The Intelligent SME Issue 17 by SPI Publishing

Issue: 17 | Dec.2013 - Jan. 2014 AED 10

Exclusive report

Champions of Dubai SME 100 Abdul Baset Al Janahi, chief executive officer, Dubai SME

16 Failures, not success stories, biggest source of learning

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Up-close and personal with Ahmed Bin Sulayem, executive chairman,DMCC.

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Contents December 2013 - January, 2014

Failures, not success stories,

16 biggest source of learning

Ahmed Bin Sulayem, executive chairman, Dubai Multi Commodities Centre Authority (DMCC), comes out as leader with a vision for growth and development, not just for the self, but for the entire UAE. He’s a pragmatic, well-informed and a youth icon, running the largest freezone in the Dubai. In a no-holds-barred chat with the ISME, Ahmed Bin Sulayem spoke about his dramatic accomplishments, ambitions, avenues and opportunities for today’s generation.

09 Rare & Fabulous

High-end luxury products for CEOs and decision makers.

14 Business Announcements

What's happening in the business marketplace? Here are some updates that you might have missed.

22 Flexible offices for on-the-move entrepreneurs

Kory Thompson, country manager- UAE at Regus says that their products are designed to make business easier for people working on the move, offering choice, convenience and productive work environments. ISME brings you an exclusive report on this niche business model.

26 Just Falafel: The remarkable remake of tradition

Fadi Malas, chief exceutive officer of the company, shared the beginnings of their unique journey as a business , the competition in the food industry, their aggressive growth plans and what entrepreneurs need to succeed and sustain in the market.

30 Ramping up the standards Abdul Baset Al Janahi

Looking through his visionary-glass and wearing a sophisticated look, Abdul Baset Al Janahi carries an air of erudition in his personality. He holds the position of chief executive officer at the Department of Economic Development’s wing, exuding confidence and an intimate understanding of the ever-shifting dynamics of the Middle East economy. From his seat, he is relentlessly driving SMEs to grow up into big boys, into full-fledged, marketable and successful businesses.

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52 Turn over a new leaf...

Choosing the right growth strategy in the new world remains a difficult decision and largely depends on how the past few years have affected the entrepreneur’s risk appetite, writes Alyson Baynes.

55 Strong SMEs: 10 things they avoid!

32 SME 100 rankings: Behind the scene

Intelligent SME investigates Alexandar Williams, Essam Omran Saleh Disi (Senior manager) and Salama Alfalasi (Senior executive) and their incredible journey.

48 Stand out in the crowd

Achieving recognition through a recognised ranking system is an excellent tool to show the world how good your company has been performing, explains Mark Fisher.

50 Gift Guide: Marketing on a shoestring budget

The way people do business has always been evolving, and this holds true for marketing more than almost any other aspect of business. TishTash brings forth simple marketing concepts, yet widely unpracticed, that SMEs can integrate even while working on lean budgets.

Choose the right business simulation game and your organisation and team will build business acumen, leadership and accountability. Simon Hodges shares a ten points program on how wrong choices can result in a wreckage.

58 A crucial question for SMEs: Who to hire?

Human resources are like natural resources. They're often buried deep. You have to go looking for them as they're not just lying around on the surface, writes Barbara Van Pay.

60 Financial freedom won’t come to those who wait

A formal starting point for financial planning is an investment goal that outlines an investor's current situation, objectives, risk tolerance and capacity, writes Sandi Saksena.

64 Are referrals business matchmakers?

What’s upstream referral activities? The efforts that precede an initial conversation with a potential client, which can build into your referral business plan, elaborates Phil Bedford.

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Editor’s Note As the curtains comes down on 2013, it’s time for us to pause and reflect at the achievements, failures and investigate companies that have been rewarded for translating concepts into solid profits. It’s imperative to track competitive developments and changing business capabilities and understand the positioning of these successful companies to get a feel of what we can expect going forward. With tens of thousands of SMEs in Dubai, good products running in parallel with the mediocre ones, it’s hard to distinguish the leaders from the followers. The announcement of the Dubai SME 100 rankings for 2013, a month ago, got us thinking how the list of top performers could be of advantage for other businesses. Thus, to save SMEs in the region from doing the heavy lifting themselves of poring through each company’s business models and formulas of success, we have outlined top performers from each category. In an exclusive coverage, on pages (24-47), the ISME team has put together a mixed bag of most admired companies that have used human capital, corporate governance, international orientation, innovation and financial growth to their advantage. Another interesting interview that finds its way into our edition is that of Fadi Malas, chief operating officer of Just Falafel. The Dubai-based company successfully transformed the traditional Falafel menu by giving it a global twist, recording stellar success in a short span of six years. In addition, we have also done an in-depth report on the man and the team behind the widely respected quality stamp for SMEs in the region, the Dubai SME 100 rankings. We also had an enlightening experience while investigating the assessment processes, benefits proposed for companies to realise their true potential post earning a rank, et al. Lastly, the eleventh edition of the Emirates NBD Global Business Series bore witness to profound insights from the corporate youth icon of Dubai, Ahmed Bin Sulayem (executive director at the Dubai Multi Commodities Centre). Running the biggest free zone in Dubai at an age of 35, he’s a visionary with lots of plans for growth and development, not just for himself or the free zone that he administers, but the entire UAE. We hope it makes for an interesting read. As always, write to us, send in your responses and ideas

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Expert Contributors Alyson Baynes Barbara Van Pay Mark Fisher John Merrigan Michael J. Tolan Neil Petch Phil Bedford Sandi Saksena TishTash V Ramkumar Zed Ayesh

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

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

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

Dec. 2013 - Jan. 2014

Intelligent SME

Rare & Fabulous

The link up of legends I

talian football legend Gennaro Gattuso was in Dubai recently presenting Eberhard & Co.’s exquisite line of finely-crafted timepieces to the discerning watch lovers of the Middle East. The AC Milan star is the brand ambassador for Eberhard & Co., renowned Swiss manufacturer of fine watches. A self-confessed enthusiast for fine watches, Gattuso’s partnership with the Swiss maison reflects the spirit of excellence each have attained in their respective fields – football and watchmaking. Eberhard & Co. has always been strongly linked to the universe of sports, thanks to an early specialization in sports watches and chronographs that goes back to its foundation in 1887. Gattuso has always been a lover of precious timepieces: in a recent interview, he declared that while in the past his choices were based on brand and aesthetics, now he tends to prefer intricacy in mechanical features. This is the reason why he personally chooses Eberhard & Co., he claims. The finely crafted Chrono 4 Grande Taille in gold was proudly displayed. The Chrono 4 Grande Taille is the most precious version of the iconic chronograph patented by the brand in 2001. The Chrono 4 line boasts a unique reading of time, with 4 horizontally aligned counters that are animated by a special mechanism developed by Eberhard & Co. (Caliber EB 250) on the base of ETA 2894. In the line’s range, also Chrono 4 Géant, that represents the largest version with a 46 mm. case of incredibly advanced construction. The Chrono 4 collection may well be defined the legitimate witness of over 125 years of history, during which the brand never ceased to look ahead, bringing to life an endless succession of revolutionary creations made to amaze and conquer the heart of the most demanding watch fans.

Dec. 2013 - Jan. 2014

Intelligent SME

Rare & Fabulous

Sony gets rugged with an Action Cam

ony has recently launched a thrilling new product called the Action Cam. In a niche space proudly occupied by GoPro, Sony has made a bold move to enter the ring with a product of its own. The Action Cam is always ready for new adventures, and thanks to some exciting new features including GPS, NFC liveview remote, and a slim waterproof housing, makes the camera a truly versatile product. From sandy bike treks to dunebashing and snorkelling, Sony’s dynamic video camera captures full high definition movie clips, and detail-packed still photos. It can also capture crisp 11.9 megapixel still photos. As a new feature, it can shoot images upsidedown - useful in situations where the camera is attached in a reverse position. But the highlight of the video recording is that it does not save the video in HDR format, and

instead opts for a much lighteron-the-system MP4 file. Mind you the quality of the video is still HD. In the past, we have seen its competitor’s record files in a lofty Full HDR mode that not only result in gigabytes worth of data, but also, editing systems find it tough to process. The back-illuminated Exmor R CMOS sensor grabs more light enhancing the footage quality, even in low light conditions. The blur-free technology used by Sony is pretty impressive as well, giving the footage a rather professional outlook even when shot shaky. This is made possible by SteadyShot. There is a choice of recording modes, including super-smooth Full HD 60p/50p for fast-moving action and two slowmotion modes for tracking that Cristiano Ronaldo-esque free-kick or BMX stunt. The Action Cam throws-up a few impressive connectivity options: with NFC one-touch connection support, the camera can be connected to Xperia phones, tablets, as well as other compatible Android devices, allowing for

remote control of the Action Cam. There is also the option of an additional Live-View Remote. This waterproofed, wristwatchstyle controller talks wirelessly to the Action Cam, allowing ‘handsoff’ operation when the camera is mounted in hard-to-reach places like the helmet, kayak or surfboard. After shooting, the embedded GPS and PlayMemories Home offer plenty of fun new ways to enjoy the footage. The PlayMemories App is free, and has quite a lot of features within it to help add valuable finishing touches to the videos. Speaking at the media briefing, Hiroyasu Sugiyama, Managing Director, Sony Middle East and Africa FZE said: “The actionoriented Sony Action Cam AS30 is the best point-of-view high definition camera designed for capturing your adventures and extreme action videos. This WiFi enabled camera incorporates Sony’s legendary digital imaging quality and has innovative features that make it the best in the industry.”

Dec. 2013 - Jan. 2014

Intelligent SME

Rare & Fabulous

Launching the upgraded Porsche Cayenne P

Cayenne Platinum Edition USD 69,318 Cayenne Diesel Platinum Edition USD 69,575

orsche is upgrading the Cayenne six-cylinder models through a special series known as the platinum edition. The Cayenne and Cayenne Diesel Platinum Edition come with unique exterior design features in platinum, silver and a wider range of standard equipment. The enhanced equipment range available for the new models is especially designed to increase comfort and safety. The Cayenne Platinum Edition models feature standard Tiptronic S transmission, Bi-Xenon headlights, Power Steering Plus, ParkAssist (front and rear), as well as privacy glazing in the rear. Painted in platinum silver metallic, the air intake slats on the front apron, the side window surrounds, the rear spoiler lip and the rear bumper trim strip emphasise the sporty shape of the car and add an elegant note. Available paint finishes are Black and White, as well as optional meteor grey metallic, basalt black metallic and mahogany metallic. The Carrara white metallic paint finish is also an option available, exclusively for this Cayenne edition. The exterior is rounded off by the 19-inch Cayenne Design II wheels with coloured crest. To make the interior of the Cayenne Platinum Edition even more special, it is available with an exclusive twotone partial-leather interior in black and Luxor beige, as well as door-sill guards with ‘Platinum Edition’ logo as standard. The SportDesign steering wheel with shift paddles and the Porsche crest embossed on the head restraints of the front and outer rear seats emphasise the exclusiveness of the vehicle. All special edition models come with the Porsche Communication Management (PCM), including a navigation module. The PCM features a high-resolution seven-inch touchscreen and a sound system with 11 loudspeakers and total power of 235 watt. The Cayenne Platinum Edition offers an output of 300 hp with an average fuel consumption is 9.9 litres/100 km (236 g/km CO2). Featuring a three-litre V6 engine, the Cayenne Diesel Platinum Edition offers an output of 245 hp and a consumption level of 7.2 litres over 100 kilometres (189 g/km CO2). The new models are available for order as of now, with first units being delivered in February of 2014.

Dec. 2013 - Jan. 2014

Intelligent SME

Business Announcements

DED sees stronger Latin American ties with ‘The Pacific Alliance’ launch in Dubai

nder the patronage of the Department of Economic Development (DED) and Dubai FDI - the foreign investment office in DED - ProChile, ProExport Colombia, ProMexico and PromPeru have officially launched ‘The Pacific Alliance’, a new regional bloc linking the most dynamic and open Latin American economies, in the United Arab Emirates. An initiative lead by the Presidents of Chile, Colombia, Mexico and Peru (four countries that have a high growth potential, low inflation, market openness and a conductive business environment in common), the Pacific Alliance accounts for over 50 per cent (AED 4 trillion approximately) of Latin America’s external trade, 35 per cent of its GDP (AED 7.3 trillion) and is considered the eighth largest economy in the world. The launch ceremony hosted in Dubai was attended by more than 150 representatives from government and business including Their Excellencies Abdullah Al Saleh (Undersecretary of the UAE Ministry of Trade), Sami Al Qamzi (Director General of DED), Khalid Al Boom (Deputy CEO, Dubai FDI), and the Ambassadors of the member countries. “The Pacific Alliance countries are among the region’s most

attractive for foreign trade and investment, with sound macroeconomic fundamentals, mature democracies, and ranked among the top 25 in of the World Bank’s Ease of Doing Business index,” said His Excellency JeanPaul Tarud, Ambassador of Chile in the UAE. “We have created a strong integration among our countries, so we can better engage with the rest of the world, especially with the UAE,” he added. Al Qamzi noted that Dubai’s trade with the Pacific Alliance countries has grown at an average of 34 per cent annually yet there remained vast untapped potential. “In comparison with Central and South America, Dubai’s trade with the Pacific Alliance countries is significant, accounting for about 26 per cent on the average of its total trade with that region over the period 2008-2012. Still, we believe we should set a more ambitious bilateral trade objective and take concrete steps that are aligned with our respective comparative advantages,” he said. Fahad Al Gergawi, Chief Executive Officer of Dubai FDI, remarked that being in Dubai will be a significant strength for The Pacific Alliance in achieving its goal of accelerated trade exchanges, especially with the

fastest growing economies in the world. “For Dubai its unique strength is in combining its geography, infrastructure and cando spirit to provide the most efficient links to a population of 2.2 billion across the Middle East, North Africa and South Asia by way of trade and people movements,” said Al Gergawi. “Few countries, like the UAE, can boast to be home to the four agencies – ProChile, ProExport Colombia, ProMexico and PromPeru- and thus the possibility of enhancing greater ties and having a direct role within the Pacific Alliance,” mentioned Alvaro Silva Santisteban, Director of PromPeru in the UAE, who spoke about the economic and commercial significance of the coalition. The launch ceremony also included a panel discussion focused on successful ventures in The Pacific Alliance. Panelists included Frederic Sicre, Managing Director at Abraaj Group; Graham Russell, CEO of CEMEX for the GCC and Mariana de Nadai, CEO of Unifrutti Asia. The ceremony concluded with a culinary experience, ‘Flavours of the Pacific,’ where the guests sampled classic dishes from the four Alliance countries. Current trade between the Pacific Alliance and the GCC is of US$ 1.3 billion (AED 4.8 billion) out of which 45 per cent came from the UAE. UAE investment (FDI) in the Pacific Alliance is estimated to be of AED 26 billion approximately. Currently The Pacific Alliance ranks number one in exports of Copper and Silver, with over 40 per cent of the worldwide production, second in gold and zinc with over 12 per cent of the world’s output and number one in exports of avocado, mango, papaya, grapes, banana, asparagus, tomato, coffee and fresh flowers.

Dec. 2013 - Jan. 2014

Intelligent SME

Business Announcements

Emirates Islamic launches Child Savings account

ubai: Emirates Islamic has launched its new Child Savings Account. The new account is free for children and comes with a money box and a complimentary pre-paid card, which, for a limited introductory period, will include Dh100 credit. The initiative is in line with the bank’s on-going strategy to encourage a culture of saving in the community. In addition to their pre-paid card, when applying for the Child Savings Account children will also receive a colourful welcome pack and activity book explaining the importance of saving from an early age. Parents opening the account on behalf of their child will be entitled to the Takaful insurance cover valued at Dh120,000 per account, free for the first two months. “At Emirates Islamic we recognise the importance of ensuring future financial stability through longterm planning and saving,” said Faisal Aqil, Deputy CEO, Consumer Wealth Management at Emirates Islamic. “Understanding the significance of financial well-being and security starts at a young age, which is why we have launched this new child-friendly account to encourage children to start saving.” The idea behind Emirates Islamic’s Child Savings Account is to instil the value of saving from a very young age, which falls in line with the bank’s wider initiatives to encourage customers to become more accountable for their finances in preparing for unforeseen circumstances.

