Entrepreneur Levant Aug 2014

OF

TALENT WARS IN THE GCC

THE HALAL INDUSTRY IS BIG BUCKS

BUDDYING UP IN BUSINESS

Your HR strategy needs to be

The opportunity cost of not investing in

The Middle East need for

a priority

faith-inspired consumerism

mentorship

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AUG/SEP 2014 ISSUE 09

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ARAB EXPATS CAN BE FOUND IN EVERY CORNER OF THE WORLD, AND LIKE ALL EMIGRANTS THEY PROVIDE A MARKET FOR ENTREPRENEURS OFFERING A TASTE OF HOME. STARBUZZ TOBACCO CEO WAEL ELHALWANI FOUND SUCCESS IN SELLING HIGH QUALITY TOBACCO FOR AN AUTHENTIC HOOKAH EXPERIENCE TO HIS CUSTOMERS IN THE US. BUT HE HAS HIS EYE SET ON AN EVEN MORE LUCRATIVE PROPOSITION – TAKING THE HOOKAH BEYOND FIRST AND SECOND GENERATION ARRIVALS FROM THE MIDDLE EAST AND INTO THE COMMERCIAL MAINSTREAM.

A handful of firms may dominate the global tobacco market – the five largest account for something in the region of 80% of worldwide cigare!e sales – but Big Tobacco’s ambitions are for scale, dividend growth and market dominance. Wael Elhalwani, is a man with a very different sort of ambition. “I want to modernize the industry,” he says, and the CEO of USbased Starbuzz Tobacco doesn’t limit those ambitions to production or distribution of the product . Rather, the Lebanese-born Palestinian means to change the way people think about smoking in the United States and beyond.

Starbuzz offers a modern Middle Eastern version of the smoking experience. They 18| Entrepreneur Aug-Sept 2014

sell tobacco, hookahs and related products worldwide, but with a focus on America where the company’s production facilities are to be found. “Around 65% of our sales are in the US, 35% in the rest of the world,” Elhalwani says. Having started out as a straight tobacco business in 2005, Starbuzz soon expanded into supplying the ancillary paraphernalia that has enabled growth and expansion each year, even in the harsh economic environment since that first year. Now the products bearing the Starbuzz logo range from hookahs themselves to candles, air fresheners, and even the hookah lounge, a dedicated venue for smoking in a relaxed atmosphere.

The success of the company thus far lies in the blended modern and traditional take on smoking; offering a very social,

modern Middle Eastern, activity with a twist of consumer-friendly, American style marketing. Western consumers who are used to having tobacco marketed to them by global companies which derive the vast majority of profits from cigare!e sales have come to associate tobacco with personal indulgence, as a sexually provocative prop or as a symbol of taciturn masculinity. The Arabic coffee-andshishaexperience is totally different. The company has sought to bridge that gap by marketing tobacco flavors with names like “Blue Mist” and “Pirate’s Cave”. This is what the CEO means when he talks about modernizing the tobacco industry.

It has proved a successful formula, the company building a diverse customer base even in the US, extending the brand’s appeal beyond thecore Middle Eastern community. For those approaching hookah-smoking for the first time, the familiar flavors and inviting packaging make Starbuzz an unintimidating entry point. But that’s not to say that the company doesn’t cater to customers who may have grown up around the sounds of smoke gurgling through water and the sights of bluish grey clouds of smoke.

As Elhalwani notes, “When we were coming up with the company’s name we were looking for something that was recognizable and memorable, internationally; but we also knew we had to make sure Arabic people can say it.” The entire company outlook reflects its crosscultural nature. “Just thinkhow much it means to see a regular white American guy si!ing down smoking a hookah,” Elhalwani says. This interest in achieving a synthesis of eastern and western cultures springs from Elhalwani’s own life experiences.

As he sets out his plans for the future of Starbuzz, Elhalwani is speaking from the terrace of one of Beirut’s premium hotels, overlooking the Mediterranean.

He has returned for a visit to the region, and Beirut is the city he has been looking forward toge!ing reacquainted with. A Palestinian, Elhalwani was born in the Lebanese capital and grew up in the Tariq el Jdidehneighborhood. He clearly has a fond if complexa!itude to the place.

Certainly he’s happy to be reminded of the beginnings of an entrepreneurialism which has brought him success and security he could barely have hoped for in his early years, as he traceshis entrepreneurial outlook all the way back to his childhood.

“I remember making cold drinks and bringing them down there to the beach,” he says, gesturing towards a coastline transformed by urban development since he was born in the early years of the Civil War. “I’ve always been a businessman, since even before I was a man.”

It’s as a businessman that Elhalwani is back in the country of his birth, in the city where that entrepreneurial spirit first took form. The visit may have an important bearing on the future expansion plans for Starbuzz. So far the company has sought new opportunities in fresh markets for their wares and in diversifyingthe product range – you can now buy Starbuzz scented candles with names like “Winter Cashmere” and “October Leaves”. But as well as new selling opportunities, Elhalwani is in the region to investigate the potential for new production facilities.

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“My father was a businessman here in Beirut. He had a clothing store but he lost it in the Civil War,” says Elhalwani. Existing family links to the US made that country the natural focus for a boy who could see from an early age that opportunities in Lebanon were sure to be limited. “My family promised I would go to America when I was around 11 or 12 years old, and of course I was excited and told all my friends. But it didn’t happen until I was 16 years old.” The change of environment from a war-ravaged Beirut where he hadn’t been able to a!end school at all for a number of years, to high school in California could have proved traumatic or highly distracting for a teenage boy.

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“I didn’t know what it would be like. For me California meant Baywatch!” Instead Elhalwani managed the transition well, buckled down, and graduated in the top 5% of his class, nationwide. He progressed through college and put his Management Information Systems & Business degree to work as a Financial Controller for Sodexo in an Orange County hospital.

Still, Elhalwani says that his ambitions were always for something more than such an institutional role. “My dream was always to own a business,” he says. That opportunity would arrive in a roundabout way a"er he became involved with an ailing tobacco producer, having been brought in to offer financial advice. In the end, though, what needed an overhaul was not so much the accounting operations as the product itself. “They used a batch of tobacco that I was against, because it just

wasn’t quality. Of course they were asking, you’re the accountant, what do you know?

But they forgot the most important thing, which was that I was a consumer too.”

Elhalwani saw an opportunity there, where the best tobacco available was worse and selling for less than what was possible and what people would pay for. “I asked, why can’t we westernize the shisha? That was it then, I went out on my own.”

Of course, there is much more to growing a business than making something people want to buy. They have to hear about it before they can start handing over cash.

“At the beginning I thought I would have to produce a product so good that people would

be coming to me, not me chasing them – and that was just to save on the cost of marketing in those early days.” The branding of the business has grown to become a firm part of the identity of the products Starbuzz sells. There is even a related side-business, Starbuzz Entertainment. While it provides efficient opportunities for cross-marketing, it’s also something Elhalwani enjoys being involved with; it helps that he can count international superstars Akon and Shakira among his friends, as well as leading Arabic artists like Melhem Zein and Reem Maharat.

Elhalwani is keeping his options open regarding what the future direction of the company might be. The slow but steady marginalization of smokers and smoking in the US in particular has not gone unnoticed.

Starbuzz is following a similar path to many other companies reliant on sales of tobacco products by embracing the technology that is establishing the inchoate electronic smoking sector as a viable, albeit still relatively tiny, profit center. Just as e-cigare"es have seen people begin ‘vaping’ in airports and offices, an e-hose has now been produced for the same purpose. The Starbuzz e-hose has been very well received by the shisha-smoking community as a realistic alternative, or compliment depending on who you speak with, to smoking a hookah. That seems destined to be an interesting strategic play as the landscape changes around tobacco producers generally.

But aside from the new product lines, upping and moving out of the US is still a realistic possibility. And it’s not just the regulatory burden or tax system that Elhalwani feels is unsupportive. “Even as an American citizen, they make it hard if you’re a person of Middle Eastern descent.

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It’s the profiling. Literally every time I go through an airport in the US I get ‘randomly’ stopped. I may own a business that employs 200 people, but as an Arabic person I’m never going to be treated the same way as a white person there.”

If that sort of marginalization based on ethnicity does lead to Starbuzz abandoning the US for a more welcoming environment, it will be a useful addition to the business ecosystem of whichever country Elhalwani chooses instead. Sales have grown from $225,000 in that first year to the tens of millions now, and the plan would entail a continued focus on selling to the US, even if the product were to be produced and the company based overseas. Wherever he ends up, it would appear that strong sales and growth are set to be the flavor of the month for years to come.

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The Lebanese attitude to tobacco reflects the commodity’s shifting and complex role within the national economy, as well as its central role in the rituals of social life. There is a vibrant public health lobby at work in the country, with activists determined to raise political and public awareness of the annual cost of smoking-related diseases, estimated at $55 million in a recent study from the American University of Beirut. And yet the fact remains that more than 50% of Lebanese adults do smoke tobacco products, making them a truly powerful interest group to take on.

The image of a group of men sitting around a water pipe deep in conversation may be a cliché, but it reflects a certain version of reality not just in Lebanon but in countries throughout the region. It was in part this image that opponents of anti-smoking legislation drew on in the long battle against a law that finally came into effect in September 2012, banning smoking in enclosed public spaces.That the law is so patchily enforced perhaps reflects a post-hoc concession that the tourism and hospitality sectors had some grounds for their shrill protestations about the ruin such a law would bring to some businesses. What occasional fines do get imposed can be to the tune of less than $100, hardly enough to create a policy-effective deterrent.

Of course, it may also have something to do with the other side of the producer-consumer dynamic. While Lebanese-manufactured cigarette brands have mostly fallen away under pressure from international competitors, tobacco as an export crop still has an important role for the Lebanese state, and not just for economic reasons. As well as providing an agricultural crop which is worth three times the value of Lebanese wine, for example, tobacco production is a cornerstone of the economy in south Lebanese. Given the geographical and geopolitical disadvantages faced by communities in the south, the crop thus plays an important political role as part of the government’s efforts to create an engine for economic development in that part of the country.

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f you’re sitting at your desk, daydreaming about starting your own business, this is the article for you. You already know that launching a company can be an intimidating process requiring tons of hard work. But the question has been lingering with you day and night.

Maybe you’re just unhappy with your current position. Perhaps you’ve always dreamed of opening your own shop or consulting firm.

Or maybe you just need a drastic change in your life. Regardless of the exact scenario, here are 50 signs that you may be seriously ready to start your own business.

Lately many are debating whether entrepreneurs are born or made. No matter which side you agree with, perhaps you’ve been aware that you exhibit some classic entrepreneurial traits. Maybe you’re ready to take the leap and start a business? Even if you weren’t born that way, you may have later developed some of these traits, such as a driving passion. So if you begin to notice the signs, perhaps you could launch that business of your own.

Entrepreneurs never stop cogitating. It’s a blessing and a curse. Should you exhibit this behavior, maybe it’s time to move on from the daily rat race and do something to put your thoughts in motion. And there’s no better outlet than starting your own business.

If there’s one business concept that stays with you that you’ve completely fallen in love with, perhaps you could turn it into a reality.

Entrepreneurs and business owners are truly passionate about what they do and will do everything possible to turn their vision into a product or service for the rest of the world to enjoy.

This doesn’t mean that you’re socially awkward or don’t know how to ask for help.

It means that you’re a problem-solver who will try to figure out most problems on your own. Now may be the moment that you feel independent enough to build an enterprise.

You don’t always need something or someone to get you moving. You wake up every morning and do what’s needed. This sense of selfmotivation might steer to initiate and carry out a business launch.

Running a business requires plenty of organizational skills. At some point you may want or need to hire some experts, such as accountants or lawyers, but in the beginning you’ll probably rely on yourself to track finances, delegate responsibilities and present ideas to investors. You can’t do any of that without being organized.

Should you feel a strong desire to aid others by providing a product or service, consider it one telltale sign you’re primed for starting a business. This desire to help people enhance their lives can keep you going during the highs and lows of running an operation. I’ve found over the years that the strongest companies emerge from a wish to help the world solve a problem.

Maybe it’s your confidence or egotistical side coming out, but you’re realizing that you can build a better company than anyone else in the world.

If you dread waking up every morning, then you’re probably unfulfilled. A promotion or another job might abate the problem, but deep within you the prospect of an ordinary 9-to-5 gig just doesn’t excite you. Figure out whether you need to be your own boss or if you just need to do something different.

Let’s say you have an idea but everyone is telling you it can’t be done. What are you going to do about this situation? This experience might be motivation enough for you to try to one-up the naysayers.

Several of the greatest entrepreneurs and business owners realized that they wanted something more from life. Steve Jobs knew he was special. If you feel that way, too, then big things could come out of it.

Whether you’re a control freak or just don’t like being ordered around, you have determined you have always wanted to be the boss.

The Harvard Business Review reports, according to MBO Partners, the number of independent workers (freelancers, contractors or business owners) is on the rise. It’s expected to increase from about 17 million in 2013 to 23 million by 2017. And Mavenlink’s 2012 infographic, The New Independent Workforce, projected that the number of independent workers to become 40 percent of the American workforce by 2020.

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50 SIGNS

YOU YOU NEED NEED TO TO START START YOUR YOUR OWN OWN BUSINESS BUSINESS

The The economy economy hasn’t hasn’t totally totally rebounded rebounded and and your your industry industry sector sector has has aa hiring hiring freeze. freeze.

Instead Instead of of waiting waiting around around or or taking taking aa job job requiring requiring fewer fewer skills skills than than you you have, have, you you are are considering considering setting setting up up your your own own business. business.

