vehicles. According to insurer RSA, parking in a properly-shaded area reduces ambient heat by up to eight degrees centigrade, making a vital difference to factors such as preservation of car paintwork, exposed dashboard surfaces, rubber insulation around windows, wear and tear of upholstery - and of course, working conditions for the driver. • Ensure proper servicing of fleet vehicles. The summer months will impose rigorous demands on aspects such as hydraulics, cooling fluids and tyres, so it is vital that these are in tip-top order and ready to stand additional stress. • Getting AC plant properly serviced before the onset of mid-summer. It pays to have all AC units serviced before they come under extreme duress in the high summer. It goes without saying that breakdowns at that time can lead to staff absences and not inconsiderable discontent. Remember, too, that many aspects of warehousing and product storage will rely on consistent, cool temperatures, especially in the case

of flammable and volatile substances. Loss of cooling capability and/or AC could have a catastrophic impact on the business’ ability to meet delivery schedules and contractual obligations. • Ensuring that windows of the premises are film-tinted. Use a good quality cooling film to protect windows throughout all public and staff areas of the building. This will ensure not only better working conditions, but reduce reliance on extreme levels of AC, thereby reducing costs. One last point: there’s no better way to ensure that your business productivity suffers in the high summer than to let large clusters of staff take their holiday times simultaneously. Yet this is precisely what so many businesses do. How can you maintain normal working conditions without the necessary staffing levels? Avoid the ‘staffing gap’ scenario with some good forward planning, especially when it comes to multiple staff simultaneously taking leave of up to one month (suggest that this is taken later or earlier in the year, allowing only one or two staff members to go away for a sustained block of time all together). Enjoy the summer!

For an online version, please visit: www.smeadvisor.com/2015/06/summersurprise/

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GROUND LEVEL

Working with the public sector are you ready for the business relationship of your life?

In many cases, the smart route to commercial success is to re-frame your idea of who your customers are, opting to target the Government agencies and institutions driving forward large-scale social and structural change. While this can bring both volume and quality of business, it can require a dramatic sea-change in the way that your business is managed and how it sees its responsibilities to key stakeholders and the public. Senior Editor Paul Godfrey looks at the possibilities and the obligations… 22

Perhaps the best way to understand the core challenge of working in partnership with a public sector entity is to ask yourself the following question: “who does my business have to answer to?” The response will typically vary with the size of the business. So the owner of an SME will probably say ‘my customers’, while the CEO of a larger entity that has gone through an IPO will typically say ‘my shareholders’. Yet consider this: the CEO of a government department will answer in an altogether different way. He or she will say ‘the public’. That’s a massively challenging remit, frightening precisely because it’s so broad and so open-ended. How would your business fare if it had to meet such a universe of stakeholders, each with dramatically varying expectations, vulnerabilities and needs? If you want to deal with the public sector, the first imperative is to have the raft of measures in place which, first and foremost, manage and mitigate that interface with the public. So you will need • A set of protocols that protect the public at all costs. If you

are a manufacturer, a provider of services, or you create key infrastructure projects, are the public protected by virtue of the fact that everything you do meets the highest safety benchmarks and is accredited by international quality standards? If they are not, your business cannot win (or even apply for) competitive Government tenders. • Proof that you offer value and are not exploiting the public. Do you have transparent records of your procurement processes, the standards you always require, and the mark-up that you charge to

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GROUND LEVEL

It’s entirely foreseeable that once the early years of the public sector alliance have been completed, the SME is at a dramatically higher level in terms of turnover and market presence. www.smeadvisor.com

clients and end-users? The ability to demonstrate good commercial practice is vital. • Audited reports and accounts. The facility to show that you are a credible commercial entity is paramount. The public cannot be let down or left without product if your business folds - and no-one knows if that’s likely or not unless you have audited accounts that can be objectively reviewed by all stakeholders. • A written assessment of your risks and the credit-worthiness of key suppliers. When supplying the public with a product, is there a risk

that you won’t be able to supply the goods they want to buy, or have already paid for? Are the wholesalers or manufacturers you use likely to go out of business and jeopardise key elements of your product assembly? If so, you will not be able to create or sustain a long-term contractual relationship with a public sector entity. The same is true of your distribution profile. Is it so fragile that a small disruption with your distributor could endanger the delivery of your product for uncertain periods? You will need to be able to provide your public

GROUND LEVEL

Many private sector companies engaging with the public sector will use Trade Credit Insurance (TCI) to protect receivables exceeding the pre-agreed payment cycle.

sector partners with a full breakdown of the credit-worthiness and financial security of key suppliers and distribution partners. In addition to all the above, it should go without saying that if the public are able to visit your premises, they should not be in any danger from faulty fixtures and fittings, inadequate signage, poorly-serviced electrical equipment, factory processes, contamination or structural deficiency. You will need to implement a regime of solid risk management audits, and then action their findings with a comprehensive approach to sound and proper risk reduction. The benefits of working with the public sector Enough of the bad news! Working with the public sector can transform the profile of an SME, opening up dramatically new market opportunities and providing a virtually gilt-edged payment roster (albeit often working to a slower payment cycle - more on this below). The public sector entity will often be using working practices that have been learned from - and directed by - a world-class consultancy, and which will provide a quantum leap in terms of the learning experience of the SME. This may be most apparent in terms of operational processes, where the SME can see the benefits of replacing a ‘gung-ho’ spontaneous approach to events with considered and structured framework. This can involve awakening to fresh understandings in areas such as cost-effective procurement, executive staff retention and facilities management. Perhaps the most major benefits are, firstly, exposure to a radically different (greater) level of market opportunity, and the added kudos and reputational gains that success in these areas will bring. It’s entirely foreseeable that once the early years of the public sector alliance have

been completed, the SME is at a dramatically higher level in terms of turnover and market presence. This is categorically proven to be the case with, for example, the Private Finance Initiative in the UK, the many infrastructure development schedules pioneered by P3 Canada Inc., and India’s socalled ‘10th Plan’ agenda. Are you ready? The example of Royal Dutch Shell The negative here is that only a relatively small percentage of SMEs are likely to be eligible for a working partnership of this kind. An interesting case study is the example of SMEs engaged in competitive tender opportunities with Royal Dutch Shell in Qatar. These tenders open up the chance to work on major projects linked to the development of the Qatari economy and some of the world’s largest Public Private Partnership initiatives. Yet typically, even those businesses that win the competitive tenders tend to be a long way from the performance and risk management standards demanded by the petrochemical giant. So Shell has pioneered an ‘apprenticeship’ scheme whereby it actively trains the winning candidates for a period of eighteen months prior to the actual commercial relationship getting under way. This process will often focus on factors such as operational effectiveness, supply chain strength and effective and relevant quality management protocols. It should be taken as a given that working with public sector entities is not for each and every SME. Among other factors, the business has to be rugged and welldeveloped enough to withstand the possibility of significant changes to the agreed schedule of works. After all, these projects will often have a long-term perspective and a high level of associated complexity so it can be very difficult to identify

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GROUND LEVEL

Remember that a public/ private partnership can last for many years and redefine the skillsets and specialisations of your business.

all possible contingencies during project development. Events and issues may arise that were not anticipated by the parties at the time of the contract. In fact, it is more likely than not that the parties will need to renegotiate the contract to accommodate these contingencies. It is also possible that some of the projects may fail or may be terminated prior to the projected term of the project: this may be for a number of reasons, including changes in government policy, or indeed due to external circumstances such as trade embargos and local political disturbances. While some of these issues will be able to be addressed in the initial agreement, it is likely that some of them will need to be managed during the course of the project itself. The financial dimension While on the one hand contracts can be of considerable value - even if public sector partnerships are spread across multiple private sector providers - they may require a level of detailed follow-up and proforma certification beyond that normally encountered in the private sector. So it can often be necessary to appoint a dedicated account manager to ensure that there is a good, close ongoing dialogue in place - which can be the best way to encourage the public sector client to sign off each stage of the project as per the contract specification (and of course authorize payment prior to the next stage commencing). It is completely normal to find that payment terms with public sector clients may exceed 90 days, so the business has to be prepared to work according to a longer cashflow cycle. Many private sector companies engaging with the public sector will use Trade Credit Insurance (TCI) to protect receivables exceeding the pre-agreed payment cycle. This will ensure that larger sums especially

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are fully protected and that longer payment cycles do not endanger company performance, or push sums owed outside the agreed budget windows. While a percentage of businesses dealing with the public sector will also use factoring arrangements, it is better to preserve margins and ownership of receivables by having a pre-agreed short payment agenda with the public sector entity. Another common solution is to use a ‘retainer’ model by which an averaged monthly payment is made to the SME each month, with sums above and below that amount reconciled every six months. This ensures smooth cashflow and avoids eroding operating margins via thirdparty expenses. Are you prepared to work in these ways in order to avail a different dimension of turnover and market opportunity? Remember that a public/private partnership can last for many years and redefine the skillsets and specialisations of your business. Yet it also requires patience, planning and thorough research before ‘taking the plunge’. Will your business break the mould and become, first and foremost, a public servant?

For an online version, please visit: www.smeadvisor.com/2015/06/workingwith-the-public-sector/

GROUND LEVEL

Getting big strategies for business expansion

The reality is that in the SME sector, most CEOs and Managing Directors are far too busy day-to-day to think about powerful expansion strategies - they’re fully occupied with getting the business to do the best it can with its current operational model. Yet there are a raft of key initiatives specifically designed to achieve growth, and here, Senior Editor Paul Godfrey looks at four of the best options for SMEs.

The majority of owners and directors fall prey to a very fundamental mistake. They believe that effectively delivering on agreed targets and performance levels is tantamount to achieving growth. Yet the error is that most business templates are in fact not especially growth-oriented: they are focused on achieving gradual and residual growth according to a fairly conventional business model. The secret, however, is to use a business model that is dedicated to having growth as its main priority. It’s no accident that when we think about regional (and indeed, global) success stories, we tend to think about those businesses that are in fact using growth strategies of this kind. Before we identify a key selection of these strategies and how they work, it’s worth bearing in mind that they each have the power to de-centre the way your business normally works - and unless you’re properly prepared, they might throw existing operations into turmoil. So if you are genuinely interested in growth, you will need to ask yourself the question: am I ready for the potential disruption that aspiring to growth can involve? Growth strategy one: Turn your business into a franchise model Many people take the view that only those businesses created with franchising in mind from Day One can make the successful transition to a franchise business model. Yet the membership of the International Franchise Association (IFA) shows more than 70 per cent of successful franchises had no idea that they would ever wish to take their business in this direction. It’s a good idea to join the IFA and avail yourself of the various franchise community networking groups affiliated to the Association. This will give you an immense amount of background knowledge about what franchising will actually involve. Also, once you are serious about franchising, you will need to • Appoint a specialist franchise lawyer who can guide you through potential pitfalls and speed up

franchisee acquisition by creating a realistic and mutually-beneficial contract. • Find a personal mentor who is a highly successful franchisor - the personal guidance he or she will give is invaluable, as is the expert experience of navigating and overcoming the main roadblocks. Two factors are very central to franchising, which, while often forgotten or overlooked., are in fact very powerful reasons for pursuing a franchise model. Firstly, franchising is in effect an operating system that allows the potential for ownership on the part of the staff working in each new franchise unit. Which means that your business concept is in the hands of people who have a vested interest in its success - not ‘wage-slaves’.

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GROUND LEVEL

Growth strategy two: License your product This can be a powerful and economic growth medium. Licensing tends to be popular in areas where there is a high level of content origination – media, news, publishing, data compilation and online work are classic examples. The idea here is that this content can be expensive and labour-intensive to create, and so it can be more cost-effective to ‘buy-in’ ready-made work, or re-brand core content with a bespoke brand. Licensing means you can • Receive money up-front and get a stream of royalties from the continued sales or use of your product, service or brand name • Reduce your risk. • Minimize costs. Licensing is very low-cost when you compare it to the price of company start-up and formation, or the upscaling you would otherwise need to produce and sell your brand or product.

Secondly, franchising can open up a very broad international market and take you in directions you never imagined would be possible (and probably would take many years to achieve by other business models). This is especially valuable in areas such as the Middle East and GCC, where a variety of international markets are relatively close together, yet bound by a common language. Remember that in involving people from these other markets as owners, franchising also brings you - automatically - a good level of local expertise. Note that it will be advantageous to a franchise roll-out if you can simplify the internal processes of your business as much as possible. Very often, business owners focus on the ultimate USP of the business (which is of course fundamental to its appeal

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to potential franchise-holders), but neglect the internal ‘chemistry’ which will impact the efficacy with which others can implement your processes and procedures. This is why very often, even the world’s top franchises - McDonald’s is a classic example - evolved through a core of their own businesses, which served as the ‘laboratory’ for getting the business formula right. Franchising can also mean that you have to keep an open mind about evolving your business concept: it may need to undergo certain ‘tweaks’ in order to really captivate franchise-holders, and similarly, the style and quality of people you encounter as part of that mix may be able to add new dimensions and appeal that take your prospects to a whole new level.

