The Intelligent SME Issue 23 by SPI Publishing

Issue: 23 | Dec 2014 - Jan 2015

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Akram Miknas, Unplugged! A day in the life of Middle Eastâ&#x20AC;&#x2122;s most powerful media and advertising guru.

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Contents December 2014 - January 2015

34 How to build an empire, the Akram Miknas way!

Nearly 4 decades ago, this media mogul’s endeavour to sell local goods made him an advertising sensation. Building countless successful brands and companies later, he’s proving that what first defined him is far from what drives him now.

13 Rare & Fabulous

High-end luxury products for CEOs and decision makers.

22 Empowering treps with the right tools

With suitable guidance and education, entrepreneurs can scale up their business and positively impact the economic situation of a country, believes Noor Shawwa, Managing Director, Endeavor UAE.

24 Look up at Bayt’s success, you can be like them too!

Investigating the unique and innovative characteristics that catapulted Bayt.com into a remarkable success story.

28 Banking on customercentric approach

In an candid chat, Rohit Garg, head of business banking, Mashreq Bank reveals more about their dynamic products and services for the SME sector, some of their non-financial support campaigns, the outlook on UAE's economy and scope for young companies.

32 A brief chat with Randa Al Himyari

The Emerging Emirati Entrepreneur of the year on what made her nursery chain-Petit Bout Chou- a unique business model.

44 The hidden treasure in networking

Robert Kiyosaki, author of Rich Dad Poor Dad said, “Most people work, but successful people build networks.” Phil Bedford points out that getting the right approach will go a long way towards making sure that networking starts working for you.

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Contents December 2014 - January 2015

50 How fear makes your profits tremble?

N PATIE

VISION COU R

AGE PATIE N

46 Sales Pitch? Answer challenging

52 Driving client loyalty

with account management

How does a well-established key account management strategy really deliver benefits? V Ramkumar explains that it helps in providing a conducive framework to drive a higher customer engagement, which in turn helps drive a higher customer loyalty and retention.

56 2014: Lessons for SMEs

questions to win a deal

No client buys your products or services, they buy the impact it will have on their commercial performance, explains Peter Heredia

48 Transforming fear & failure into triumph

We must acknowledge that fear is a very human problem. In a bid to overcome fear, Sachin Thombare says that one must equip employees with tools like negotiation, communication and leadership skills to help them identify and eradicate fears that hamper their performance at work.

As the year draws to a close, there is no better time to take a breather: look back on what you have achieved and what youâ&#x20AC;&#x2122;ve learned, go over the opportunities you might have missed, and start thinking and planning where to take your business next year.

60 Take the super boss challenge

Your life should be a process of continuous evolution of learning, transitions, risk taking, failures and transformations if you want to achieve more than your few moments of fame, writes PK Menon.

What is the secret to become a more likable leader? Michael Tolan says that it doesnâ&#x20AC;&#x2122;t have to do with how tall and charming you are, or how often you give employees a raise, but your behaviour and attitude towards your employees.

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EDITOR’S NOTE Traditionally at this time of the year, I whip out a list of my ‘New Year's resolutions for small-business owners,’ but since these resolutions hardly make it beyond January, I thought of taking a tougher stand. Here’s a list of ‘commandments’ to lift your business in making 2015 a better year than 2014 was. Read. Introspect. Do them now!

Publisher & CEO Shantanu A.P. Account Director Vijay G. Editor Samar Manzar Asst. Editor Audrey Fernandes Expert Contributors Karen Osman Michael J. Tolan Neil Petch Peter Heredia Phil Bedford PK Menon Sachin Thombare TishTash V Ramkumar Art Director Aneesh Varghese Designer Retheesh Viswanath Web Developer Raj Shekar Reddy Business.Dev. Manager Nasim Akhtar Response and communications

Response Executive Evelyn V.B. MIS Executive Yolanda Pedemonte Rizza Leah L. Gabalfin Project coordinator Khushbu Ranjan Distribution Department