If If you’re you’re single single or or without without young young children, children, you you probably probably don’t don’t have have to to worry worry about about supporting supporting others. others. Take Take advantage advantage of of this this time time in in your your life life when when you you have have the the chance chance to to be be aa little little adventurous. adventurous.

If If you you sit sit in in traffic traffic every every day day muttering muttering expletive expletive after after expletive, expletive, maybe maybe you you should should set set up up your your own own business business at at home. home.

After After all, all, successful successful businesses businesses have have even even launched launched from from garages. garages.

If If you you don’t don’t mind mind putting putting in in 12-hour 12-hour days days multiple multiple times times aa week week (as (as people people do do when when starting starting aa business), business), then then why why not not put put that that to to work work for for something something that that you’re you’re really really enthused enthused about? about?

You’re You’re the the type type of of person person who who thrives thrives when when exploring exploring the the unknown. unknown. So So starting starting aa business business may may be be right right up up your your alley. alley. It It definitely definitely beats beats being being bored bored to to death death by by performing performing that that job job that that no no longer longer invigorates invigorates you. you. II am am this this type type of of person person and and very very proud proud of of it. it.

No No matter matter where where you you are are or or what what you’re you’re doing, doing, you you always always feel feel the the need need to to make make improvements. improvements. You You now now understand understand that that as as aa business business owner, owner, you you could could realize realize enormous enormous potentialpotential- making making money money or or enhancing enhancing the the lives lives of of others. others.

If If you’re you’re seeing seeing your your current current employer employer hiring hiring outside outside help help for for aa job job that that you you know know you you can can do do better, better, then then do do something something about about it it and and venture venture out out on on your your own. own.

Maybe Maybe you you just just want want to to build build your your own own team team from from the the ground ground up up with with group of of people people who who share share your your vision vision and and who who are are aa group willing to to embark embark on on aa journey journey with with you. you. willing If you you seriously seriously If can’t stand stand taking taking orders, orders, loathe loathe your your boss boss and and all all his his can’t (or her) her) demands, demands, start start planning planning your your exit exit strategy strategy of of (or becoming your your own own boss. boss. becoming While starting starting aa business business shouldn’t shouldn’t just just be be about about the the While money, sometimes sometimes that’s that’s the the case case when when your your back back is is money, against the the wall. wall. The The bills bills are are piling piling up up and and you you need need to to against 26| Entrepreneur Aug-Sept 2014

put put food food on on the the table. That sense of of desperation desperation could be enough to to lead lead you you to to do something great. great.

In In this this tough tough economy, economy, you see there there really really aren’t aren’t enough jobs for for the the colleagues colleagues you studied or or worked worked with with previously. If you you trust trust these these people and know their their talents, talents, you may wish to help help them them out out by creating a company company that that employs them.

You’re You’re aa problem problem solver. You have have experienced experienced that “aha” moment, moment, the the realization realization that a certain certain product product or service isn’t on on the the market. market. You could use that that moment moment of recognition to inspire inspire you you to to make that idea a reality. reality.

If you feel restricted If at your your current current workplace, you at could set set yourself yourself free and work could where you you want want to work: at your where own company. company. own Maybe you’re most Maybe productive from from 4 a.m. to 9 a.m. productive or you’re you’re aa night night owl. Instead or of being being told told which which hours to of

work and when to take breaks or a vacation, you could finally determine your schedule.

If you’re tired of having your creative ideas go to waste, then maybe it’s time to get out there and express yourself by setting up the business you’ve always imagined.

Are you the person whom people turn to when they need advice or a little pick-me-up? And you actually like that role? Owning a business gives you the chance to inspire the people who surround you.

You have kids and are thinking of leaving them something that they’ll be proud of. Even if they don’t want to take over a family business, they could witness how your hard work and dedication paid off.

You’ll have to do plenty of grunt work as a new business owner. And that’s not always enjoyable. But if that doesn’t bother you, then why not do these tasks for yourself not someone else?

Maybe you’ve hit a wall at your current position and become extremely bored.

That’s not always the best situation to be in if you’re someone looking for a new challenge. Starting your own business is challenging, however, you should fulfill that need.

Are you the type of person who assumes the responsibility for problem solving? Let’s say the pipes under the kitchen sink come apart and you not only fix it, you make it better than before. Take this as a sign that you can start your own business.

Some people have just an unquenchable thirst to learn new skills and knowledge. You probably won’t get that from doing the same job for many years. But you can attain that experience as a business owner.

There are people who can handle multiple tasks at once. If you’re one of those who doesn’t collapse under the pressure of multitasking, then you’re already on your way.

If you notice that there’s not only a market but also that no one else is capitalizing on a particular idea, then maybe you’re the one to do some disruption.

Whether you just graduated college or are observing your current workplace, you’re surrounded by really skilled people who seem to be wasting their talents. You might be able to entice them to join your startup by offering profit sharing, stock options, a fun environment or eventual advancement.

Procrastination may be the most fatal startup killer. Instead of dragging your feet, you could get the ball in motion for that business idea of your’s right now.

Small business owners are eligible for tax incentives, you’ve learned.

If you don’t want to lose out, then start getting to work. You may even be able to write off that new laptop or smartphone you’ve been eyeing.

As a business owner, you’re probably going to encounter a failure at some moment. If that doesn’t scare you to the bone, then chalk that up as another sign.

When you’re working for someone else, it can be difficult to see how all your hard work is benefiting the company. If you want to see the direct results of your actions, then running your own business would give you that opportunity.

You’re noticing that one of the worst things about working for someone else is contemplating the possibility of being laid off or the company being sold. Why not create your own job security instead?

Sometimes you just want to get out there and network with other people.

Unfortunately, your current position doesn’t allow for that.

If you’re a people person, then having your own business would surely give you a reason to network more.

It’s not uncommon to question your values about work as well as your personal life. If you keep being passed over for promotions or you feel like you’ve hit a wall, maybe it’s time to venture out on your own. Starting your own business will probably give you an immense sense of accomplishment.

Having a great idea is one thing. Being able to communicate that idea and convince others to jump on board is another. If you have the leadership skills to round up the troops and motivate them, consider starting your own venture.

Some people like to play it safe. You, on the other hand, are the adventurous type.

Nothing is more thrilling than coming up with a business idea and seeing it through, amid all the unknowns and highs and lows.

If you’re one those unique people with street smarts as well as professional skills, then you might put those talents to work at something you’re truly excited about.

You’ve become aware there’s numerous online resources to help a novice business owner starting out. That’s not even mentioning the low interests rates available.

For some time that inner entrepreneur has been quietly nagging at you. Why not unleash it? And once you’re free to do as please, you may be surprised by how much happier you are.

Thomas Edison once said, “I never did a day’s work in my life. It was all fun!” Many successful people have uttered something similar. Instead of merely thinking about doing something that makes you happy and content, take a leap of faith and pursue your own startup vision. If you follow your dream, everything else may fall into place.

See this article in its entirety at Entrepreneur.com

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TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

Making the case for mentorship

By James Caan

W

ith unemployment in the Middle East region rising and now standing at 10.9%, the highest regional rate in the world (ILO, 2013), Arab countries alone need to create approximately 80 million new jobs by 2020 according to the World Bank. It is a daunting goal but I have always been a firm believer that entrepreneurship is the best method for job creation. Businesses are the key driver of any economy, and the more successful entrepreneurs there are, the better the chances of creating jobs.

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I have been to the Middle East on a number of occasions, particularly as one of my businesses 90 North conducts transactions for investors there.

There is absolutely no question in my mind that the spirit of enterprise is well and truly alive within the region. However, one area where there is room for improvement is the issue of giving entrepreneurs the required support system to succeed –primarily growing a culture of mentorship. Running a business is one of the most challenging things you can do, and you cannot underestimate the importance of mentorship. It is the most significant tool any entrepreneur can access- somebody experienced and impartial that you can turn to for advice. Mentors can be a sounding board for any ideas you may have, they can provide honest feedback, and they can inspire you to realize your potential.

There is sometimes a school of thought amongst entrepreneurs that asking for help is a sign of weakness, but it isn’t. Being aware of your weaknesses is strength in itself, and having a mentor to guide you can only be a good thing. When I started my first business over 30 years ago, the one thing I didn’t have to begin with was a mentor. I made mistakes, as any entrepreneur does in their early days, but I wonder whether I could have avoided some of these if I’d had someone to turn to. That’s why I’m so passionate now about passing on my knowledge and experience now. I am Chairman of the UK Government’s Start Up Loans Company, where budding entrepreneurs are given capital to start businesses.

hours on a landline. Nowadays you can even conduct sevenfigure deals while being on the other side of the world thanks to smartphones and tablets!

I regularly use social media, namely my LinkedIn Influencer Blog and my Business Secrets App to share some of my experiences with a worldwide audience. And the mere fact that I am able to give these little bits of advice to Middle Eastern entrepreneurs whilst sitting at my desk in London illustrates the power of technology further.

Crucially, every entrepreneur who successfully applies for funding also gets access to a mentor– a person who knows what starting a business is about and the potential pitfalls to avoid.

Even in my day job at Hamilton Bradshaw Private Equity, I see myself as a mentor to every single CEO within my portfolio, no matter their career stage.

They know that they can come to me at any time for advice.

When we were in the midst of the 2008 recession, our portfolio didn’t suffer as much as ex-

pected– in fact it actually grew in value. One of the reasons for this was that I had been through a bad recession before in the early 90’s. The business I was running back then went through some extremely rough times, but it recovered and the lessons I’ve learned were passed on to the CEOs I currently manage. Mentorship is about developing the whole person and maximizing the potential of the business.

When I start out mentoring a new budding entrepreneur, these are three of the tips I make sure to share with them.

CASH FLOW A lot of entrepreneurs operate on an accrual basis, but I would urge people to go back to basics, especially if you’re just starting out. Operate on a cash basis. If you’ve completed an order and have invoiced for it– I still wouldn’t class that as revenue until the cash is actually in the bank. At the end of the day can you pay your staff or your bills with an invoice? No, so only account for money that you actually have.

My hope is that entrepreneurs globally begin to seek out their own mentors and that successful entrepreneurs continue to create an environment where failure is celebrated as a valuable learning experience. When you take all of this into account, there really is no reason why entrepreneurs who have been there and done it, should not be giving back to the business community in the form of advice.

BUSINESS FLEXIBILITY Another key thing to remember is to stay current and flexible.

A few years ago I invested in a high-street shop that wasn’t flexible and in-tune with its customers. Quite simply, it didn’t work out. The same has happened to many large companies over the years. Businesses that are flexible find it easier to adapt and survive so this is something I urge every business owner to be aware of.

Look at your competitors, talk to your customers, constantly analyze the way you do things, and adapt.

TECHNOLOGY Thanks to technology, anybody, anywhere, can now help others along their entrepreneurial journey. Gone are the days of only being able to speak to others during office Aug-Sept 2014 Entrepreneur

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TECH

SHINY SHINY || WEBSITE WEBSITE TO TO WATCH WATCH || GEEK GEEK || MOBILE MOBILE TECH TECH || ONLINE ONLINE ‘TREP ‘TREP || THE THE FIX FIX

OVERLY FAMILIAR

in more ways than one iOS 8 overview iOS 8 overview

W

henever henever Apple Apple anannounces nounces aa new new iOS iOS operating operating system, system, you you can can expect expect the the entire entire tech tech crowd crowd to to be be polarized; polarized; you you either either love love it it or or hate hate it– it– there there is is no no such such thing thing as as indifference. indifference. Many Many iOS iOS users users have have been been put put off off by by some some recent recent updates updates (Apple (Apple Maps, Maps, anyone?), anyone?), but but the the folks folks over over at at Apple Apple are are saying saying that that iOS iOS 88 is is aa whole whole new new experience, experience, stressing stressing that that app app developers developers in in particular particular are are going going to to love love what what it it has has to to offer. offer. But But what what does does iOS8 iOS8 have have to to offer offer for for us us ordinary ordinary users? users? One One notable notable feature feature is is iOS iOS 8’s 8’s upgraded upgraded messaging messaging system, system, allowing allowing users users to to now now send send video video and and

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By

By Kareem Kareem Chehayeb Chehayeb

audio audio messages, messages, start start group group conversations, conversations, and and share share locations. locations. Sounds Sounds familiar, familiar, doesn’t doesn’t it? it? There’s There’s also also an an upgraded upgraded iCloud iCloud Drive Drive on on iOS iOS 8; 8; you you can can open open up up any any file file in in your your iCloud iCloud and and work work on on it it on on your your device. device. Hold Hold on on aa second, second, that that sounds sounds familiar familiar too… too… There’s There’s also also aa built-in built-in health health app app that that has has aa heart heart rate rate monitor, monitor, and… and… that that also also sounds sounds familiar. familiar.

We’ll We’ll get get back back to to this this seriserious ous sense sense of of tech tech déjà déjà vu vu in in aa bit. bit. Now Now let’s let’s look look at at the the standout standout aspect aspect of of iOS iOS 88 the the new new features features and and options options for for app app developers: developers: Over Over 4000 4000 new new APIs APIs (application (application programming programming interfaces) interfaces)

that that Apple Apple claims claims will will take take development development to to aa whole whole new new level. level. Some Some of of the the attentionattentiongrabbing grabbing ones ones are are the the option option to to sign sign in in to to third-party third-party apps apps using using Touch Touch ID, ID, and and the the abilability ity for for photo photo apps apps to to have have their their pictures pictures edited edited and and saved saved directly directly in in the the Camera Camera Roll.