UAE eyeing SME funding outside banks

he UAE is working in constructing a mechanism to provide credit to small and medium enterprises (SME) outside the banking system, Sultan Bin Nasser Al Suwaidi, Governor of the UAE Central Bank, said in a press release to a local newpaper. “We are looking at various options to provide credit to this key segment of the economy outside the banking system. SME financing is very important in job creation and we need to pay special attention to this segment,” added Al Suwaidi at the Middle East Banking Forum organised by the UAE Banks Federation. The central bank and the federal government are currently studying the experience of countries such as South Korea, Italy and Malaysia in SME financing outside the banking system. The governor further stated that the central bank is keen on developing priority sector lending to support economic and social development while improving financial inclusion in the country. “There are still unbanked and under banked population in various parts of the UAE. We are looking at innovative solutions such as electronic banking services to reach these segments where bank branches are not viable,” concluded Al Suwaidi.

Emirates NBD bags 'SME Bank of the Year' title

mirates NBD, a leading bank in the region, has been named SME Bank of the Year at the recently held 2013 Arabian Business StartUp Awards. The award recognises the bank as a local pioneer in improving relations with small and medium enterprises across the UAE. “At Emirates NBD, we understand the importance of developing a strong SME sector in order to build a robust and diversified economy,” said Suvo Sarkar, General Manager - Retail Banking, Emirates NBD. “We are committed to enabling the growth of SMEs through a series of initiatives including our smartBUSINESS online banking

platform and business advisory and trade support. We are very proud to be part of the SME community in the UAE, and have seen some fantastic examples of future business leaders recognised at this event,” he added. Emirates NBD received the award on the back of several unique initiatives such as RISE, which showed the bank’s keenness to be a catalyst for SME growth not just for its customers but also for the entire SME segment. Other platforms that supported the award included the Global Business Series, which is an Emirates NBD supported networking forum for entrepreneurs to meet and interact with proven business leaders.

Dec. 2013 - Jan. 2014

Intelligent SME

Meet the CEO

Failures, not success stories, biggest source of learning 16

Dec. 2013 - Jan. 2014

Intelligent SME

Meet the CEO TQ: Going back to your early years,

what were the learnings/experiences that shaped you?

ABS: The name, Ahmed Sultan Bin Sulayem, came with a lot of responsibilities in itself. And it’s not just a reference to the pressure my father’s name brings on my shoulder, but on the whole. Despite being brought up in an Arabic household, I could hardly communicate in my mother tongue or follow the culture. In the simplest of examples, it’s customary in our culture to touch the nose while greeting elders, however, I would offer a high five (smiles). My grandfather once jokingly told my mother, “What have you made of this child. He’s not Ahmed Bin Sulayem, but Jimmy Carter.” Speaking about what influenced me in the early years, it was the internal competition across Dubai that challenged me to prove a point in life. There were too many free zones in the region, which ignited the contest of attracting good companies and served as a distraction too. Nobody really wanted to join DMCC, and instead they openly criticized that it’s a concept set to fail. A perfect analogy to describe those days would be: a day after planting the seed, people expected a tree to shoot up. It was unfair competition that was subjected to me, but I accepted it. To tread on the rough patch, I had to invite people over, explain the challenges and make them see my belief. As things started turning in favour, they were left with no option but to tone down. I like to read the success stories, but my learning comes from the failures of others. For eg., why Samsung is doing better than iPhone. As the UAE Vice President, Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum puts it: don’t expect but always inspect. Also, I have learnt a lot from the Indian, Lebanese and African communities. One of the facets where we’ve fallen short is attracting the businesses from South America in the commodities space. So, we want to bring them on board by hook or crook. 17

Dec. 2013 - Jan. 2014

Intelligent SME

Meet the CEO TQ: One of the attributes of Latin

companies is that they’re strong on coffee, while you’re strong with tea trading. Why don’t you build a coffee exchange with them?

ABS: Coffee is listed on several

exchanges, but tea isn’t listed elsewhere. Moreover, the coffee industry doesn’t feel the need to have one. It has advanced a lot. Nobody ever mentions, “Let’s go to this tea joint.” We are always bombarded with cafes, coffee shops and the idea of ‘catching-up over a cup of coffee’. You will hardly see a superstar saying, “I need a cup of tea.” It will always be portrayed with the former because tea moves around with a baggage of being slightly feminine. The coffee industry is happy in mass trading and price discovery on exchanges; whereas tea like diamonds refuses to be a part of this game. Besides, tea has hardly been commercialized too. Even though it’s produced in the same environment as the coffee, there

are a lot of complications with tea while dealing with producers, distributors and the end users

The coffee industry is happy in mass trading and price discovery on exchanges; whereas tea like diamonds refuses to be a part of this game.

TQ: You’ve worked on many coveted

titles- from DMCC’s director in 2002, graduating to become Executive Chairman, simultaneously holding the position of Human Resources Director of Dubai Shariah Asset Management (DSAM) and Dubai Commodity Asset Management (DCAM)-what attributes helped you in climbing the success ladder?

ABS: I have always been a keen learner. Joining the company at 23 years of age with hardly a decent background, it was immense pressure and nobody took me seriously either. When the recession kicked-in, I told my father, “It’s the best thing to happen. No consultant can ever distinguish between real friends and fair-weather friends. The calamity will unveil the truth about everyone around us.”

Dec. 2013 - Jan. 2014

Intelligent SME

Meet the CEO TQ: You’ve an amazing capability

to visualize and expect the unknown. What would you characterise as the secret ingredient/ inspiration that helps in achieving success?

ABS: It’s men like Mohamed Alabbar (Emaar Chairman). He’s a phenomenal story of rising from the challenges to conquer new territories. Every meeting he attends, Alabbar knows exactly what people will expect from him and how one should tackle them. Besides, my critics have also been a big source of inspiration to help me in becoming aggressive towards my goals. I have to keep moving faster because if His Highness Sheikh Mohammed bin Rashid Al Maktoum notices that I am slowing down, he’ll keep me aside just like his old horses (smiles). TQ: What sets you apart from your competitors?

ABS: Retaining the right skills and holding on to the right people. One can get people with the most affluent degrees but if their hearts are not attached with Dubai, they will never deliver the right results. We also make sure none of the ideas or concepts are copied from the competitors. TQ: Driving cars is one of your

passions, right? How many cars do you have, and which is your favorite?

ABS: As the staff from Al Tayer Motors puts it, I am a serial Range Rover buyer. But, honestly, I was disappointed with their latest model. Hence, I went in for the Mercedes SLS Gullwing, and unfortunately my hectic schedule hasn’t provided me the opportunity to enjoy the car at the Autodrome or Yas Island. Also Mini Cooper is one of my favourites. TQ: Only 8% Emiratis constitute

UAE’s entire population, and there’s good chance of the number dwindling to 1 %, what is your take on this issue?

ABS: In our culture, precisely, we can have multiple marriages and have lots of kids too. However, you make an interesting point by

bringing forth this issue for the Emiratis. Some people have four wives with four exact houses and cars. These husbands claim that they treat everyone equally, which I doubt. Marriage and bearing children is something that just takes place, and it’s not in our hands. Personally, I am happy to try something or take a risk in a particular venture even if it results in failure, but not when it comes at the cost of letting down a mother and a child. I’d rather die 10 deaths before that happens. So, this is my take on the matter. I do not have a problem of confidence with marriage, it’s just the matter of a right fit. I can’t speak for the rest of the Emiratis. It’s hard to explain the high divorce rate too that exists in this society. I today’s time, almost 55%, of Emirati marriages are ending in a divorce. But as far as population, I don’t know what could be done to increase the population of Emiratis. I’m in the business of commodities, not breeding.

TQ: When is the perfect time for you to retire?

ABS: The perfect time for me to retire is when I am 6 feet under. The concept of retiring and live off your pension is foreign in my head. I remember a scene in the film Gatica, which is about two brothers, set in an age where people cannot conceive if the DNA is not a perfect match. One brother (played by Ethan Hawk), though, is not born of this method and is an act of deceit. The climax of the movie pits the two brothers in a swimming duel, something Ethan Hawk could never win against his genetically superior brother. The latter is rescued and brought to shore by Ethan when he starts drowning. Shocked by his energy and stamina, the sibling questions him on how he managed to do it, and Ethan replies, “I left nothing for swimming back”. When you go to work or exercising, you ensure that nothing is left in the tank. And, the concept applies to work, life and the gym. The Queen of England is 86 and still working. She does more work than any other lady of her age.

TQ: Ahmed, consider that you are

86 years of age today and sitting at this very stage- What have you achieved, and how would you like to be remembered?

ABS: I’d take the microphone and say, “Leave me alone, I’m 86 already. Let me work! I want to work.” (laughs) TQ: A few years back, there were

talks of having a common currency for the region. For some reason those talks fell through. But, do you see a revival of that move?

ABS: You have to put yourself in the place of our neighbouring countries: Bahrain, Qatar and Kuwait. Probably, the latter is the shrewdest of all. Their economies were not affected even after the war because they have diversified investments all over the world. Looking at what is happening to the European community, what would you do if you were to make a decision? The Euro is suffering from tarnished image given the way it is now. Having said that, I think they are re-looking to work on the common currency issue. Key important aspects also need to be factored in while introducing this concept: who would be printing, how the distribution would be carried out, etc. The Arab world is keeping a close eye on what China is doing and transversely what Europe is doing too. Audience Question: I find it absurd that despite having a registered LLC company in Dubai, I need to register my company once again by paying an additional fee to earn the rights for operating in Fujairah, Abu Dhabi or JLT. Would this change?

ABS: It’s the same in the USA or any other country. If you have a license in New York, you cannot operate in California with the same license, and similarly in Saudi Arabia or Oman. There is no such market, that I know of, where you can operate in another state without obtaining license and permissions. It’s not all about the money and charging fee, it’s because proper documentation and registration needs to be followed. 19

Dec. 2013 - Jan. 2014

Intelligent SME

Success Story

Flexible offices for on-the-move entrepreneurs With an ever-increasing proportion of today’s workforce now classified as ‘mobile’, demand is rising for flexible work-space and business services at convenient locations. Simply put, Kory Thompson, country manager- UAE at Regus says that products are designed to make business easier for people working on the move, offering choice, convenience and productive work environments. ISME brings you an exclusive report on this niche business model. Q: How did the concept of Regus come into existence?

companies and a vast number of SMEs.

A: The concept originated in

Q: What was the wisdom involved in

the wake of keeping pace and recognising the changing work and lifestyle trends, catering to a growing number of remote workers that embarked on a business venture with limited capital to set up an office. Currently headquartered in Luxembourg, the company was founded in Brussels (1989) and the shares are listed on the London Stock Exchange.

Q: Can you explain the company’s beginnings in the Middle East?

A: We started operations across the Middle East in 2001, with the first flexible office located in Union House (Dubai). Over the years, we have grown to twelve centres across the UAE with centres in Bahrain, Kuwait, Lebanon, Oman, Qatar and Saudi Arabia. This region possesses a dynamic geography that caters to a large number of multinational 22

starting off in the UAE? Do you find it viable to set up the operations here due to the cost and the labour factor?

A: We have had a presence in the UAE for the past 12 years. It is the one of the business hubs of the Middle East region, providing tremendous support to assist companies in setting up businesses – large or small. In that vein, we found a gap in the market to supply flexible offices for business travelers trying to establish themselves here. Q: Tell us about your latest offices in Abu Dhabi?

A: Abu Dhabi is an enigmatic

city thriving with businesses that launch and expand. We have strengthened our network of flexible workspaces in Abu Dhabi, adding a business centre at Sowwah Square on Al Maryah

Island. We now operate five locations in Abu Dhabi and a total of 12 in total in the UAE, in Dubai and Sharjah. Facilities at the business centre include over 50 offices, with stunning waterfront views, video conferencing, business lounge, meeting rooms, highly trained customer service team, multilingual reception and admin back-up, high-speed internet and A/C underground parking.

Q: Are the Abu Dhabi flexible working needs different from the Dubai?

A: There are no significant

differences in the flexible working needs in Abu Dhabi compared to Dubai. The growth of our network offers more opportunities for companies in the UAE to adopt flexible and remote working patterns, or to get closer with the customers and key contacts. They can take on office space in the central business district without committing to a long-term lease or upfront capital investment.

Dec. 2013 - Jan. 2014

Intelligent SME

Success Story And the concept has succeeded in gaining popularity across the region.

Q: Could you explain how does a startup avail your services? What options they are offered? Please explain.

A: It’s as simple as visiting our

website where start-ups and entrepreneurs are offered a wealth of options to choose their desired location and services. These include using flexible and virtual workplaces, among them: Business packages can provide a top-flight business address, with telephone answering and mail forwarding, without the expense of physical workspace. So the business ‘base’ could be Dubai’s prestigious Emaar Square, but the owner could work on the beach with a laptop, knowing the phone is being answered. Flexible workplaces offer a physical presence in prestigious locations, with built-in flexibility to move, upscale or downsize rapidly. Costs for staffing, maintenance and so on are all included, hence, budgeting is easier. In addition, business-ready workplaces spare SMEs from the costs (and time delays) of setting up IT connections, buying furniture, equipment and hiring support staff. With less money spent on set-up, there’s more to invest in other aspects. Drop-in workspaces such as business lounges and pay-asyou-use meeting rooms allow entrepreneurs and others to work at some of the best business locations in the world, without paying per square foot. For example, Regus’ 100-country network of business lounges allows people to hire meeting space on Fifth Avenue, meet a colleague in a business lounge in Geneva’s Rue du Rhone or touch down at office space in London’s Mayfair, as well as helping them expand into frontier markets like Lagos.

Q: Besides the Middle East, which are your key markets for these services?

A: We have more than 1700

business centres across 600 cities. Flexible working is a global trend and we are meeting this with expansion across every continent.

Our clients are the small businesses that are growing, cash-strapped and need to save on investing in office spaces. The US and Germany are growing rapidly, along with Japan, China and the Netherlands

Q: Who’s been your biggest client until date?

A: Our biggest client is the worker

that requires flexibility and needs to do their job without the hassle of finding a proper office space. Our clients are the small businesses that are growing, cash-strapped and need to save on investing in office spaces. Also multinationals that need to provide office space for employees that travel and need the environs of a proper office set up to do their job efficiently. A recent survey conducted by Regus noted that almost three quarters of Middle Eastern respondents believe that flexible working is a critical measure to achieving higher productivity (72%). The result confirms that in any economic climate, especially during high market volatility, businesses continue to review their strategies to achieve greater efficiency and productivity.

Q: Who forms the clientele list? Are you targeting blue chip companies, internationally recognized brands along with start-ups?

A: We have a range of clients

from day-old start-ups to blue chips. Google, Toshiba and GlaxoSmithKline are among our most famous customers.

Q: What’s the most popular service requested for in this region?

A: There are certain regulations

that require companies to have an office, therefore our office space

remains the most in-demand product with clients keen on the benefits of ‘Businessworld’. Customers who sign up receive a Businessworld card that enables them to use business centres in any of our 12 locations across the UAE or 1,700 centres around the world free of charge.

Q: What would be the overall cost of acquiring a day office?

A: When looking at costs,

workspace can be purchased from as little as AED 89 per month, which provides clients with a Businessworld Gold Card giving access to more than 1,700 business lounges around the world. In the UAE, a fully furnished and serviced office solution begins at AED 2,500 per month. Clients also have access to Businessworld, which means they can work from any centre while travelling. Once again, the flexibility means that there are no set fees – they are as varied as our customers. Our concept ensures the customers only pay for what they actually need.

Q: Who are your major competitors? And what measures are taken to tackle them? A: We cover the globe extensively. Although few companies do provide similar services, none can match our unparalleled customer service and the extensive roster of 1700 locations around the world. The key to flexible working is convenience and our network is what makes us convenient.

Q: What kind of sales numbers have you recorded in the last one year? What’s your vision going forward?

A: We have reached a number of

milestones this year, including the announcement of our 1.5 millionth customer. We will also open between 420 and 440 new centres globally in 2013, which is a huge increase as compared to 350 forecasted in January. Furthermore, the group turnover increased to £386.6m in Q3 2013, compared with £307.3m in the corresponding period last year. Going forward, we will continue our aggressive expansion plans as we look to reach our short-term goal of 2,000 centres in 2014.