But as with franchising, it’s important to identify and appoint a specialist lawyer. This lawyer will need to be an expert in intellectual property rights - a skillset that will prevent any likelihood of losing control of your brand out in bigger, bolder markets, or where there is a danger of royalty payments being forgotten about in a clamour of media voices. Growth strategy three: Create an alliance This is one step away from being a Joint Venture, but works in ostensibly similar ways. The secret here is to find a business that shares your goals and aspirations, but where the liaison can add a mutuallybeneficial skillset. (One of the best examples on the international stage is Nissan-Renault: Renault has the innovation and demographic that was not available to Nissan, but Nissan has the market reach and international dealer/service network unavailable to Renault). This can be a very powerful way to expand quickly, and indeed, product sales increases

GROUND LEVEL

Appoint a specialist franchise lawyer who can guide you through potential pitfalls and speed up franchisee acquisition by creating a realistic and mutuallybeneficial contract.

in the order of 200 per cent in the first year are not unknown. Notwithstanding, one of the ‘mental barriers’ that many business owners have to alliances is that that they will involve often quite complex mutual payment and licensing fees - but it’s important to bear in mind that the overall size of the pie is being increased, giving more rewards for everyone. These arrangements may still require a significant reengineering of aspects of your business’ internal processes, however, and can involve factors such as • Hiring a dedicated account manager for liaison with the alliance partner • Specialist accounting software - which may require a different operating platform from the one you are familiar with, to allow compatibility with partner operations • Fresh branding that defines and proclaims the relationship to the public • New online marketing channels Another factor is to ensure that you link up with a business that already has a very strong list of prospects: your ability to access these builds your credibility with the alliance partner and of course, expands your own market exponentially. Growth strategy four: Diversity is king Nearly 100 years ago, Coco Chanel realized that while couture clothing was her fame, creating and marketing perfume was her fortune. In reality, she was the pioneer of what is known as ‘diversification’. It’s no accident that today, great brands from Ferrari to Mont Blanc have lines of designer accessories that complement the cachet of the core brand yet open up a whole new wealth of marketing possibilities. For an SME, diversification can apply either to broadening your range of products or extending the markets you sell them in. It can be a good idea to decide to dominate a complete market sector by selling into an entire

‘vertical’ - for example, if your business is manufacturing ceramic bathroom tiles, you could: • Re-tool production to produce hard-wearing ceramic elements for bearings and machine components • Make ceramic components for topquality local jewellery businesses • Create ceramic gels and amalgums for dentistry and maxillo-facial applications Or, you could decide to move ‘horizontally’, and aim to dominate the world of bathrooms décor, moving into bowls and hand-basins manufacture, mirror frames and decorative materials. The constant theme throughout is that the business sticks with what it is proven to be good at, but applies this expertise in a variety of other contexts. This can extend (as it did, for example, in the case of RAK Ceramics) to investigating key export markets and deciding to target overseas markets where goods similar to yours are prohibitively expensive to manufacture, or simply aren’t widely available. Inviting future possibilities Looking at the above options, it’s apparent that key growth strategies have the ability not only to accelerate a business, but change it. Many business owners hold back from all-out growth for this very reason, which is perfectly understandable. Remember, though, that if a business stands still, it is in effect going backwards. According to ratings agency Standard & Poor’s, for example, the cost of living doubles every ten years, so realistically, a business has to increase its profits by 100 per cent every decade just to stay where it is. Is your business currently able to do that - or do you need to adopt a fresh growth strategy asap?

For an online version, please visit: www.smeadvisor.com/2015/06/ getting-big/

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BUSINESS BANKING

Time to deliver are you ready for Qs 3 & 4?

Half the year has gone and the weeks ahead combine the potentially quieter time of the summer months with the most productive and frenetic days of the entire year. Are you well-placed to make the most of this key time and deliver ahead of the year’s forecasts? SME Advisor looks at the ‘strategies for excellence’ that effective businesses will need to implement…

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BUSINESS BANKING

“If you keep on doing what you’ve always done, you’ll keep on getting what you always got” – Tom Peters

How do you want 2015 to define your business? Will this be the year that you beat targets, consolidate growth and categorically achieve the goals you set back in late 2014? If that’s what you want, the reality is that you have only a few weeks left in order to steer your business to success: leave it any longer and it will already be too late. The fact is that mid-year is a perfect opportunity to reconsider your aims and implement a 10-point action plan designed to cut through any fuzziness and tackle the key financial and operational priorities. Here’s the plan and what you need to do -

Reaffirm or redraw targets and forecasts

It might well be the case that the goals you set early in the year simply aren’t relevant any more. Perhaps the market has changed dramatically, you have new and better products or you lost key members of staff. Whatever the facts, these have to be reflected in a realistic set of targets - you can’t go on chasing after fictional goals (conversely, you shouldn’t be looking to achieve too little if the new circumstances mean you can deliver more).

Revisit all your marketing initiatives

If the marketing activities of the first six months haven’t been effective, there’s one simple strategy – don’t continue them! Now is the time to do things differently, because if you don’t the opportunities of 2015 will be lost forever. Consider the following aspects carefully • Are your e-marketing initiatives striking home via a clean and relevant database? • What is the take-up rate of your product-focused campaigns?

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• If you have allocated a client cost to your e-blasts, do the campaigns you undertake for your own events and products justify this expense? • Is your social media profile productive, engaging and generating the preferred level of dialogue? If not, hire - parttime or full-time – someone who really understands this key growth sector. It may be the case, for example, that a short programme of paid Facebook campaigns will dramatically increase product interest and take-up - and you can’t afford not to know. • Is your website a functioning and interactive sales platform, or just a brochure under glass? Putting a website together is too costly - and the role of online media too important - for it to exist for merely passive browsing.

Look at your current product range and upgrade/ augment if required

It’s a frequent mistake to believe that your product range is irrevocable and carved in stone, or that it’s too late to do anything about it. The motto ‘new and improved’ is always good news, and it may be that you can add value and fine-tune products without too much disruption to working schedules. Plus, once you make that change, don’t forget to proclaim it through aggressive marketing.

Ask if you have the right calibre of staff to drive the business

It may be the case that earlier in the year, you could afford ‘passengers’ - but at this point, that is a luxury you simply cannot afford. Ask yourself what is the personnel template you need to deliver your goals? Do you want a cluster of junior staff ‘at the coalface led by a senior manager, or does your template prefer two or three senior managers only? Now is the time to decide and recruit accordingly.

BUSINESS BANKING

Never be afraid to ask for more credit terms where you have a proven supplier record. This can be a powerfully beneficial tool for building your cashflow.

Given the timeframe available, how do you want to expand your business profile?

At this stage, it is unfortunately already too late to build or augment your branch network, for example. But there might still be time to launch a sales initiative overseas in a market where you’ve already gathered strong market intelligence. Plus, there’s still time to freshen up your brand image and promote via a powerful through-the-line campaign.

Evaluate the sales pipeline and Increase the intensity of your sales drive

Take a realistic look at the sales pipelines: will your key prospects truly deliver and will they deliver in time? This is not the right moment for wishful thinking, and it’s better by far to focus resources where they will reap tangible results. Also, now is the time to upscale the frequency of sales meetings and build competitive spirit between sales staff. A key approach here is to create mini-teams with separate, ‘branded’ identities who will compete against each other and win a good worthwhile prize (like a European holiday) at the end of Q4. If you have a telesales team, monitor activity levels and set new call targets - perhaps a figure of 100 calls per day and 15 client conversations per day might be appropriate for your sector.

Create a range of customer incentives

It may be the case that in return for better business in the coming months, you have to opt for volume over margins. This entails making special offers in a structured and cost-effective way. If you are going to create some kind of offer, set the stage earlier in the sales process by pre-arranging an ‘upcoming’ promotion in August (for example) and then offer the promotion/incentive no later than

the first week of July. Then it will not be seen as seasonal ‘desperation’ setting in at the last minute - and it also fits in with the potentially lower budgets that your customers are also forced to live with in the summer months.

Negotiate better credit terms/extend payment cycles

Never be afraid to ask for more credit terms where you have a proven supplier record. This can be a powerfully beneficial tool for building your cashflow. Moreover, make sure you protect your own receivables with Trade Credit Insurance (TCI), indemnifying the business against protracted delays or missing payments and smoothing any cashflow shortfalls in the receivables book.

Consider the raft of financial options for achieving ‘smart’ growth

Act quickly and you could reinvigorate the business with fresh cash sums. For example, is the business performing well enough to make a credible application for

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BUSINESS BANKING

secondary finance? If you have detailed financial records and are running to a healthy margin, you could be a key candidate for effective borrowing; the sums accrued could make a powerful difference to the cash buoyancy of yearend figures. Perhaps you have plant or equipment that would be good collateral for a refinancing initiative? If so, you could retain their use (and ownership) while enjoying the rewards of a fresh cash injection into the business. Note that with properly-prepared documentation, these financial strategies can also be implemented relatively quickly. On the other hand, M&A activity, for example, will not be completed quickly enough to make a pay-back in the remainder of 2015.

It’s important to realise that decisions affecting strategy in Qs 3 and 4 actually impact everyone in the organisation, and these new ideas should be ‘stresstested’, using the other directors/senior managers as a sounding board.

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business, one of the most effective ways of doing this is to implement a rigorous Procurement strategy. This will utilize procurement software to simplify company purchase and save significant amounts of staff time. It will also ensure that the items ordered strike the right, preferred balance between cost and quality - fundamental if you’re a supplier in sectors such as construction or aviation, supplying critical build components that invite public liability and Quality issues. The other advantage here is that switching to a fresh procurement platform can be a very quick transition, with savings apparent before the onset of Q4.

This is often overlooked, but logically, there is no better way to get the business performance you want than by giving staff what they want. The secret here is to limit the arrangements to those people who you really believe to be critical in delivering the agreed targets. Then, the goals you set must be tough but fully achievable - otherwise, they will have an opposite, demotivational effect. Note here that these incentives do not need to endanger cashflow or result in immediate costs. For example, perhaps the most powerful incentive of all is to give equity in a ringfenced area of excellence within the business - which if sold to a client or competitor, would give key directors, eg, 10 per cent of total value each. (These personnel could also be retained by the business after the sale as part of an exclusion agreement within the purchase contract).

Stress-test your decisions One of the key dilemmas facing an SME is that in the interests of speed and simplicity, owners/CEOs can often be prone to acting in a very ‘gung-ho’ and independent manner, taking major decisions without consulting the other directors. It’s important to realise that decisions affecting strategy in Qs 3 and 4 actually impact everyone in the organisation, and these new ideas should be ‘stress-tested’, using the other directors/senior managers as a sounding board. A good idea is to book a quiet, private suite in a local hotel and bring together key stakeholders over a buffet lunch. Then present a selection of the new strategic proposals and put them to the vote. This will not only ensure that you have everyone’s expert input, drawing on their own areas of specialist expertise, but ensures that major moves are made democratically, with everyone then able to share credit or responsibility and buying into what is - hopefully - a bright, if sometimes challenging, future.

Preventing ‘leakage’ and maximizing resources Along with brainstorming to see how to increase revenue, it’s important to consider ways of preventing ‘leakage’ of funds for the remainder of the year. Especially if yours is a medium-sized

For an online version, please visit: www.smeadvisor.com/2015/06/timeto-deliver/

Incentivise key staff

//DIGITALLY DISRUPTIVE

GATEWAY TO SUCCCESS:

JEBEL ALI FREE ZONE Freezones in Dubai have taken the emirate to new heights of success, acting as powerful catalysts in supercharging growth and development. At the heart of this burgeoning freezone landscape is the Jebel Ali Free Zone Authority (JAFZA), which is arguably the regionâ&#x20AC;&#x2122;s most prestigious and sought after commercial space. This hotspot for entrepreneurship, innovation and creativity provides a critical platform for SMEs to get their business off the ground and achieve regional acclaim. We speak to the influential figure championing this focused community - Salma Ali Saif Saeed Bin Hareb, CEo, JAFZA.

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//DIGITALLY DISRUPTIVE development solutions, offices, retail outlets and on-site residences. We even have desk spaces available for start-ups and those looking to gradually establish a regional presence.