Roll. The The one one that that II think think is is the the most most interesting interesting is is being being able able to to use use iCloud iCloud to to sign sign into into apps apps without without needing needing to to create create an an account, account, and and II can can imagine imagine that that being being the the most most beneficial beneficial for for users. users. A A lot lot of of iOS iOS 8’s 8’s updates updates for for its its general general user-base user-base aren’t aren’t necnecessarily essarily the the market’s market’s greatest greatest innovations. innovations. That That being being said, said, these these upgrades upgrades are are interestinteresting ing because because they they combine combine features features that that are are found found in in both both built-in built-in and and third third party party apps. apps. The The new new APIs APIs for for app app developers developers can can become become sucsuccessful, cessful, but but II think think it’ll it’ll take take some some time. time. Developers Developers need need

to to experiment experiment with with these these different different features, features, and and II can can expect expect some some of of them them to to have have aa few few bugs bugs that that need need to to be be sorted sorted out. out. It It could could prove prove to to be be aa huge huge success success in in the the medium medium to to long-term, long-term, unless unless Android Android has has something something else else in in store store for for us. us.

All All in in all, all, iOS iOS 88 looks looks interesting, interesting, but but we’ll we’ll really really see see its its potential potential with with the the new new features features available available for for develdevelopers. opers. It It seems seems like like Apple Apple is is really really trying trying to to take take on on its its competitors, competitors, and and at at this this stage stage in in the the game game it’s it’s too too soon soon to to tell tell what what the the outcome outcome will will be. be.

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TECH

SHINY SHINY || WEBSITE WEBSITE TO TO WATCH WATCH || GEEK GEEK || MOBILE MOBILE TECH TECH || ONLINE ONLINE ‘TREP ‘TREP || THE THE FIX FIX

Visual platform potency Can Instagram really launch your business? by

by Danielle Danielle Kamar Kamar

W

hether hether aa startup startup or or an an established established brand, brand, all all businesses businesses have have one one common common chip chip to to play: play: social social media. media. For For entrepreentrepreneurs neurs especially, especially, the the rise rise of of social social networks networks for for digital digital marketing marketing has has offered offered aa new, new, free free arena arena to to use use for for brand brand awareness awareness and and visibility. visibility. The The cost cost of of aa traditional traditional office office space, space, with with all all the the bills bills it it brings, brings, is is spared spared through through the the free free platforms platforms that that allow allow niche niche targeting targeting straight straight to to aa potential potential customer’s customer’s phone, phone, complete complete with with product product feedfeedback. back.

While While veteran veteran startups startups may may manage to to live live on on aa wellwellmanage maintained Facebook Facebook page, page, maintained

36| Entrepreneur Aug-Sept 2014

Instagram Instagram has has proven proven to to be be aa better better option option for for new new names names looking looking to to breakthrough. breakthrough. Not Not only only is is it it the the most most popular popular visual visual platform platform of of the the region, region, it it is is also also better better integrated integrated with with hashtag hashtag discovery, discovery, both both of of which which work work hand hand in in hand hand to to help help spike spike user user interinterest. est. Instagram Instagram has has already already contributed contributed to to the the launch launch of of several several regional regional and and local local taltalents ents like like designer designer Alanoud Alanoud Al Al Badr, Badr, better better known known as as Fozaza Fozaza in in fashion fashion circles, circles, Butter Butter DesDessert, sert, aa Dubai-based Dubai-based bakery bakery who who now now only only works works on on preprebooked booked orders, orders, and and Ahlam Ahlam Al Al Najdi, Najdi, who who made made internationinternational headlines headlines in in 2013 2013 for for being being al the first first KSA KSA female female to to reach reach the one million million followers followers with with one her lifelike lifelike clay clay sculptures sculptures her of desserts. desserts. She She has has since since of written two two books books about about her her written craft. All All three three started started their their craft. businesses online online with with no no businesses physical office office and and aa strong strong physical reliance on on InstaInsta- basically basically reliance word of of mouth mouth to to grow grow brand brand word awareness. awareness.

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BUSINESS BUSINESS UNUSUAL UNUSUAL || LIFE LIFE || TRAVEL TRAVEL || DESIGN DESIGN || TRAPPINGS TRAPPINGS

3.

3. UPWARD UPWARD AND AND ONWARD ONWARD If If the the object object of of your your affections affections gets gets aa promotion, promotion, you’ll you’ll want want to to quit. quit. Seeing Seeing an an ex ex do do better better than than you you is is deadly, deadly, especially especially if if they’re they’re in in the the same same field field and and you you were were at at parallel parallel career-levels. career-levels. Things Things might might get get really really weird weird if if the the colleague colleague turned turned ex ex gets gets promoted promoted to to aa senior senior position position managing managing you. you. The The same same can can be be said said if if you you get get promoted promoted above above your your ex. ex.

DANGER ZONE By

By May May Rostom Rostom

L

ooking ooking like like aa magazine magazine cut-out, cut-out, your your new new colcolleague league comes comes in in with with aa basket basket full full of of papers, papers, aa stapler, stapler, some some stationary, stationary, and and aa little little plant, plant, only only to to sit sit down down in in the the cubicle cubicle next next to to you you as as the the new new recruit recruit on on the the team. team. Can Can you you sense sense the the temptation temptation building? building?

After After five five minutes minutes of of heavy heavy sweating sweating and and hot hot flashes flashes II realrealize, ize, okay, okay, II like like him… him… In In fact fact II love love him. him. Your Your head head drifts drifts away away and and you you start start planning planning your your lunch lunch breaks breaks together, together, your your drab drab work work week week becomes becomes all all exciting exciting in in your your head, head, and and suddenly suddenly you’re you’re ready to to have have an an office office affair affair ready with the the newbie. newbie. Stop Stop for for aa momowith ment. Ask Ask yourself yourself one one key key quesquesment. tion: What What happens happens ifif you you break break tion: up? That That question question right right there there is is up? exactly why why you you shouldn’t shouldn’t date date exactly someone you you work work with! with! Not Not yet yet someone convinced? Let Let me me elaborate elaborate convinced? on why why you you should should avoid avoid dating dating on your colleague at all costs: your colleague at all costs:

38| Entrepreneur Aug-Sept 2014

1.

1. CLOSE CLOSE QUARTERS QUARTERS If If you you break break up, up,

it’ll it’ll be be awkward. awkward. Depending Depending on on the the size size of of the the company company you you work work at, at, the the smaller smaller the the office, office, the the more more awkward awkward the the end end of of this this liaison liaison will will be. be. Sorry Sorry to to burst burst your your bubble bubble so so soon, soon, but but you you gotta gotta face face the the facts. facts. If If you you run run into into them them by by the the water water cooler cooler or or downdownstairs stairs in in the the parking parking lot, lot, it’ll it’ll suck suck for for the the both both of of you. you.

2.

2. TERRITORIAL TERRITORIAL CLAIMS CLAIMS If If he he or or she she

starts starts to to like like someone someone else else on on the the team, team, you’ll you’ll want want to to kill kill them them both. both.

Even Even if if you you didn’t didn’t really really like like him him or or her her all all that that much, much, seeing seeing them them with with someone someone else else from from the the office office will will pique pique your your curiosity curiosity (and (and not not in in aa good good way). way). Your Your lunch lunch breaks breaks will will involve you you stalking stalking the the new new couple couple involve all around around the the premises… premises… this this is is not not all cool, nor nor is is it it okay. okay. The The green-eyed green-eyed cool, monster is is aa difficult difficult look look to to hide. hide. monster

4.

4. OVEREXPOSURE OVEREXPOSURE The The relationship relationship has has an an expiry expiry date. date. Being Being in in constant constant close close contact contact with with your your partner partner day-in day-in day-out day-out will will set set your your romantic romantic endeavor endeavor up up for for failure. failure. Not Not having having enough enough space space to to meet meet new new people, people, and and make make new new friends, friends, will will bore bore one one of of you you (or (or both both of of you) you) easily. easily. Why Why even even bother? bother? Keep Keep your your personal personal life life separate separate from from the the get-go. get-go.

As As much much as as dating dating aa colleague colleague may may seem seem 007-ish 007-ish and and fun, fun, it it can can get get messy messy pretty pretty quickly. quickly. Make Make sure sure you you avoid avoid that that office office romance romance for for the the security security of of your your career. career. You You need need to to remember remember that that it’s it’s aa minefield minefield of of disappointment disappointment waiting waiting to to happen, happen, and and when when the the inevitable inevitable happens, happens, you’ll you’ll not not only only be be dealing dealing with with hurt hurt feelings, feelings, you’ll you’ll also also be be affected affected at at work. work.

HR INTEROFFICE DATING STATS By

By John John Patrick Patrick Pullen Pullen

BUSINESS UNUSUAL | LIFE | TRAVEL | DESIGN | TRAPPINGS

WHAT DID YOU FIND SURPRISING IN THE SURVEY RESULTS?

CULTURE

Finding it a challenge to boost your morale?

By Shoug Al Nafisi

WHAT ARE THE BEST AND WORST KINDS OF RELATIONSHIPS TO HAVE AT WORK?

MOOD Empire State of Mind The Blueprint 3 2009

OVER A FIVE-YEAR PERIOD, ABOUT 50% OF HR RESPONDENTS SAW FLINGS TURN INTO LONGTERM RELATIONSHIPS OR MARRIAGES.

MOOD

MOOD On My Way 2013

It’s My Life | Crush 2000

MOOD

MOOD

Eye of the Tiger Eye of the Tiger 1982

I Feel like Money Mann’s World 2010

Aug-Sept 2014 Entrepreneur

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CULTURE

BUSINESS BUSINESS UNUSUAL UNUSUAL || LIFE LIFE || TRAVEL TRAVEL || DESIGN DESIGN || TRAPPINGS TRAPPINGS

Hermès takes five For For ‘treps ‘treps who who like like aa morning morning indulgence, indulgence, we we suggest suggest the the streamlined streamlined Hermès Hermès range range of of body body care care products. products. The The selection selection of of five five fragrant fragrant hair hair and and body body washes washes in in aa smooth smooth gel gel texture texture gives gives you you ample ample choice. choice. Based Based on on their their famed famed cologne cologne range, range, the the body body care care products products are are unisex, unisex, and and subtle subtle enough enough that that they they won’t won’t conflict conflict with with your your other other scented scented products. products. Fans Fans of of lighter, lighter, crisper crisper scents scents should should opt opt for for Eau Eau d’orange d’orange verte verte or or Eau Eau de de pamplemousse pamplemousse rose, rose, while while those those who who prefer prefer aa more more complex complex scent scent will will enjoy enjoy the the House’s House’s Eau Eau de de mandarine mandarine ambrée ambrée or or Eau Eau de de gentiane gentiane blanche. blanche. Available Available across across the the GCC, GCC, you you may may also also want want to to pick pick up up the the matching matching hand hand and and body body cleansing cleansing gel gel for for multi-use. multi-use.

EDITOR’S EDITOR’S PICK PICK HERMÈS HERMÈS EAU EAU DE DE NARCISSE NARCISSE BLEU BLEU

You’ve got baggage!

TRAVEL SOLUTIONS FOR ‘TREPS FOR FOR HIM HIM BOSS BOSS Malga Malga two-tone two-tone leather leather briefcase briefcase

RUNNER RUNNER UP UP Liffo Liffo leather leather weekender weekender by

by HUGO HUGO Bamako Bamako leather leather weekender weekender by

by BOSS BOSS

FOR HER HER FOR HUGO Lively-E Lively-E leather leather shopper shopper HUGO

RUNNER UP UP Lucille-E Lucille-E calfskin calfskin handbag handbag with with RUNNER top handles handles by

by HUGO HUGO top

40| Entrepreneur Aug-Sept 2014

BUSINESS UNUSUAL | LIFE | TRAVEL | DESIGN | TRAPPINGS

CULTURE

HAVEN’T YOU EVER HEARD OF A GENTLEMAN’S GAME?

SPORTSWEAR, SORT OF HUGO BOSS is serious about seeing Deutschland’s footballers dressed and pressed. The players, all part of the German Football Association, were impeccably turned out for the official World Cup engagements in midnight blue BOSS suits paired with shirts of fine denim and knit ties. According to the brand, the latter elements in the ensemble were incor-

porated to lend a “modern edge” to the overall look.

The management team, including coach Joachim Löw, appeared in custommade suits by BOSS MADE TO MEASURE. And for their trip to and from Brazil? Comfortable (yet put-together) leisurewear outfits of grey knitted Merino wool cardigans and dark-blue trousers, also by HUGO BOSS.

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BUSINESS BUSINESS UNUSUAL UNUSUAL || LIFE LIFE || TRAVEL TRAVEL || DESIGN DESIGN || TRAPPINGS TRAPPINGS

|| TRAVEL TRAVEL ||

Help me, help you

I

By

By Pamella Pamella de de Leon Leon

ff you’re you’re going going to to do do something something for for the the first first time, time, why why not not do do something something that that benefits benefits society society in in addition addition to to being being adventurous… adventurous… yes, yes, like like voluntourism? voluntourism? In In line line with with Vodafone’s Vodafone’s global global “Firsts” “Firsts” initiative, initiative, aa project project encouraging encouraging people people to to achieve achieve an an experience experience for for the the first first time time with with the the help help of of mobile mobile tech, tech, Vodafone Vodafone Qatar Qatar is is launching launching “My “My First First Amazon Amazon Adventure” Adventure” for for six six young young QaQataris taris to to go go on on aa 21-day 21-day excursion excursion through through Brazil’s Brazil’s Amazon.