Second cycle of the Dubai SME 100 An exclusive report

Dec. 2013 - Jan. 2014

Intelligent SME

The No.1 SME

Just Falafel: The remarkable remake of tradition An old adage reads that it takes a few decades to become an overnight success. The saying holds true for only some businesses that capture the attention of the public by joining the ranks of a list of successful entrepreneurs, whose past usually wove through years of struggling, hard work and, finally, a healthy slice of luck. However, even among successes, there are those that could be considered as super successes, and Just Falafel is one such stunning example of meteoric success in half a decade. 26

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Intelligent SME

The No.1 SME

information about our brand and, therefore, created history by being the first company in the Gulf region to win a case study by Facebook. In terms of best practices, we were early adopters of corporate governance in all its forms- from setting up a framework that outlined the roles for key bodies such as partners, board of directors and management, to maintaining credible books of accounts by signing up PWC as the auditors.

stablished in the year 2007, the firm is a pioneer and leader of the Falafel food franchise segment. It operates various outlets in the Middle East, UK and Turkey, with secured partnership plans to expand in the US, Canada and Australia. The Dubai-based company offers a growing menu of traditional Falafel revamped according to the 21st century taste buds, including falafel burgers, Japanese wraps, etc. It has recently been awarded the number one SME in the region on the annual Dubai SME 100 rankings. In short, it took just six years for Just Falafel to graduate from a start-up into one of the most promising companies across the region. In an interview with ISME, Fadi Malas, chief exceutive officer of the company, shared the beginnings of their unique journey as a business , the competition in the food industry, their aggressive growth plans and what entrepreneurs need to succeed and sustain in the market.

ISME: Could

you explain Just Falafelâ&#x20AC;&#x2122;s humble beginnings in the UAE?

Following are the edited excerpts of the interview. ISME: What merits your company to

achieve the number one position in the Dubai SME 100 ranking?

Fadi Malas: Just Falafel was

introduced to the Dubai SME 100 initiative in 2011, and the company set out as a management team to score a high rank, as we considered it a golden opportunity. Dubai 100 SME evaluated companies on the basis of their growth, financial performance, innovation, human capital development, international orientation and corporate governance. These factors became the benchmark for our company in terms of deliverables. We also followed all the free seminars to bring about development in these areas of expertise, and thus, succeeded in achieving the 49th position during the first installment itself. Driven by passion and focus on improvement, we had put our best foot forward for the 2013 rankings. And though we were never quite anticipated, our company brought

home the bacon.

ISME: What innovations and best

practices you have integrated into the business that entitles you to earn this recognition?

Fadi Malas: Innovation forms

the core of our legacy. Going back in history, the company innovated a food category that was traditionally served in just one particular way. However, we adopted the menu across global kitchens by introducing the falafel burger, Italian falafel ciabattas and Japanese falafel wasabi wraps, etc., to name a few. A complete menu was created to make this food category stand proudly on its own. Over the years, it has grown to become a part of the core palate mix that is consumed across the food courts. Moreover, the revolution in digital media helped us in communicating about our products to millions of people. This was never done before. We used various forms of media to share

Fadi Malas: Food is not only one of the pleasures of life, but more importantly a necessity of existence. In 2007, Mohamed Bitar started the firm on Hamdan Street, Abu Dhabi. His belief was that one of the oldest foods of our time needs to be modified according to the 21st century taste buds. What Starbucks had done to coffee, he aimed the same for falafel. Thus, he set out on his journey building the business from scratch. ISME: With competition getting

tougher in the fast food space, what strategies have you adopted to sustain and flourish in the long-run?

Fadi Malas: In terms of

sustainability in the long run, it is important for us to continue growing to the size of our competitors, to compete at par and continuously innovate on the communication front of our brand and our differentiating factors, primarily as a healthy vegetarian food alternative, etc.

Dec. 2013 - Jan. 2014

Intelligent SME

The No.1 SME

ISME: What is the strength of your

ISME: What would you characterise

Fadi Malas: Just Falafel's head

Fadi Malas: It would definitely be securing the number one rank in the Dubai SME 100 this year.

workforce? And how many outlets you have in totality? office, today, is home to 35 professionals, with approximately 500 people working under the brand across 46 operating stores in nine countries. Over the next five years, we have development plans to add more stores with secured partners across new territories, and thus grow in size.

ISME: Besides the Middle East, which other markets are you targeting?

Fadi Malas: We have outlets across many countries in the Middle East region, UK and Turkey. Over the last few months, we have also secured partner relationships in the US, Canada and Australia.

as the proudest achievement so far?

ISME: How do you think this title

can benefit you going forward? How does this ranking support the SMEs or enterprises in climbing the success ladder?

Fadi Malas: To earn this title

it takes a certain element of dedication, infrastructure and commitment. We will benefit from benchmarking against our own performance going forward, increasing the bar for ourselves in terms of anything that we do, and continue to grow the brand globally. Initiatives like the Dubai 100 SME have

created the momentum in terms of entrepreneurship and competitiveness in Dubai and many now strive to be part of the top 100. This in itself will fuel the drive in entrepreneurs to push harder towards their goals.

ISME: Based on your rich

experience, what advice you would give to young entrepreneurs or start-ups planning to establish their businesses in this region?

Fadi Malas: As an entrepreneur,

my advice is to jump right into your idea and build it as you go, by trial and error. Think big from the start because what is available to conglomerates today in terms of eco system is also available to an entrepreneur, and you can compete with anyone, anywhere.

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Dec. 2013 - Jan. 2014

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Dubai SME 100 | Exclusive Report

Ramping up the standards, Abdul Baset Al Janahi Looking through his visionary-glass and wearing a sophisticated look, Abdul Baset Al Janahi carries an air of erudition in his personality. He holds the position of chief executive officer at the Department of Economic Developmentâ&#x20AC;&#x2122;s wing, exuding confidence and an intimate understanding of the ever-shifting dynamics of the Middle East economy. From his seat, he is relentlessly driving SMEs to grow up into big boys, into full-fledged, marketable and successful businesses. 30

Dec. 2013 - Jan. 2014

Intelligent SME

Exclusive Report | Dubai SME 100

lthough his background speaks volumes about what a great asset Abdul Baset Al Janahi is to the Dubai SME, but it's what he has achieved by putting a face to the top performing 100 SMEs on one platform that makes him a man with whom companies can't afford not to shake hands with. Taking into consideration the contribution of the SME sector to the GDP (42%) and overall employment (40%), the Dubai SME launched the SME100 initiative in 2011 to identify the top-performing companies in the emirate. Helping SMEs to grow into bigger and more sustainable enterprises and supporting them to graduate into larger, internationally-oriented businesses also became part of this new initiative, which has now run into its second year. Nearly 3,000 firms, accounting for four per cent of Dubaiâ&#x20AC;&#x2122;s SMEs, as well as constituting total employment of 93,500, were nominated for the 2013 ranking. In a conversation with ISME that has been condensed and edited, Abdul Baset Al Janahi spoke about his experience in executing the complex ranking task, and the work that is being done to produce the next generation of business leaders.

ISME: What is your take on the

progress of the SME 100 initiative?

Abdul Baset Al Janahi: The SME

100 has evolved into a flagship initiative of Dubai SME, and also a means to reach out to the wider SME segment across the emirate. More SMEs now know about the initiative, the establishment itself and its mission. Following the first ranking, and the follow-up programmes to upgrade and professionalise the 100 SMEs to new levels, many of the SMEs have shown remarkable progress in key areas like corporate governance, risk management, human capital and financial development strategies. This yearâ&#x20AC;&#x2122;s ranking has seen a record-number of applications from all sectors with an increase of 178 per cent from the first ranking. Collective total turnover of the 3,000 SME

applicants is AED53 billion, an increase of 262 per cent from the 2012 application numbers, and 93,575 employees, which is an increase of 231 per cent. For the top 100 SMEs, total revenues stand at AED4.5 billion , an increase of 101per cent over the AED2.25 billion in 2011.

ISME: How has the ranking

positioned Dubai SME amongst the companies in the community?

Abdul Baset Al Janahi: The

ranking has indeed enhanced the position and reputation of Dubai SME in the business community as a whole, not just the SME segment. In fact many other stakeholders such as banks, investors, business service providers, large corporations, government institutions and SME development agencies in the region have approached us for knowledge sharing and collaborations. We are indeed happy to work with anyone who has a passion for bringing

As the SME100 is a means to an end, the real value is in the capability development initiatives following the ranking. So in 2014, we will focus on helping the ranked companies build their equity story, enhance their corporate governance and human capital.

about growth and development in this sector.

ISME: Where do you see the core initiative moving towards?

Abdul Baset Al Janahi: As the SME100 is a means to an end, the real value is in the capability development initiatives following the ranking. So in 2014, we will focus on helping the ranked companies build their equity story, enhance their corporate governance and human capital. When we have greater traction in 2015 with more SMEs on board, we will see how to create a market exchange platform of information about the SME100 companies and potential business partnerships and investors. ISME: What would be the new areas of development for the 2015 cycle?

Abdul Baset Al Janahi: In terms of ranking, we will launch the Dubai Start-up 100 and Dubai Enterprise 50 in 2014, which essentially takes care of the life cycle of SME development. We believe these related initiatives will add more value and interest to the business and investment community.

ISME: Dubai is still celebrating the

Expo 2020 victory. What does it mean for the emirate, and the UAE? How do you see this impact the SMEs in the region?

Abdul Baset Al Janahi: It will be a game changer for the economic development of Dubai, and to a great extent for entrepreneurship and SME development. Business opportunities will be immense, ranging from soft to hard services required by the global exhibitors and their show pavilions. I also envisage that new industries will be seeded by the SMEs in niche areas and take root from thereon. Dubai SME will work with the EXPO authorities to ensure that many SMEs acquire the benefit of business opportunities arising from hereon. EXPO 2020 has the potential to enhance Dubai as a truly global city and make UAE a wealthier nation with a higher GDP level. 31

Dec. 2013 - Jan. 2014

Intelligent SME

Dubai SME 100

Behind the scene: The team of SME 100 rankings Alexandar Williams reaches for a tiny cell phone that never seems to stop chirping in his pocket. The lean and physically fit director of the Strategy and Policy Division of Dubai SME says many of the callers these heady days are SME owners, all making efforts to feed on the goodwill generated by the 2013 rankings.

he sheer confidence of the Dubai SME team in the sector and the contribution it could potentially make to the economy rubs on with outsiders; moreover, their efforts have now begun to bear fruits. Nearly 3,000 firms, accounting for four per cent of Dubaiâ&#x20AC;&#x2122;s SMEs and constituting total employment of 93,500 were nominated for the 2013 ranking. It represents a 171 per cent increase over the 1,092 SMEs nominated during the first phase. In 2011, few expected the SME landscape in Dubai to sustain, let alone thrive. Now it appears as though everybody wants a piece of the ranking sensation. To say that the two years passed by quickly would be an understatement. The team dwelled on a host of challenges, big and small, to bring a unique perspective for this ranking system. So, what went about behind the scenes? Intelligent SME investigates Alexandar Williams, Essam Omran Saleh Disi (Senior manager) and Salama Alfalasi (Senior executive) and their incredible journey. Following are the edited excerpts of the interview:

1) How was the initiative conceptualised? Alexandar Williams, director of the Strategy and Policy Division, Dubai SME

Looking at the entire Dubai SME landscape, it was difficult to spot the top performing small-

Dec. 2013 - Jan. 2014

Intelligent SME

Dubai SME 100 and ranking. The other challenge was to make it simple for the SMEs to submit their documents, and to select the candidates for the ranking process. Finally, the challenge of judging the ranking was to an extent a subjective exercise as non-financial scores were given too. Thus, the team was required to undergo training for understanding the skills to evaluate the softer aspects of performance and calibrate the overall scores in the grading system.

5) What is the forecasted impact expected by the Dubai SME strategy and planning team on the success of winning the Expo 2020 bid? The team expects many opportunities, big and small, arising from the Expo 2020 success across many trades that potentially supply to the exports industry. For sure, Dubai SME will study closely the specific opportunities and communicate them to the SMEs that are capable of undertaking these projects.

3) What were the lessons learnt from the 2011 exercise, and how has it impacted the team?

to-medium enterprises (SMEs). Thus, we felt the need to put a face to these unknown role model companies that have started and recorded growth in Dubai. And the best way it could be executed was to develop a ranking initiative based on performance and threeyear audited financials. Focussing on value addition to this initiative, we brought in several capability development and networking programmes post ranking for boosting the SMEs further.

2) What challenges did you encounter while executing the 2013 Dubai SME rankings? The key challenge was building trust and confidence with the wider SME sector, convincing them that Dubai SME is their strategic partner of choice in the initiative. Several firms, especially in the free zones, were unaware of the Dubai SMEâ&#x20AC;&#x2122;s potential and dedication towards them. As the ranking required externally audited financials, we needed to ensure that the data was treated with strict confidence and for the purpose of selection

The initiative had many stages and components. Each required unique capabilities and resources for execution. Initially, issues began to surface as the initiative tookoff because the effort required was underestimated, especially with regards to managerial bandwidth and degree of account management. However, the team quickly reacted by solving these problems, and it eventually made us wiser and better equipped for the second cycle. We also learnt to build and manage new strategic partnerships, which successfully raised the reputation of Dubai SME as a reliable partner of choice.

4) Where does the team behind the SME 100 rankings see itself going?

The journey is still in the early stages, and we have to touch more SMEs to make them interested in the ranking initiative and graduate into larger entities. The SME100 will be sustained and new initiatives like DubaiStart-up 100 and the Dubai Enterprise 50 will also be added to the kitty. This will take care of the lifecycle of SME enterprise development.

Salama Alfalasi, senior executive-Strategy and Policy Division, Dubai SME

Dec. 2013 - Jan. 2014

Intelligent SME

Dubai SME 100 | Financial Growth

‘Rekindled competitive streak essential for growth’ No sustainable development is possible without economic growth. A sufficiently robust rate of financial growth is the absolute precondition for sustenance and attaining prosperity in any business. And one of the key barriers in small-to medium enterprises’ (SMEs) growth and expansion is the limited access to finance and a stringent regulatory system.

ealising the crucial role played by SMEs in job creation and their overall contribution to the country’s gross domestic product (GDP), the Dubai SME has supported many initiatives to bridge their funding gap. It’s not only restricted to well-established SMEs in the region, but also start-ups. In appreciation of those companies that have managed to record stellar financial growth in the last two years, the Dubai SME 100 had a special ranking for this category, which featured twenty companies. Upon winning the first rank (up to AED 20 million category), Obaid Al Marri, chief executive officer, Bin Touq Fire and Safety, shared his expertise on what the title means for the company, challenges faced by the SMEs in the region, their proud achievements and advice to budding entrepreneurs. An ISME report.

Following is the edited excerpt of the interview: Q: What is your overall impression of the Dubai SME100 initiative and how does the ranking help businesses?

Obaid Al Marri: The initiative is

quite encouraging as it helps an entrepreneur to understand their positioning in the market, serves as motivational tool to raise their benchmark and rekindles the competitive streak essential for growth. Moreover, the recognition earned helps us in establishing trust and confidence with our clients, partners and suppliers.

Q: Has the ranking served as a tool

for identifying capability gaps for improvement? What programmes and services did your company subscribe to overcome the odds?

Obaid Al Marri: Yes, the ranking system has exposed us to both the factors: weaknesses and strengths. We have subscribed to a host of programmes and services, which include: • Technical trainings on a regular basis to keep pace with highest technology; • Employee recognition based on their performance; • Employee work and output assessment and proportionate salary increments; • Bonus and employee of the week award to boost the spirit of

performance; • Highest technology-based tools are used in services offered by the company; • Give most economical and feasible solutions to clients; • Provide best engineering practices in compliance codes and Dubai civil defense; • Attempting to integrate prevention-is-better-than-cure approach.

Q: Since you’re one of the top

achievers in the financial growth category, how did the ranking initiative help your company’s growth and development?

Obaid Al Marri: It helped us

enormously to achieve recognition with clients, suppliers and bankers. The company’s risk taking plans have been respected and managed to earn investor confidence and support, which reflects in the financial growth. Going forward, it will propel us individually to perform better and look at next year with a lot more energy, confidence and ways to improve the proficiency and efficiency.

Q: What would you characterise as proud achievements in the past one

Dec. 2013 - Jan. 2014

Intelligent SME

Financial Growth | Dubai SME 100

The major challenges in the industry are unprofessional or non-certified competitors spoiling the bidding process.

A fast growing company providing the best in feasible, economical fire suppression and detection systems, Bin Touq ensures that every solution is designed to satisfy each individual clientâ&#x20AC;&#x2122;s needs and adheres to UAE Civil Defence certified design managers, engineers and skilled technicians with a wealth of experience. From concept to completion, they are an industry leader in installations across the full range of fire protection systems and product, specialised in a diverse range of applications, from commercial building to oil and gas related sites.

year? And what advice would you give to budding entrepreneurs?