Salma Ali Saif Saeed Bin Hareb, CEO, Jebel Ali Free Zone

How would you describe the unique environment and opportunities that Jafza offers SMBs and Enterprise-level businesses? Over the years Jafza has evolved into a unique trade eco-system that optimises cost and enables new opportunities for growth in SMBs and Enterprise level businesses. With seamless multimodal connectivity via sea, air and land, Jafza puts the majority of the world’s markets within reach. Our logistics platform was augmented by creating a single, customs bonded area between Jebel Ali Port on one side, and Al Maktoum International Airport on the other. The upcoming Etihad Rail will link Jafza with the entire Arabian Peninsula, completing the Free Zone’s multi-modal connectivity offering. Our range of products are specifically designed to meet a variety of business needs. They include plots of land, warehouses, showrooms, customised

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Is there a specific 2015 agenda, and what is it? Jafza’s focus has been on physical goods movement. But we are now moving towards market places, connecting physical goods with people. Recently we launched a Halal Food Zone and an e-commerce hub within TechnoPark (a sister company of Jafza). We are also developing more efficient and new ways for clients to access capital through NASDAQ Dubai. Businesses are always in search of capital and the equity market serves as an important source. We also continue to develop infrastructure across all Economic Zones World properties, and will continue to invest in infrastructure development based on market demand, and for the ultimate benefit of our customers. Does Jafza specialize in one particular industry sector, or is it a mix of businesses very diverse? Jafza specializes in a wide range of licensing services, and our infrastructure is geared towards serving trade, logistics, industrial and service sectors. We have over 85 different licence categories covering these sectors, in addition to offshore company establishment. Jafza customers have the freedom to choose the best path for their individual requirements, and we assist our customers at every step, from the initial application to registering the company, selecting the appropriate activity and leasing a facility to licensing. How does Jafza see its role in developing Dubai’s economy, especially in light of the new 2021 strategy document and the development of near-neighbour DWC? Since its inception, Jafza has played a key role in developing the economy of Dubai. The initial intention of developing the Free Zone was to generate business

//DIGITALLY DISRUPTIVE

Jafza’s premium facilities

Jafza provides optimum solutions for start-ups under ‘Jafza Business Park’, which is focused on providing the essentials for startup businesses, and all necessary facilities to get off the ground.

for the newly established Jebel Ali Port. However, over the past 30 years, Jafza has expanded to over 7,000 companies from 125 countries and territories, including 120 of the Fortune Global 500. Today, Jafza contributes over 20 per cent of Dubai’s GDP and provides employment to more than 140,000 people. At Jafza, we have always aligned our plans with the strategic direction given by the Government of Dubai, and continue to cooperate with all our partners in materialising the vision and aspirations of Dubai. Does Jafza offer any Special Incentives for Start-up Businesses? Jafza provides optimum solutions for start-ups under ‘Jafza Business Park’, which is focused on providing the essentials for start-up businesses, and all necessary facilities to get off the ground. Tell us about Matajircom initiative and why it is special? Matajircom is the world’s first purpose built e-commerce hub, and the first destination dedicated to the e-commerce industry. Tailored to the needs of e-commerce companies, it fast-tracks set-up, simplifies business management and facilities expansion. As a unique cluster development, Matajircom is set to become a premium location among companies looking for a dynamic, likeminded environment.

At the centre of Matajircom’s offering are the multi-purpose units, suitable for a diverse range of businesses, with the opportunity to own single units or blocks of units based on the investment strategy of a business. What makes Matajircom unique is that it offers tailored regulations, quick and flexible company registration as a free zone or a non-free zone company, business incentives such as 0 per cent tax, 100 per cent foreign ownership and value-added services such as e-storefront, development, payment gateway, etc. What is the nature of the strategic partnership between Etisalat and Jafza? Etisalat is a strategic communication and connectivity partner for Jafza. As with all Jafza partners, we work closely with Etisalat for the ultimate betterment of the services available to investors in Dubai.

For an online version, please visit: www.smeadvisor.com/2015/06/gatewayto-success/

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MOVERS & shakers

The service imperative In today’s competitive markets, businesses often get caught up in the fight for survival – focusing on core activities such as establishing sound financials, building supplier relationships and maintaining high quality products. However, an important ‘Factor X’ that they often forget to address, at their own peril, is customer service. Integrating a strong service culture within your business can give it an edge over competitors and revitalise its growth. We speak to globally renowned customer service guru Ron Kaufman, who reinforces critical service messages…

Ron Kaufman

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MOVERS & shakers

“Listen to customers and you will hear them. Look carefully at customers and you will see them. Do both and you will understand them.” – Ron Kaufman

What is the definition of service? The definition of service is “Taking action to create value for someone else”. Service providers, in the past, would primarily focus on ‘what action to take in order to create value’. However, this has now shifted to ‘who is someone else’, or in other words ‘how can we understand the customers’ needs better’. This means addressing questions regarding your customers such as – what are they trying to accomplish, what are their primary concerns, what will satisfy them the most and so on. Moreover, businesses need to have a better understanding of their customer segments. As the service provider, you have to analyse if the customer you are serving is a new customer, an already loyal customer or somebody who is just casually shopping. It is significant that you engage with different types of customers differently. Service providers need to become value creators; you have to ascertain what the customer is looking for and deliver that. Understanding this is the first building block in developing your own outstanding service and seeing it as a strategy you can use to grow the business. As our ability to understand what good service actually consists of has grown, we’ve seen our service aspirations become more and more important. So, for example, we’ve seen the following transition – Customer satisfaction – Customer delight – Customer loyalty – Customer service partnership.

How important is it to build a service culture within a business?

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A service culture is a working context where a group of people are committed to creating value for the customer, but also creating value for and supporting each other. So, in an organisation that successfully implements a healthy service culture, people would not only come in to work every day and ask, “How can I do my job successfully?” they would ask, “How can I assist you in getting your work done?” The idea is to help each other out so that together you can offer value to your external customers. Turnover is expensive for companies; every time you hire a new employee, you have to undergo the training process. So, it is critical that a business integrate service culture within the business and communicate with employees what it is all about. Essentially, companies need to use a bottomup approach to service culture. Remember, great employees will get you great customers! Let me explain with an example – I was working with a regional frozen foods company to help them with their service culture. We started with three of their branches that were run as individual units or SMEs; we went to their customer facing staff and asked them what they would like to change about their service. The responses we got from them were astonishing – they suggested something as basic as changing their uniform colour! Not only that, cashiers believed that they would be able to serve better if they were designated as ‘customer service experts’. And, we did just that. We changed their uniform colour and gave them name badges with the new titles. Employee turnover within the department dropped from seven to zero per cent that year.

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In today’s competitive landscape, if you are able to create a superior service culture within your organisation, you are more likely to keep the customers that you have and attract new customers.

As part of your training programmes, you’ve mentioned that HR plays a critical role in building a superior service culture. Can you explain further?

Absolutely! The HR function of an organisation is integral to its service culture; they have to provide educational programmes that will raise awareness of key protocols and best practices. Essentially, they need to create a common service language that everyone can use when they work with each other. As part of this, there will be guiding principles set in place such as who do you recruit, how do you orient new staff, what types of service communication platforms are available, how are you measuring service performance, what are the rewards and incentives and the list goes on.

Why is integrating such service culture within a business so important?

Ron Kaufman is the world’s leading educator for upgrading customer service and uplifting service culture. Ron is author of the New York Times bestselling book Uplifting Service. For more information and a sample newsletter, visit www.UpYourService.com.

In today’s competitive landscape, if you are able to create a superior service culture within your organisation, you are more likely to keep the customers that you have and attract new customers. That’s not all. Customers themselves have rising expectations and building a strong service culture will enable you to deliver and exceed those expectations. Finally, as I mentioned earlier, people perform and work better in a superior service culture environment; they understand that everyone is helping each other succeed. I think there is a misconception that service is all about external parties such as the customers – it is a combination of empowering both internal and external stakeholders of an organisation.

How is technology shaping customer service? The need for an intelligent understanding of your customer is higher than it has been in the past. Previously, customers would see your product, ask the price, you would smile and it was done. Today, however, when people show up interested in buying, they have already done a lot of thinking like what do they want the product for, what are their options, what are the criteria they need to look into before they make my purchase, and so on.

What are the key factors that businesses need to undertake to improve service? I will have to once again go back to my seven golden rules of service leadership. Implementing these principles will help businesses revitalise service and truly supercharge growth. They are –

Rule One: Declare service a top priority Rule Two: Be a great role model Rule Three: Promote a common service language Rule Four: Measure what really matters Rule Five: Empower your team Rule Six: Remove the roadblocks to better service Rule Seven: Sustain focus and enthusiasm

For an online version, please visit: www.smeadvisor.com/2015/06/theservice-imperative/

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On a roll Sumo Sushi’s growing empire

Japanese family dining franchise Sumo Sushi & Bento’s reputation for high quality food and service has helped it flourish in the Middle Eastern markets. With 12 outlets currently operational and three more underway, the brand has come a long way since its inception in the year 2000. Alpha Maiava, the brand’s Franchise Sales and International Growth Manager, spoke exclusively to SME Advisor…

Sumo Sushi & Bento began its successful journey from the UAE. How significant was the choice of place as part of your overall strategy? At the time of launching Sumo Sushi & Bento, our founders conducted a detailed market analysis with extensive research on the business dynamics within the UAE. They were looking for a place that would be conducive to three major elements – a warm family dining experience, authentic Japanese cuisine and affordable pricing. The UAE ticked all these boxes and made perfect sense. Of course, there were additional factors such as the ease of doing business, a burgeoning hospitality industry and the amalgamation of diverse cultures.

Overall, this country is very much aligned with our vision and we couldn’t have asked for a better start! What do you think makes you different from your competition? We have four guiding principles driving the success of every Sumo Sushi outlet. They are – • Creativity • Integrity • Simplicity • Quality We consider our brand to be the embodiment of these core values and we guide our staff, suppliers and partners to work around these. No matter which Sumo Sushi & Bento

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We really do our homework before entering a new market and spend a lot of time and effort in researching the marketâ&#x20AC;&#x2122;s customer service standards; what is way too much or what is way too little.

Alpha Maiava, Franchise Sales and International Growth Manager, Sumo Sushi & Bento

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branch you go to, you will find that these principles are exemplified in our operations. We’ve enjoyed 15 years of remarkable success within this region and this is truly a testament to our strong cultural values. Is customer service a key differentiator? How does Sumo Sushi & Bento ensure that it is offering the best service experience? At Sumo Sushi & Bento, we believe that food is emotional and functional. So, customer service is an extremely critical part of what we do. In the hospitality industry, you have to work with a diverse set of people – from different cultures and backgrounds. The challenge is to ensure that all these different mind-sets come together to create one, memorable customer experience. I think it all comes down to your staff – if they are satisfied, it will bring out the best in them and therefore keep your customers happy. It is a trickledown effect. You started franchising in 2007 and have accelerated expansion over the last few years. What encouraged this? We wanted to create a high quality product that we were confident, passionate and excited about; this was quite significant for us. As soon as we achieved that, we were open to franchising. Moreover, a franchise is essentially an extension of our business and it is critical that we perfect our formula with every new outlet. We are also considerably careful about the markets we want to grow into and won’t simply expand for the sake of expansion. We undertake a thorough market study, which analyses the type of consumers, customer service expectations, level of competition and other pivotal factors. Your first franchise outside of the country was in Bahrain and

you’ve recently signed a new franchisee in Oman. How did this come about? We’ve signed an agreement with Naranjee Hirjee & Co and are delighted to welcome them into the Sumo Sushi & Bento family. Naranjee is an established company with a long history in Oman. The founders can chart the business back over a hundred years. This means they have the experience to make their franchise successful. Also, as a family business ourselves, we believe that they will enrich our company culture and reinforce our shared values. This will become increasingly important as we continue to expand across the GCC and internationally. How do you ensure that every outlet is catering to the specific needs of the local markets? We always learn from complaints and feedback – that is the foremost way of improving your offer in a fresh market. We really do our homework before entering a new market and spend a lot of time and effort in researching the market’s customer service standards; what is way too much or what is way too little. We then integrate this into our training. We always keep in mind that no matter where we go, people want good food and service. Of course, they may have different ways of expecting that service. What is next on Sumo Sushi & Bento’s expansion agenda? Qatar and Kuwait are definitely markets of interest; we are keen on expanding further into the GCC. There are exciting projects lined up for Saudi Arabia and India – watch this space! I also foresee opening new outlets in South Africa. Do you have an operational manual in place for your franchisees? Absolutely! The operational manual is very significant, it ensures that things

are consistent throughout all our outlets and that the customer service experience remains the same – each time. Franchise owners, however, are allowed to deviate to the extent of about 10 per cent from the principles set in the manual. This allows them to make changes to cater to local needs and customs. For instance, Sumo Sushi in Bahrain has spicier menu options over anywhere else in the region – this is because we’ve come to realise that there is market demand for this kind of variation. The operational manual is a guiding platform that shares the overall agenda, but fine tuning it is in the hands of the franchisees. What criteria does a franchisee have to meet in order to work with Sumo Sushi & Bento? The way we look at it – a franchisee is not taking a part of Sumo Sushi, but is joining our large Sumo Sushi family. We look for partners who are as passionate as we are about the brand and what we do. More importantly, they need to be knowledgeable and

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Did you know? Sumo Sushi & Bento’s core values Integrity/Seigōsei, Simplicity/Tanjun, Quality/Hinshitsu and Creativity/ Sōzōsei come from the multicultural heritage of its Founders and their commitment to offering the personal experience you would expect from a family-owned restaurant.