Amazon. Mentored Mentored by by philanthropist philanthropist and and avid avid trekker trekker Sheikh Sheikh Mohammed Mohammed Bin Bin Abdullah Abdullah Al Al Thani, Thani, the the adventurers adventurers aged aged between between 17-24 17-24 years years old old will will be be helping helping to to build build aa school school for for the the local local commucommunity. nity. How How will will mobile mobile tech tech be be part part of of the the experiexperience? ence? Vodafone Vodafone and and OM OM Signal Signal Technology Technology will will equip equip the the first-timers first-timers with with “compression “compression skins skins that that enclose enclose embedded embedded biometric biometric devices devices powered powered by

by Machine Machine 22 Machine Machine (M2M) (M2M) technologies” technologies” to to gather gather data data including including heart heart rate rate to to help help activate activate blood blood circulation circulation and and allow allow muscles muscles quicker quicker recovery. recovery. Besides Besides their their wearable wearable wrist-band wrist-band tech, tech, Vodafone Vodafone will will equip equip the the school school with with an an internet internet connection, connection, smart smart boards, boards, and and tablets. tablets. “My “My First First Amazon Amazon Adventure” Adventure” is is going going to to be be digitaldigital- you you can can keep keep tabs tabs on on the the journey journey in in real-time real-time via via Vodafone Vodafone Qatar’s Qatar’s social social media media platforms. platforms.

|| DESIGN DESIGN ||

JEDDAH DECOFAIR 2014

www.decofair.com www.decofair.com

42| Entrepreneur Aug-Sept 2014

BUSINESS UNUSUAL | LIFE | TRAVEL | DESIGN | TRAPPINGS

CULTURE

| TRAPPINGS | LEGO BUSINESS CARD IMAGE SOURCE IMGUR.COM

WORK ON YOUR PENMANSHIP

L

ooking for a fine writing instrument with some personality? Parker might have just what you’ve been looking for since the brand is celebrating 125 years of craftsmanship with their Historical Colors 125th Anniversary Special Editions. The range is a homage to the brand in bold hues and sleek design, available in Ultra Premium Penman Blue or Mandarin Yellow and IM Premium Blue-Black or Big Red. The collection is suitable for both corporate and personal gifting… or as a reward to yourself for signing off on that big acquisition that you’ve been pining after. It’s worth mentioning that Parker was awarded the Royal Warrant by Queen Elizabeth II, and that the brand is present in over 100 countries globally, including the GCC. Now you’ve finally got an excuse to work on your handwriting.

| BUSINESS UNUSUAL |

“EVERYTHING IS AWESOME!”

L

ego once again proves how awesome their corporate culture really is by arming executives with business cards made of out… Lego (of course).

The miniature figures started when a designer made a pint-sized Lego version of CEO Jørgen Vig Knudstorp. What are the criteria to qualify for a Lego minime? According to Michael McNally, Lego brand relations senior director, it’s “primarily leveraged for leadership and individuals who have strong external focus in their work.” The department responsible for producing the minifigures when the idea first came about also qualify for the unorthodox business cards. Lego execs have their regular business card info (contact details appear on the back), along with customized mini glasses and hairstyles to represent them faithfully.

The rest of us will have to settle for the Lego business card holder… and yes, we too think it’s a poor substitute.

PENNING YOUR MAGNUM OPUS

Aug-Sept 2014 Entrepreneur

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TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

guide to asking for advice

By Ross McCammon

F

irst of all, we have to come up with a better word for whatever this is. Brain-picking sounds like a medieval surgeon’s treatment for foot cramps. It sounds misguided and painful. Probably lethal. And it’s a strangely off-putting term for what is almost always a delightful experience, both for the picker and the pickee.

(Which are also off-putting terms, and which I won’t be using again.)

The first rule of brain-picking: It shouldn’t require your mentor to actually think. You should ask only for something that is pre-made and ready to be handed over: basic knowledge.

What the service does not include is recommendations. Brain-picking is meant to be a passive exercise on the expert’s part. If you’re asking for recommendations, then you are forcing your subject to work. Offering a recommendation involves analysis and decision-making. Decisions are hard. Decisions are work.

Don’t ask your subject if you should

switch careers. Ask about the career you’re considering switching to.

Don’t ask your subject if you should go work for so-and-so. Ask your subject what kind of person so-and-so is to work for.

Don’t ask your subject if you may go to the restroom. Ask your subject if he or she knows where the restrooms are. (You really should’ve taken care of this before the meeting.) Ask questions that are easy to answer but that you just don’t know the answer to. Keep it short. Request about 15 minutes of their time.

You’ll probably get 30, but ask for 15. Says Alex Iskold, founder and CEO of GetGlue, a social network for TV, movie and sports fans: “If someone asks me for

KEY TECHNICAL MATTERS >

>

>

>

> > > >

>

>

44| Entrepreneur Aug-Sept 2014

something that’s in my area of expertise, and if it’s someone I know or someone referred to me by someone I know, and it’s 10, 15 minutes, half an hour, I think that’s reasonable and totally fine, and if I have the time, I’m happy to be helpful. It’s all about time.”

Before making the request, ask yourself why this person would want to help you. The answers should be: because it will be easy, because you want to do what they do at some point in your career, because it allows them to do a generous thing and because whatever mutual connection you share is an important one (you went to the same school, you work in the same building, you were at the same conference, you both seem to enjoy doing inventory).

The point is to give them a reason to help you. “I tend to prioritize people in college who are trying to become their own entrepreneurs. It’s a personal preference; these are people that inspire me,” says Chantel Waterbury, founder and CEO of Chloe + Isabel, a New York-based jewelry company. “And if someone needs branding advice or design or product-development advice, I always take those calls, because I know it’s an area in which I can add a lot of value.”

WHAT BRAIN-PICKING MEANS TO THE MENTOR

The main force at work with brain-picking could be described as the ecstasy of consultancy- an unacknowledged but crucial factor in business. The one being consulted gets to yammer on in relatively simple terms about something involving their area of expertise. Which is easy and fun. (There is nothing more satisfying than being the smartest person in the room, especially if the room has only two people.)

Says Waterbury: “There are people I reach out to who are extremely seasoned and working in their industry for 40, 50 years, and I feel sometimes like it’s a one-way street, and I apologize, and they’ve said to me, ‘I do this because it invigorates me.’ I have to remind myself that they are in fact getting something from it, and I’m not just taking.”

Questions should begin with phrases like:

Questions should not begin with phrases like:

Questions should never, under any circumstances, contain the following:

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BUSINESS UNUSUAL | LIFE | TRAVEL | DESIGN | TRAPPINGS

READ BETWEEN THE LINES BUSINESS BOOK RUNDOWN

J

By Amal Chaaban

Managing the Matrix The Secret to Surviving and Thriving in Your Organization Navigating the labyrinth of today’s corporate and organizational structures can be an endeavour rife with traps, snares and pitfalls, unless your employees have the tools (emotional intelligence being key) to recognize how to manage their role relative to other roles in an organization. (Check out the EQ feature in our Culture section.) It is this key fact that author Dawn Metcalfe attempts to impart in this book using two fictional characters in an organization that could be any corporation in the world. While

Focus The Hidden Driver of Excellence We live in a world where we are inundated with all sorts of minute by minute distractions, not the least of which are our instantly reachable electronics.

With this many diversions, one could be forgiven for saying that our attention spans are seriously on the wane. In his latest book, Goleman sets out to dissect what focus and attention actually are on a neurological level (it’s very complex), and how our brains are being rewired because we are accessing minute amounts

46| Entrepreneur Aug-Sept 2014

of information constantly- be it from social media or other channels. Goleman does an exceptional job of using anecdotal evidence and real-life stories showing the effect that this is having on the most basic of daily tasks: Everything from a complete lack of empathy to a professor’s inability to read more than a couple of pages at a time. This is absolutely the book to read when you want to understand the costs of a lack of focus both in dollars and human capital.

the the book itself is interesting, the conversations interspersing of conversations not between the characters does not at add to the information -and at their times distracts from it- as their winds. conversation veers and winds. tests Metcalfe mentions several tests most for emotional intelligence, most notably the Mayer-Salovey-CaMayer-Salovey-Caruso Emotional Intelligence Test Test (MSCEIT). The concept Metcalfe Metcalfe tries to get across is a good oneonethe best feature of Managing Managing the the Matrix is that at the end of each each chapter, there is a Key Takeaways Takeaways section which encapsulates the the relevant information.

Gender Intelligence Breakthrough Strategies for Increasing Diversity and Improving Your Bottom Line If there is a single problem to be identified in breaking the glass ceiling for women, people often identify gender imbalances at the top and cite that women don’t take higher level jobs or leave jobs to have a better work-life balance.

The authors of this particular book are looking to upend that belief as they feel that no amount of gender-based hiring or promotion programs can rectify the situation. It is their opinion that gender balance can only be achieved when each gender is allowed to use their naturally

inclined intelligence instead of what is considered an “acceptable” application of skills. Once Gender Intelligence gains traction, it will certainly cause a buzz, and not just in business circles. This writer predicts that the theories put forth are going to cause a firestorm of controversy from both feminists and oldschool entrepreneurs. The authors’ views are most certainly provocative, and the ideas not presented in a way that leaves much room for argument. This is a book to watch for the great boardroom debate.

Pitch Perfect How to Say it Right the First Time, Every Time There are few skills in life more critical to success than communication know-how. Bill McGowan, former news correspondent and current media coach, has laid out seven critical principles of communication to help you succeed and assist you in navigating communication pitfalls that can damage your career prospects, sabotage relationships, and stall your life trajectory. This book is easily one of the best communication books on the market- the layout is clear,

the principles are clearly defined, and the application in several aspects of life are well thought-out. These principles, for all intents and purposes, are made up of years of experience communicating and succeeding via multiple mediums. While all of the tenets are important, the Scorsese Principle is perhaps the most relevant in this reviewer’s opinion; it discusses keeping your audience engaged. Use this rule of thumb as a starting point, and all of the others should fall into a neat line.

AUTHORS ARE ‘TREPS, TOO!

THERE’S BIG BUCKS TO BE MADE IN PUBLISHING

Aug-Sept 2014 Entrepreneur

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TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

NOWHERE TO GO

BUT UP

HIRING PRACTICES IN THE MIDDLE EAST RECRUITMENT PROCESS EFFICACY AND YES, THERE IS ROOM FOR IMPROVEMENT By Suhail Al-Masri

T

here can be no substitute for sophisticated and thorough recruitment processes and methodologies as the cost of getting the hiring process wrong can be very steep, not only in terms of lost recruitment expenses but also in terms of training and on-boarding expenses.

A recruitment process that is not optimized can lead to reduced productivity, reduced employee morale and even potentially lasting negative impact on the brand, as well as suppliers and clients.

In light of the above, new joiner induction programs are absolutely crucial for any position. These programs can last anywhere from one week to one year depending on the nature of the job.

Existing employees should also be given the opportunity to be part of these training programs and impart knowledge from experience whenever possible. It has been proven that relevant and regular internal (both structured and informal sessions) as well as external training sessions always boost employee performance and morale.

Another upcoming trend is creating talent pools within the organization.

For example, creating a talent pool of high potential employees (through talent assessment centers) helps the company during succession planning.

These talent pools also have to be coached, mentored and trained on an ongoing basis.

48| Entrepreneur Aug-Sept 2014

According to Bayt.com’s March 2011 The Importance and Adoption of New Joiner Induction Plans in the Middle East Workplace poll, only 45.5% of regional professional respondents were assigned a mentor or trainer to help them settle in their new job. On the other hand, 57.6% of participants said their company supported effective induction plans for new joiners, 25.4% said it did not and 17% said it depended on the position. The respondents were then asked if an effective induction plan worked more for the benefit of employers or new joiners. Nearly three quarters (73.1%) said both, 12.6% indicated more the benefit of the employer and 14.3% said more to the benefit of new joiners.

When asked if an effective induction plan would increase a new joiner’s sense of belonging in the long run, more than half (53%) of respondents said ‘absolutely’, 24.6% said ‘yes to a certain extent’ and 3.8% said ‘not really’.

In terms of perception, the Bayt.com Hiring Practices in the Middle East and North Africa poll executed in January 2012 indicated that almost 61% of employers consider the hiring practices in their company to be sophisticated, with 58.1% claiming that their organization provides training on interview skills for those involved in the hiring process. Despite the empirical evidence, we would say there is no generic ‘best’ selection system- a “one-size fits all” so-

lution. Many a time, it depends on the company itself. Some companies prefer a candidate who joins and gets the job done, instead of worrying about whether he is an introvert or an extrovert, with a GPA of 2.0 or 4.0. Perhaps they’d give an assignment to the candidate or run a test, and performance on that test would be their key (sometimes even sole) selection criteria. Meanwhile, other companies might have a company culture that they engrave in the minds of every employee. For them, identifying a candidate who is a cultural fit would be as critical as the job-knowledge part. Their process could include something similar to our process at Bayt.com where we have telephonic screening (HR), physical interviews (Direct Manager), Assessment Centers (panel selection) and/or further tests or interviews depending on the position the candidate is being interviewed for.

Based on the results from the Bayt.com Hiring Practices in the Middle East and North Africa poll, most prospective employees are likely to be interviewed by one or two people (27.3% and 28.8%, respectively), though it is not uncommon for them to meet with more existing employees in their potential new company; 22.7% of respondents say that their interviewees will meet three people, while 18.2% claim that candidates will be interviewed by more than four.

However, no matter how many people the candidate meets, the vast majority of employers (70%) say that post-interview follow-ups are essential.