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Let’s clock around and start from the bottom: (5) a company is as good as its employees’ performance and their attitude towards work. Take a good look around yourself to find out who’s been the worst performer, fire them immediately. Advertise for replacements, quickly! (Muster the courage to take bold steps, okay?) (4) Your accounts speak to you, all you have to do is listen. Invest in a lunch with your accountant to know all the mistakes you’ve committed last year and get them fixed before February. It may not serve as a wealth builder but, certainly, a wealth protector. (3) Distractions can aggravate all the issues that lead to poor performance, creating a negative chain where shoddy performance leads to stress, lack of time management and so on. Hence, delete all those software programs (video games, instant messengers, etc.) on your office computer that don’t relate to your work. Remember, ‘treps, determination and focus is an absolute pre-condition to fulfil your dreams. (2) Let’s be honest: success often falls in the hands of sugartongued sales people working on fat entertainment budgets for their clients. Find three unique ways, if not more, on how you can provide a ‘feel-good-moment’ to your customers rather than just a place to buy stuff. (1) Last but, definitely, not the least: brands are the ultimate vehicles of consumer engagement and loyalty. A successful campaign requires more than a revamped logo. It demands a vision that inspires customers, investors, and others to see the company in a new light. Re-brand, re-position and revive your company’s vision, goal and message to make your case stronger than ever. Hope this to-do-list serves as a trigger to drive your passion for doing business next year. Until then, here's wishing you a wonderful 2015, packed with happiness, hope and prosperity. Stay empowered!

Samar Manzar

SPI Publishing

P.O. Box: 89735, Dubai, UAE Tel: 04-2659704, 04-2650312 Fax: 04-2690566, 04-2651708 response@spiholding.net

Disclaimer

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

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

December 2014 - January 2015

Intelligent SME

Rare & Fabulous

Oh Bentley, your Grand Convertible raises a toast to luxury! T he ultimate expression of British automotive luxury is imagined ‎with the Bentley Grand Convertible, the most sophisticated open-top car ever created by Bentley. ‎Iconic yet understated in style and fashioned entirely by hand from the very finest materials, this ‎unrivalled flagship of luxury represents the ultimate in powerful, sensuous roofless motoring.‎ Bentley Chairman and CEO, Wolfgang Dürheimer, who unveiled the car in Los Angeles, ‎commented: “This concept demonstrates Bentley’s ability to create a pinnacle convertible Grand Tourer, while e ‎ mbodying elegance beyond compare. With this car we combine the opulent Mulsanne ‎experience with the full sensory indulgence of open air touring, continuing to unite luxury and performance in new way. We are eagerly awaiting the response of our customers to this car. We will ensure that this car - if ‎it reaches the roads – will be a highly exclusive, extremely limited collector’s piece.”‎ The Bentley Grand Convertible will be on display at the Los Angeles Auto Show from 19th ‎November 2014 until the 30th November 2014.‎ Powerful, refined, exquisite, resplendent in Sequin Blue, originally a bespoke colour created

from a single sequin from a ‎customer’s haute couture gown, the Grand Convertible features a silver “liquid metal” finish to the ‎bonnet and windscreen frame. Contrasting the rich blue body work is the Bentley directional ‎wheel design, handed to the left and right sides of the car and finished by hand before being ‎polished to a high shine.‎ The wheels hint at the enormous power and torque that wait under the bonnet. With 537 PS (530 b ‎ hp / 395 kW) and 1,100 Nm (811 lb.ft) of torque from Bentley’s legendary 6¾-litre twin-turbo V8 ‎engine of the flagship Mulsanne, the Grand Convertible promises the luxury of effortless ‎performance to match its unparalleled style.‎ As cossetting as it is breathtaking, the interior of the Grand Convertible is a showcase for the ‎abilities of Bentley’s master craftsmen. 14 naturally tanned leather hides are merged together with ‎progressive-diamond quilting, with the shape of the pattern changing over the seats and doors in a ‎cabin sized for four adults. Bright blue is used to highlight the extraordinary skill of Bentley’s trim ‎specialists, with Sequin Blue thread crossstitched by hand through the linen-coloured leather. The l‎ight