Quick fact! Sumo Sushi & Bento recently signed a new franchisee in Oman in the form of Naranjee Hirjee Catering LLC, who will lead the brand’s entry into the country with three new restaurants over the next five years.

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excited about Japanese cuisine. After all, food is a major part of our job! Apart from these two crucial factors, we also look for franchisees that have the required investment amounts to undertake the project, people that have done their homework and understand the nature of our business. We don’t want there to be any hidden corners and want our franchisees to fully comprehend the scope of work. What are key challenges that franchisees need to be wary of? Based on my personal experience of working with franchisees, I’ve observed that a lot of them struggle with their first franchise outlet. This is simply because it is the first time they are dealing with the brand and it is a huge risk. We encourage all franchise owners to conduct a proper risk analysis before they jump into things and try to stick to our winning formula. In addition, we give them the initial platform they need to start successfully with support in the areas of HR, marketing, training, etc.

How important is the role of digital media in your industry? Digital and social media platforms are indispensable tools for us. Here’s an interesting fact – 30 per cent of our business is lost without digital platforms! We use technology not just within our customer facing functions but for internal operations as well. This helps us streamline critical functions and ensures that we are constantly reinventing ourselves. Any parting words of wisdom you’d like to share with SMEs in the region? Identify who your target audience is and always keep them in mind when making business decisions. Remember to have a vision for the future and plan ahead of time in order to achieve your goals.

For an online version, please visit: www.smeadvisor.com/2015/06/ on-a-roll/

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The future of hiring Upworkâ&#x20AC;&#x2122;s revolutionary solution

Hiring talent is arguably one of the most important responsibilities of a business owner. After all, a professional, competent and skilled team shapes your business and takes it to new heights of success. The advent of technology has made this process faster, easier and more effective, with sophisticated platforms offering advanced solutions. Upwork, a freelance marketplace, is one such platform that is disrupting the online workplace. In an exclusive interview with SME Advisor, Muhummad Osman Khan, Country Manager, Upwork shares key insightsâ&#x20AC;Ś

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Muhummad Osman Khan, Country Manager, Upwork

You’ve recently rebranded from Elance-oDesk to Upwork and launched a completely new platform. What is the strategy behind this? Upwork is the world’s largest freelance talent marketplace. As talent is increasingly shifting online, it is important for us to create a powerful platform that improves our overall offering to businesses. The idea is to launch one unified platform and have an even greater impact. As a key player in the freelancing industry, we want to lead the way and represent a new chapter of innovation in the online workplace.

What are Upwork’s notable features? How does it take freelancing to the next level? Upwork has more than three million businesses as clients and around 10 million freelancers from over 180 countries. Two features that are the highlights of Upwork are – instant hiring and real time

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collaboration. Traditionally, it would take businesses 43 days to hire the right person. With our previous platform, it would take about three days on average. What we are doing with Upwork is reducing it to three minutes, with the vision to make it real time. This means that businesses can find perfect match for their job almost instantly! We make this work using enhanced matching algorithms and an extensive database. So, we find the right person for a client’s job in real time and make recommendations to them. When it comes to collaboration, previously this meant sharing messages through an inbox. We’ve now introduced a new solution within Upwork that allows for real time group collaboration; this enables clients and freelancers to message one another, share files and video chat. For our clients, this is a great way to pre-screen a freelancer!

How do you ensure that the rights of both parties are protected? When we were launching Upwork, one of our primary goals was to create a safe, trusted workplace; we have several mechanisms in place such as ‘Upwork Payment Protection’. This is similar to an escrow service, which ensures that our clients are only paying for the services they have approved. It also protects sensitive information and IP rights. This is one of the primary reasons why businesses choose to work with us rather than carrying out a transaction with the freelancer directly. In addition to this, we have a feature called ‘Work Diary’ that sends the client a snapshot of the freelancer’s screen every 10 minutes – this is great for clients that are paying on an hourly basis. 47

MOVERS & shakers

Upwork’s top etfsive client mark 1. USA 2. Australia 3. UK 4. Canada 5. UAE

What kind of payment terms does Upwork offer? We’ve kept our payment process simple and easy to understand. Clients can choose to pay freelancers on an hourly or project basis. For project-based jobs, clients can set milestones for freelancers and when they are met, a portion of the payment is released. Clients can make payments through credit cards, PayPal or bank transfers. Of course, the Upwork Payment Protection that I mentioned earlier is enforced to ensure seamless transactions.

What business model do you work to? When we transfer client payments to the freelancer, we deduct a 10 per cent fee. In other words, Upwork charges freelancers 10 per cent of their fee. For businesses looking to hire using Upwork, there is no fee.

Why would Upwork appeal to a business looking to hire? Today, businesses want to hire top talent – quicker, more efficiently and at a low cost. Upwork ticks all those boxes. Moreover, we give them access to a large pool of talent across the world, with no geographical restrictions. Upwork has two distinct offerings: one is the

Number crunch • Online freelancing is expected to be a $46 billion industry globally by the year 2020 • Globally, freelancers earn over $1 trillion a year • Freelancers are earning more than $1 billion annually via Upwork 48

public platform which is Upwork.com and the other is a private enterprise solution exclusive for larger businesses. Our enterprise solution already caters to global brands, including corporate powerhouses with over 10,000 employees globally.

What percentage of start-ups and small businesses make up your client base? How does Upwork cater to that market segment? We see a lot of take up from early adopters and these are primarily small businesses. We do work with a number of tech start-ups; they appreciate how they can have a competitive advantage using a platform of this calibre. Platforms like ours open new doors of opportunities for small businesses or SMEs because they now have access to high quality talent that they might not have been able to afford before. On a basic level, talent acquisition is one of the biggest challenges that SMEs face and we are able to help them with that. We understand that business owners need to concentrate on their core capabilities and manage their business. Hence, we give them a straightforward solution to hiring that makes their life easier. On a more advanced level, growthstage businesses that are looking to expand into new territories and are undertaking larger projects can use Upwork to scale their operations and hire a skilled team almost instantly.

The digital revolution has changed the way we work. How do you assess this evolving landscape? The future of work is online. First, we saw shopping move online with e-commerce, closely followed by

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Upwork has three million businesses as clients and around 10 million freelancers from over 180 countries.

software moving online. Now, work is slowing going online. I believe that hiring and getting work done online is a burgeoning industry, which is having its ‘Amazon moment’. Let’s look at some of the numbers – worldwide, freelancers earn over $1 trillion a year. We expect 10% of them to move online with Upwork within the next few years. In fact, research suggests that online freelancing is expected to be a $46 billion industry globally by the year 2020.

Does the new millennial generation play an important role in the shift of work to online?

Online Work Spend by Category in 2014

$486M

Absolutely! Studies have proven that millennials are looking for income security over job security. This means that they are looking to generate income from more than one source and this is where platforms like Upwork come into play. Moreover, millennials prefer flexibility over anything else, they no longer want to be tied down to 9-5 jobs or to their desks.

Technology

$110M

Admin Support

$109M Writing and translation

$83M

Design and multimedia

$71M Mobile

$49M

Sales and marketing

$33M

Finance and legal

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What, according to you, is the biggest challenge that the freelancing industry is faced with? I think lack of awareness is a major challenge. Most businesses don’t completely understand that freelancers are skilled professionals and can get work done on time. There is a need to promote the benefits of working with freelancers and we will see this happening increasingly over the next decade. Another area of improvement is the regulatory framework that governs freelancers; this definitely needs to evolve as the industry grows and we have seen positive change from authorities across the globe.

Upwork – formerly Elance-oDesk – has enjoyed significant success across international markets. What kind of interest have you received in the UAE? We moved into the UAE about eight months ago, but it is already our fifth largest client market globally. Businesses within the UAE spent about AED 90 million on our platform in the year 2014 and have cumulatively spent almost AED 400 million. Given UAE’s size in comparison to some of our global markets, this is massive. It goes to show how quickly this market is maturing, particularly in the technology space.

Looking to the future, what are other initiatives you have in the pipeline? I should mention here that we are currently also launching Upwork’s mobile app, which is again a step forward in improvising our offer. Businesses want quick solutions on the go and our app provides that. Clients can post jobs, review applicants and make hires in just a few touches!

For an online version, please visit: www.smeadvisor.com/2015/06/thefuture-of-hiring/

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Jump! Leaping the hurdles to success

Tina Lund

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MOVERS & shakers

IN THE LAST EDITION OF SME ADVISOR, WE INTERVIEWED THE LIFE AND MOTIVATIONAL COACH, ALLAN NIELSEN, WHOSE AWARDWINNING BACKGROUND AS A PROFESSIONAL FOOTBALLER IS TRANSLATING INTO LIFE AS A HIGHLY SUCCESSFUL SME FOUNDER IN DUBAI. NOW WE INTERVIEW HIS WIFE, TINA LUND - A LEADING SHOWJUMPER CURRENTLY RANKED NO.1 IN THE UAE. TOGETHER, THEY MAKE NOT ONLY A REMARKABLE SPORTING COUPLE, BUT ARE CO-DIRECTORS OF A NOTABLE BUSINESS START-UP…

As you are both champions in both your sports careers, do you think your relationship as husband and wife works perfectly with Allan’s lifecoaching business? Tina: I think for sure it helps a lot that we were and are in the sports business. It means that we know what it takes to be winners and we know that it is something that you achieve in due time. We know how much effort you have to invest and sacrifice to be champions. Also, being a couple we have a certain synergy as we understand each other perfectly. Although I am not directly involved with Allan’s coaching business, I do assist him in several sessions that he does. Consequently, I am also a coach myself - I teach upcoming riders and I train show jumping horses as well. Allan: Tina is a very successful rider, and she is still very active in her sport. She knows that in order to be a champion in your sport (or any other career path you may have), you should be able to set a clear goal and have a vision of how you can maximize your resource to achieve this goal. That aspect is something that we integrate in our discussions with some of the clients we deal with. Subsequently, whenever I hold workshops discussing how one’s mind or subconscious is working hard to reach certain objectives, I can bring Tina’s experiences into the dialogue. The fact that she is currently still very active and is a champion in her event, makes for a more effective presentation.

Do your coaching styles differ?

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Tina: My style is more hands-on, because it focuses more on training new riders. It emphasizes physical training and techniques. However, becoming a champion is so much more than the physical ability, it is also about the mindset of a person. Having said that, as a sportsman who has experienced the road to being champion, I know what kind of mentality a person should have to achieve that, and that is something that I try instill to my clients. I should also add that those times when I’ve assisted Allan in coaching some of his clients, it helps a lot that there is a male and female presence. Some women I work with have asked for my insights on how I balance becoming a winner, a wife and a mother. Now that is something that of course Allan cannot give his opinion on, so it is really very good that when we’re together, we get to share both men’s and women’s viewpoints. Allan: As we previously mentioned, Tina is doing the coaching in the show jumping business and I’m doing it for CEOs, businessmen and so on. But, there are times when we combine our acumen for a particular client or scenario, and that really makes for a very effective strategy or discussion.

What is a normal day like for a champion such as yourself? Take us through your typical routine. Tina: On a normal week-day, I get up in the morning with my son, have breakfast then send him off to school. Then after that, I head straight to my training and I do that until 1:30pm. I pick up my son from school and spend a few hours

MOVERS & shakers

a clear goal and you work hard to achieve that, then becoming a success is within your reach.

with him. During the afternoons, sometimes I do more training myself or I meet with clients for their training. Every week I have two to three days of competition. I train beginners up to high-level show jumpers. It’s interesting that I even train and coach some people that I compete with!

Do you think being a wife and a mother gives you an advantage in becoming more persistent in your quest to become a champion in sports and business? This actually relates to one of the reasons why we moved here. Because in Europe you have to travel a lot to be the No.1 and to get in the good shows, but here in Dubai, everything is happening right here. So I get time to be with my son and husband, and still be on top of my game. Also, after becoming a mother, I felt that I became more motivated. It made me strive harder to become the best - and it actually proved how mentally and emotionally balanced I’ve become, because I’ve got that great combination between my career and my family life. In a way being a mother, also gave me a certain push to be more efficient with my work. Say, when I am on training, I see to it that I am very focused with what I am doing, and I do it well, right and on time, because I want to be with my family as soon as I can. Simply put, I am more organised, and I do not only work harder but I work smarter. Allan: Also, as husband and wife, and as two sports persons who have experienced being winners in our own arenas, we do positively push each other a lot. We work together in becoming the best versions of ourselves, personally and professionally.

Since you two have different strengths and capabilities as coaches, was there a time when Allan asked you assist him to coach a client of his, and viceversa? Yes, there were certainly instances like that. I do ask him to speak to some of my clients, because he has a certain maturity and level of knowledge – it’s not just prowess in physical training. He can also reach deeper and mentally prepare a person for competitions. Also, I do have some clients of mine who are now reaching out to him for business coaching.