However, and regardless of the type of the selection system in place, the hiring process should have a clear, defined and disciplined structure (complete with skills and competencies assessments, behavioral assessments, ratings, etc.) where every person involved should have a clear idea of which competency is being identified and assessed at every step.

Another way to streamline the selection system would be to train every person involved in the decision making process on the corporate recruitment process and have disciplined systems in-house to ensure this.

Moreover, it always helps to revisit the company’s recruitment process at least once a year to see if changes, refinements, and updates need to be made.

The good news is that internet penetration today is higher than ever before and makes it much more possible for organizations of all budgets and sizes to benefit from the tremendous reach and choice their vast professional communities afford. Accessing large troves of candidate databases is easier now than ever, and companies can worry less about sourcing and more about getting their process right.

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TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

MENA is still searching for the ultimate payment solution Telr’s e-commerce equation

By Kareem Chehayeb

T

he Middle East’s e-commerce market is growing at a rapid rate, and we can safely say that its development will be a massive benefit to ‘treps across the region.

That said, we’re all still struggling to find the ultimate payment solution that will allow e-commerce to take that giant leap forward.

According to Elias Ghanem, his company Telr can provide just that.

His experience 50| Entrepreneur Aug-Sept 2014

with e-commerce and passion for self-starting were the two critical components that inspired him to start Telr. “I realized how exciting the entrepreneurship world is, and decided to jump into the deep sea and become an entrepreneur myself,” said Ghanem. Ghanem has the experience to pull this off: He’s worked in the sphere for almost two decades as MD of PayPal MENA, MD of PayPal South East Asia and India, in addition to Visa Inc. in the U.S. and Singapore, where he held a few different senior positions.

So what is Telr? Ghanem explains that it aims to provide a “com-

prehensive, scalable and flexible flexible payment solution” for e-merchants. e-merchants.

This applies for both domestic domestic and and international commerce. According According to Telr’s website, its services services focus focus on solving three challenges that that it it considers to be the most significant significant in the e-commerce industry. The The first is transaction processing, processing, where where Telr hopes to provide a solid multimulticurrency and multi-lingual “payment “payment gateway”. Second is what Telr Telr calls calls “unified logistics,” which improves improves the efficacy and efficiency of deliverdeliveries. The third challenge is cash cash manmanagement, where Telr hopes to to sustain sustain a service that enhances cash flow. flow.

While Ghanem did not make any specific remarks when asked about PayPal’s services and emergence in the Middle East, he did claim that he believes that Telr is the only payment service that solves the three major challenges explained above. All in all, it looks like a service that SMEs will enjoy.

Telr’s founder isn’t just thinking MENA, though; while he is launching Telr’s services in the UAE before expanding regionally, Ghanem is hoping that Telr will be active in African and Southeast Asian markets.

In fact, one of their two hubs is in Singapore, which will be Telr’s “legal, financial and operational support [base] needed to expand fast across all South East Asia and especially in Indonesia.” The other hub is expectedly in Dubai, given that the UAE has large e-commerce industry and is a hotbed for corporate advancement and logistics.

What’s his take on the current state of e-commerce in the Middle East? Unlike many others involved with e-commerce, Ghanem sees the Middle East’s market beyond its infancy phase and at a stage of what he describes as “fast growth”. That said, his view on cash on delivery (COD) as

a payment method isn’t very different, believing that it’s a massive obstacle to e-commerce’s market growth in the region. What Ghanem had to say about COD made it seem borderline criminal: “The sooner all players come together and ban COD, the faster e-commerce will grow.” Therefore, it is no surprise to us that Ghanem and the folks at Telr, like many other companies who are trying to provide the ultimate payment solution for e-commerce, are working “days and nights” to find the right alternative to COD. Whether the supposed blight of e-commerce is eliminated or not, it will be interesting to see how Telr’s services do in the region. Considering Ghanem’s long-term plans, it’s also worth contemplating whether neighboring arenas -be they the emerging markets of Africa or the rapidly growing markets of Southeast Asia- will strengthen cross-border e-commerce in the Middle East.

THE RACE TO ANNIHILATE COD PayPal MENA

PayFort

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TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

DO THINGS YOU CAN SUSTAIN

By James Clear

I

n 1996, Southwest Airlines was faced with an interesting problem. During the previous decade, the airline company had methodically expanded from being a small regional carrier to one with a more national presence. And now, more than 100 cities were calling for Southwest to expand service to their location. At a time when many airline companies were losing money or going bankrupt, Southwest was overflowing with opportunity.

So what did they do?

Southwest turned down over 95% of the offers and began serving just four new locations in 1996. They left significant growth on the table. Why would a business turn down so much opportunity? And more important, what can we learn from this story and put to use in our own lives?

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UPPER BOUND? BOUND? WHAT IS YOUR UPPER

SouthStarting in the 1970s, Southwest was the only airline profit for for company that made a profit years. In In nearly 30 consecutive years. author his book Great by Choice, author Jim Collins claims that one one of the secrets to Southwest’s Southwest’s success was the willingness willingness of of company leaders to set an upper upper bound limit for growth. Sure, Sure, Southwest executives wanted wanted to grow the business each year. year.

But they intentionally avoided avoided growing too much. The company company leaders chose a pace that they they could sustain, so the business business could grow while maintaining maintaining the culture and profitability. profitability.

They set an upper bound limit limit for their growth. This is an an apapproach that can be applied to to nearly any goal, business or or othotherwise. Most people, however, however, tend to do the opposite and and focus only on the lower bound. bound. > An individual might say, “I “I want to lose at least five pounds pounds this month.” > An entrepreneur might say, say, “I “I want to make at least 10 sales sales calls today.” > An artist might say, “I want want to to write at least 500 words today.” today.” > A basketball player might say, say, “I want to make at least 50 50 free free throws today.”

We tend to focus only on the lower bound: the minimum threshold we want to hit. And the implicit assumption is, “Hey, if you can do more than the minimum, go for it.”

But what would it look like if we added an upper bound to our goals and behaviors? > “I want to lose at least five pounds this month, but not more than 10.” > “I want to make at least 10 sales calls today, but not more than 20.” > “I want to write at least 500 words today, but not more than 1,500.” > “I want to make at least 50 free throws today, but not more than 100.”

A SAFETY MARGIN FOR GROWTH

In many areas of life, there is a magical zone of long-term growth: Pushing enough to make progress, but not so much that it is unsustainable. Take, for example, weightlifting. Over the past year, I have slowly added five pounds to my squat every few weeks. A year ago, I started with a weight that was too light: 200 lbs. for five sets of five reps.

Last week, I did 300 lbs. for five sets of five reps. I never followed a magical program. I simply did the work and added five pounds every two weeks or so. Sure, the lower limit was important.

I had to keep adding weight in order to get stronger. But the upper limit was just as critical. I had to grow slowly and methodically if I wanted to prevent inflammation and injury. There were plenty of days when I could have added 10 pounds. Maybe even 15 pounds. But if I aggressively pursued growth I would have quickly hit a plateau (or worse, caused an injury). Instead, I chose to stay within a safety margin of growth and avoided going too fast. I wanted every set to feel easy.

The power of setting an upper limit is that it becomes easier for you to sustain your progress. And the power of sustaining your progress is that you end up blowing away everyone who chased success as quickly as possible. Put another way: Average speed wins.

DO THINGS YOU CAN SUSTAIN

havior much simpler. Once you establish the routine of doing your behavior over and over again, you can raise the limit as needed.

It is better to make small progress every day than to do as much as humanly possible in one day. Do things you can sustain.

There is a very simple way to put this idea into practice: Let upper bound limits drive your behaviors in the beginning and then slowly increase your output.

Say you want to start working out. Most people would focus on the lower limit and say, “I have to start exercising for at least 45 minutes on Monday, Wednesday, and Friday.” Instead, you could turn the problem upside down and say, “I am not allowed to exercise for more than five minutes on Monday, Wednesday, and Friday. By setting an incredibly easy upper limit, you make the process of getting started and sustaining your beAug-Sept 2014 Entrepreneur

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ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

1. YOU’RE ALREADY AIMING HIGH? AIM EVEN HIGHER. “You want to own a Chanel bag from the classic collection? You should want to own Chanel.” that She knows it’s very unlikely that ever I -or she, for that matter- will ever be the owner of a 105-year-old global conglomerate like Chanel, easily but her point is that setting easily to achievable goals is not the way to go. Great ambition might not be moment for everyone, but from the moment you decide to aim for a certain single objective, you will take every single aimpossible step towards it. Also, aiming at a lower target could possibly possibly prevent you from giving it your be best shot- or worse, you could be achievfocusing your hard work on achieving a goal that doesn’t require 100% of your effort.

Five business rules I’ve learned from my little sister

By Youmna Chagoury

M

y sister has always had delusions of grandeur: she wants to own a 15th century castle in Europe (anywhere on the continent, it just needs to be a castle); she wants to be so busy at work that she’ll need a personal assistant (or several); she wants to buy her four sisters each a private island; she wants to be recognized for her business achievements, and sometimes she even dreams of a Nobel Prize. She set these highly ambitious goals when she was 17 years-old, and three years later they haven’t changed. Basically she just now knows what she needs to do to make all these things happen. Here are five rules that I’ve learned from her arduous, ambitious young self.

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SOMETHING 2. DON’T INVEST IN SOMETHING DON’T YOU DON’T NEED IF YOU DON’T HAVE THREE TIMES ITS COST. “So you’ve paid your rent and all all of your bills, and now you’re left with $150 in your bank account.

You can only spend $50 on shopshopping this month.”

Okay, she learned this one from from my father, but still. This one applies to both your personal acaccounts and your business endeavendeavors. There’s this new, expensive program that helps manage your staff’s daily tasks, but will leave your company penniless this year? year?

Unless you can’t run your business business without it, you’re not allowed to buy it, no matter how valuable or effective the software. You never, ever know what might come up and when you might need that extra $150 -or $150,000- for more more important matters. Better safe than than sorry… and definitely better than being broke.

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CULTURE

BUSINESS UNUSUAL | LIFE | TRAVEL | DESIGN | TRAPPINGS

Feelings, nothing more than feelings

By Pamella de Leon

T

here’s a familiar childhood warning of counting to 10 before speaking when you’re angry.

From a young age, we’re encouraged to have emotional managing skills to be the better person, if not, to at least have the upper hand in facing conflict.

Is ‘managing emotional skills’ really possible? Research by psychology professors John Mayer of University of New Hampshire and Peter Salovey of Yale demonstrates how thinking and emotions together can convey information to push forward your potential. They also maintain its influence in everything from decision-making to your entrepreneurial streak, and yes, it’s present in your workplace too.

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Staff and prospective employees are being measured not just by skills, experience and intellectual capabilities, but also how we handle each other and ourselves. It’s important to understand how to develop these capabilities for the success of your career- after all, it’s being smart with your feelings. It’s not about ‘being nice’ or ‘freeing your emotions’, it’s about how to manage your feelings for effective expression.

According to Inc., research says EQ can be learned and increased in adulthood, increase work performance in any industry or position, and improve organizational performance. So how is EQ used on a daily basis, and how can we do better? Dynamic Learning hosted

a workshop with Six Seconds to educate people on emotional intelligence and discuss Six Seconds’ State of the Heart report based on the Six Seconds Emotional Intelligence Assessment (SEI database) with an algorithm consisting of 15 normative scales. Let the science guide you.

RUNNING WITH THE FAST CROWD The State of the Heart report, surveying over 75,000 people from more than 75 countries between 2011 and 2013, showed that worldwide emotional intelligence is decreasing with increasing empathy at -2.1%, navigating emotions at -1.4%, exercising optimism at -1.4%, and the Middle East having a score of 99.5 out of 150- slightly below than global average. Among other factors, these statistics reflect the current lifestyle in the Middle East, fuelled by people’s chase for a fast-paced life and

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TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

A REGIONAL TALENT WAR? LEADING UP TO 2020 AND 2022 COMPANIES MUST TRY HARDER (AND BE SMARTER) WHEN TACKLING TALENT RETENTION

By Rahul Dhadphale

T

he GCC states are experiencing phenomenal economic growth. The UAE, led by Expo 2020, and the rapidly growing economy of Qatar in the run up to 2022 present new challenges for employers in the region when it comes to talent.

Whilst some 277,000 jobs are expected to be created in the run up to Dubai’s Expo alone, employers must ask where will the talent come from? High quality talent is always at a premium and with the demands for large numbers of employees starting to soar, this premium is likely to increase, especially given the close proximity of the two nations. As demand for experienced talent increases, could we be on the verge of a regional talent war?

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Attracting people to work in the Gulf is not in itself a huge issue given tax-free salaries (and added benefits), but keeping them for sustained periods is where the real challenge sits. How do we retain retain high quality talent in the region? Until now, most organizations have used salaries as their main weapon; however as the prospect of of a talent war brews in the GCC, businesses must also explore other options to retain human capital. Organizations who want to attract talent need to be looking creatively at where to find the right people people with the greatest potential and then offer them attractive packages that include development opportunities amongst others. Human Resource professionals must therefore think more strategically about about talent retention assuming we are employing good quality talent.

MEANINGFUL ON-BOARDING

One aspect many companies are trying to adopt is that of meaningful meaningful on-boarding. This is not just the typical boot-camp approach, but one where the new employee has a complete understanding of the role on offer, expectations managed, and a thorough understanding

retain top talent. Intelligent young talent are seeking organizations where these concepts are not just talked about, but truly applied regardless of industry or sector. If we remain tactical in our approach, for example raising salaries alone, we will hit a threshold that is not sustainable– and talent retention becomes transactional.