Obaid Al Marri: The biggest achievements in the past one year are acquiring an entry and recognition in the fire protection and detection system projects with the Dubai International airport and Abu Dhabi International airport. Moreover, we have earned several contracts with government organisations, which is a silver lining for the next year. Regarding advice to budding entrepreneurs, I would suggest the following: (a) Focus and committed vision, (b) Work hard to achieve the vision, (c) Patience and belief in making the impossible achievable. Q: What do you think are the major

challenges for SMEs in this part of the world? And what tools/measures would help them in graduating into larger companies with global presence?

Obaid Al Marri: The major challenges in the industry are unprofessional or non-certified competitors spoiling the bidding process. To overcome this concern, SMEs must be categorised according to their areas of interests like trading, engineering,, manufacturing,, hospitality,, service provider, etc. And they should be supported for scaling up on the basis of their business model, concrete plan proposed, capacity and performance, whereas banks should lend taking into account the number of projects bagged.

Obaid Al Marri, CEO, Bin Touq Fire and Safety

Dec. 2013 - Jan. 2014

Intelligent SME

Dubai SME 100 | Innovation

To compete on pricing, you need nothing but innovation Defined as a new way of doing things or initiating pragmatic changes, innovation is a specific instrument of entrepreneurship or an act that endows resources with a new capacity to create wealth.

ime and again, history has proved that many technological, cultural and even social barriers were eliminated through ideas (which were at first received with cynicism to no end, and yet, these very same ideas were the ones that changed the world). SMEs cannot afford to be mundane, and their versatility can be proved by adopting new techniques and pushing themselves towards bigger challenges. The best example of a start-up being innovative is Apple; it’s a story of a visionary teaming up with an innovator to change the landscape of microcomputers. Reinventing is the name of the game of sustenance for businesses, where the quality of service matters a lot more than many realise. The Innovation sub-ranking in the Dubai SME 100 ranking list acknowledged the pioneering SMEs, ISME samples a couple of them.

Following is the edited excerpt of the interview: Tobias Bessone, general manager (UAE), Wavetec FZCO and Vinesh K Bhimani, managing director, Kimoha. Q: How did you encourage innovation in your organisation? Wavetec: We started

communicating the concept of innovation as one of our core values across all the departments with a clear purpose. Although we are a technology company,

we believe that an accepted and approved idea should be implemented in every corner of the company- irrespective of whether it is a process, business model, or capacity addition while keeping costs under control. Another approach adopted by us was establishing a multicultural workforce with different backgrounds and origins that could bring the best of each other while interacting. Moreover, we have recently designated a chief innovation officer and set up an innovation center too for strengthening the concept in our organisation.

Kimoha: There is a great saying, “If you can’t compete on price, you have to differentiate, and to differentiate, you have to innovate.” Innovation is the core business competency of Kimoha. In a bid to not only compete and grow, but to survive in a global economy, businesses must innovate. Until date, innovation has been approached in our company as a religion, irrespective of whether it’s product or services. We always look for some innovative ways of doing business or providing solution to our customers’ requirements. This is why we are a preferred supplier to our customers. Q: What merits you to be ranked in the Dubai SME 100 rankings?

Wavetec: Besides our financial

sustainability, we have managed to achieve a successful geographical expansion over the past few years. As of today, our company exports technology to almost every continent from Dubai, which includes large multinational companies too.

Kimoha: We are extremely pleased that our company has managed to rise up the ranks in the Dubai SME 100 list, from 38th in 2011 to ranked 27th this year. Our philosophy of doing business with honesty and sincerity has played a crucial factor in earning the title. Moreover, our company has registered overall growth in terms of innovative products and services, asset building, employment generation, and CSR too in a small way.

Q: With new discoveries cropping up for businesses, what new innovations are you planning to implement? (Technology, ERP, CRM)

Wavetec: New variations of software and hardware as a service are being implemented in different parts of the world. Moreover, we are strengthening further on the smartphone arena and payment technologies. Kimoha: There are many first-of-

its-kind processes and products applied at our company. The latest is the digital printing machine installed at Kimoha plant, which is the first of its type in the Middle

Dec. 2013 - Jan. 2014

Intelligent SME

Innovation | Dubai SME 100 East. We continue to keep ourselves updated with the new technologies. Needless to mention about the critical role played by ERP in an organisation. Our dedicated IT team keeps on updating the support system on a continuous basis. Ultimately, it’s the customer who ensures our existence and growth. We have a department named as customer’s delight with dedicated senior management team of expertise. Their job is to ensure the ultimate satisfaction of customers, whether products or

services or providing a solution to a problem faced by the customer, and retaining them for the longterm.

Q: How do you think this title can

benefit you and your organisation?

Wavetec: It opens a network for synergies within the SMEs and raises the visibility quotient for the large organisations , which are looking for more innovative, flexible services and product partners.

Kimoha: This recognition has

re-established the trust and confidence in our ability, which any customer would look for in their suppliers. Winning a customer’s trust is the stepping stone for a happy and long journey of sustainable partnership. Going forward, this recognition will only further boost our relationship with our customers. Through this recognition, we know where and how much we can improve and contribute to the mutual benefits of all our partners.

Wavetec

Kimoha

Tobias Bessone, General Manager (UAE), Wavetec FZCO.

Vinesh K Bhimani Managing director, Kimoha.

specialises in improving customer experience at the service centres through a conversion of their proprietary queue management system, digital signage and customer feedback technologies. On a similar line, Wavetec manufactures and develops information display systems based on LED technology for high profile institutions, starting off as a developer of tracking systems for satellite dishes. With branches in five continents, and technologies developed inhouse, this once start-up is ready to go and glow.

is a pioneer in manufacturing and marketing self-adhesive labels and flexible packaging applications, paper products for retail and office use. It is complimented duly by providing auto ID equipment and solutions for most industries, particularly aviation baggage tags and boarding passes. After over two decades committed to excellence and relentless performance, Kimoha has become synonymous with quality and promptness.

Dec. 2013 - Jan. 2014

Intelligent SME

Dubai SME 100 | Coporate Governance

Tripping while scaling-up? Adopt corporate governance Corporate governance is not an optional accessory, but an important part of modern economics and business practice. Pose yourselves with a simple question: do companies lacking transparent processes and questionable activities survive in the long run? The answer is negative, and the list of victims that have suffered as a result of their activities would be too long.

any would argue that adopting these practices requires deep pockets, and only large enterprises can afford to comply with them. And many SMEs have preferred to wash their hands off clean rather than taking a shot at this time-consuming exercise. However, the upshot of several workshops conducted by Dubai SME has proved to be a worthy tool in helping these companies shed their myths and embrace these best practices. These workshops have helped to promote the longterm success of companies and economic growth, asking investors/ lenders to support businesses that take risks and embark on projects with long-term payoffs. In short, it has assisted in creating trust. ISME picked three companies, out of ten listed, in the corporate governance sub-category of the Dubai SME 100 ranking of 2013 to understand what principles have been integrated into their businesses, and how it has helped them in streamlining processes.

Following are the edited excerpts of the interview with the Empire Aviation and Propertyfinder.ae: ISME: When was the concept of

corporate governance introduced in

your organisation, and why?

Empire Aero: We had adopted the principles of corporate governance within the organisation from a very early stage. In our mind, we always knew where we wanted to go with the company and it was important for us to have a robust operation with proper governance. Unless corporate governance is firmly in place, any expansion â&#x20AC;&#x201C; specifically geographic â&#x20AC;&#x201C; and scaling the business would be difficult to control. Propertyfinder.ae: We introduced

the concept in 2012 while exploring for investors because it helped in reassuring them, and, therefore, drive more value. When you pitch a company practicing corporate governance against one that does not, you will find out that the former has chances of adding 20 per cent to its valuation by just adopting these best practices.

ISME: With corporate governance hardly featuring on an entrepreneurâ&#x20AC;&#x2122;s todo list, what was the wisdom involved in implementing it in your organisation? Empire Aero: It was done purely with the vision of a strong future. We knew that growth beyond a certain scale would come from strategic Michael Lahyani, Chief executive officer & founder

Propertyfinder.ae Established in 2007, Propertyfinder. ae are the leading group of property portals across the Middle East and GCC dedicated to creating the largest real estate community of buyers, sellers, renters, brokers and developers. Michael Lahyani was simply looking to create a new publication in Dubai when he stumbled upon the real estate market and found the online path to be the most realistic choice. Since then, Property Finder has grown into a regional brand that is driven by an internal common hunger to do more for the business and its customers.

Dec. 2013 - Jan. 2014

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Coporate Governance | Dubai SME 100 ISME: How did the various Dubai

partnerships, and a suitably governed company would fit into any integration a lot easier. Additionally, we also felt that proper corporate governance is important for our own protection as an organisation as well as entrepreneurs – allowing us to focus on the strategic intent of the company better. Proper governance also makes an organisation much more marketable.

SME workshops, conducted by its partners, shape-up your thinking?

Empire Aero: As this is our first year of being nominated within the Dubai SME, we have not yet had the pleasure of being a part of the workshops. All that we have heard from others has been very positive and we look forward to participating in the coming year ourselves.

Propertyfinder.ae: There are a

Propertyfinder.ae: It reminds you

host of things that an entrepreneur wouldn’t like doing, but it’s required for taking the business to the next level. Corporate governance, clear monthly reporting and audited accounts by a reputable company-which is a costly move- helps in attracting top investors. We just hired PwC as our auditors and are confident that this will drive value.

that the above tasks need to be on your to-do list, irrespective of whether you enjoy doing them or not. Regarding the workshops, it was really useful and I’d encourage any SME to try and get into the SME 100, as it’s a great exercise of Excellency.

Empire Aviation Group (EAG) is a one-stop shop for integrated private aviation services, offering aircraft sales, aircraft management, aircraft charter, and aircraft finance and insurance.

Paras Dhamecha, Exceutive Director Steve Hartley, Exceutive Director

INDEX holding is a leading company that organises more than 20

events annually, with a track record of more than 400 events in the past 20 years. Recently, the company has been awarded the third position in the SME 100 rankings.

I am honoured and proud that INDEX Holding was ranked third at the SME 100 . This is a remarkable achievement for us and will defiantly spearhead us towards achieving greater heights mainly due to the determination, hard work from all family members of INDEX. We unite for a common purpose, upholding the name and reputation of the United Arab Emirates. We are driven by the vision of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minster of the UAE and Ruler of Dubai, which aims at making Dubai one of the leading cities in the world. I believe that the private sector is a pivotal partner for the development of the country, and with INDEX’ vision and mission, we are highly committed to be one of active contributors in the growth of the economy of the UAE. Abdul Salam Al Madani, Chairman of INDEX Holding

Dec. 2013 - Jan. 2014

Intelligent SME

Dubai SME 100 | International Orientation

Navigating cultures, regulations to build business ties Entrepreneurial dreams are made up of nothing but watching your start-up company take baby steps en-route earning global recognition with a variety of good clients.

nd, often one of the toughest tasks entrepreneurs face while scaling up is making a worldwide mark. However, a few Dubai-based companies have proved that it’s not an impossible milestone. Moreover, the fact that the Dubai SME had a dedicated sub-ranking for international orientation honouring those companies that have either attracted global partners or spread their wings in other countries, speaks for itself. ISME takes a look at two companies featuring in this category: Sanipex and PTL Solar. Following is the edited excerpt of the conversation.

Q: What market gap do you address in the Dubai as an SME?

Daryl: We offer a full range

of quality bathroom products, integrating the latest European design trends while keeping a close check on the cost factor for project and retail needs. Our collections are designed to cater both ends of the spectrum – from contract level to the luxurious, high-end options.

Prabissh: Founded in 2005, PTL

Solar is spearheading its efforts to promote world-class reliable solar energy solutions for aviation, transit, marine, industrial, oil and gas, telecommunication, agriculture, government, military, rural development, residential and commercial applications in the Middle East, Africa and South Asia. With its core competency (power, reliability and sustainability), the company is striving towards its

vision of ‘powering sustainable growth'. We have so far rolled out a number of patented green energy products that have been well received by government authorities across the Middle East and Africa. Among them is a standalone solar street light that costs Dh 12,500 per piece. Today, Prabish Thomas’ order book runs in millions of dollars. His business cards carry three company's names – Green Energy LLC, PTL Solar LLC and PTL Solar FZ LLC. With a team of 150 people, these companies are now producing and assembling green and sustainable energy products that are exported to various parts of the world.

Q: What methods/approach were

involved in developing your company’s global connections?

Daryl: Our location in Dubai has

been one of the key contributors for developing global connections, acting as a strategic base when conducting business around the world. We consider major exhibitions such as the Big5 vital in creating and maintaining global connections. Our advertising partnership with the Emirates Airlines network also plays a crucial part. Finally, using the strength of the Jebel Ali Freezone as a logistics hub has also served as an important tool in expanding our global footprint.

Prabissh: Headquartered from Dubai, United Arab Emirates, we are currently operating in Saudi Arabia, Nigeria, Djibouti, Malawi,

Tanzania, Kenya, Ghana, Sri Lanka, Qatar and India due to demand for solar products. The need for solar products and systems was more in Africa as they lack the basic power requirements and that is the reason most of our offices are in Africa, catering both East and North side. The launch of a long-term national initiative to build green economy in the UAE under the slogan: ‘A green economy for sustainable development' was announced in Dubai at the beginning of year 2012 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, which shows the vision and interest of authorities in renewable energy technologies.

Q: What were the challenges you

faced en-route establishing a global trail?

Daryl: Internal training to develop our managerial infrastructure for coping with the growth opportunities has been a constant challenge. We are continuously addressing this concern and have also established an academy to train our staff and partners on all our products, business processes, IT and sales skills.

Prabissh: Eight years ago, I started the business in Dubai under the name of Green Energy LLC with an investment of a mere Dh 10,000 in a 100 square feet office. It was a one-man show, like most start-ups. However, the company was in

Dec. 2013 - Jan. 2014

Intelligent SME

International Orientation | Dubai SME 100 a different business altogethersustainable solar and renewable energy. It is a field that rarely people considered as a growth potential in the oil-rich Gulf region. To start with, most people even did not realise the meaning of the term ‘sustainability’. However, now a large number of people talk about it. Today, he owns many companies with five business models and has an increasing operation in 11 countries across the Middle East, Africa and South Asia. Currently, the company generates more than Dh 50 million in annual turnover with a team of 150 professionals.

Q: How does this title benefit your organization? Do you think it will bolster your international image in a large capacity? Daryl: It shows our existing and potential clients that we are a strong organisation, well-structured financially and logistically, with ambitious international growth plans. It is also hugely encouraging for the staff members, enabling them to share the pride we have in our on-going achievements. Prabissh: Achieving the 11th most successful SME award this year by

Established in 1995 as a regional sales agent, Sanipex Group distributes high quality bathroom and plumbing products. Their first BagnoDesign showroom was opened in 2002 and that has set the stage for international growth: today, they have 30 showrooms in the region, and have opened their inaugural international store in London, along with a national distribution network across the UK, with active plans of launching in Glasgow, Lagos, Hong Kong, Shanghai, Singapore, and Johannesburg in the coming six months. Inspired by Dubai’s can do approach and multiculturalism, they’ve worked hard, and made it.

Daryl Barker, founder and group managing director, Sanipex

Dubai SME has been a great honour for our global operations. After operating from different parts of Africa and South Asia, we are exploring opportunities in other parts of the world like Europe and USA. We had earlier set up a PTL Solar Mart – franchisebased business model offering products, components and accessories to the consumer level. Going forward, we are looking to open more marts where customers can come and test the materials before purchasing. Currently, four such sale centers are being set up in India.

PTL Solar offers world-class

energy efficient / renewable energy solutions for solar lighting, residential solar housing systems, solar farming, solar transportation, solar power backup systems and solar aviation operations. In Jebel Ali Free Zone (Dubai), many companies like Scania, Aramex, CEVA Logistics, AW Rostamani, MARS and government organisations like DEWA (Dubai Electricity & Water Authority) are opting GRENLite Solar Lighting technology for external lighting systems.

Prabissh Thomas Managing director, PTL Solar

Dec. 2013 - Jan. 2014

Intelligent SME

Dubai SME 100 | Human Capital Development

On a quest for productivity? Motivated human capital are the asssets Difficult economic conditions create workforce challenges for both private and public sectors, irrespective of a company’s size and scale. And succumbing to these pressures, managers are subjected to accomplish more with fewer resources, thus intensifying the battle to attract good talent. Against this backdrop has emerged a growing need to understand human capital better. But, truly, beneficial human capital analysis remains thin on the ground.

t goes without saying that human resource is a crucial facet for SMEs too. Besides mentoring adequate skill level of employees as an organisation grows, it is unseen attributes like faith and trust that go a long way in shaping up a healthy workforce, a winning environment. The SME 100 rankings laid special emphasis on human capital, focussing on the kind of effort and resources invested by the management on its employees. In a quest to understand what made their working environment better than competition , ISME chose three companies in the Human Capital Investment sub-ranking to share their best practices.