In your opinion, are there any factors specific to success here in the Middle East and do they differ from countries like Denmark? Also, have you had any difficulties with relocating here, either with sports or business? Definitely, culture is a big factor, because the way that many things are done in a European country like Denmark is relatively different to how they’re done here in the Middle East. However, I believe it doesn’t matter whether you’re here or in any other part of the world: the fact is, if you have a clear goal and you work hard to achieve that, then becoming a success is within your reach. In terms of the challenges here, I haven’t had many on the sporting front, because the country is very much aligned with the showjumping business. With the business, it took some time before I got some clients for coaching, because that needs a certain level of trust first. Getting male clients took longer of course, but once I established my name as a showjumping coach, it

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MOVERS & shakers

out Tina

Interesting facts ab

• Tina Lund started show jumping at the age of ten, and holds a place in the Guinness Book of World Records as the youngest-ever Danish Champion (at 11 years old). • Tina is an 11 times Danish Champion, three times Nordic Champion, and one time European Champion for “young riders” (riders under the age of 21). • She is recognised as one of the best female riders in the UAE; in 2015, Tina has won two classes in Abu Dhabi, two classes in Al Ain, one class in Dubai and three classes in Sharjah. • She is also one of the most trusted buyers and sellers of horses in the industry (which is also one of her business interests). A horse that she sold to the US in 2011 was named “Horse of the Year.”

got a lot easier. Now I have a number of male and female trainees. Also, I think for a person to succeed, his or her goals should be present in every area of life. From how you eat, the way you talk, the way you interact with people - everything. Everything you do and every choice you make in life or in business should be something that leads you closer to reaching your goals.

How do you usually prepare for a competition? Can you tell us some of the tips that you give to your clients? For me, the most important thing is focus. Because during a show, there are a lot of things going on around you. I need to shut off everything for a while, for that moment when I’m competing. I see a lot of people having difficulties with that. I try to visualise everything that I need to do, how I make every jump and how I go through every hurdle.

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For my clients, I always tell them time is very important. Being on time helps you focus, because if you’re late you’ll stress about the time you lost and how you’re going to make for it and in turn you lose your focus. That’s the way it is in sports - and the same is true for business.

Please share three of the secrets of what it takes to become a champion? First, you need to have focus and discipline. Second, you should enjoy what you do. Lastly, be passionate with what you do. In that order, because I think those three things are the perfect combination for succeeding in your chosen career-path.

For an online version, please visit: www.smeadvisor.com/2015/06/leapingthe-hurdles-to-success/

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Creating tomorrow’s world a profile of

Majid Saif Al Ghurair

An almost legendary figure with a reputation as the consummate business visionary, Majid Saif Al Ghurair is CEO, Al Ghurair Group and Chairman, Dubai Shopping Malls Group. Belonging to one of the leading business families in the UAE, it’s no exaggeration to say that he has a been a powerful factor in shaping the economic landscape that thousands of SMEs operate in, as well as enhancing the nation’s retail and service experience for nearly two decades. SME Advisor is honoured to present the following exclusive interview.

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Majid Saif Al Ghurair, CEO, Al Ghurair Group and Chairman, Dubai Shopping Malls Group

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How do you currently see the role of small and medium-sized enterprises at both the global and State levels? The first thing I should say is that small and medium-sized enterprises are not something new. They’ve been a lynchpin of the economies of the developed world for many years. It’s no accident that many western countries have laws specifically designed to attract small and medium-sized enterprises. There is no doubt that this sector plays a major role in the economy - and logically, we say that the State economy prospers better when the Government properly encourages the private sector. Its performance is a real hallmark of overall economic strength. The SME space doesn’t always attract media attention and glamorous coverage, but no-one can hide the importance of its role in a global economy.

Turning to those laws developed by western nations for the organisation and support of their SMEs, to what degree do we see similar provisions in the Arab States?

It has to be said that what we are seeing so far are very much ‘oneoff’ efforts from particular states. But there have been serious studies to support this sector, especially in the UAE and Oman. Moreover, the UAE has set up specialised funds such as the Khalifa Fund in Abu Dhabi and the Mohammed bin Rashid establishment for SME development, and indeed, these institutions played a leading role in pushing SMEs. Yet now we need to see another dimension of

Success may be slow in the first year (and indeed in the second) but if the groundwork is correct you may experience your first successes and the bigger and better investors may come along.

work. Now we need to stimulate the private sector to help support the growth of SMEs, and by this I mean the role played by banks and financial institutions in financing these institutions, and they can in turn be helped through special legislation in this sector. Large financial institutions must play a key role in the development of SMEs, in addition to the role that could be played by the Central Bank. The Central Bank must encourage banks to take the lead in financing SMEs.

Does this mean you believe in partnership between the public and private sectors to support this sector? Of course. That will be an important catalyst in changing the mindset and thinking of people coming into the sector, especially the younger generation. For them, all they can see is that there’s always the possibility of failure and loss. But every business

is about profit and loss. So we mustn’t lose our chance to establish specialized portfolios to finance such projects and give them special appeal and credibility.

So it’s noted that the youth is often encouraged to look more towards government jobs, which are perceived to represent security and higher salaries? Is this trend going to change? This is a problem in the culture from the ground up. In the Western world, there is the factor that many young people turn to summer work or part-time work during their studies, thus starting an early interest in private sector work and its advantages. From this also grows the idea of participating in society and beginning to enjoy the responsibility of earning a living. Through exposure to people and work, the youth can acquire the new skills that may determine their future careers. There are examples of success here as well, but not in all cases. All too often, youngsters want to be Bill Gates from Day One. We need to show them that the process itself has value and that they will be learning the broader life management skills that can really help build their future direction.

Do you believe that the experience of failure is one of the keys to success? Of course. How else can you effectively train yourself? You must work, do internships, build literacy, learn the secrets of the profession. When they want to build a business, some people may buy the big names

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MOVERS & shakers

from abroad for huge sums, but the name is not the sole guarantor of success. You must have practical experience in the field and this is an essential part of the undertaking. For example, you can close your eyes and try to cross the road and if you’re lucky, you might succeed in crossing once or twice. But if your eyes are open, you can see the full scene and know the distance and the surrounding dangers.

Some succeed, others fail despite seeming similarities in background and opportunities. What do you think are the fundamentals of success?

Timing is essential. Maybe you have a great idea and you try to apply it today, but you fail. You return after a period of experience and succeed. You must study your circumstances. There are many factors that play an important role in this - eg, a given economic situation, regional circumstances, changing customer perceptions. Opportunities in the Gulf are so huge, but you have to find the way that works best for you and your business proposition. For example, you might open a cafe in a workingclass district and succeed, because you have low costs, affordable rental, heavy footfall, and free delivery. These are all factors that may lead to the success of the project - and this can be better than engaging in a huge project where its cost is high, and the potential reward is high, but the risk is too high as well.

In this context, do you feel that a family business should encourage the children of the family to create their own SMEs,

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or be groomed to take over the existing, successful business? The problem facing the able families is that their children feel safe - and that’s such a big dilemma. Many depend on family wealth as a safety valve. But there are many examples of successful youth, who took on entrepreneurial work and the family have achieved significant additional successes as a result. I encourage this kind of leadership. Society respects a successful entrepreneur, whether or not this is originally via the family. If you’re relying purely on a network of family security, though, you will never succeed and be respected.

How far have you personally supported SMEs? I have done, but I don’t see my involvement as being a charity. The entrepreneur must be serious and committed. The owner must study and understand the business properly and when asking for help, must persuade me that he or she is able to successfully continue and take the initiative and risk. I value an entrepreneur who understands the fact that opportunity doesn’t come to you, you have to go looking for it.

What are the key steps to follow to build an entrepreneurial career? You must look for opportunities, and you must do so at an early age. As you get older, your ability to take risks diminishes. You should also be grounded and practical and recognise that the early business capital won’t buy a luxury car - and it has to be reinvested into the business. Banks tend to fund the project if the person has solid individual capital. Success may be slow in the first year (and indeed in the second) but if the groundwork is correct you may experience your first successes and the bigger and better investors may come along. After this initial success, you can go to financial institutions that will look at your business more seriously.

For an online version, please visit: www.smeadvisor.com/2015/06/creatingtomorrows-world/

CSR

Empowering social enterprises C3 and its unique value proposition Social enterprises are increasingly taking on mainstream businesses with their disruptive business ideas, innovative thinking and strong passion to make a difference. Yet, how many initiatives really support them and help them reach their full potential? Consult and Coach for a Cause (C3) is one such project that is dedicated to fuelling the growth of social businesses in the region. We meet its Co-Founder and CEO Medea Nocentini…

As a professional executive with a full-time high-profile job as the VP – Corporate Development at OSN, what motivated Medea Nocentini to work with social entrepreneurs and promote their growth? “Quite early on, I happened to attend a few classes on social entrepreneurship and was absolutely fascinated by the business model. Essentially, social enterprises tackle critical causes such as water shortage, lack of sanitation and so on with the help of a strong business proposition – that too in a way that they are able to make profits and sustain themselves! So, you are using your business acumen to make a difference within

the society. This had a profound impact on me,” she explains. “C3 was born out of a few projects that my co-founders and I were voluntarily working on. Initially, it was ad-hoc mentoring on a pro bono basis. As the demand grew, we scaled up and started shaping a proper programme!” By definition, and as described on socialenterprise.org.uk, social enterprises are businesses that trade to tackle social problems, improve communities, people’s life chances, or the environment. They make their money from selling goods and services in the open market, but they reinvest their profits back into the business or the local community. The last few years

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CSR

Useful definition!

Medea Nocentini, Cofounder and CEO, C3

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have seen the nascent field of social entrepreneurship gain momentum and garner a lot of attention. What makes them so attractive? “Social enterprises have become the new way to do business, not just in the region but on a global level. I think what makes them so appealing is that they open up new markets and customer segments like the underprivileged section of the society, for instance. Secondly, people have become more aware of their social responsibilities; every business wants to do its part for the society and environment. Lastly, for entrepreneurs that have wanted to make a social impact, they find this business model ideal. Whereas, if you worked on nonprofit model, it would be quite difficult to sustain and scale your business.” Where does C3 fit into this ecosystem and how can it help social enterprises? “C3 is a UAE-based social enterprise set up to help unlock the potential of social enterprises in Middle East and maximise their impact on the community. C3 mobilises experienced business professionals to share their knowledge on a voluntary basis, matching professionals with social enterprises, while taking into consideration skills, interests and availability. It also guides social enterprises through a step-by step process to ensure success and longterm social impact,” responds Medea. C3 takes a unique two-step approach by dividing its overall offering into a Starter programme and an Accelerator programme. The idea is to give earlystage businesses the guidance and support they need before they get to the intensive accelerator stage. In addition, C3 encourages the participation of subject matter experts, mentors and business leaders as volunteers to guide businesses enrolled into the programme. “We are using the collective effort of the community to support young businesses. C3 volunteers help entrepreneurs develop skills necessary to deliver their social business goals. We are selective when it comes to our volunteers because they form an integral part of C3. All our

What’s in it for volunteers? Volunteers are interested to be involved because they are doing good and helping the end beneficiaries, but they also get involved because it can improve their skills and leadership abilities. Research shows that the experiential nature of skills-based volunteering enables volunteers to develop communication and coaching skills. This is corroborated by managers who noted that employees brought back to their jobs adaptive leadership skills acquired during their volunteering experience. (Source: Corporate Citizenship Report 2010 tracking learning and development of 550 employees from 16 City firms volunteering across the UK)

volunteers must demonstrate relevant experience and serious commitment to positive social impact,” explains Medea. Getting ahead with C3’s Starter programme To maximise C3’s impact, social entrepreneurs and volunteers are encouraged to attend the C3 Starter programme and align with C3’s vision, mission and beliefs. The C3 Starter programme introduces aspiring social entrepreneurs and potential volunteers to social enterprise concepts as well as to C3’s philosophy. The C3 Starter programme comprises of workshops, webinars and networking sessions for participants either seeking to set up a social enterprise or in the early stages of development. Sessions for volunteers ensure professionals are clear on the C3 process and equipped with basic consulting and coaching skills. This is also a great opportunity to network with like-minded professionals. The programme comprises of the following:

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• Presentations and workshops dedicated to teach best practices, the dos and don’ts when launching a social enterprise, benefits and challenges of social and environmental missions, and potential business models • Webinars run by subject experts • Networking session including expert panels, round tables and speed consulting sessions Volunteers attending this session can avail the following: • Basic consulting and coaching skills • Skill-based volunteering best practices Understanding C3’s Accelerator programme The C3 Accelerator programme is designed to help social enterprises maximise business performance and social impact. From the ideation to

the growth phase, the C3 Accelerator programme focuses on key steps that social entrepreneurs should go through in order to build a sustainable and socially impactful enterprise: such as defining organisation’s social mission, developing a sound business model, designing value propositions, developing go-to-market strategies etc. Social entrepreneurs looking to join the C3 Accelerator programme should meet the following pre-requisites: • Fully register details online • Attend the C3 Starter programme (either in-person or online) • Complete the C3 application and match C3’s selection criteria • Be interviewed and approved for entry • Read and accept the C3 Terms and Conditions/Code of Conduct “Of course, in addition to our basic criteria, we seek social enterprises

Idea stage the entrepreneur has a social enterprise idea but hasn’t yet defined a product/service or developed a clear social mission and business model.

that demonstrate social impact and strong leadership. We want them to be passionate about their cause. More importantly, we try to understand if they are ready to take on a challenge. Entrepreneurship in general is not an easy task and you need to be willing to dedicate a whole lot of time, effort and resources to your business,” Medea adds. Once the social enterprise has been classified in one of the three stages (idea, start-up, growth), the C3 social entrepreneur gets matched with a C3 Accelerator volunteer – if both entrepreneur and volunteer (after their first meeting) accept the match, the C3 Accelerator volunteer will help the social entrepreneur set up yearly goals and objectives based on the suggested C3 Entrepreneur Journey and meet with the entrepreneur each quarter to check progress, suggest next steps, evaluate needs and suggest ad-hoc one-to-one modules:

Start-up stage the entrepreneur has defined a clear social mission, business model and value proposition, ideally has developed a draft business plan.