This therefore is an excellent opportunity for us to stop and think strategically about talent and then implement properly the appropriate tactics.

of the leadership’s commitment to the organizational development. Employees must have a better understanding of how their career can and will grow and be managed. This should be made explicit to all potential employees so everyone is clear about what success can and will look like for them.

SUCCESSION PLANNING

HR managers must work actively on succession planning, not just around the milestone dates of 2020 and 2022, but way beyond that. Succession planning will support business and economic sustainability for years to come if they are truly committed to operating here.

Organizations must plan forward and then ‘develop’ their

talent to meet the expected demand. It would be unfair to the employee to be promoted beyond their current capability and experience without giving them the relevant tools.

PURPOSEFUL AND CHALLENGING JOB ROLES

Often organizations can be short-term in their hiring demands or have a ‘tick-box’ approach to hiring. Thinking more critically about ensuring the roles and jobs on offer are purposeful and challenging can pay dividends. One implication of this is to revisit job descriptions and role definitions already existing. Many recent studies have shown that the younger talent are, the less inclined they are to be loyal. They are seeking fulfilment in the jobs they do and the value they create. Given this, we must give potential employees a role that has ‘meaning and purpose’- this in itself will not stop attrition but at least serve to mitigate against it.

LEADERSHIP DEVELOPMENT

Leadership Development is the current trend in the Gulf among many companies. This is only truly effective if the company’s leadership can demonstrably

show what ‘good’ leadership looks like. Far too many companies are reluctant to make the necessary investment of time and money to make leadership development truly effective and meaningful for employees, for fear of them leaving. But the contrary is worse- that is, we do not develop this talent pool and they stay! Each GCC nation’s vision clearly has human development as a key pillar, something that is sometimes not as effectively implemented as it could be. Many business and community leaders will agree that leadership development and its associated skills are critical in markets and environments that are changing as dramatically as they are here in the Gulf.

Organizations in the region have a responsibility to making sure they are creating an environment where talent flourishes. Whether there is a war on talent or not in the region, the challenge with retaining it is here. The market demands are huge and employee expectations are high, and talent is still in relative short supply. How we attract top talent into the region in itself is not enoughretention is key if we are to develop a sustainable economy over the many years to come.

INNOVATION, CREATIVITY AND ENTREPRENEURSHIP

Linked very much to leadership are innovation, creativity and entrepreneurship. This implies creating a learning culture beyond compliance of processes.

These concepts are widely talked about but few institutions outside the usual suspects of Apple and Google live and breathe this, which is why they seem to be able to attract and Aug-Sept 2014 Entrepreneur

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are now and where we want to be, we will stop growing. When we go through new challenges, difficulties and pressures that we’re unfamiliar with, we often have to go through the pain, stress, and overwhelming feelings during this transition period. Considering the bigger picture will keep you focused and reaching forward.

2. PRIORITIZE

There is always something to do; we all have an endless list of tasks, requirements, goals, and objectives. What do you do? Freeze, panic or become lethargic? When it comes to prioritizing, I look at which endeavor will give me the greatest return of investment on my time, money, and energy.

Which one launches me forward towards my purpose and life vision? Which one plays to my strengths and harnesses my passion? Which task will open doors? Don’t be swayed by instant gratification, instead look at the end goal. Start with the end in mind. It’s about managing your energy, and not your time. Say yes to those things which play to your strengths and fuel your passions and say no to everything else. You are the author of your life.

3. ASK FOR HELP

As entrepreneurs it can take years before we allow others to help us. We love to problem solve and we are great at it.

We achieve more when we play to our strengths and hire our weaknesses. I have worked with a success buddy over the past two years. A success buddy is someone whom you trust, value, and who has a similar entrepreneurial mindset. Each Friday I meet for a coffee or have a 30 minute call with my success buddy. We discuss our wins, losses and challenges from the week- it’s a great way to lean on someone. Relationships do take a time investment, but

when you have that level of honesty, trust and accountability, it’s much easier to ask for help because the key people are already around you. If you struggle with asking for help, you need to consider the people and framework that you’ve built. Asking for help is not a sign of weakness, it’s a need to build a relationship and it’s an acknowledgement that none of us are indestructible.

4. TAKE ACTION

When we are drowning in an overwhelming state, it’s essential that we don’t allow those feelings to paralyze us and stunt our action. Taking action wages war against this foe- if any of us die, let us die in battle. There is a right way to lose, a right way to be defeated, there is no room for self-sabotage in the entrepreneurial revolution. Be proactive, don’t just live a life that is reactive. Have a plan of action, work that plan, and always make room for the unexpected to happen- the very best plans come unstuck if there is no room for the unexpected.

time, mind, and listening-ear.

Scheduling time out so that you can consider your own thoughts, and allowing your soul to speak to you is a great way to find solitude in the storm. The safest place within a tornado is in the very middleamongst the chaos, noise and excitement, creating boundaries where you center yourself and find the eye of the storm is going to be hugely important to wrestle this adversary to the ground and keep him pinned.

6. POWER DOWN

Do you have a switch-off time?

Do you schedule a time to sleep? You should, otherwise we are all in danger of going to bed at 3a.m. because we never

stop. We love what we do- it’s natural and exciting. Sleep deprivation is prevalent in the life of an entrepreneur, and it’s affecting your brand, results, and most importantly your capacity for decision-making. We must power down, and just like a computer you must do so via a process and not be tempted to just crash the system. Not using electronic devices an hour before bedtime helps your mind unwind. If you’re checking your email and thumbing-through social media just before bed, you are less likely to sleep as your mind is stimulated and aroused by ideas which often only trigger the overwhelming state of mind that we are trying to combat.

See Mark Sephton speaking about this topic in a video on our website www.entrepreneurmiddleeast.com

5. CREATE BOUNDARIES

Drawing lines prevents others from dumbing on you, and it also protects you from yourself.

If you are a key influencer, everyone is going to want your

www.marksephton.com

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THE END ALL AND BE ALL

By Hussein Hallak

E

ntrepreneurs face big challenges that need a lot of experience, tons of energy, and many sleepless nights. Be it marketing the business, securing enough capital, or finding the right people, these are only the tip of the iceberg. As an entrepreneur, you may be passionate, committed, and driven, yet, the business may still fail. Why? Many things may contribute to a business failure, but there is one that even veteran business leaders fall for: starting, running and maintaining a business while forgetting its purpose.

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Peter Drucker said it best: “The purpose of business is to create and keep a customer.” If you have a customer, you have a business, if you don’t, you have a hobby. The biggest challenge with “creating and keeping a customer” is that you may see it as a marketing or customer care function.

It is not. It is the purpose of business, and marketing is the process through which this purpose comes to life in every aspect of the business. Unfortunately, with the increased use of technology and automation, and the rise of social media networks, we have lost touch with some fundamentals.

One widely misunderstood and poorly practiced fundamental is networking.

You will not be alone if you think of it as compiling a huge database of contacts. Some see it as the opportunity to sell to many people at once. And many still perceive it as nothing more than schmoozing and boozing, a way to be seen and socialize; a waste of time I hear you say.

Dr. Ivan Misner, the father of modern networking, gives a newer and truer definition of networking: “The process of developing and activating your relationships to increase your business, enhance your knowledge, expand your sphere of influence or serve the community.”

There is no one practice, tactic, or strategy that can impact: 1. Growth Increase your business.

2. Learning Enhance your knowledge.

3. Reach Expand your sphere of influence.

4. Value Serve the community.

That is why networking can make the difference between the success and failure of a business. So how can you use networking to your advantage as an entrepreneur? Here are some ideas on how networking can help you solve some of the top business challenges you may face today or in the future.

GETTING STARTED Be present at gatherings and social functions with friends and family, and in community activities. Get to know the people who are already in your sphere of relations, see where you can help and add value. These people will be the ones you rely on for support when you face the challenge of ditching your steady job. Some will have the skills to help you write your

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

business plan, give expert advice, and help you develop your elevator pitch. Ask and listen, you may find people in your network with access to valuable knowledge and market insight.

BRANDING/MARKETING We are social beings, driven by social influence and pressure. Advertising works, but a recommendation from a friend is 200 times more powerful, 200 times more effective. If you have developed your relationships with your network, they will jump at the opportunity to help you.

A recommendation from a friend is paramount when you are marketing a product or service that’s ahead of its time. Your friends will not recommend your product or service if they are not convinced. Ask for their feedback, so you can build a product that is viral- one that people will want to tell their friends about. This becomes even more amplified with the use of social media. Your friends’ reach and influence extends your reach and influence. Ask them to share their experience with their friends, and even with the local radio station or newspaper. Create videos of them using the product or service and build on their perspective to get fresh ideas for content. Even if you start with 10 people who believe in you, you can reach their networks too.

MONEY MATTERS You never know how deep the network of the people around you is. Instead of waiting to pitch at the next startup weekend, your ideal investor might be a phone-call away.

Not only will you have the chance to get financing, you will also get proper feedback and help if you don’t make the cut. A person who you meet through a recommendation, is more likely to care about

you and be more interested to help. If you have missed the mark, they will most likely tell you how to make it right.

Put simply they will give you another chance, something you might not get through the usual channels.

MANAGEMENT One of the challenges of running a business is managing suppliers and partners. Having a strong network of people can help you find suppliers and partners you can trust, that cause you less stress and come with great added value.

STAFFING Internal networking with your people is crucial. By cultivating relationships with your team, you will get to know them better and learn how to manage them better as a result. We always choose to work with people we know, like, and trust. Through networking, people develop an affinity for each other, and they are more likely to want to work with each other, even

TREPONOMICS

if the pay is less. A network of positive and powerful relationships, built on open and honest communication, becomes a center of influence in an organization. It shapes the culture, and drives the organization towards excellence.

CLIENT RELATIONS Finally, your network is the ideal starting place to get the word out and to get recommended clients. Clients who come through recommendations are the most valuable.

They are more likely to buy, less likely to be price sensitive, more likely to return and recommend other people too.

As an entrepreneur, networking and building relationships is probably one of the most important activity you can engage in. Do it with passion to develop and cultivate meaningful relationships. Do it with unwavering drive to add real value. And always remember to do business with people you know, like and trust.

MONEY

ASK THE MONEY GUY | VC VIEWPOINT | STARTUP FINANCE | YOUR MONEY

YOU’RE MISSING

THE NEXT BIG THING

CONSIDER INVESTMENTS IN THE GLOBAL HALAL INDUSTRY

By Rushdi Siddiqui

fter credit crisis I (US subprime) and credit crisis II (Eurozone sovereign debt), investors are looking for the next risk-adjusted BRICS (Brazil, Russia, India, China and South Africa) opportunity: Growth story in a growth opportunity with growth demographics.

Furthermore, after food scare incidents in the U.S., E.U. and China, consumers are looking for ingredient transparency for not only their foods, 66| Entrepreneur Aug-Sept 2014

but also in the arenas of cosmetics and pharmaceuticals. The opportunity may no longer be about a clustering of countries play, be it MIST (Mexico, Indonesia, Saudi Arabia and Turkey) or CIVENT (China, Indonesia, Vietnam, Egypt, Nigeria and Turkey). The new BRICS may just be about faith inspired consumerism, especially if the target population is 1.8 billion and target market expenditure is in excess of US$2 trillion.

The Muslim market globally, non-monolithic but united by faith-based rules of engagement, should be viewed in the context of affinity clustering, much like the large and expanding Hispanic market in the United States. It will follow the consumerism path laid out by the Hispanic market, as it’s about business and not promotion of a religion or ethnicity. The right formula will yield loyal customers resulting in natural entry barriers, hence minimizing margin compression pressures.

chain integrity, human capital deficit, consumer education, operational excellence, venture financing, and so on.

Get it right and it will add to the bottom line with headline numbers, but get it wrong and there is serious brand and integrity risk to the company, as confidence and trust is extremely difficult to recapture.

FOOD PLAY Muslim consumers globally spent $1.088 billion in F&B consumption in 2012 (essentially or 16.6% of global expenditure), and that figure is expected to grow to $1.626 billion market by 2018. The usual suspects of (non-Muslim owned) global brand food companies are capturing the

market, but the halal pie is expanding allowing for the entry invitation of other players. Nestlé, the world’s largest food manufacturer, has 150 halal-certified factories worldwide. It would be interesting to know how many of these factories were financed with Islamic finance structures for an end-to-end halal solution. >>>

SIX SILO OPPORTUNITY Today, Muslims are consumer investors in the six silos of halal industry, and need to become financial investors to control their ‘halal’ destiny.

To date (at the befuddlement of many), the $1.3 trillion Islamic finance has at best nominally financed, investedin, or insured (Takaful) the asset-backed Halal industry.

Basically, it will compete with conventional capital to get a piece of the halal pie, which just wants access to capital at the SME level! As a whole the Muslim consumer expenditure globally on food and lifestyle sectors -travel, clothing, pharma/personal care, media/recreation- is estimated to be $1.62 trillion in 2012 by the 2103 State of the Global Islamic Economy report (SGIE) by DinarStandard and Thomson Reuters.

The SGIE projects that the already-significant expenditure is expected to reach $2.47 trillion by 2018. This niche market is both ripe and right for the taking, however the landscape is mine-laden with challenges like standardization, compliance, supply

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MONEY

ASK THE MONEY GUY | VC VIEWPOINT | STARTUP FINANCE | YOUR MONEY

THE STATE STATE OF OF THE THE GLOBAL GLOBAL ISLAMIC THE ISLAMIC ECONOMY ECONOMY 2013 2013 REPORT REPORT PRODUCED PRODUCED BY

BY THOMSON THOMSON REUTERS REUTERS IN IN COLLABORATION COLLABORATION WITH WITH DINARSTANDARD DINARSTANDARD (AUTHOR/ (AUTHOR/ LEAD LEAD RESEARCH) RESEARCH)

SIX SILO OPPORTUNITY LANDSCAPE The halal lifestyle market, and the drivers fuelling the phenomenon forward.