Following are the edited excerpts of the interview with G.Ramaswamy (chief operating officer) at the Paramount Computer Systems, Hazel Jackson (chief executive officer) at the Biz Group and Shabana Karim (founder and owner) at The Nail Spa.

Q: What are the best practices

adopted by your organisation that entitles recognition in this category?

Biz Group: We practice the

principles from our biz-strategy division and the Gazelles

methodology. It includes implementing the Rockefeller habits, wherein we complete a series of best practice approaches. Following is the strategic plan that guides the company’s long term and short term goals:

Core values are not something we hang on the wall, but they are used to measure ourselves against daily odds. They are lived, celebrated and invested in. Understand them and you’ll understand us: • Combining strengths

Biz Group: To some, it’s about product. To others, it’s about people. With bizgroup’s work centred corporate training, team building, and business coaching, they know they’ve got one thing right: companies don’t succeed, people do. They work hard at making sure they surround themselves with the best people and they leverage this synergy of great minds and talents to give the best they can to every single client. Hazel Jackson, chief executive officer, Biz Group

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Human Capital Development | Dubai SME 100 • Genuinely care about delivering results • Believe anything is possible • Act with biz-energy • Tell people what they need to hear • Support people’s personal growth Finally, our Big Hairy Audacious Goal (BHAG) for the long term: It is measured by multiplying the number of people we touch through our three business divisions with the number of hours spent on them.

Daily Huddles done at 9 am every

workday for 10-15 minutes are the most effective way of accelerating communication, making people feel accountable, connected and aligned with our goals. They create a rhythm – our heartbeat, so to speak. Quarterly Themes are created to discuss strategy every quarter and anyone is able to weigh in to this process. One of the outputs is that the key focuses for the quarter are developed into a memorable theme, which is communicated to the whole team in a way that energises them to strive for their goals.

Paramount Computer Systems:

At an organisational level, we have defined the following: purpose, values, vision and mission. The purpose clearly defines our role and the contribution we wish to make in four different constituencies – customers, employees, shareholders and the community we live in. This approach, we believe, binds our people together and ensures shared values and shared vision. We have defined a separate employee focused vision and mission too, which is different from the company goals. Furthermore, a well-crafted Human Capital Life Cycle Management process is also in place, which outlines our approach to attract talent, transform, grow and bring about transition. Our goal is to build lifetime valuable relationships with employees, and, hence, we even facilitate their departure from the company to newer pastures when they desire. We are also constantly benchmarking our HR processes

with international standards, and ensuring that we progressively move up the maturity curve. The Nail Spa: We strongly believe that our employees are our greatest assets. They are the backbone of our business. The health, happiness and wellbeing of our employees is critical to creating a happy and positive environment in our spas. To achieve the said goal, we have an open-door communication policy and appreciate employees’ feedback through suggestion boxes and regular surveys. It’s also important to point out that we are an equal opportunities employer and are proud to have a diverse workforce. Education and training are paramount at The Nail Spa. We have a ‘Beauty Bootcamp’ dedicated to new starter-training as well as the ongoing development of our team. Taking this one step further, we are extremely proud to have developed our HOPE (Hope & Opportunity for Proper Education) programme – where the company sponsors the education of employees’ children. In addition to this, we are currently trying a new working schedule, allowing our therapists two days a week off. We also love our community and are actively involved in local charity fundraising campaigns and other neighbourhood events.

Paramount Computer Systems: Over the years, Paramount Computer Systems has acquired the widest range of customers in the region, including most major telecoms companies in the GCC, several major banks, Emirates Airlines, and other major regional corporations. The company has also established joint ventures with a number of brands in the region like McAfee and Juniper. Paramount Computer Systems was the pioneer in the information security market in the GCC, and continues to lead in segments like identity and access management, ahead of competitors like Oracle, SUN, and Novel.

Q: What are the characteristics you

look for in prospective candidates while hiring? And what are your HR policies?

Biz Group: Our approach to finding and recruiting talent is designed to distinguish A players from B and C candidates. We start by asking prospective candidates to visit our website where they are guided to our jobs page that list the available opportunities. Candidates are asked to complete two questionnaires, one of which is a culture-fit and once completed they have to prepare a two-minute video to tell us why biz should hire them. We developed our interviewing process from the ‘Top Grading’ methodology, which is used by fortune 500 companies to select A Players. It enables us to spend focused time with candidates to

G.Ramaswamy, chief operating officer, Paramount Computer Systems

Dec. 2013 - Jan. 2014

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Dubai SME 100 | Human Capital Development

The Nail Spa: Offering a peaceful respite from customers’ fast paced lives and ensuring that they leave feeling refreshed and revived, the Nail Spa have combined high standards of service with a luxurious and modern environment at an affordable price. Shabana Karim founded The Nail Spa in 2002 after being disillusioned with the state of beauty services in the UAE, and since then consistently strived to ensure excellence in everything they offer, working hard to attract and retain talent.

learn about their competencies, values, motivators and future goals. Later, we use a combination of principles to further crosscheck job role suitability as well as competencies.

Paramount Computer Systems:

We look at four parameters at a high level, namely, thinking, learning, action and relationship. So, primarily, we look at people who have the courage to take initiatives, are passionate about the industry; creative and really want to leave a legacy when they depart. And our commitment to employees is that we will make them better prepared for their next job.

The Nail Spa: We prefer attitude over skill; we hire people with positive attitude, and those with willingness to learn.. We have a rigorous selection process, which includes a range of technical tests and interviews coupled with personality tests for senior leadership positions. Potential employees must be team players and be the right fit for the company. We firmly believe that if you are beautiful on the inside then this radiates on the outside. Thus, being caring, thoughtful and considerate is a must. Our job is to bring out the natural beauty, vitality and confidence in our clients, each time someone visits the spa. Q: How do you think this title can bolster the morale amongst your workforce, going forward?

Biz Group: Ensuring a climate

of involvement, empowerment and appreciation will ensure a constant flow of new ideas and engage employees with positive attitudes. We firmly believe that our multiplier practices of putting people’s native genius to work, providing space for people’s best thinking and challenging everyone to stretch and grow helps us in achieving desired goals.

Paramount Computer Systems: All of us recognise that good Shabana Karim, founder and owner, The Nail Spa

performances should not cloud our judgment and mask the pieces of our business that needs to be fixed.

In the race to excellence, there is no finish line. External benchmark results tell us where we stand with respect to others in the market place and inspire us to innovate, change and strive to do better next time. Hence recognition from the Dubai SME 100 is of tremendous value to us, both as an organisation and individuals.

The Nail Spa: Everyone is delighted that the company has earned a prestigious accolade. It’s an honour to be recognised in this field and the ranking comes at a very pertinent time for the company. We have recently unveiled our new brand identity, which has been carefully designed to bring us closer to our core values as a company. Q: What are your budgetary

allocations for HR activities, and, what is your workforce?

Biz Group: Our workforce is comprised of a really diverse group of dedicated individuals: culture, age and also competencies. Bizgroup currently employs 42 fulltime staff and spends 34 per cent of its budget on human resource activities. Paramount Computer Systems: Eighty per cent of our total

costs of operations is manpower costs. We have a significant portion allocated to fixed (assured income) costs and the balance is shared for performance incentives and bonus (based on individual & company performance), spot awards (unique individual contribution only), fun and games, training (soft skills and technical), certifications, conference travel, birthday and success celebrations etc. Nine per cent of our employees are women and six employees own equity stake in the company.

The Nail Spa: Our budgetary allocations are certainly impressive, taking in consideration our size. We host a wealth of employee engagement activities on a regular basis and currently have a workforce of 350 across the UAE. Together we are committed to striving for excellence – ensuring that we set the standards in the beauty industry.

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Intelligent SME

Wall of Fame | Quotes from the champions “To be with the pulse of this extremely creative and wonderful industry is what keeps me going.” Sharad Bachani Merlin Digital

“Finding new prospects, by introducing new ideas and domains that guarantee sustainability.”

Samir Ibrahim Abdul Hadi

SamTech Middle East

“The main source of my motivation is the feeling that society, as a collective, is benefiting.” Ibrahim Bin Shaheen DGT

“The impetus was always that the earth is not a gift from our parents, but a loan from our children.”

Zahra Hamirani

The Blossom Nursery

“Our drive is irrevocably motivated by the three Ps: planning, passion, and perseverance.” Yousuf Al Hashimi Ahdaaf Sports Club

“Seeing the vision fulfil itself and the creation of jobs are the two most inspiring and rewarding outcomes.” Dr Sassan Dieter Khatib-Shahidi

German Imaging Technologies

“I always keep experimenting with different fragrances and their combination.” Yasser Ahmed Al Muflehi Sea Of Incense & Perfume 46

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Quotes from the champions | Wall of Fame

“The challenge of never-ending evolution keeps CBS sustainable and at peak performance at all times.” Ayman Al Awadhi

Corporate Business Services

“Take risks and experience the good and the bad. Teach yourself how to adjust as you move forward.” Dr. Lina Kouatly

Lunatus Marketing & Consultancy

“The ugly side of being an entrepreneur is the loneliness. It’s hard for them to feel what you do at the start.” Maria Fernandes

MAClines General Trading

“Continuous improvement of operations is well imbibed in the organisation’s culture.” K. Sethuraman Gulf Seafood

“Do what you love, keep your identity and stay focused.” Hind Beljafla

DAS Collection

“We would say stay true to your original plan, but evolve to meet your customers’ requirements.” Manar Al Jayouchi / Suzi Croft

Appetite Catering Services

“We move forward as a whole in striving to surpass our own progress with even greater success.” Maryam Abdulla AlMulla

Connect4 Digital Printing 47

Dec. 2013 - Jan. 2014

Intelligent SME

Corporate Governance

Stand out in the crowd

Achieving recognition through a recognised ranking system is an excellent tool to show the world how good your company has been performing, explains Mark Fisher.

ith tens of thousands of SMEs in Dubai, it can be hard for the best companies to stand out from the competition. Well run businesses with great products jostle for success alongside less efficient rivals selling inferior wares – and it is often hard for outsiders to tell the difference. Achieving recognition through a ranking in industry awards is an excellent way to show the world how good your company can perform. Serving as a seal of approval from independent experts, it raises your profile with

the public and business partners as well as potential investors. Hence, savvy companies take awardwinning very seriously. A measure of discrimination is required here. All the ranking systems or industry awards can be gauged with the same scale of importance and relevance; the less rigorous ones are of dubious value. The Dubai SME 100 ranking, however, is widely regarded as prestigious due to the depth and high quality of the assessment process. So, let’s suppose that you have registered for the awards, gone through the assessment, and

behold, you have been awarded a ranking, and perhaps a high one. Now, what? A good starting point is to make sure that as many people as possible know about it, through working the media. If you came in the top few businesses, your name will be blazoned all over the papers anyway following Dubai SME 100’s announcement of the results, but if not, don’t be shy. Put out your own press release, display the award on your website and tweet about it (and hopefully you are on twitter, by the way. It’s not that you expect millions of people to read your

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Corporate Governance

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

Perhaps the greatest benefit of these rankings, however, is not the effect that they have on other people, but the impact that they make on the companies that take part in the ranking process.

tweets as a small business, but you do need to reach the ones who count.) People in the UAE who may never have heard of your company before will now who you are, and for many companies it may be their first taste of exposure in the wider media around the region. And be sure to directly inform the companies that you do business with, or would like to do business with, about your achievement. They will sit up and take notice. Companies donâ&#x20AC;&#x2122;t win a Dubai SME 100 ranking merely by demonstrating good financials (which might not last, if the business is not soundly managed) or by being innovative and adopting best HR practices (which donâ&#x20AC;&#x2122;t generate revenues all by themselves); they have been selected because they have demonstrated all-round excellence built on solid foundations, both financial and managerial. This is exactly the kind of reliable and dynamic company that others

want to be involved with, whether as supplier, joint venture partner, service provider, or whatever the relationship might be. So your Dubai SME 100 ranking may well win you new business, as well as messages of congratulations. It could open doors to meetings, networking opportunities and government-backed initiatives that you would otherwise have been refused and prompt recommendations of your firm from third parties. A Dubai SME 100 company is likely to be an expanding business, looking actively for new growth opportunities. Here too the achievement will come in useful. It will turn the heads of bank managers (never an easy thing to do) when you apply for your next loan. Private investors may approach you to buy a share of the business, or you could credibly approach them, and private equity firms might also knock on your door. And if you are planning an

initial public offering on a stock exchange, fund managers and other potential investors will take note as well. Perhaps the greatest benefit of these rankings, however, is not the effect that they have on other people, but the impact that they make on the companies that take part in the ranking process. Going through the assessment, analysing the feedback received from the assessors afterwards, and looking at what other companies are doing, can be an enlightening experience that makes a business think hard about where it is going, why it is going there, and whether it is taking the best route. A company might realise, for example, that it has been ignoring lucrative possibilities for international expansion simply because no one in the business had taken the initiative to find out about them. Or the penny might drop that failure to incentivise staff is preventing the business from reaching its true potential. So if you achieved a Dubai SME 100 ranking this November, there are many ways to capitalise on your success. If not, there is always next year.

Dec. 2013 - Jan. 2014

Intelligent SME

Sales and Marketing

Gift Guide: Marketing on a shoestring budget The way people do business has always been evolving, and this holds true for marketing more than almost any other aspect of business. TishTash brings forth simple marketing concepts, yet widely unpracticed, that SMEs can integrate even while working on lean budgets.

tâ&#x20AC;&#x2122;s important to debunk the myth that strategic marketing of your product/service requires deep pockets. One can unlock many ways to grow their businesses by adopting strategic approach. Having worked predominantly with start-ups and small businesses over the past two years, we have tested and implemented a fair share of marketing strategies and tactics, and, in the process, determined

the most cost effective and impactful ones. However, before we share some of the most effective marketing tactics and tips of particular relevance to small businesses, we would like to first tackle some of the most common misunderstandings that people have in regards to the role and â&#x20AC;&#x2DC;powerâ&#x20AC;&#x2122; of marketing and public relations. Marketing is NOT a stand-in

for a good product or service. You can throw thousands of dollars at promoting your business, with little or no impact. If the products or services you offer are not relevant, they neither address a market need, nor they anticipate or create one. No marketing strategy in the world can fix this concern. You need to go back to the drawing board and sort out your offering. Marketing is NOT a substitute for a business strategy. Many small

Dec. 2013 - Jan. 2014

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Sales and Marketing business owners struggle with the day-to-day demands of running a company, so they hardly have any time left to reflect on how they can provide the best value to their customers and create a strong differentiator in the market, or address the business development and the sales approach that would be the best fit for their business. Thus, when the business performs poorly, they automatically assume they need a marketing push. But marketing spend alone cannot compensate for bad decisions or lack of insight. Marketing cannot eliminate the competition. A good marketing strategy and skillful marketing tactics can help raise awareness by constructing a strong position in the market place for your business and create a competitive advantage too. It cannot, however, silence your competitors. On the contrary, the more successful your business becomes, the more alert and ready you need to be in action because the business mighty be under attack on several occasions: competitors will try to copy your products and services, and go after your customers. So, what can marketing do? And more to the point, what kind of marketing can you do on a shoestring budget? The answer in a nutshell: Plenty.

Think local: Start with your

community. As a small business, when you’re looking for customers, you need to ensure that you first reach out to your community – be that consumers or B2B. Get to know them: who they are, what they do, what’s important to them and think of showcasing opportunities one can create for the business that could be helpful to them. FitYou, a dynamic and clever fitness company, understood this perfectly when they came up with a personal training offering for (in their own words) ‘busy, chilled or even lazy people’, which was based on the convenience factor. In the last year, they single-handedly gave Dubai a slimmer waist line, with a collective loss of over 5,000 pounds among their customers.

Good enough to buy. Good enough to giveaway: Your product or

Marketing cannot eliminate the competition. A good marketing strategy and skillful marketing tactics can help raise awareness by constructing a strong position in the market place for your business and create a competitive advantage too. service is the best marketing tool you have. You clearly believe in it, so why not let other people experience it too? If people have the opportunity to try your product or service and they like it, chances are they will want to buy it too. Plus in the process you can get feedback and build a customer base. James & Alex, a successful dance studio based in Media City, started-off by targeting the people working in their office tower, and the ones nearby, with special packages, that played up the accessibility factor. It turns out everyone likes to ‘zumba’, if the time and the introductory package are right. Today, the studio counts hundreds of dance enthusiasts.