Growth stage

The selection process

the entrepreneur has already established a company that operates in the market and might be interested in raising funds.

When an aspiring or established social entrepreneur applies successfully to the C3 Accelerator programme, one of the C3 team representatives run a diagnostic of the social enterprise that leads to the following classification:

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CSR

Blueprint for growth The journey of a social enterprise 4

3 Define core values

Map Key Stakeholders

Develop a sound business model

1 Choose a social cause and identify its potential solution

The Social Entrepreneur Journey

9 Scaling/growing

Funding/fundraising

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6 Develop a plan to measure social impact

modules’ topic and scope depend on the enterprise’s stage and are run by C3 expert volunteers assigned by C3 based on their experience and interests. It is recommended that the C3 social entrepreneur get coached by one of the C3 coaches for two to three months (up to four sessions) on topics that will help kick-start the social enterprise project. With a wide range of accelerator programmes available to entrepreneurs today, it is only natural to wonder – what differentiates C3’s offering? Medea says, “Our accelerator programme is a combination of three critical elements, which put together create a strong support system for social enterprises. We offer coaching sessions, group workshops and webinars and one-to-one sessions with subject experts. So there is something for every type of social business.” She adds: “C3 Accelerator programme’s group workshops focus on common challenges social entrepreneurs face during their social venture’s early stages: group workshops also provide an opportunity for C3 entrepreneurs and volunteers to network during speed consulting and coaching sessions.

Develop business plan and test plan feasibility

Define legal/ corporate structure

“C3 Accelerator programme’s one-toone modules address typical business issues (such as business and financial modelling, marketing and social media strategy, funding options, etc.) and those specific to social impact (such as social mission definition, social impact measurements, etc.). C3 can also provide coaching support when needed.” Medea also points out that C3 is an evolving concept, which means that it is adaptable to the needs of the entrepreneur. “Our programme is completely on-demand; entrepreneurs can pick and choose the specific modules they want to benefit from. Of course we have mechanisms in place to structure the programme, but we don’t impose any timelines or milestones on them.” Working in a challenging landscape “I think the biggest problem for social enterprises is maintaining a strategic balance between the commercial viability of their business while still making a social impact. Many entrepreneurs have the misconception that because they are doing something

for the society or environment, potential investors will be more liberal with their financials,” observes Medea. Lack of sufficient capital has been a major roadblock for entrepreneurs in the region. Given that social enterprises are a non-traditional way of doing business, is it even harder for them to access the finance they need? “I would have to disagree that there isn’t sufficient capital within the region. Today, we have prominent investors and venture capitalists looking to back young businesses. However, businesses need to understand that there is a phase which they need to go through before they can acquire finance. They need to be fully prepared before pitching to investors. I should also add that funding depends on the business idea being financially sustainable and the underlying value proposition being sound because if a social business is not around in the long-term, it won’t really impact the beneficiaries that it wants to help.” Does C3 help entrepreneurs with this? “Absolutely! Our mentors prepare them beforehand and share tips on how to go about it. We are also developing a network of investors interested in social enterprises and we will soon give our social businesses a chance to pitch their ideas to them.” “Whether its finance, building a business plan or sourcing experts, C3 provides support across a spectrum of issues. We welcome social enterprises to connect with us and we will do the best we can to foster their growth,” concludes Medea.

For an online version, please visit: www.smeadvisor.com/2015/06/ empowering-social-enterprises

FINANCE

ON THE MONEY A practical approach to securing finance

Recent surveys have made it clear that the number of SMEs in the UAE that receive financing from banks is far below international norms. Whilst this may partially reflect entrepreneurs’ willingness to finance their businesses entirely from their own resources, it is also crucial that company owners and banks communicate effectively when financing requests are being considered. We asked seasoned expert Clive Humphrey, Senior Director – Middle East Training & Certification at Moody’s Analytics, to take us through the fundamental steps...

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FINANCE

We have been providing training to banks around the world for over 40 years and a large part of our business is helping both front-line bankers and risk officers take a structured and consistent approach to the assessment of clients and their financing needs. If SME owners, and their financial employees and advisors, understand the structured approach to credit risk assessment then their chances of establishing and maintaining a true relationship with their bank will be enhanced. This article gives an insight into how bankers approach requests for finance and hopefully, therefore, some pointers as to how to increase the chances of a successful finance application. What are the key steps an SME needs to undertake before applying for bank finance? The first point is to avoid uncertainty. Uncertainty means an increased level of risk, which may impact the ability of banks to measure risk. The SME should be very well informed about their own business and be able to answer questions confidently and quickly, providing evidence of key issues to support their case. Too often we hear bankers complain that their clients cannot provide basic details about, for example, the ownership structure, history or current financial position of their own companies. Business plans are sometimes vague and apparently based on a substantial amount of hope! Lack of information or a belief that the information supplied is not 100 per cent accurate is going to create a negative sentiment and a perception of higher risk. Higher risk will translate into either a declined application, increased demands for collateral and/or higher pricing on the finance. Some of this is driven by regulation (anti-money laundering requirements for example) but it is also pure common sense on the part of the bank.

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The SME should be very well informed about their own business and be able to answer questions confidently and quickly, providing evidence of key issues to support their case. The first steps in risk assessment are three simple questions from the banker to the client: 1. Who will be my customer? 2. Who am I taking a risk upon? 3. What exactly is the money going to be used for? The answers to these questions help the banker to decide what information is necessary to process the application, which parties need to be analyzed and what form of finance is appropriate. All of these are linked to the assessment of the ability of the client to repay the finance within the agreed maturity date and repayment schedule. What are the business, financial and structural risks that an SME needs to be aware of before approaching a bank for finance? Once the initial questions have been answered then the banker will move on to the analysis of risks. There is no such thing as a risk-free deal and attempts to persuade the banker that â&#x20AC;&#x153;this deal is absolutely 100 per cent safeâ&#x20AC;? are doomed to failure. A company owner can gain credibility and respect from the banker by applying their own risk analysis to their business and presenting a balanced and fair picture of the risk profile to the bank.

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Keeping the banker informed (without swamping the bank with unnecessary information!) also helps to build credibility, establish the sustainability of the business model and its future debt service capacity. Clive Humphrey, Senior Director - Middle East Training & Certification, Moodyâ&#x20AC;&#x2122;s Analytics

In teaching credit risk analysis to new bankers we ask them to think about three key areas of risk: Business

The risks that a business faces every day it opens its doors to its clients

Financial

The risks that can be identified from the clients financial statements and performance

Structure

The risks related to the structure of the client or the structure of the transaction being proposed for financing

SMEs can do themselves some good by preparing an objective review of the risks inherent in their own business and displaying a risk awareness to their banker. A loan application that only talks about how wonderful everything is, or how there is little chance of a downturn or a slowing of growth, is likely to be met with skepticism by the lending banker. Having said that, SMEs should not be afraid to demonstrate the factors that reduce the risk. We call these â&#x20AC;&#x153;natural mitigantsâ&#x20AC;? and they can include such factors as a unique product, management experience, pricing advantages over competitors or substantial capital invested by the owners in the business. The job of the risk analyst is to make a balanced risk assessment and the SME can help by providing objective information on both risks and mitigants. How can a business best demonstrate its ability to repay the bank? The review of risks should be forward looking. All loans are designed to be repaid from future cashflows. The banker will take comfort if they feel that the client has analyzed those future cash flows, done some sensible forecasting (based on realistic assumptions which can be backed up with facts) and applied a what if analysis based on key risks affecting the business. Even better if the SME owner has a plan to deal with events that negatively impact cashflows.

Once the finance has been provided, the bank will monitor the exposure to the client. Risk analysis is not a one-off event and banks have to ensure that they understand how their loan portfolios are performing at all times. The client therefore needs to understand that the bank will require regular information updates, including both up to date financials (with projections) and information about the business and changes in the risk profile. Are you facing increasing competition? Have raw material prices increased or foreign exchange rate changes impacted selling or buying prices? Bankers do not like surprises and particularly not nasty surprises. Keep your banker informed and be honest about problems that impact your business. A client with difficulties that may lead to a disruption in the ability to service the loan is best advised to involve their banker earlier than later. Early intervention is often less painful for both parties than trying to resolve a crisis once it is fully established. Keeping the banker informed (without swamping the bank with unnecessary information!) also helps to build credibility, establish the sustainability of the business model and its future debt service capacity. What kind of security or collateral options will an SME require to demonstrate to the bank? The first rule that any banker is

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FINANCE

for collateral in certain cases but is entitled to ask why it is necessary and what difference it makes to the bank’s risk analysis. In the same way, the bank should be realistic about the collateral it requires and should explain these requirements to the client.

Keep your banker up to date with what is happening in your business and what you think will happen in future to your cashflow and ability to service the debt.

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taught is “lend against cashflow, not against collateral”. So why do so many banks require assets as security, guarantees from owners, insurance assignments and other forms of protection? The simple answer is that SMEs are vulnerable to changes in their market position, events such as failure of machinery, deficiencies in management (often after a change in management) or macro factors that are outside of their control. It is also the case that the quality and quantity of financial information provided by SMEs to their banks is less than is required for a full risk analysis. Both of these factors create higher risk profile and banks seek to mitigate this through the taking of security or collateral. The objective is usually to provide a second way out of the loan in the event that operational cashflows are not sufficient to make the scheduled repayments. It may also be that the bank wishes to prevent other providers of finance having priority access to key assets at some stage in the future. The options for taking collateral are usually limited to the assets that the SME or the owners have available and which are free of existing charges or pledges. The SME should respect the bank’s need

Golden rules for SMEs seeking bank finance This short article does not allow us to investigate the issues raised above in detail, but some key pointers for SMEs to consider when seeking new or continued finance are: 1. K now your own business and be able to demonstrate that knowledge 2. Be specific and clear about which legal entity will borrow and precisely why the money is required 3. Prepare your own assessment of risks (and natural mitigants against those risks) and discuss them openly with the bank 4. Keep your banker up to date with what is happening in your business and what you think will happen in future to your cashflow and ability to service the debt

For an online version, please visit: www.smeadvisor.com/2015/06/onthe-money/

country focus

QATARâ&#x20AC;&#x2122;s UNTAPPED POTENTIAL

EXPLORING vibrant tourism opportunities Qatarâ&#x20AC;&#x2122;s vast potential in the tourism sector remains largely untapped. What are key undertakings that will supercharge growth in this vertical? And, how do they stand to impact your business? SME Advisor evaluates the opportunities...

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country focus

the state of Qatar has also identified the need of diversifying its economy rather than relying solely on the hydrocarbon industry.