Today Muslims do not control the halal food supply chain, and wealthy regions (like the six-country GCC), are net importers of food implying a food security risk. Does this present an investment opportunity for private equity?

In the Muslim world, halal food companies, publicly listed and privately held, are dispersed and fragmentedhere an opportunity exists to address food security issues in the growing and expanding Muslim world via a roll-up strategy. In the private equity agro-food buyout space the right mix for traction includes typical elements such as an experienced fund manager, team chemistry, proprietary deal, etc., but the most important element is the ability 68| Entrepreneur Aug-Sept 2014

to connect with sellers.

It must not been seen as a financial engineering play with use of excessive leverage and dividend take-out. It must come across that you will help them grow (alignment), especially into new markets as you understand not only import regulations, but also halal certification issues and have access-to or own a distributor. Thus, building a ‘Muslim Nestlé’ will not happen organically; growth by acquisition, especially distributors, in different geographies will build an effective ‘hub and node’ halal-agro food company.

LIFESTYLE The approach to the halal non-food segment for investors and financial institutions is a mixture of investing, private equity and venture capital, financing, from capital equipment to operating expenditures, to trade finance to facilitate access to new markets via exports. The SGIE report shows Muslim spent $70 billion on pharmaceuticals (7% of global expenditure) in 2012, and is expected to grow to $97 billion by 2018.

The major pharmaceutical companies Merck, Pfizer and GlaxoSmithKline are presently engaged in halal certification of their medicines marketed to Muslims globally, but an untapped market exists for halal vaccines. The cross of

appeal to non-Muslims non-Muslims of of halal pharma is ingredient ingredient transparency. The same same report report suggests that global Muslim Muslim spending on cosmetics cosmetics and and personal care products products was was at at $26 billion in 2012, and and is is exexpected to grow to $39 $39 billion billion by 2018 representing 7% 7% of of global cosmetics expenditure. expenditure.

The increasing use of plantplantbases (over animal-bases) animal-bases) and alcohol-free product product preference has made halal halal cosmetics attractive to to both both a Muslim consumer base base and and a non-Muslim eco-conscious eco-conscious consumer base.

In terms of tourism, tourism, the the report estimates global global Muslim spending on travel travel (outbound) to be $137 $137 billion billion in 2012 (excluding Hajj Hajj and and Ummrah), and is expected expected to to

Aug-Sept 2014 Entrepreneur

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70 | Entrepreneur Aug-Sept 2014

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ASK (IN ARABIC) AND YE SHALL RECEIVE Jawabkom’s Raed Malhas has all of the answers

By Kareem Chehayeb

J

awabkom sounds like an Arabic Ask.com, but Jordanian ‘trep Raed Malhas has developed an online service with greater depthand it’s filling the market need in the MENA region for a majorly underrepresented online demographic. Malhas, who says that his “passion is to build products that can positively affect tens of millions of lives,” noticed that Arabic speakers don’t have a website that provides a platform for them

72| Entrepreneur Aug-Sept 2014

to speak with experts in different fields online if they have a particular question. “When studying the Arab market, we found that there isn’t a Q&A site like Quora or JustAnswer so, we saw an opportunity and built Jawabkom.” Jawabkom has experts from different fields, including law, medicine, information technology, and nutrition, all targeting the Middle East’s 400 million strong Arabic-centric population. Malhas is a Purdue

University alumnus with a degree in Computer Science, and comes from a family of ‘treps. His dad co-founded an Arabic computer company called Sakher. His entrepreneurial idol? Paul Thelen, founder of Seattle-based Big Fish Games.

So what’s setting up an online service with a variety of experts like?

Malhas worked at light speed- after setting up a quick trial website last October, Malhas and co. tested it in a few countries and subsequently formed Jawabkom “within weeks”.

They hired 14 employees through another venture of Malhas’ R&D Labs, and then connected with Arabic-speaking experts in a variety of different fields. It seems like a majorly capital-intensive project, especially with the experts who are taking in questions on a daily basis. That said, Jawabkom certainly have money in the bank: “R&D Labs funded the first couple of months of development, operational, and marketing costs,” said Malhas, who later garnered US$250,000 through angel investors MENA Ventures. ROI? “Taking out the operational cost, our ROI is: 210%. That means, for every $1 we spend, we make $2.1 back on average.”

GRAPHS COURTESY JAWABKOM.COM

Web traffic per device: in Middle East | Q1 2014

Despite having the capital, when talking about keeping Jawabkom running smoothly, it seems that Malhas and co. have a lot on their plate.

A lot of it has to do with the straightforward fact that they’re catering to the Arabic-speaking audience of 22 different countries. Raed Malhas said that “without truly understanding our users in each and every Arabic country, our product won’t be ‘sticky’ or ‘relevant’, and it won’t grow. While we continue to grow rapidly, it is crucial for our team to continue to closely study the behavior, and needs, of users in each country, so we can tailor our product.” I guess it’s no surprise that most of their operating costs are allocated to marketing and product development. And what successful marketing strategy was used to gain so much traction? Facebook and good old SEO. Malhas currently has 60 experts for Jawabkom, and they’re compensated to answer all questions that the wesbite’s users ask through their paid services. That said, he has adopted something

that slightly resembles a freemium model. Aware of the staggering differences in economic conditions, specifically GDP per capita, Jawabkom also works with volunteer experts. “For users who have less access to payment methods or are in low income areas, we decided to look into providing those users with potentially free answers delivered by volunteer experts, when these users invite friends from Facebook,” explains Malhas. It’s clear that Jawabkom does all they can to make sure they are able to provide the answers, but are Arabs in the Middle East asking questions? Since Jawabkom launched in January, Malhas claimed that they have grown “exponentially. We started getting hundreds of questions posted a day almost immediately and now we’re getting over 3,500 per day.”

Want to learn more about their user-base? When it comes to gender, it’s almost at an even split, with males making up 50.9% of Jawabkom’s users. 42% of Jawabkom’s users are under 25 years-old,” said Malhas referring to an UN report that concludes that approximately 50% of the

region’s population is below the age of 25. And finally, regarding geography, it appears that most of Jawabkom’s users are active in Egypt and Saudi Arabia, but there is an evident presence in Jordan, Morocco, Kuwait, Iraq, and the UAE. When asked about the most high-volume question categories, we were told that

there are three exceptionally popular ones at the moment: “Legal, medical, and dream interpretation.” It doesn’t stop there though; the folks at Jawabkom are really keeping tabs on their demographics. Malhas was very eager to share some interesting information that he believes speaks volumes about the region, including the fact that 32.3% of people who asked legal questions are under the age of 25, 48% of them being women. His take?

“My guess is that the Arab Spring has had a hand in the interest in law.” What really stood out for us was dream interpretation; it sounds like some whacky psychology experiment, but it really has to do with theological interpretations of people’s dreams. The experts for that category have backgrounds in religion and theology, and Malhas maintains that it was an instant hit across the Arab world. Malhas says that after a mere two months, dream interpretation has “become one of the most popular topics and has already had 60,000plus questions posted.”

Jawabkom’s team studied the different kind of questions asked for that category from the different nationalities and >>>

Lawyer questions

Aug-Sept 2014 Entrepreneur

|73

a

t c a i u u s

f s n G a p a a d t f v u b c t a b E J a h s q i g

when talking about keeping Jawabkom running smoothly, it seems that Malhas and co. have a lot on their plate.

A lot of it has to do with the straightforward fact that they’re catering to the Arabic-speaking audience of 22 different countries. Raed Malhas said that “without truly understanding our users in each and every Arabic country, our product won’t be ‘sticky’ or ‘relevant’, and it won’t grow. While we continue to grow rapidly, it is crucial for our team to continue to closely study the behavior, and needs, of users in each country, so we can tailor our product.” I guess it’s no surprise that most of their operating costs are allocated to marketing and product development. And what successful marketing strategy was used to gain so much traction? Facebook and good old SEO. Malhas currently has 60 experts for Jawabkom, and they’re compensated to answer all questions that the wesbite’s users ask through their paid services. That said, he has adopted something

START IT UP

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ASK (IN ARABIC) AND YE SHALL RECEIVE GRAPHS COURTESY JAWABKOM.COM

Jawabkom’s Raed Malhas has all of the answers

By Kareem Chehayeb

J

to speak with experts in different fields online if they have a particular question. “When studying the Arab market, we found that there isn’t a Q&A site like Quora or JustAnswer so, we saw an opportunity and built Jawabkom.” Jawabkom has experts from different fields, including law, medicine, information technology, and nutrition, all targeting the Middle East’s 400 million strong Arabic-centric population. Malhas is a Purdue

University alumnus with a degree in Computer Science, and comes from a family of ‘treps. His dad co-founded an Arabic computer company called Sakher. His entrepreneurial idol? Paul Thelen, founder of Seattle-based Big Fish Games.

So what’s setting up an online service with a variety of experts like?

Malhas worked at light speed- after setting up a quick trial website last October, Malhas and co. tested it in a few countries and subsequently formed Jawabkom “within weeks”.

They hired 14 employees through another venture of Malhas’ R&D Labs, and then connected with Arabic-speaking experts in a variety of different fields. It seems like a majorly capital-intensive project, especially with the experts who are taking in questions on a daily basis. That said, Jawabkom certainly have money in the bank: “R&D Labs funded the first couple of months of development, operational, and marketing costs,” said Malhas, who later garnered US$250,000 through angel investors MENA Ventures. ROI? “Taking out the operational cost, our ROI is: 210%. That means, for every $1 we spend, we make $2.1 back on average.”

74| Entrepreneur Aug-Sept 2014

awabkom sounds like an Arabic Ask.com, but Jordanian ‘trep Raed Malhas has developed an online service with greater depthand it’s filling the market need in the MENA region for a majorly underrepresented online demographic. Malhas, who says that his “passion is to build products that can positively affect tens of millions of lives,” noticed that Arabic speakers don’t have a website that provides a platform for them

74| Aug-Sept 2014 72| Entrepreneur Entrepreneur Aug-Sept 2014 2014 74| Entrepreneur Aug-Sept 74| Entrepreneur Aug-Sept 2014

GRAPHS COURTESY JAWABKOM.COM

Web traffic per device: in Middle East | Q1 2014

Despite having the capital, when talking about keeping Jawabkom running smoothly, it seems that Malhas and co. have a lot on their plate.

A lot of it has to do with the straightforward fact that they’re catering to the Arabic-speaking audience of 22 different countries. Raed Malhas said that “without truly understanding our users in each and every Arabic country, our product won’t be ‘sticky’ or ‘relevant’, and it won’t grow. While we continue to grow rapidly, it is crucial for our team to continue to closely study the behavior, and needs, of users in each country, so we can tailor our product.” I guess it’s no surprise that most of their operating costs are allocated to marketing and product development. And what successful marketing strategy was used to gain so much traction? Facebook and good old SEO. Malhas currently has 60 experts for Jawabkom, and they’re compensated to answer all questions that the wesbite’s users ask through their paid services. That said, he has adopted something

that slightly resembles a freemium model. Aware of the staggering differences in economic conditions, specifically GDP per capita, Jawabkom also works with volunteer experts. “For users who have less access to payment methods or are in low income areas, we decided to look into providing those users with potentially free answers delivered by volunteer experts, when these users invite friends from Facebook,” explains Malhas. It’s clear that Jawabkom does all they can to make sure they are able to provide the answers, but are Arabs in the Middle East asking questions? Since Jawabkom launched in January, Malhas claimed that they have grown “exponentially. We started getting hundreds of questions posted a day almost immediately and now we’re getting over 3,500 per day.”

Want to learn more about their user-base? When it comes to gender, it’s almost at an even split, with males making up 50.9% of Jawabkom’s users. 42% of Jawabkom’s users are under 25 years-old,” said Malhas referring to an UN report that concludes that approximately 50% of the

region’s population is below the age of 25. And finally, regarding geography, it appears that most of Jawabkom’s users are active in Egypt and Saudi Arabia, but there is an evident presence in Jordan, Morocco, Kuwait, Iraq, and the UAE. When asked about the most high-volume question categories, we were told that

there are three exceptionally popular ones at the moment: “Legal, medical, and dream interpretation.” It doesn’t stop there though; the folks at Jawabkom are really keeping tabs on their demographics. Malhas was very eager to share some interesting information that he believes speaks volumes about the region, including the fact that 32.3% of people who asked legal questions are under the age of 25, 48% of them being women. His take?

“My guess is that the Arab Spring has had a hand in the interest in law.” What really stood out for us was dream interpretation; it sounds like some whacky psychology experiment, but it really has to do with theological interpretations of people’s dreams. The experts for that category have backgrounds in religion and theology, and Malhas maintains that it was an instant hit across the Arab world. Malhas says that after a mere two months, dream interpretation has “become one of the most popular topics and has already had 60,000plus questions posted.”

Jawabkom’s team studied the different kind of questions asked for that category from the different nationalities and >>

Lawyer questions

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SNAPP TO IT!

By Pamella de Leon

E

ver felt like you should get rewarded for eating way too much at your favorite restos, but feel it’s too much of a hassle to carry around loyalty cards?