Collaborate: A small business needs a supportive ecosystem to thrive. Think of it as a group of friends, someone whom you can call on to ask for advice and for a referral, or you could collaborate and cross-promote your business with. Pure Fitness, another UAEbased fitness company, offers a range of fitness and outdoor activities, engaging with different

groups. Their sessions for new mums are a hit, as it engages with a group who is responsive not only to the core proposition – getting back in shape - but who also appreciates the sense of community and the kids friendly environment the classes offer. This enabled Pure Fitness to collaborate with other businesses targeting mums in particular, support each other, and benefit each other at the same time.

Be afraid. Be very afraid. New can turn old overnight!: Two years

ago social media marketing meant buying banner ads on Facebook, running an SEO campaign for your business website, and perhaps placing some sponsored editorial content. That clearly is not the case any longer in 2014. That’s why social media, with its ever-changing landscape, is deceivingly (and frustratingly) simple: it’s accessible enough to everyone, and yet it takes a new level of insight, skill and sophistication to truly utilise it well. The reality is that fewer and fewer people click on Facebook ads. People gather round new shiny platforms, Twitter, Instagram or Snapchat. And most importantly, everyone is mobile. So, your entire social media marketing needs to get upgraded to mobile. To begin with, you need to have your website and your apps optimized for mobile screens. But, how do figure out where you need to be and which platforms to favour? Firstly, you need to figure out why people care about your business. Then, take note of the conversations people are having. And finally, take part. To take part, it’s essential you speak the right language, i.e. use the social content that is ‘native’ to each platform and create a message that fits each platform’s style. For example, Facebook provides you a wider reach and a handful of engagement tools; whereas Twitter attracts a curt type of audience. Instagram is an entirely visually driven platform (over 55 million photos daily); whereas Tumblr is also visual, but attracts a more artsy type of crowd and supports animated GIFs. Social media literacy is vital for a small business.

Dec. 2013 - Jan. 2014

Intelligent SME

SME Finance

Turn over a new leaf... Choosing the right growth strategy in the new world remains a difficult decision and largely depends on how the past few years have affected the entrepreneur’s risk appetite, writes Alyson Baynes.

eloitte UK’s Private Markets team recently released the results of the annual Entrepreneurship UK 2013/2014 survey. Now in its sixth year, the survey continues to provide valuable insights into the thoughts and aspirations of the UK’s entrepreneurial population. In total, 429 UK entrepreneurs were interviewed, each giving their views on a breadth of topics including:  economic outlook,  immediate to longer term

opportunities and challenges, and  key decisions that will shape the future of their businesses. Whilst there is rarely a ‘onesize-fits-all’ opinion, especially when surveying entrepreneurs, the majority of those interviewed spoke of a more optimistic outlook than ever before and an eagerness to venture forth into this brave new world! The survival tactics previously employed are slowly being replaced with talk of investment opportunities and expansion, bolstered by increasing

consumer confidence and burgeoning growth. Moreover, the UK market, certainly, has its own unique idiosyncrasies, increasing globalisation and the collective fallout from the global economic crisis means many issues faced by entrepreneurs are universal, allowing us to draw meaningful parallels with the UAE market. So where the entrepreneurial is market heading, and should entrepreneurs be focusing their efforts in the short, medium

Dec. 2013 - Jan. 2014

Intelligent SME

SME Finance and long term to maximise the likelihood of success?

Investment opportunities and growth

Having survived the depths of recession, many entrepreneurs are now turning their thoughts to investment opportunities and growth, mobilising teams and reinvigorating business plans. But choosing the right growth strategy in this new world remains a difficult decision and largely depends on how the past few years have affected the entrepreneur’s appetite for risk. For those wanting to limit their risk exposure, investment opportunities should focus on stimulating organic growth. This allows both the risks and the funding obligations to be managed in bite-sized pieces, with plenty of opportunities to pause and recalibrate, if required. And whilst it is often argued that the returns take longer to realise than other growth strategies, levels of growth can be more sustainable and the business itself often builds greater internal resilience that supports any future scale up in operations. For those less patient, however, there is the higher risk, but potentially higher reward, route of mergers and acquisitions. Although often approached with reluctance, be it due to a fear of losing control, the perceived high costs, or just concerns over choosing the right mate, a well-considered and strategically aligned transaction can be exactly the trigger required to propel a business into the big league. Mergers and acquisitions offers an opportunity for companies to boost revenues, grow market share, secure efficiency savings and expand their offerings to customers, all within a relatively confined time frame.

Overseas markets

With increasing business mobility, companies are left with the simple choice: wait for new competition to come to you, or go and be the competition in new markets. Accordingly, countries like the UAE continue to attract significant interest from overseas investors and for good reason. With its

Alyson Baynes, Assistant Director, Deloitte Corporate Finance Limited

Technology can be embedded within all aspects of business, driving real value in the top line, providing sustained operational improvements and acting as a clear market differentiator from competitors. prime geographical location, easy access to the emerging markets and increasing consumerism of Africa, Asia and the Far East, minimal direct taxation, and a government interested in supporting the next generation of companies, many overseas businesses are desperate to gain a foothold. For UAE based companies, this presents huge opportunities to both attract inward, foreign investment, but also to use their strategic position to venture forth into surrounding territories. Of course, geographical expansion carries some risk, but by leveraging existing networks, researching the market thoroughly and obtaining the right advice and support at the right time, these can be managed to acceptable levels. Consider the following:

The team – include individuals who have the right cultural fit and language skills; Regulations – understand

the regulatory environment and what limitations may exist;

Funding restrictions

– understand any restrictions on the remittance of funds to avoid cash becoming “trapped”; Knowledge – seek professional advice upfront to avoid any potentially disruptive and costly bumps in the road ahead; and

Expectations – be realistic

with your expectations and timeline as few nationalities operate in the same way which, itself, needs to be managed.

Technology and innovation

The digital world continues to dominate much of our personal lives, but for many entrepreneurs, harnessing this immense power from a business perspective has proved more challenging. Whether driven by a lack of understanding, a skills gap, or a misguided notion that technology purely relates to popular social media sites such as Facebook or Twitter, many entrepreneurs are yet to experience the benefits of being technologically advanced. Technology can be embedded within all aspects of business, driving real value in the top line, providing sustained operational improvements and acting as a clear market differentiator from competitors. Utilising social media

Dec. 2013 - Jan. 2014

Intelligent SME

SME Finance correctly ensures businesses are able to reach a global market and customer base, interact with key stakeholders in real time and overcome some of the logistical obstacles associated with time and geography. From a brand perspective, businesses which demonstrate they are technologically savvy are often perceived as being more successful, innovative and contemporary, regardless of the underlying product. From an operational perspective, businesses rely on obtaining the right information, in the right timeframe to inform their decision making process. Accordingly, businesses are increasingly turning to data analytics to provide greater clarity over the underlying drivers of performance and expedite their periodic reporting. By easily accessing and interrogating a business’ operational and financial information, the entrepreneur is presented with a full spectrum of fact-based analysis, tailored to the requirements of the business. Augmented with gut instinct, the mainstay of most entrepreneurs, this combination serves to safeguard the decision making process, clearly identifying the

risks and rewards, and increasing the likelihood of success.

By easily accessing and interrogating a business’ operational and financial information, the entrepreneur is presented with a full spectrum of factbased analysis, tailored to the requirements of the business.

Financing

Whether as a result of active cash stockpiling or in response to their being few, worthwhile alternatives, many entrepreneurial businesses are now holding strong cash reserves. Whilst this may be sufficient to support immediate growth aspirations, additional sources of finance may be required to realise longer term strategic goals and achieve sustainable levels of growth. However, as evident amongst the UK entrepreneurs surveyed, businesses remain reticent to engage with banks, a sentiment mirrored within the UAE. This is despite the claims of many large lenders of the availability of SME specific funds and a loosening of credit markets. Entrepreneurs continue to find the application process daunting, and are put off by what they perceive to be a punitive interest rates and repayment schedules. Accordingly, entrepreneurs are looking elsewhere, investigating the possibilities of crowd funding, grants and subsidies, and for those with larger coffers to fill, equity investment from the likes of business angels and private investors who tend to operate below the radar of most venture capitalist or private equity houses. The pure cash flow injection is also only part of the decision criteria – investors who offer additional expertise, market knowledge or contacts can help revolutionise a business. Certainly, the future for entrepreneurs looks bright. As always, a number of challenges exist but for the first time in a long time, they seem to be outweighed by opportunities. But entrepreneurs must ensure they are ready when they step into this brave new world – address any skills or knowledge gaps, have a clear strategic focus, understand any investment requirements, embrace all that technology has to offer, and remain alert to overseas opportunities. Remember the lessons learned from the past few years, but don’t let that define the future – now is the time to move forward with optimism.

Dec. 2013 - Jan. 2014

Intelligent SME

Sales and Marketing

Strong SMEs: 10 things they avoid!

Dec. 2013 - Jan. 2014

Intelligent SME

Sales and Marketing

s we near the end of the calendar year, a lot of us would be busy making new-year resolutions relating to their business. Hence, it becomes increasingly relevant to pause and look at the failures of others and avoid making similar mistakes. Here’s a list of ten business practices that could hold back the potential in the next twelve months if you do not eradicate them as quickly as possible.

Setting up a formal business plan is a waste of time

Entrepreneurs are decisive people and know what they want to achieve. So for many, they cannot understand why a proper business plan is needed to thrive in a market. What they underestimate is the need for everyone else to know what is in their mind and how they are expected to contribute towards the success of the organisation. This often becomes an issue once the business has reached a level of maturity, where it is no longer possible to oversee every single aspect. Think of the issue in this light: You have arrived in a city to visit one of your offices. You get in a taxi to take you at the desired location. The only way you are going to achieve your objective is by giving the driver an exact location. Also if you need to get there quickly, it would be helpful to pass this information on because the driver can use his skill to plan the quickest route. As a first step, test your employees’ views on what you want to achieve and see how closely it matches your vision. You might be surprised!

If I do not make the decision, something always goes wrong

Delegation is a much feared tool by business entrepreneurs but whether you like it or not, your employees are the ones who deliver the product or service to the customers. If you want to have a consistent and sustainable level of performance, then, the only way to achieve that is by effectively providing clear and quantifiable targets for each task undertaken. And later set up processes to allow those tasks to be completed as efficiently as possible. As a first

Entrepreneurs are decisive people and know what they want to achieve. So for many, they cannot understand why a proper business plan is needed to thrive in a market. step, find out how many initiatives are not progressing because they are waiting on a decision from someone else. You might be surprised at the number of times that person was not aware that a decision was required or it was believed that it had already been made.

We need to offer our services or products to everyone, just in case

Businesses believe that by making themselves attractive to everyone they have the best chance to succeed. Why would that not be true? Many small businesses offer a product or service that benefits from an expertise or level of service, but the person buying it wants to buy it from someone who not only is an expert but also understands what they need. It is very difficult to be all things to all men, and hence a comment like,

“we offer a full range of services for both large and small companies”,

may in fact put off everyone. Why? Think about it. The buyer from the large company looks at you and thinks that you are probably not sophisticated enough to look after their needs, and opts for a recognised brand. The smaller business is not impressed either because they think you will be too

sophisticated, and therefore too expensive. As a first step, think about what your ideal customer would be and what it is they need from you. Then, look at your marketing material and see whether that is obvious to someone who does not know your business.

The only thing I am interested in is getting new customers

The challenge to find new customers is a continuing battle, but businesses often spend a huge amount of time and effort to attract a new customer only to let them slip through their fingers. Did you know that it is statistically at least eight times easier to convince an existing customer than selling to a new one? As a first step, consider understanding the lifetime value of a customer. You can calculate this by multiplying the average amount a customer spends with you by the number of times in a year they use your services or buy your products multiplied by the average number of years they remain a customer plus the number of referrals they give you. By knowing the value of your customers, you can determine how much you should be spending in retaining them.

Corporate governance is only for large companies

There are very few SME business owners that implement systems – strong written policies and procedures in their businesses. However, think about this: if you can leave your business for a period of six weeks without hurting its performance then you have created a valuable business. If not, you have given yourself a job like everyone else because there is no value in that business other than you. As a first step, put yourself in a position of thinking what would happen if you needed to sell your business now? What would a person offer you and does it represent what you think the business is worth? By looking at your business in this way, you will automatically begin to set up policies, processes and procedures that create value.

Dec. 2013 - Jan. 2014

Intelligent SME

Sales and Marketing Marketing is simply an expense that needs to be controlled

If I said to you that for every AED 1000 spend, I will be able to give you AED 2000, would you not be pleased? How would you react say if I add that unfortunately the maximum amount I am going to spend is AED 5,000. Would you not question whether there was a way to increase that amount? Many small businesses do not test and measure their marketing spend, and thus they do not know how effective it can be. So get into a frame of mind that looks at marketing as a profit centre rather than an expense. There are numerous tools and techniques that can be used to achieve this objective, so donâ&#x20AC;&#x2122;t be put off. As a first step, look at a recent marketing campaigns and see if you can identify the additional sales it created. If you cannot, ask yourself why you could not and whether other methods of carrying out that campaign could have produced measurable results?

Measuring the number of visits to our website is an indicator of success

The use of the internet and social media is the new great friend of the smaller businesses, but many businesses simply put their details on the website and end up being pleased to report that 50,000 people visited their site last year. But, how many of these became a customer and how long were they actually on your site? The internet is both a friend and an enemy of small businesses. It can help you potentially to make contacts with lots of customers, but equally you can be lost in all the noise that makes up the internet world. Think of it like this: You get home and want something to eat. You are too tired to cook, and hence you decide on a takeaway by browsing on the internet for available options. You are only interested in finding those businesses that can meet your requirements. The business owner now has about three seconds to get your attention before you move onto other options. Now think of your own business and as a first step, look at your on-line activities and ask a

Simon Hodges, CEO, Alchemy Network Middle East has recently launched the franchise network in the Middle East. Alchemy Network is a UK-based worldwide network of consultant partners, who work alongside owners and operators of SMEs to help bring them financial success, and eventually introduce them to systems that will relieve them from the mundane day-to-day running of the business,and allow them time to concentrate more on what they do best. potential customer what they think it is saying and whether it would convince them to buy from you?

Once the business opens, customers/clients will come

So many businesses seem to approach the communication with customers on the basis that the customer will go to them once they know what they do. This is particularly true of professional services companies. However, the real reason customers buy from you is that it will benefit them by making their life easier, cheaper or perhaps more fun. Businesses often just explain the features of their product or service but do not then go on to explain why that should matter to their customer. As an example, a car has a three litre engine. So what? The answer may be that it provides a smoother ride or a faster acceleration than its competitors. If those attributesâ&#x20AC;&#x2122; matter to a customer, they are more likely to buy from you. As a first step, look at your product or

service and list three features it has. Then, opposite each feature write down one reason why that benefits the customer. Do you explain those benefits in your communication and if not then why not?

Delaying payments preserves cash flows

Non-payment is a common problem for small businesses. But if you do not pay your suppliers, how do you expect them to support your business. Often the delivery of your product or service is dependent on others delivering raw materials to you. Treat them as you expect your customers to treat you and think about creating longer term relationships. By taking this seemingly radical step you may find that you can negotiate better terms than your current short term approach can achieve.

I do not have the time to think about what to do next

This is one of the most common problems that face business owners. However, if you do not find time to set your priorities, are you not in danger of overseeing the gradual decline of your business as other new competitors erode your market share? You will not be able to achieve the full potential of your business without help. So take a deep breath, stand back and look at what is truly going on and recognise where you perhaps would benefit from help. Where that expertise is available within your business, use it. Where it is not, think about taking on additional resources either temporarily or permanent. This is an investment in your future.

Dec. 2013 - Jan. 2014

Intelligent SME

Human-Capital

A crucial question for SMEs: Who to hire?

Human resources are like natural resources. They're often buried deep. You have to go looking for them as they're not just lying around on the surface, writes Barbara Van Pay.

savvy business owner knows that successful businesses thrive on finding and hiring the very best people before the competitor gets them. In todayâ&#x20AC;&#x2122;s fast moving economy, hiring the most skilled and valuable candidates is the most critical element in staying one step ahead of the competition. Itâ&#x20AC;&#x2122;s a fact that no company

can achieve great results without the right employees. But, what attributes make a good choice for hiring? For one, hire individuals who are looking for a career rather than a job. A lot of small companies do manage to hire very quickly, but by speeding up the recruitment process simply to fill vacancies, they end up with the wrong people.