Quick Fact! Qatar aims to increase its yearly visitors to 7.4 million by 2030 Qatar has undergone a remarkable transformation within a short period of time. Until the 1990s, the small state was a sleepy pearl fishing community.The turning point came in 1995, when Sheikh Hamad bin Khalifa Al-Thani took over the power from his father Sheikh Khalifa bin Hamad Al-Thani and introduced reforms to bring the countryâ&#x20AC;&#x2122;s economy forward and establish Qatar as a global player on the international market. The small desert state became one of the richest in the world having the highest GDP per capita of USD 93,714. This enormous success can be attributed mainly to the oil and gas industry within Qatar, which has the largest liquid gas reserves worldwide. However, the state of Qatar has also identified the need of diversifying its economy rather than relying solely on the hydrocarbon industry. In order to achieve this aim, the successful establishment and further expansion of the Tourism & Hospitality sector is one of the main targets for which the government plans to invest USD 40 to 45 billion. A series of well-defined plans, projects, and policies together summed up as the Qatar National Tourism Sector

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country focus

The set goal is that by the year 2030 64 per cent of the tourists will come for leisure purposes compared to only 30 per cent today. Mara Flück, Intern at German Industry and Commerce Office (AHK) Qatar

Interesting statistic! Strategy 2030 has been developed by the Qatar Tourism Authority (QTA) in cooperation with other institutions in order to promote this industry. One of the set targets for tourism is to contribute some three per cent to the GDP by 2030 whereas it currently accounts for only one per cent of the nation’s annual GDP. Furthermore, the number of tourist arrivals as well as jobs in the said industry is intended to augment significantly with visitors reaching up to 7.4 million yearly by 2030 instead of 1.5 million today and an increase in jobs from 25,000 to 127,000 respectively. Taking a look at the purpose of travel, Qatar Tourism Authority has identified business and sports related travels as the two major contributors responsible for the positive development of the tourism sector. Due to the first-class exhibition venues and internationally important expos, shows, conferences and business events already taking place all year around in Doha, the city has established itself as a major destination for business travellers. The ambitious aim is to become

a premium destination for MICE (Meetings, Incentives, Conferences, and Exhibitions) in the Middle East. In the field of sports, Qatar has hosted numerous international sporting events over the past years such as the 2006 Asian Games, the 2011 Pan Arab Games and most recently in 2015 the IHF Handball World Championships as well as the annual tennis tournament Qatar Total Open. The biggest, most prestigious event that is yet to come is without a doubt the 2022 FIFA World Cup for which Qatar won the hosting rights in December 2010. In the field of business and sports tourism, Qatar is performing well in making the country an attractive destination for foreigners; however the state has much more to offer. Qatar has a rich history and culture, natural landmarks such as the desert landscape and nature reserves as well as the sea and beaches. The Qatar National Tourism Sector Strategy 2030 includes the expansion of leisure tourism and the responsible authorities are working successfully towards its implementation. Currently, there are several attractions such as the Museum of Islamic Arts, the cultural village Katara and the Souq, which are of interest to international tourists spending their holidays in Qatar. However, the number of attractions and activities offered will increase in the future to make Qatar a lucrative destination also for leisure tourists. The set goal is that by the year 2030 64 per cent of the tourists will come for leisure purposes compared to only 30 per cent today. The aim of significantly increasing the number of tourists also requires upgrades to the facilities needed to accommodate this influx. Especially when it comes to the 2022 FIFA World Cup, the hotel room capacity needs to be stepped up dramatically. Currently, Doha has approximately 20,000 rooms. During the FIFA bid, Qatar promised to create an additional 40,000 rooms to ensure

that it meets FIFA’s room capacity requirement of 60,000. In 2009, Doha had a total supply of only 49 hotels. Until 2014 this number was raised to 74 and will continue to go up. At the moment there are more than 120 hotels under construction which will provide a further 22,000 rooms after completion. In order to handle the expected one million guests during the FIFA World Cup, not only accommodation but also the number of restaurants and leisure activity offers has to be stepped up for a successful tournament and leisure tourism destination. Several projects are under way, for example the construction of Festival City, the second largest shopping centre in the world, which costs approximately EUR 1.2 billion. Furthermore, places such as Katara cultural village and the Museum of Islamic Art offer activities to further boost the hospitality sector. For example the sixth Qatar International Food Festival, which promotes the latest food trends, tastes and healthy eating options, took place in March 2015 in Doha. All in all, it can be said that Qatar is investing a lot and doing well on its path to expand the Tourism & Hospitality sector but has yet to overcome several challenges in the future in order for the economy to fully benefit from the results. The state of Qatar is dedicated to this mission and with a continuous rapid development of the current level the country is on the best way of succeeding.

The above article is provided courtesy of Majlis, the official publication of the German Emirati Joint Council for Industry and Commerce (AHK)

For an online version, please visit: www.smeadvisor.com/2015/06/qatar’suntapped-potential/

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LEADERSHIP A meeting with HE Abdullah Al Darmaki, CEO, Khalifa Fund for Enterprise Development

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2015 JuSt a number or the year you make a difference?

SME Advisor – a champion of the SME sector – has built its peerless reputation on the ability to get in front of SME decision makers, speaking frankly and directly to the movers and shakers of the industry. Providing a trustworthy conduit that’s evolved for nearly a decade and creating one of the region’s best-known ‘how to’ blueprints for everyone looking to build a prosperous SME agenda. In 2015, the publication brings together diverse media and integrates different formats into a seamless mix – events, online and hard copy. Will you be part of this exciting journey?

SUBSCRIBE NOW! www.smeadvisor.com ADVERTISING & SPONSORSHIP Gill Fairclough Tel: 04 440 9120 gill.fairclough@cpimediagroup.com

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LEGAL

UAE Companies Law What does it mean for foreign investment?

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LEGAL

The issue of the new Commercial Companies Law, Federal Law No. 2 of 2015, was announced by the UAE Government on April 1, 2015 and will come into effect on July 1, 2015. The new law introduces changes which will affect a number of the structures used by foreign investors to establish businesses in the UAE. In the following feature, experts from Clyde & Co. explore some of the key changes and share critical insights on the evolving landscapeâ&#x20AC;Ś

Foreign ownership restrictions The nature and extent of the UAE foreign ownership restrictions has been the subject of political debate for a number of years. This is against a backdrop of increasing economic liberalisation in other GCC countries, at least on the face of the law. For example, in 2010, the Qatari government introduced the possibility of foreign investors owning more than a minority stake in Qatari companies in certain specified business sectors, such as tourism, health and education. For now, the position in relation to the percentage capital which must be held by a UAE national, or a company wholly owned by UAE nationals, remains unchanged from the previous Commercial Companies Law (Federal Law No. 8 of 1984) (the 1984 Law). One or more UAE nationals must hold at least 51 per cent of the share capital of any UAE company where the company is partly owned by non-GCC nationals. There is no express provision which empowers the Cabinet to relax the ownership restrictions. The Minister of Economy has made clear that foreign ownership will

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instead be covered in a new Foreign Investment Law, which may allow wholly foreign owned companies in certain sectors of the economy. Branch offices: sponsorship requirements Under the new law, the requirement to appoint an agent who must be a UAE national, or a company which is wholly owned by UAE nationals, remains unchanged. Therefore, foreign companies wishing to do business in the UAE without incorporating a new corporate entity, will still be required to appoint an agent and produce a notarised agency agreement as part of the branch establishment process. Although the UAE requirements for local branch sponsors have not been relaxed, it is important to bear in mind that the option of using a branch entity to operate a services based business onshore in the UAE is not generally available in other GCC countries. For example, Kuwait does not allow non-GCC investors to operate through a branch at all and, in Qatar, the use of a branch is limited to companies which have

LEGAL

the notice period for a shareholder meeting has been reduced from at least 21 days to at least 15 days. It is also possible for the shareholders to consent to shorter notice with unanimous approval. Justine Reeves, Partner at Clyde & Co

Rebecca Hilton, Partner at Clyde & Co

entered into a contract with the Qatar government (or government owned agency or company), and only in order to perform that contract. LLCs: changes which affect foreign investors LLCs are the most commonly chosen investment vehicle for foreign investors looking to establish an entity with separate legal personality and with limited liability for its shareholders. Generally, an LLC offers the most flexibility for structuring management and shareholder control (subject to the foreign ownership restrictions). The following changes may affect the structuring of LLCs used for foreign investment: No cap on directors: the 1984 Law set the maximum number of directors which an LLC could have at five. Under the new law, the maximum has been removed. Where there is more than one director, they form a board with such powers and functions as set out in the memorandum of association. The removal of the cap enables more flexibility in structuring the management of the LLC. For example, often foreign investors are interested in having a high number of directors, with a spread of overseas and local representatives with delegated authorities, and different layers of management control. Share pledges: Under the 1984 Law, there was much debate as to whether it was legally permissible for a shareholder to pledge its shares in an LLC as security. The new law makes clear that it is possible for a shareholder to pledge its shares to another shareholder or to a third party. Share pledges are an important topic for foreign investors choosing to incorporate an LLC in the UAE. The foreign investor will often lend the amount of the capital to the UAE national shareholder to enable it to acquire its 51 per cent interest and the foreign investor will require

security for that loan. Therefore, confirmation that share pledges are legally enforceable is welcome. There are, however, a number of areas in relation to pledges which will need to be clarified in practice. Shareholder meetings: there have been a number of changes made to the way in which LLC shareholder meetings may be conducted. Notice: the notice period for a shareholder meeting has been reduced from at least 21 days to at least 15 days. It is also possible for the shareholders to consent to shorter notice with unanimous approval. In addition, the method of providing the notice of meeting to shareholders is no longer restricted to registered letter: the memorandum of association may set out any other permissible method of notice, which may presumably include e-mail notice. Proxies: it is now possible for a shareholder to delegate attendance at a shareholder meeting to a third party who is not another shareholder of the LLC. This provides more flexibility for individual shareholders. Quorum and voting rights: the quorum and voting requirements of LLC shareholder meetings have been amended. It was previously the case that, in order to pass an ordinary shareholder resolution, shareholders representing at least 50 per cent of the total share capital had to vote in favour of the resolution. Under the new law, there is now a two-step process: shareholders holding at least 75 per cent of the share capital must be present at the meeting for the first time the meeting is called, in order for the meeting to be quorate. Resolutions are then passed by the majority of shareholders present at the meeting voting in favour, or such higher number as specified in the memorandum of association. This is

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LEGAL

a numerical majority of shareholders at the meeting, and not based on percentage capital holdings. It is not clear whether the memorandum of association may provide, instead, for a specified percentage of the total share capital (whether or not represented at the meeting) to vote in favour. Any provision to this effect will need to be approved by the public notary. It is important to note that proper notice of the meeting must be given, but the new law still requires shareholder meetings to be attended in person. There is no provision which expressly allows the memorandum to provide for other ways of passing shareholder resolutions. In practice, the memorandum of association may provide for written resolutions, but these require all shareholders to sign to reduce the risk of the validity of the resolution being challenged. Holding companies: the new law allows for an LLC (and a joint stock company) to be established the sole object of which is to hold subsidiaries incorporated in the UAE or overseas. A Holding Company may undertake ancillary activities to that primary object which are set in an exhaustive list comprising: management of its subsidiaries, providing loans, guarantees and finance to its subsidiaries and acquiring moveable assets, real estate and intellectual property assets for the purposes of its holding activities. A Holding Company will not be entitled to trade or undertake any other activities. Such a company will be required to have the words â&#x20AC;&#x153;Holding Companyâ&#x20AC;? in its title. It will be required to produce consolidated group accounts in accordance with internationally accepted accounting and audit practices and standards. This is a welcome addition to the company structuring options which was not available under the 1984 law under which foreign companies frequently had to find an appropriate licence category. The practical requirements

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related to these Holding Companies, such as the commercial premises requirements, are however yet to be clarified. What do we need to do to implement the new law? The law makes some important changes to the way in which a UAE LLC operates from a management and shareholder perspective. In certain cases, LLCs will want to ensure that their current memorandum of association allows them to take advantage of any new flexibility provided for in the law and takes into consideration any more restrictive amendments. All companies will need to reconsider their memorandum of association and shareholder arrangements, together with any corporate governance guidance provided to directors, to ensure that they get the best from the new UAE company law regime.

In practice, the memorandum of association may provide for written resolutions, but these require all shareholders to sign to reduce the risk of the validity of the resolution being challenged.