The solution to ditching the stack of cards bulking up your wallet is to have it with you digitally… on your device.

Alborz Toofani, Founder of Snapp, a mobile loyalty reward app, thought so too.

“I was carrying [loyalty] cards to places I go to, digitalizing it just makes more sense.”

After seeing glimpses of it in Europe, Toofani decided to try turning the traditional cards to a modern tech application in the Middle East, beginning in Dubai. Born and raised in Germany, Toofani studied International Business at the Cologne Business School, and worked for a private investor

78| Entrepreneur Aug-Sept 2014

specializing in early stage app investments to help startups.

Growing up in Europe, he saw similar products that solved a “real life problem,” and when he found out that a friend was starting an app agency in Abu Dhabi, a year later he followed to start his own venture.

Once in Dubai, the 25 yearold discovered MAKE Busi-

ness Hub, a co-working café space for entrepreneurs and startups, where he met the then-owner of the hub, Leith Matthews, who later joined as co-founder and COO. Meeting Matthews, whose business management and marketing background was a benefit, as he became a business advisor and signed MAKE on as one of

working with with the test clients, working (miniToofani’s early MVP (miniFirst mum viable product). First in July July worked on by Toofani in through 2012, the app went through to testing phases, leading to prototype in in the launch of a prototype official November 2012 and an official launch in May 2013. “It “It was was would simple enough that it would adding work,” says Matthews, adding using it it that his staff enjoys using appreciate and customers appreciate rewards. the interaction and rewards. enough: The concept is easy enough: scan the the download the app, scan and QR code in that shop and which you’ll collect points which and will lead to rewards and business freebies. It’s good for business are too since loyalty cards are collateral, effective marketing collateral,

turning casual consumers to loyal customers who become “card-carrying ambassadors.

That’s why it benefits me, the user, and it benefits the venue as well,” says Matthews, and that the mobile revolution enables the concept to be “mobile, engaging and shareable,” making it more popular and accessible.

When they first started out, Snapp signed a variety of businesses– a hair salon, nail spa, coffee shops and other restaurants to get different types of consumer feedback.

They were soon told that an Android version was needed (now newly launched), and they also found out that businesses where the staff were “old school” -like the hair salon- didn’t result in numbers that were as good. “One of the major things we realized back then is although we were a tech startup, we’re asking clients to co-brand with us therefore our branding has to be good-looking.” This brought about a decision to fully revamp the branding to give partnered businesses like cafés and restos “something they’re proud to show off on their tables.” When they decided to rebrand (which had a bird mascot as the logo developed during the MVP stage), they “wanted to keep the DNA of where it came from. A bird

mascot was always gonna remain.” And remain it has in a sense- look closer at Snapp’s brightly-colored geometric logo.

In terms of sales strategy, the duo says that they work with “the city’s best”, surveying different F&B, grooming, and other service-based businesses to identify the “trendleading” establishments in each sector and entice them to come on board with Snapp.

It worked. Ten months of implementing the strategy and they have an impressive list of brands under their belt, with plans to replicate the strategy in other cities they grow into, ensuring that it’s not “only a platform that help[s] you get rewarded from your favorite venues, but a platform that helps you discover the city’s best venues as well.” According to Toofani, they get a lot of inbound marketing since when they manage to capture the interest of an influential leader, other people follow– a feat considering they haven’t done any “official” marketing yet. They say their aim is to

let people discover Snapp on their own, in the various places they go to and learn to interact with it organically.

According to research from Martiz, 71% of smartphone and tablet users are interested in using loyalty programs with their devices.

In addition to their app being available for both iOS and Android, and their website, Snapp is also very active on Twitter, Instagram and Facebook. Matthews says that their users and early adopters

are very “switched-on” and eager to give feedback. They take the opportunity to have real-time conversations with the founder and co-founder personally answering queries online. Is feedback for more features overwhelming?

Toofani says they are aware of what people want, but plans to add newer features (such as rewards for discovering new places) in other launches.

True to their stance on simplicity, Toofani emphasized, “Simplicity is key to make a >>> Aug-Sept 2014 Entrepreneur

|79

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What’s next for Snapp? In the next few months they’ll put forward additional features to the app, and plan to release BlackBerry 10 and Nokia versions. Toofani knows the hurdles ahead, such as dealing with licensing problems in different countries, but is adamant that they’ll reach their end goal- to be the one platform in the MENA region (and Turkey) specializing in mobile loyalty. user a long-time user.”

When asked of the app’s tipping points of success, the duo links it to the key partnerships they have formed with brands such as Dubai’s homegrown Taqado Mexican Kitchen, Media City’s popular café Urban Bistro and Noodle House to name a few, as well as early adopters Tips & Toes and Sumo Sushi, who are renewing contracts after a year. “We grow with them together,” says Toofani, and Matthews joins, “And we’re proud that they grow since it’s sort of a testament to their quality and our quality

as well.” The duo also remarks how starting in Dubai was an advantage, saying that the Middle East “looks up” to the UAE’s business hub and head offices of their partners’ regional companies are always located in the city too.

“There’s a thousand mistakes we could’ve done and didn’t do,” says Toofani, crediting their lessons from working at previous startups and benefitting from mentorships. They try to give back too: “The startup scene is fairly small, but high quality.

We try to help out,” adding

METHOD

how they sponsor or participate in startup events such as the STEP conference. “Don’t be shy to tell people about your product. Feedback is key, whether from a competitor, consumer or investor. It doesn’t matter who it is, even if it’s somebody who doesn’t know the product. We have two customers: our customers and our customer’s consumer.

We have to give them both what they want. You can only give them what they want if you understand what they want. Share your story and share your product to receive feedback.”

MARKET PENETRATION

FOUNDER/CO-FOUNDER RELATIONSHIP

FUNDING

80| Entrepreneur Aug-Sept 2014

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SIGNIFICANT STARTUP SENSE AND SENSIBILITY Investing your money is necessary, but investing your time is absolutely essential By Simon Hudson

T

his month I have decided to take a break from my usual startup finance column and write about what it takes to raise over a US$1million in seed capital. The Wall Street Journal recently wrote an article about my company Brndstr, and our latest raise. For a startup that is just nine months old this has been a great achievement. Since the news broke I’ve been asked many times about how I was able to raise such a vast amount so soon, especially as a tech startup based in Dubai.

So my fellow ‘treps, this month I am going to write a brief overview on what was needed to raise the funds, the time it took, and as always my personal advice gleaned from my own experiences along the way.

ON THE CLOCK I’ve just finished reading Malcolm Gladwell’s hit book Outliers. For anyone who has yet to read this beast I suggest you put it on your to-do list. In it, Gladwell explains how the magical number of 10,000 hours

82| Entrepreneur Aug-Sept 2014

is the time it takes for a person to notice a major pivot in their journey.

Whether you are an athlete playing baseball, a designer or engineer building a product or a tech entrepreneur with a killer idea, 10,000 hours is the amount of time you need to make that major dent, according to Gladwell’s theory.

Now this won’t be the case for many people, however if you break it down Gladwell isn’t too far off. In my case, since the age of 15 I was always crafting an idea, trying to start a business, and become the next Richard Branson.

After reading this book I looked back and realized what I had actually be doing all my life was just dipping my toes in for the odd hour or 2. I never really gave it 100%, as always I needed that income so my focus was not all there. I have heard investors say that they need a 100% focus on an idea to consider putting the cash in, and I can see why. So looking back at my past 15 years of toe-dipping and brainstorming, I calculated my hours

to the time that I closed my latest round. I worked out for 15 years- on average I spent two hours per day, either researching or tweaking my ideas. Taking away 30 days a year for holidays and partying, I did the math: 2 hours X 335 days X 15 years = 10,050 hours. BOOM! So what I am saying here is that my $1.6m seed raise did not just take a month or even a year- I have been in training for most of my life. Taking the mistakes on board and learning along the way, I was able to achieve a major pivot in my career and successfully raise the seed capital I needed.

STEPPING STONES So you have accumulated your hours and now you need something to show potential investors. What do you need? When people say to me now, I have an idea and need $100k- do you know anyone who might want to invest? In my first article I discussed that having a prototype is key. Without this concept and proof that what you are wanting to build will work, it’s hard to find someone who will truly get what you are doing, and who will believe in it. Also there needs to be evidence of financial commitment from your side. For myself, other than the lifetime of dedication and money spent on tweaking my skills, I also

Aug-Sept 2014 Entrepreneur

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CERTIFIED GRADUATE SPONSORED BY DUBAI CHAMBER IN THE SPIRIT OF FACILITATING EMIRATI ACHIEVEMENT VIA ENTREPRENEURSHIP

TRANSFORMATION SUWAIDISH STATION TECHNOLOGIES EMIRATI ‘TREP MUBARAK AL SUWAIDI IS DETERMINED TO MAKE A DIFFERENCE

M

ubarak Al Suwaidi wasn’t always an entrepreneur, the young tech-savvy founder of Suwaidish Technologies (ST) is actually an engineer with a higher diploma in Aircraft Engineering and various Aviation Engineering licenses, formerly employed

by Emirates Airlines. Al Suwaidi started up his company due to a niche need he found in the market- he was running a home-based operation that sold traditional Emirati women’s fashions including Shailah using social media platforms like Twitter and Instagram, BBM, and a WordPress blog to encourage online clients.

He decided on creating a portal to try his hand at e-commerce after having a physical store at Global Village between 2012 and 2013, and says that he encountered huge difficulties in the process including receiving online payment, and online shipping logistics.

“Nowadays, many local entrepreneurs have found the obvious and extraordinary

84| Entrepreneur Aug-Sept 2014

benefits of marketing and selling online.

Most of us dream to own our own online store where we have full control over our businesses,” explains Al Suwaidi about what factors pushed him to initiate ST. The road wasn’t as smooth as one would hope, the ‘trep explains that he encountered three primary difficulties: “Finding local mentors for SaaS [Software as a Service] business, dealing-with and speaking-to decision makers, and finding affordable talent with the right skills to hire.”

Thus far, he hasn’t been seeded and hopes to launch his startup publically in September of this year. “I’m seeking funds to fuel the project’s operations with employees and a marketing budget to speed up the process. I can’t measure the ROI without clear look on how much -and when- I will be funded.” With an investment of “around 500K from my personal savings up until now, I didn’t acquire personal loans for the business yet.”

In addition to his financial

commitment, Al Suwaidi admits that he has little time for a social life, and daily dedicates “four to five hours during the week,” on top of his full-time job, and “weekends a minimum of six to ten hours. Add to that meetings, conference calls…” This Emirati’s goal? To see technology in general, and that of his startup, “reflect his visions and goals

‘TREP TALK Q+A SUWAIDISH TECHNOLOGIES HAS DEVELOPED THE SUWAIDISH BASKET, AN E-COMMERCE WEBSITE BUILDER. CAN YOU EXPLAIN THE FUNCTIONALITY?

WHAT PROCESS DID YOU GO THROUGH WITH TEJAR DUBAI?

HOW DO YOU STAY MOTIVATED?

WHAT DO YOU THINK THE BIGGEST CHALLENGE FACING EMIRATI ENTREPRENEURS?

www.tejardubai.ae

Aug-Sept 2014 Entrepreneur

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INVESTING YOUR OWN MONEY IN YOUR BUSINESS

By David Newton

s there a formula or some kind of rule of thumb by which business owners should abide in terms of their own personal investment into their company, relative to outside funds invested by others? The simple answer is that there is no basic measure for gauging an owner’s equity stake compared to investors’ equity in the firm. But there are two very important concepts about business financing that do apply to the general topic of owners’ equity.

First, in virtually every funding deal that I’ve ever been involved in as a business partner, consultant, investor or advisor, the outside investors required that the founding team have a vested financial stake in the enterprise. The rationale is that the owners need to demonstrate a solid financial commitment to the business plan, and having their own money at riskalongside the outside capital providers- provides a tangible assurance to outside investors that the entrepreneur believes strongly in the merits of the company’s business model and strategy. I always tell my clients and students to think about this logically.

Would you want to invest in a business knowing that the founding entrepreneur does 88| Entrepreneur Aug-Sept 2014

not have any of his or her own money also invested? Of course not!

When term sheet proposals are being circulated along with a company’s executive summary, investors always focus their initial attention on four major areas: 1. What is the product or service concept, and how is it differentiated from the competition?

2. How large is the potential market for this product or service?

3. Who on the management team will drive the business strategy forward?

4. What do the business model and the financial structure look like? This fourth area examines the way the company makes money, as well as the debt-equity arrangement that capitalizes the assets that will be employed to achieve success with that model.

When outside investors see that the company founders have already invested significant time into the business, that’s well-received. But sweat-equity alone is not enough to persuade investors to fund the deal.

In addition to plenty of hours invested working in the business, the

owners must also be equity investors with money at riskotherwise, capital providers view the level of commitment as being less than desirable.

The second important concept is the form of the founders’ capital commitment to the company. Some entrepreneurs will provide a loan to their new venture, and it may even be secured by fixed assets purchased with those funds. This is less positive than if the founding team has stock in the firm.

The time frame for the com-

pany to pay off a loan can also be a concern to outside investors. If the owners have a provision to pay themselves back within a year or 18 months, the priority of payment sends a signal to outside capital providers that the owners want to be sure to cover their own personal financial positions first, and this can cause concern. Outside investors would much rather see the owners in a side-by-side position with them, where everyone has an equity stake and no one is getting priority of payments

Aug-Sept 2014 Entrepreneur

|89

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The goal state | IN PICTURES |

H www.english.hadafi.me

90| Entrepreneur Aug-Sept 2014