There are a multitude of factors that come into play in finding the right candidate to fill a particular role. In the majority of cases a candidateâ&#x20AC;&#x2122;s CV will get him (or her) through stage one of the interview process. Most SMEs are not experts in the field of candidate search and selection, so how do they manage recruitment while concentrating

Dec. 2013 - Jan. 2014

Intelligent SME

Human-Capital on their core business? In a lot of cases, SMEs take the easy route: engage an agency as cheaply as possible, scan referred CVs and do a few quick interviews, select, make an offer and hire. Many times SMEs may be presented with inferior candidates who are just skilled in presenting themselves as the ideal experienced candidate. The right-hand that you so desperately need to share your vision with, along with some of the daily tasks. Or that customer service expert who will keep your clients satisfied while you’re going about growing your business. It takes experience and knowledge to establish if the candidate is the right fit for your organization. The largest cost to any company is an employee: salaries, benefits, computers, mobiles, training and development, (plus the cost of everything from desks to space, to office supplies). New employees should be looked at as an investment - as over time they should bring the company amazing financial results - but only if you hire the ‘right’ person and fast. Throughout my career, I’ve hired hundreds of people. Some were exceptional employees who made great contributions to the business and proved that we had made the ‘right’ decisions. Others simply didn’t work out for a variety of different reasons. In most cases, when an employee was terminated or resigned, the hiring manager and the HR department got it WRONG - the person wasn’t “right” for the

Barbara Van Pay is the Founder and Managing Director of Smart HR.

Setting up a business is a big challenge, but running it takes continuous effort and commitment. Start by building the right team. job or the company in the first place, and unfortunately, and not deliberately, they were set up to fail because they were not properly assessed. It’s not just about the job description (I really want to stress on this, as I feel this is where most companies go wrong), people must have the ‘right’ skills and behaviours. They must have the ability to function comfortably in the role and be able to deliver the tasks that need to be performed successfully without a lot of spoonfeeding. They must be compatible with company culture and share the core values of the organization. Success in finding the right candidate can only be achieved by testing, probing and challenging candidates. For example, at the interview, ask them the same question in different ways to see if you get the same answer. This shows that if they are consistent in their answers and also truthful about their experience. The only

way to find the proper fit for your business is to have each candidate assessed thoroughly technically and behaviourally. There is no shame in being blunt by asking leading questions. It’s perfectly fine to ask difficult technical or knowledge-based questions that have only one correct answer. If candidates present themselves as experts and fail to answer correctly to interview questions that have clear right or wrong answers, then that candidate is not suitable to be part of your company. The problem is that most interviews are informal and questions tend to be too easy. For example, ‘tell me a little bit about yourself’ or ‘talk me through your CV’? These questions are fine as long as they are followed up by in depth questions to gauge the real knowledge the candidate claims to have in a particular area. This is your business, your livelihood that you have created so you should never put it at risk by hiring the wrong people. There are skilled organizations trained to deliver HR and recruitment solutions, psychometric testing and assessment centers. These organizations specialise in ensuring your get it ‘right’ the first time around. There are also online options and assessment centers where candidates can be tested. So much information can be obtained through research and connections that there is no need to settle for less than the best talent. If you are part of a business community like Virtuzone, you can even use their social media platforms to make inquiries about people with certain skills and ask for referrals. Setting up a business is a big challenge, but running it takes continuous effort and commitment. Start by building the right team.

Dec. 2013 - Jan. 2014

Intelligent SME

Insuring Business

Financial freedom wonâ&#x20AC;&#x2122;t come to those who wait A formal starting point for financial planning is an investment goal that outlines an investor's current situation, objectives, risk tolerance and capacity, writes Sandi Saksena.

ne should never underestimate the power and impact of their financial decisions as a retirement portfolio needs to be structured in a way that delivers reasonable returns and ensures people don't outlive their money. â&#x20AC;&#x153;If a person gets his attitude toward money straight, it will help straighten out almost every

other area in his life,â&#x20AC;? quoted Billy Graham. The choices one makes in life directly have an impact on whether a person/business would succeed or fail, and these decisions do not escape your financial health. Some of the places it could bring a deep cut is your marriage, strained relationships with business partners/investors/clients, and

overall happiness a broader

in view. To begin with, we all spend a considerable portion of our time and a great deal of energy earning money. However, many of us are ambivalent and have never seriously evaluated our attitude towards money and financial

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Dec. 2013 - Jan. 2014

Intelligent SME

Insuring Business planning. As a consequence, we often possess erroneous and harmful attitudes that hinder our financial success and peace of mind. Thousands of interviews with clients over 17 years as a professional financial planner brought to fore bizarre excuses people make for lack of having a plan in place. Sample a few:  We should leave it all to luck or fate.  ‘Spiritualize’ this passivity to justify their lack of financial discipline, planning, and savings by claiming that if it in their destiny to succeed, they will wake up one day and find that they have supernaturally acquired financial independence.  Prudent planning is unnecessary because “God will provide.”  Money isn’t everything, money can’t buy happiness. Would it surprise you to know that in your average working life, you will earn a considerable fortune far more than US$8 million? However, the correct question one should pose is: what are you doing with this astonishing opportunity to achieve financial stability? How much of this fortune will you retain to invest and use to provide income for your future? The fact is that the vast majority of people will neither plan nor arrange their financial affairs to achieve the financial success that is clearly within their grasp. It is not what you earn, but what you save and invest that will produce financial success or failure. Financial independence can be defined as accumulating an amount of invested capital that will produce a stream of guaranteed income to meet your financial needs without your needing to work or earn a salary. It is a practical goal that can be achieved if you apply some fundamental principles of finance and work consistently toward your goal. There are simple strategies to build your investments as well as preserve and protect yourself

Your attitude should be characterised by a strong desire to succeed, a willingness to overcome obstacles, and an ability to continually analyse your plans and their results. and your family against the special financial risks in this new millennium. Most of us have had the experience of trying and failing to develop a workable budget and savings plan. We pay our bills and living expenses, hoping to save some money out of the surplus that may be left at the end of the month. Many believe the solution to this dilemma is to increase their income. The practical solution is to change our entire saving strategy. The principle is simple and fundamental Pay yourself First. First deposit 10% of your monthly income into an account or a regular savings and investment plan then pay your outstanding bills and living expenses out of the remaining 90 percent of your funds. If you are now living hopelessly from ‘what I get every month’, this simple but profound change in your saving and spending strategy will mark the first step on your long but effective road toward financial stability. Excuses: I cannot afford to save 10 percent of my income because I’m too deeply in debt? If you cannot commit to save 10 percent of your income today, then begin at 5% and gradually increase the percentage. The key is to begin today. You cannot afford to delay beginning your savings plan no matter how deeply you are mired in debt. The best way to end your financial bondage to debt is to take control of your finances by beginning your new savings strategy today. There is no better time. Promise yourself that you will begin today to follow a plan that will lead you and your family to financial freedom. Instead of working just to pay your bills

and service your debt, you will begin working for your financial freedom. Your ability to achieve financial goals is not controlled by outside forces or circumstances. Other people or the economy can affect your economic life only in a relatively minor and temporary manner. You are the only one who can affect uour life in a major way. You can improve your own financial future by changing your attitudes, goals and actions. Your attitude should be characterised by a strong desire to succeed, a willingness to overcome obstacles, and an ability to continually analyse your plans and their results. Take control of your money by setting definite financial goals, that are high enough to motivate you and but they must also be realistic enough so that you truly believe that they are attainable. Follow through with a set of balanced financial strategies based on a sound analysis of the special risks and opportunities in today’s economy. Ask yourself, “If I achieve the same financial results in the next five years as I have during the past five years, will I be satisfied?” If your answer to this question is no, you need to make a commitment today to changing your financial strategy. Most people who fail economically have inadequate and vague financial goals that are not committed to paper. Setting goals is vital if you seriously want to succeed financially. If you aim at nothing, you achieve nothing. Financial success can be described as the progressive realization over time of your own predetermined financial goals.

Dec. 2013 - Jan. 2014

Intelligent SME

Insuring Business Studies in various parts of the world reveal that 27% of people have no financial goals at all and usually arrive at retirement headed to penury with less than $25,000 in net assets and a meager government pension. Almost 60% of people have only the vaguest of financial goals, they will barely survive with modest personal assets of $50,000 plus a government pension. And 10% have financial goals but never put them in writing. However, those who have unwritten goals still accumulate an average of $250,000 by age sixty-five, more than ten times the retirement assets of those who have no goals at all! Finally, these studies reveal that only a meager 3% have clearly defined and written financial goals. This small but select group with written financial goals accumulated considerably more than one million dollars in personal assets at retirement! The bottom line: If you are not setting financial goals to succeed, then you are effectively planning for financial failure. The choice is yours:

Goals

Short term – less than a year

Intermediate

- two to three years Long term - five to ten years

Your categories

Financial: savings and asset buildup, debt reduction and income objectives. Personal: vacations, education and health recreation. Material: home improvement, car, electronics. If you are married, establish meaningful financial and life goals at least annually, with your spouse. Do not avoid insurance planning and the preparing of your will.

Wills and insurance policies are financial tools to protect your family in the event of a premature death or disability that will destroy your ability to provide an essential monthly income for your family. Since none of us have a lease on

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

Your ability to achieve financial goals is not controlled by outside forces or circumstances. life, we need to make provision for the possibility that we may not live or work long enough to accumulate enough assets to provide a guaranteed income to make our families financially secure. Insurance policies provide a guaranteed income. If you fail to provide legal and financial instruction for the distribution of your estate to your beneficiaries in your will, then the government will step in to redistribute your assets according to their own rigid legal formula. As a responsible person, you need to create a will for yourself self and your spouse. Keep a goals and objectives book and record the accomplishments you made during the past year. Review, discuss and outline your new goals and objectives for the year to come based on your actual accomplishments to your written goals from twelve months earlier. The annual review process will motivate you to continue the financial discipline necessary to achieve financial independence. As we step into the New Year, I strongly suggest you do a financial review of your goals and last year’s results. You and your spouse should ask yourselves three basic questions during your yearend summary: 1 Have we succeeded in saving anything significant during the last year?

2 Have we succeeded in paying off a significant portion of our debts? 3 How does our Financial Balance Sheet regarding our net worth compare to last year? Most people imagine that financially successful people live a life of indulgent wealth. The Millionaire Mind by Dr. Tom Stanley reveals that the vast majority of American millionaires lived quiet conservative lives that were typified by high-quality houses, cars, and vacations that were far less costly than these people can actually afford. They quietly and unobtrusively accumulated a fortune by living a lifestyle that cost far less than they could actually afford. This enabled them to build a solid financial base that would support their future life. These truly wealthy individuals are characterized by high income, little or no debt, and very high net worth. This principle applies to all, anyone living beyond their means needs to examine their financial status and be honest with themselves about what they can afford. Be bold and honest to admit to family and friends that you need to “downsize” your lifestyle to minimize debt and to gain control of your life financially this is essential to gain control of your life and begin the process of financial healing. Financial goals are just wishes unless you write them down. When you write out your goals, you psychologically commit to them as something that you are prepared to devote serious effort to accomplish. It is interesting to note that you cannot find a single financially independent and successful person who is weak, indecisive or lazy. Plan with prudence, diligence and act now.

Dec. 2013 - Jan. 2014

Intelligent SME

Sales Strategy

Are referrals business matchmakers?

What’s upstream referral activities? The efforts that precede an initial conversation with a potential client, which can build into your referral business plan, elaborates Phil Bedford.

unning a successful business is not a walk in the park. However, simple yet fruitful opportunities like networking to find new clients can go a long way in building an envious customer base. Yet many of these chances are missed because they are often too simple. Building a new business by referral is simple, but not easy. Not

easy because people just don’t take action often or regularly enough. And, of course, it helps to learn how one should apply “what we don’t know, we don’t know” or “we know, but don’t do.” In today’s time, business referrals are widely being recognized in many industries as the most effective, efficient and economical way of getting new

business. It simply means that a recommendation by third party to use a particular service or goods enhances the chances that the prospect will do business with the company. Moreover, a personal recommendation is highly sort in a high trust profession, especially, because the possible repercussions of getting the wrong supplier could be catastrophic. Recent

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Sales Strategy studies have revealed over 98% of businesses claimed that they relied heavily on referrals and word-ofmouth publicity to get new clients, and yet only 3 % had any kind of real plan to get more. Personally, I would not consider walking into a networking event and direct prospecting a plan to get referrals. (Getting referrals from those events requires a different skill set), and in fact direct prospecting at networking events often comes across more like cold calling face-to-face. It always surprises me that we can rely so heavily on one resource and yet leave it completely to chance.

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

So here are a few tips for this month:

Firstly, follow the vein of referrals just like the gold prospectors used to pursue a vein of gold. Imagine the gold prospector knee-deep in the river panning for gold day after day. Finally, he finds a nugget and, “Yipppeeeee,” he screams.

Then, what does he do?

Probably hides or sells it off, but do we think that he dives again in the river to find another one? Of course not, he continues to pan in the same area, exploring the source and following a VEIN where there maybe be more gold. Referrals are the same. How many times do we get a referral by the client, friend, network contact and we just say, ‘thank you’. In fact, I have noted that there is often a distinct and rather shortsighted lack of even an appreciation for the efforts. Would it not make more sense to sit down with that person after we have thanked them and see if we can do something for them? Maybe they could use referrals also? If not, then maybe we could at the least buy them lunch. Strategically, of course, if a source can give you one referral, there’s always a possibility of more in from the same origin. The quantity of these, however, depends on the individuals, ability to recognize referral opportunities, motivation to help, personal networks and contacts. If we can find a mutually beneficial way of getting access to more regular

Personally, I would not consider walking into a networking event and direct prospecting a plan to get referrals. (Getting referrals from those events requires a different skill set), and in fact direct prospecting at networking events often comes across more like cold calling face-to-face. referrals, we can only imagine what this could do for our business. Yet, what do we do? Say, thank you, and often walk away. Some professions are actually quite good at extracting referrals from some of their sources and it’s commendable that they at least ask. It is another area that many people fail too. Their plan

of getting more referrals often stops at centers of influence or introducers, as they may be called. A point of note here is that in some of the GCC countries to ask for a referral is in fact rude. If you are looking for help or an introduction you need to imply that you are looking out. If you have the right relationship , they will look for you.

Dec. 2013 - Jan. 2014

Intelligent SME

Corporate Governance

A Christmas carol â&#x20AC;&#x201C; Lessons for corporate governance The secret of success is to make a realistic assessment of where you are today and make changes to determine the future course of the business, explains John Merrigan.

s we approach the end of 2013 and looking forward to 2014, I am reminded of the lessons we can reflect on from the wonderful book: â&#x20AC;&#x153;A Christmas Carolâ&#x20AC;?, by Charles Dickens. The book centres on the life of Ebenezer Scrooge who is portrayed as a mean, penny-pinching character totally focused on money and his work, with no family or friends. By a twist of fate, he is visited by three ghosts who are sent to redeem him: the ghosts of

Christmas Past, Present and Future. Dickens takes us through a journey to understand how Scrooge became what he is, and how he understood the need for change to bring meaning and purpose to his future life. In the end, we understand how past events have shaped us to be what we are in the present and crucially, that we still have a choice to decide how the future will be, based on how we act. Moving forward, I want to talk about people and some choices SME businesses must consider in

2014. Typically, SMEs have an over-reliance on a relatively small number of key employees for their success. They are usually trusted, reliable and aligned to the vision of the owners as a result of years of collaboration. They often have a key skillset, connections and vital experience. And, most likely in recent years, they have shown loyalty and personal sacrifice through difficult times. Now, consider the future. Dubai has just been awarded Expo 2020 which is an amazing achievement

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Corporate Governance and will bring great benefits to the UAE, and potentially to your business. There will be challenges too, specifically to retain your key staff in the coming years. Existing competitors and new market entrants will move quickly to attract high performers, and pay them better salaries and conditions. How are you placed to deal with this very real business risk? Retaining key employees and putting in place processes to do this is at the very heart of good corporate governance. You are facing the future – past and present solutions and behaviours will not be enough. So, here are some suggestions to consider:

Share your future vision

Owners and senior managers must share their vision of the business for the next three years with key staff. You cannot expect people to follow you if you do not tell them where you are going. Write down the final vision on one page, and share it with the key staff.