Further information If you would like further information on any issue raised in this update please contact: Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. www.clydeco.com

For an online version, please visit: www.smeadvisor.com/2015/06/uaecompanies-law/

SME Event Calendar

The dynamic panel

Powerful new agendas for the future of Public Private Partnerships

A keynote event, featuring major stakeholders, highlighted critical issues for SMEs and set a new standard for positive and dynamic new directions. PRESENTING PARTNER

STRATEGIC SME PARTNER

Held on June 3, 2015 at the prestigious Etihad Towers in Abu Dhabi, a dynamic panel event titled ‘Public Private Partnerships – the skills and technologies to work with world-class businesses’, focused on the critical area of Public Private Partnership (PPP) initiatives and their important role in the delivering the Abu Dhabi Economic Vision 2030. Hosted by National Bank of Abu Dhabi (NBAD) and leading telecoms provider Etisalat, in association with CPI Media Group, it looked beyond the typical overview discussions to confront and identify the practical hurdles facing SMEs. It then explained what SME owners and directors can best do to avail themselves of these major commercial opportunities. The panel comprised leading figures from the public and private sectors, who had personal knowledge of Public/ Private initiatives and the key steps in delivering their success. Among the often groundbreaking conclusions that the event reached, five areas emerged

as critical in building a constructive way forward for PPPs in the region. These were – • A recognition from the public sector that private businesses need to sustain all-important cashflow and so a fast, reliable payment cycle on the part of public sector partners is imperative. • An awareness from SMEs that they need not only to acquire complete transparency in terms of financial reporting, but must demonstrate awareness of public liability and risk management agendas. • The need for benchmarking in two key areas: firstly, the creation of quality criteria that then provide key signposts for the private sector and define how it can best meet public sector expectations. Secondly, encouraging the adoption of professional and vocational qualifications that awaken the awareness of ethical and effective conduct. • The human dimension: the need

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SME Event Calendar

Critical themes emerged throughout the day

The VIP panellists were: Alexandar Williams Director – Business Development, Department of Economic Development Dubai

HE Dr Maryam Matar Chairman, UAE GDA Rajiv Shah CEO, GIC Consultants

Bassem Zein Director, SME Advisor Arabiya

Rudolph Lohmeyer Director, Global Business Policy Council, AT Kearney

Laudy Lahdo General Manager – Middle East, Servcorp

Mohanna Al Muhairi COO, Emirates Foundation

for clear project leadership that is sympathetic to both sides of the equation and can properly bring value-add benefits for both stakeholder groups. • The need for other models of collaboration, between public and private sectors, including formal JV relationships, overcoming some of the endemic challenges and restrictions of the PPP template. The occasion was the latest in a series of ‘Vision’ roundtable events designed to highlight critical factors in the development of the SME space in the UAE. The debate will be digitally recorded and become the basis for a specialist White Paper report in the PWC Insight series. This will be published online and contain unique primary data that PWC has sourced in relation to the event’s debates and topic coverage making the occasion a milestone in the evolution of the regional SME dialogue.

Dr. Abdelrahim Elrayah Mahmoud Business and Corporate Development Consultant, Abu Dhabi Chamber of Commerce and Industry

For an online version, please visit: www.smeadvisor.com/2015/06/powerfulnew-agendas-for-the-future-of-ppps/

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SME Event Calendar

Honouring the top achievers Etisalatâ&#x20AC;&#x2122;s Channel Partner awards celebrate the Champions of SMB sales - and announce epic new incentive and rewards programmes. We provide an exclusive review of what went on...

The glittering event

It was a true evening of champions. In a glittering gala setting, the Etisalat Channel Partner Awards recognized the top performers in building and delivering sales to the all-important SMB sectors - with the lavish prizes signposting the great significance of the achievements being celebrated. The Channel partners play an allimportant role in the commitment of Etisalat - leading telecoms provider in the Middle East and Africa - to the UAEâ&#x20AC;&#x2122;s SMB sector and ensure that tens of thousands of businesses receive a dedicated, bespoke service and product advice best tailored to their needs. Etisalat had pioneered a series of important awards and incentive progammes for the valued Channel

Partners, and the evening of June 7th put the spotlight on the top achievers who had delivered exceptional performance and secured the top honours. So it was fitting that the evening began with presentations from the heads of the three businesses that had proven to be categorically the top Channel Partner performers, with a very warm welcome for Gulamali Mohamed Hussain, BMH Global; Bassine Mazraani, Emerging Technologies; and Parvez Sutlan Rupani, Skyline World. Their inspirational messages set the scene for the cavalcade of winners that a number of Etisalatâ&#x20AC;&#x2122;s top executives would go on to honour as the highlight of the gala event.

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SME Event Calendar

Key highlights from the event...

Celebrating winners! The first awards to be presented were for the Top 25 Sales Executives - with each winner receiving AED5,000 in National Bonds. The prizes were presented by Esam Mahmoud, Vice President, SMB Marketing; Jose Sanchez, Senior Vice President, Pre-Sales & Customer Service; Oscar Garcia, Vice President, Business Marketing; Francisco Salcedo Montejo, Senior Vice President, Digital Services; and Hazem Mohamed Ghoneim, Senior Manager, SMB Corporate Alliance and Retail Sales. Then it was time to recognize the Top 4 Super Sales Achievers - with each receiving the terrific prize of a brand new Nissan Sunny! The star names were -

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• Sajid Khan, Kyzen • Muhammad Atif Munir, Al Mumayaz • Atif Khan, Skyline • Vinod Kumar, Telephonica But as the night drew to a close, the question was: who would win the biggest prize of the evening - the Big Bang Award, with its lavish gift of AED300,000 in National Bonds? John Lincoln - Senior Vice President, SMB, and Govind Rao - Vice President SMB Partnership stepped forward to answer the pressing debate. The night’s ultimate award was then presented to Al Mumayaz! New opportunities, new commitments to the SMB sector The evening also showcased not

only an important new Channel Partner incentive programme, but an innovative level of commitment to SMB service and development, courtesy of a dedicated, branded initiative destined to take the UAE market by storm! Govind Rao - Vice President - SMB Partnership, announced the all-new Partner Acceleration Program, a competition that will run over the next three quarters, kicking off with immediate effect. It offers a structured rewards incentive whereby each quarter has its own, separate target and awards. Prizes are absolutely top-notch, with Premier Channel Partners receiving a prestigious Rolex watch every quarter. Meanwhile, for Select Channel Partners, top sales performers get a Nissan Sunny every quarter - and two winners get either 1kg or 0.5kg of gold! Esam Mahmoud, Vice President, SMB Marketing, presented news about a fantastic new SMB engagement - the Hello Business Program. Designed to offer supreme convenience and value for money to SMBs, it allows businesses to focus on their core competencies and build strong commitment to fresh levels of digitisation. Through the Hello Business Program, Etisalat provides (amongst a raft of other benefits) a personalised visit to the customer within 24 hours; a welcome call to ensure hassle-free subscription; and 24x7x365 access to a state-of-the-art, dedicated SMB call centre. All in all, the evening was a powerful catalyst in further building the exceptional ongoing commitment of the Channel Partners, via innovative service provision that is rapidly ensuring Etisalat’s perception as the leading telecoms Champion in the SMB space.

For an online version, please visit: www.smeadvisor.com/2015/06/honouringthe-top-achievers/

SME Event Calendar

Mark your calendar for Global Trade Development Week Global Trade Development Week (GTDW), the world’s largest trade development event, is all set to be held in Dubai from October 27 – 29, 2015 at the prestigious Ritz Carlton Hotel, DIFC. Held under the patronage of His Excellency Sultan bin Saeed Al Mansoori, UAE Minister of Economy, the mega event will attract business and government leaders from over 100 countries. GTDW is committed to increase knowledge, capabilities and dialogue between the public and private sector trade leaders to deliver international trade development. In partnership with Dubai Customs and Dubai Economic Council, GTDW engages political, business, academic and industry thought leaders to share best practice in global trade development through specialised concurrent trade summits. GTDW will gather trade leaders across business, banking, customs, corporate real estate, development banks, FDI, free trade, infrastructure, insurance, investment, multilaterals, risk, specialised economic zones & regions, supply chain, logistics &

transport. The ambitious programme looks to host 150 leading speakers and includes The Ministers & Trade Leaders Plenary, six concurrent major trade summits, site tours, networking receptions and a trade exhibition. With a diverse range of on goings, attendees can select a programme that addresses their specific requirements and interests, or opt for workshops & tours. Held concurrently with a shared exhibition, the forum allows Government and Private sector trade leaders across key verticals of trade development to meet directly with decision makers and engage in a dialogue to increase global trade. Signing of a landmark MoU The UAE Federal Customs Authority announced a Memorandum of Understanding (MoU) with the organisers of Global Trade Development Week, to be the ‘Lead Strategic Partner’ for ‘The Global Customs and Trade Facilitation

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SME Event Calendar

Summit’ for the next three years. The Summit is one of six held during the mega trade event, and will be addressed by leading customs officials and private sector heads of trade facilitation from around the world. Khalid Ali Al Bustani, Acting Director-General, Federal Customs Authority, said, “Signing this agreement to partner with GTDW for the next three years is a very important step to help us strengthen our relationships across borders. Reducing barriers to international trade is a top priority for the Federal Customs Authority, and this can only be done through international cooperation. We are supporting this major annual event as a means to facilitate the flow of global trade and also as a means to promote UAE as the leading regional commercial hub linking the East and West.” Al Bustani adds, “We are particularly proud that UAE has advanced to the third rank globally

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in terms of the efficiency of customs procedures index and we look forward to sharing best practice with the high-level representation attending the Global Customs Summit. We also look forward to learning from other nations as we continually strive to introduce innovative strategies and services to support and enhance UAE’s economic competitiveness globally.” “We are delighted that the UAE Federal Customs Authority is partnering with GTDW”, remarked Andrew Keable, Co-CEO of KW Group – the organisers of GTDW. “The UAE has established stateof-art customs facilities across all seven Emirates and is firmly established as a major trading hub for the Middle-East, as well as globally; governments around to the world seek to emulate UAE’s success and it is a great boost for our event to partner with The Federal Customs Authority, UAE for the next three years to grow this event as a major annual forum for customs and trade facilitation.” Endorsing the partnership, Ayesha AlKobaisi, Project Manager for GTDW and Director of International Organisations at the UAE Ministry of Economy, said, “Our advanced customs operations across the Emirates have been crucial to the development of international trade in the UAE. As the host nation for GTDW, we are delighted to see the Federal Customs Authority as a Strategic Partner for GTDW.”

Did you know? The UAE Ministry of Economy has signed an agreement with KW Group, the organisers of Global Trade Development Week (GTDW), to host the mega-trade event in Dubai for the next three years. Ayesha AlKobaisi, Project Manager for GTDW and Director of International Organisations at the UAE Ministry of Economy, said: “The 2015 programme has expanded to include six concurrent trade summits with the launch of ‘Global Cargo, Transportation & Logistics Summit’ and ‘The Global SME Trade Development Forum’. We look forward to the growth of GTDW in the UAE and its development as a leading global forum for trade and economic growth.” Andrew Keable, Founder and Managing Partner of KW Group, said: “Working closely with the UAE Ministry of Economy we have planned a dynamic programme that will carry great impact on a global stage.”

For an online version, please visit: www.smeadvisor.com/2015/06/global -trade-development-week/

TECH TRENDS

Top apps for entrepreneurs Create a business plan in a few clicks! Rushika Bhatia ,s view...

Business Plan and Start-up This mobile app will take you through the entire process of building a business plan from start to finish. Thatâ&#x20AC;&#x2122;s not all. It maintains a timeline for you so that you can keep track of the progress you are making. The appâ&#x20AC;&#x2122;s star feature is that it allows you to build your business plan in collaboration with friends or business partners, while still maintaining complete privacy! This is perfect for teams looking to create a business plan together, but from different locations.

Available on: Android Cost: Free

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TECH TRENDS

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TECH TRENDS

The 5 Minute Business Plan As the name suggests, this app helps you create a concise one-page business plan in five minutes. Its basic functionality and clean user interface makes it extremely easy to understand and use. If you are looking for a quick option, this app is definitely for you!

Available on: iOS and Android Cost: Free

Business Plan Premier This app is highly rated for its sophisticated functionality and the advanced features that it offers. The app takes you through a structured step-bystep process going through every detail of a business plan. That’s not all – it provides examples at each stage to guide you in the right direction. What’s particularly great about this app is that it is very intuitive so even if you don’t have a lot of experience of working with business plans, you will not get lost!

Available on: iOS Cost: $9.99

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TECH TRENDS

2-Hour Business Plan by Udemy With its comprehensive range of tutorials, this app gives you key insights on creating a business plan. If you are looking to get basic information before you set out to write your plan, this app is ideal. It offers in-depth courses in the form of videos, audios, articles and much more. The app also has a discussion forum allowing users to interact with one another â&#x20AC;&#x201C; fantastic for peer to peer learning.

Available on: iOS Cost: Free

StratPad This is another gem when it comes to apps for creating business plans. It guides you through the fundamental steps of building a business plan and offers a wide range of templates to choose from. The app also offers examples of different types of business plans that make for a useful starting point. What stands out most in this app is its built-in tutorial feature that guides you along the way and makes it really user friendly. All in all, StratPad is a fantastic one-stop-shop solution!

Available on: iOS Cost: Basic version is free

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TECH TRENDS

Deerasa.com Deerasa.com is a web app that helps you build your business plan online. This is by far one of the most professional looking apps in its field. Two notable features of the app are: it lets you tweak the design of your business plan and gives you a summary version your business plan in the form of an infographic. This is perfect for presenting your plan to investors, partners and so on.

Available on: http://www.deerasa.com/ Cost: $160 for 6 months

dget Hot Gtahe of h! Mont

Samsung Wireless Charger The new Samsung Wireless Charger, created for the Galaxy S6 and Galaxy S6 edge, features two types of filters with different characteristics that overlap. Its simple design reduces overall size while maintaining unmatched functionality. Sitting at only 0.27 mm and equipped with the most up-to-date wireless charging technology, the Samsung Wireless Charger is ready to use whenever you are in need of re-charging.

For an online version, please visit: www.smeadvisor.com/2015/06/top-apps-forentrepreneurs/

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