Define job roles and accountability

Sit with your key staff and work together to define their job description and / or update the older draft to make sure it properly reflects reality. Unless this is done, key staff will be frustrated and unclear what you expect of them. Agree and jointly sign the revised version.

Assess market rates

The cost of living will increase and the family pressures too on your employees. Don’t rely on the past, and be realistic to accept that things may well change by a higher order of magnitude that you might like. A proactive salary increase now is a wiser course than a larger reactive increase when the key employee comes to you with a competitor offer letter.

Implement a fit for purpose performance management system (PMS)

Based on the company vision, job description and the business plan, put in place a fit for purpose PMS. At its simplest, this comprises

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

writing 5-10 company and personal objectives for the next 12 months, and a formal progress review at least twice during the year.

Consider profit share

Whilst many SME owners baulk at the prospect of giving key employees shareholdings, a sensible first step is a profit-share based on agreed performance metrics. Make it objective and clear, commit to it, and regularly update on progress with the key selected staff.

Be visible and connected to your key staff

Make a commitment to spend extra time with your key staff and to listen to them. Expand conversations to sincerely understand more about their personal challenges. Often, you can do a lot without a lot of cost, and this connection makes a huge longterm impact and grows loyalty.

Be consistent and transparent in your decisions

Key employees need to see consistent behaviours at senior management and owner level.

Dubai has just been awarded Expo 2020 which is an amazing achievement and will bring great benefits to the UAE, and potentially to your business.

Take time to ensure you are being consistent and transparent on your key decisions and in how you act towards them. If this requires personal change, take it slowly and carefully.

Succession Planning

As a contingency, identify potential successors to replace key staff and where you will search for them, both internally and externally. Make the connections and give those junior staff exposure to the roles of the key staff. Being ready gives you peace of mind. Charles Dickens’ book: “A Christmas Carol” gives us valuable lessons on how we need to change to be successful, based on a sometimes painful assessment of where we are now and how we got there. It is a timely and timeless reminder about key choices we face as we move into an exciting 2014 and beyond. Unless you as an SME owner make those future choices, your key staff will make the choices for you. Seek help and support from trusted friends or external advisors if necessary. It is a scary prospect, perhaps just like being visited by a ghost, but there is real opportunity for those who take this governance challenge, carefully and with real commitment. Best wishes and good luck for 2014!

Dec. 2013 - Jan. 2014

Intelligent SME

SME Snapshot-Rewind 2013

Reviewing 2013: Born to learn, and learn to thrive Get ready to look closely at your business, identify your strengths and weaknesses, make the changes you need and look for new opportunities in the market, writes Neil Petch.

ecember is a wonderful time of the year. It’s time for presents, shopping and family gatherings. And for a small business owner, it’s also a time for balance sheets, reviewing and planning. Get ready to look closely at your business, identify your strengths and weaknesses, make the changes you need and look for new opportunities in the market.

It is something you should always be seeking to do regardless of the time of the year. However, you might not always have the luxury of spare time to figure things out, and the approaching New Year, with all its promise of new possibilities might just be the thing to bring some much needed perspective and to remind you about what’s really important. Most small businesses may

want to look at finances, business development, marketing and customer relationships as areas worth looking into. To get you started, I have a few quick tips to help you with this assessment. Let’s start by asking the hard questions:

Do you feel overwhelmed?

First years are tough. You

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SME Snapshot-Rewind 2013 have to be on top of things. But you just don’t have the resources and the time to do all that is needed. You’re probably feeling worn out and overwhelmed most of the times, which is particularly upsetting when you think of all the enthusiasm you had when you first started. You need to remember that this period of growth is about finding your footing and stability. Take a moment to jot down all the things that you think are not working as well as they should with your business, and list all the solutions you may have to approach them differently.

Is my business growing as fast as I would like to? Running your own business can be a roller coaster ride. There are the highs of a really good day and the lowest of lows during hard times, when a great client prospect falls through, or the loan you counted on doesn’t get approved. So, a lot of times you’re feeling down and probably thinking you’re not quite where you were thinking you’d be. Don’t beat yourself down because your business has in fact grown in a variety of ways, and you have accomplished more than you’d think: contacts you’ve made in person, quality suppliers you’ve vetted, clients you have signed on and potential clients you can tap into, networking events - such as The Intelligent SME’s Global Business Series - you’ve attended and extended your business network, new skills and knowledge you have acquired, marketing collateral you put together for your business, your website, the facebook page, etc. These can be a great morale booster to make you realise how much growth has been registered in a year.

Is my business model a healthy one? What should I change about my business?

Every new hopeful business

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

owner will probably set-up his company thinking that if he or she works hard enough, success will simply follow. But, this is simply not the case. You have to be willing to see and face the facts. If you have enough clients to keep you busy, you must be running a profitable business, right? Well, not necessarily. Some of the busiest small business owners around don’t earn enough to cover their costs or draw a proportionate income for themselves. On the other hand, there are also some small business owners who seem to have time on their hands and also earn quite a bit of money. The difference between these two types isn't just because one group is better at marketing than the other. The difference is in their business models. Unfortunately, many small business owners don't actually have a profit-making plan. And some of those who think they have a profit-making business model don’t base it on statistics. Here’s what it all boils down to. Let’s say you’re providing a range of IT services and your business is centred on a handful of clients. Not only you have a steady revenue stream, but your work flow is constant and balanced, and you can find the time to market yourself. That's a sensible and realistic business model. If you don’t have retainer clients and you need a constant stream of new clients coming in, your revenue stream is constantly fluctuating, plus you also don’t have the time, and possibly the focus, to market yourself. This sort

Unfortunately, many small business owners don't actually have a profit-making plan. And some of those who think they have a profitmaking business model don’t base it on statistics. of business model is more likely to lead to stress and struggle. What can you do? There are things you can explore: adjust your pricing scheme so you make new clients or projects more worthwhile, or look into increasing the scope of work of existing clients, making them more lucrative for you.

Where is the life plan?

A small business owner always puts his business goals first. That translates into a supercharged, nonstop, 24/7 rush. There’s satisfaction in achieving something on your own, of course! But, building a successful business is not an end in itself. It is a way to create a better life for you. You need a life plan first which you need to keep revisiting, to make sure it's what you want, and your business plan is helping you achieve it. That should be your renewed focus in 2013!

Dec. 2013 - Jan. 2014

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Leadership

Are you a business pirate or good captain? A company's most valuable asset is its employees. If you want to attract and retain motivated people, you need to align your performance management strategy with the demands of this talent pool, notes Michael J. Tolan.

orkshops on performance management generally end up bombarding you with terms like KPI Measurement, 360 Evaluation and other statistically based tools that you can use to get more out of people. Itâ&#x20AC;&#x2122;s important to consider the following when business owners grapple with the question of how to get their own employees to perform more, do more and give back more: Think of the time when someone else was calling the shots and before you became an entrepreneur. Were they always fair, honest and engaging? Did they inspire you, reward you and make you feel as if your role was both important and appreciated? If they did, chances are rather

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Leadership high you might still be working for them and not be your own boss today. The answer might be that many employers get distracted by their own pressures and often suffer a short-term memory loss of what it’s like to work for someone else. Countless surveys have revealed that many former employees reported that they were rarely engaged, inspired or recognized in a way which matched their professional and emotional needs. One ‘old school’ motivation technique for getting the most out of people was the fear- drama scenario was based on “do this or you’re fired!” Today people who work in your company have more awareness of what they expect from an employer. The items that top the list are respect, honesty, appreciation, encouragement and a feeling of being on a path of growth within the organisations that they serve. This is not a wish list, but common sense for any employer to embrace, empathize with and deliver. Employees today, as a rule, spend more time at the office than with their actual family. Employers who will retain their team members should not lose sight of the fact that they are the parents of these people too who devote their waking lives to make commerce possible within the enterprises. If this sounds too warm and fuzzy to some employers who see their staff as problems, overheads and liabilities, experts suggest that the owner might be doomed. They will experience high turnover, under performance, and be only left with incompetent staff who tolerate such pre-historic attitudes in people management, and care less about taking the company from where it is today to better one tomorrow. Or worse, harbour resentment about you more every day. Do your employees all share your vision? Do you even have one now, as many entrepreneurs may have originally had a vision, but circumstances have put them in survival mode and turned them into fear and panic merchants. If you are committed to being in business, think about the people

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

Most successful entrepreneurs would agree that their employees are their prize assets in your company as your potential passengers on a huge rowboat. Where are you taking them? Is there a safe way to get there? Are they boarding willingly? Are they excited about the journey ahead? Do they have a reason to paddle faster, more consistently and in rhythm with the rest of the rowing crew? Is there any reason for them to wake up earlier, prepare for duty by doing pre-warm up exercises or studying navigation which is not even their job, but you got them interested, fascinated, totally engaged and excited. Pirates may have whipped their crews in the past, or their captives on board, in order to move their ships when the winds died down. If this technique works for you today in your business, well, good luck! However, most successful entrepreneurs would agree that their employees are their prize assets, to be treasured and supported. Funny, weren’t pirates actually looking for treasure? Consider another scenario, what I call the ‘BBQ Test’. Imagine that some of the employees in your company were invited to a neighborhood barbeque. Some of the other guests who worked in different companies began to chat about their work experiences as many often do. Then they turn to one of your employees and ask the magic question, “Hey, what’s it like

working for your boss, my sister in law is looking for a job, would you recommend she apply for work there?” The test is actually a testimony of your investment in goodwill, forward thinking, deliberate campaign of nurturing your team relentlessly by creating an ecosystem of sharing and inspiring a compelling future. As a business owner, you will never be the proverbial ‘fly on the wall’, but today you have the opportunity to prepare your troops for this scenario. This is not to say that KPI metrics will be overlooked, for that is the reason you need employees. However, the nuance is if they like it, sense they are appreciated and made to also feel part of a family that respects and encourages their future in that organization. So the next time you feel frustrated by lack of productivity within your ranks, imagine that you have a boat, and are actually selling tickets to a join you on an amazing voyage. As the seller, you will have to give your potential ticket buyer a compelling reason why this particular voyage will be interesting, rewarding and even fun. You would have to explain to these ticket buyers that as captain, you would ensure that the voyage would be safe, that they as passengers and ‘crewmembers’ will be well looked after, appreciated and trained to do other tasks along the journey. They will be part of a team that loves to win, a team that feels part of a family. Could you sell tickets to your team today? If not, you perhaps need to rethink how you are engaging your passengers and getting them prepared to willingly row into the future and win races with you because you made them love it. Be a great captain!

Dec. 2013 - Jan. 2014

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Intelligent Workshops

Workshop on Performance Management 06.11.2013

V Ramkumar, senior director, Cedar Management Consulting shared remarkable insights on performance management, how organisations can align their resources, systems and employees to achieve strategic objectives and set priorities.

Michael J Tolan, in an engaging workshop, said that the companies most valued assets are the employees. He emphasized that the companyâ&#x20AC;&#x2122;s performance management strategy should be aligned be with meeting the demands of their talent pool.

Attendees tapped the opportunity to engage in business networking and building their referral contacts.

In a bid to address the concerns of the audience, they were engaged in a QNA game to voice out their expectations from the employers and what benefits theyâ&#x20AC;&#x2122;ve achieved until date. A thought provoking exercise that opened up many difficulties faced by individuals in this region.

Dec. 2013 - Jan. 2014

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Emirates NBD Global Business Series 10th Edition Rizwan Sajan chairman of DANUBE

23.10.2013

In the tenth edition of Emirates NBD Global Business Series, Rizwan Sajan, chairman, Danube, attributed determination, hard work, luck and right people as the key players in constructing the AED 2bn empire.

Jogging down the memory lane of struggles, Riwan enthralled the crowd with his past stories of selling fire crackers, books and delivering milk early morning to make a living. Heâ&#x20AC;&#x2122;s definitely a compelling example of rising from the ashes to make the most of every opportunity coming on the way.

In pics: Attributing Sameera Sajan (wife) as the never-ending source of motivation, Rizwan said that she hardly came with any tantrums.

Dec. 2013 - Jan. 2014

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Emirates NBD Global Business Series

11th Edition Ahmed Bin Sulayem Executive Chairman DMCC

20.11.2013

In the eleventh edition of the Emirates NBD Global Business Series, Ahmed Bin Sulayem, executive chairman of the Dubai Multi-Commodities Centre (DMCC), attributed internal competition across the Dubai as the challenging factor that influenced him to prove a point in life.

Drawing attention to remarkable insights, he confessed that the recession was a blessing in disguise, which helped the organization distinguish between true friends and foes.

Speaking about role models, Ahmed Bin Sulayem, said thereâ&#x20AC;&#x2122;s nobody like Mohamed Alabbar (Emaar Chairman). Heâ&#x20AC;&#x2122;s a phenomenal story of rising from the challenges to conquer new territories.

Date : March 26-27, 2014 Venue: Jumeirah Beach Hotel, Dubai. A GRAND CELEBRATION OF ENTREPRENEURSHIP

Visit www.smeworld.ae to register now

ONE EVENT, MANY ATTRACTIONS SME Expo: The main highlight would be the Expo, with over 150 exhibitors being divided into different sections.

Keynote Conferences: The event will kick off with a keynote delivered by a noted industry billionaire amidst thousands of entrepreneurs, participants and media.

Business Olympics: The coveted Business Olympics will witness close to 40 corporate teams vying for ultimate glory through strategy and team building games.

Deal Lounge: Interested in a service you see, sign-up on the spot. A separate dedicated deal lounge to give you a serene environment for well-planned and strategic deal closures.

Speed Networking: An exclusive brainchild of the Intelligent SME, Speed Networking puts 300 qualified sellers to pitch their proposals in front of 100 qualified buyers.

Haute Couture: Stunning fashion shows showcasing Haute Couture by designers from UAE, popular personalities, glamorous celebrities from UAE as show stoppers.

Excel awards: The Summit will pay homage to the excellence of pioneers across different fields and their achievements.

Workshops: Sessions by top consultancy firms from all over the world to oversee numerous workshops related to latest technological trends in business.

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Column

Look up, address your customer Utpal Bhattacharya on why businesses should be ready and capable to change strategies at a short notice

have been often struck by how certain retail businesses flourish compared to others that do not. Just recently, I was astounded to find out a roaring success of yesteryears closed to business. They failed to take into cognition the changing catchment demographics around them and paid the price. We often talk of quality of service as the one most important element in any business if it were to do well. However, service is not the end all and be all for a business to prosper and grow. There are so many other areas that one should be constantly monitoring, including various processes that we keep writing about in this magazine. I did wonder what could have gone wrong when I saw the closed shutters of the retail business that I have talked about a little while ago. On investigating a bit more, I learnt that most of the well –to-do residents in the neighbourhood of the retailer had migrated or shifted to other localities over the years. The demography in the locality had changed drastically since I knew it. The retailer had not taken this drastic change in its target market into consideration, as it diligently served its customers with what it thought was best for consumers and what had worked so well for years. A drop in sales can be deceptive or imperceptible

in the early stages for a very successful business, and, more so, if its management had become complacent or less vigilant. That’s where the presence of a sharp accountant with business acumen is always useful. However, in most businesses accountants always have remained in the background, and I am sure in our case with this retailer it was the same problem. One of the biggest challenges for any management is taking a decision to revamp a strategy when it had given rich dividends in the past. It becomes even more difficult if the management is unwilling to make drastic changes in the strategy and keeps tweaking it until it is too late. Taking a drastic

decision is always a challenge, but often it is the only way to solve the problem of falling sales. In the case of our retailer too, decision making was slow, and one thing led to another as the business went downhill, resulting in non-payment of salaries towards the last 11-12 months. Of course, one man’s misery is another man’s joy. I saw a number of retailers mushrooming around

the same neighbourhood. They were smart and doing brusque business with a variety of schemes to attract customers. One particular offer from a supermarket struck me as daring, as it was giving 20 per cent discount to its regular customers on all purchases for 12 months against an advance annual deposit. This advance deposit was equivalent to three weeks’ salary of a senior school teacher. This was doing business, risking consumers’ money, but customers saw a value it and were happy to be tied to the store. They would not go anywhere else for the next 12 months. Our retailer would have never thought of doing such a thing, primarily because it belonged to another era with a different clientele. It died a natural death, as its loyal customers left and it could not attract new customers with innovative schemes that suited the new entrants in the neighbourhood. In other words, one needs to be always on one’s toe, ever vigilant and monitoring the cash box and ever ready to change course if situation so demands.

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