hide is contrasted by the sleek elegance of Beluga leather around the top of the doors and ‎extending back to the rear tonneau, framed in polished chrome.‎ The tonneau itself provides the most significant example of Bentley craftsmanship at its finest. ‎Replete with book-matched, mirror-finished and dark-stained Burr Walnut, the tonneau features ‎the largest piece of wood veneer ever applied to a Bentley. Fashioned entirely by hand, this ‎expanse of veneer is only paralleled by the creations of the world’s best furniture makers, and is ‎finished with elegant parallel lines of chromed steel.‎ Following the Los Angeles Auto Show, in December the Grand Convertible will travel to Miami for ‎Art Basel, the world's premier international art show for Modern and contemporary work.‎

December 2014 - January 2015

Intelligent SME

Rare & Fabulous

Citizen unveils an edgy take on sporty watches C itizen recently launched the second edition of the popular Toyota 86 collaborated model in UAE. It celebrated the performance of the TOYOTA 86, an FR sports car that has grown in popularity among global motor sports enthusiasts and truly stands alone when it comes to handling. The new model is packed with superior functionality such as 1/1000-second chronograph function and World Time in a powerful and sporty design. Its case band achieves lighter weight by using titanium—which weighs 40% less than stainless steel. The face features a ‘T mesh pattern’ with customary Toyota “T” logo as a motif, which is also used in the driver’s cockpit metres of the TOYOTA 86. Start and Stop positions of 1/100- 1/10and 1/1-chronograph hands are suggestive of the cockpit’s triple

metres such as tachometre and speed metre, producing an edgy sporty look. Eco-Drive and TOYOTA 86 logos engraved on the reverse side further emphasize this unique collaboration. The watch also features TOYOTA 86 logo at the 8 o’clock position and on the crown. It also incorporates race-born functions such as chronograph for 1/1000-second measurement and World Time. Chronograph measurement is available in units of 1/1000 second. The digital display shows figures in units of 1/1000, while two small hands in the subdials at 12 o’clock show 1/10 and 1/100 second chronographs, and a small hand in the subdials at 10 o’clock shows 1/1 second. “Race Mode” memorizes records of lap time, and the fastest lap time can be displayed and recorded

with advanced entry of course distance. A “Memo Mode” can also recall the record made at previous measurement. LCD shows World Time (43 cities plus UTC), Alarm and Timer, respectively by switching. A red LED used for backlight ensures visibility even in darkness. A hinge structure used for push-button moving parts makes measurement operation smoother. Anti-slip parts are also used for push button and casing parts at 9 o’clock. A dynamic case design with a 47.4mm (designed value) diameter of also reflects consideration for the best operational performance. The case and band use titanium, which is 40% lighter than stainless steel. Meanwhile, the watchmaker’s proprietary surface-hardening technology delivers superior scratch resistance, maintaining beautiful look and lustre.

December 2014 - January 2015

Intelligent SME

Rare & Fabulous

Bringing coveted Coya to Dubai A lthough Dubai possesses dining options from every culture under the sun, the opening of Londonâ&#x20AC;&#x2122;s famous Coya restaurant on Jumeirah Beach Road would mark the debut of Peruvian food in the local market on a grand scale. While the Andes Mountains are thousands of miles away, Coya Dubai brings traditional Incan pleasures to the Middle East with a delectable menu and an ambient atmosphere, said a Savoir Flair report. In keeping with traditional Peruvian abodes, the interior of the restaurant is decorated with Incan gilding, traditional mud botija-lined walls, and a

corridor filled with colonial-era treasures. Patrons can enjoy an array of mouth-watering ceviches, tiraditos (sliced raw fish), and anticuchos (grilled skewers of fish, meat, and vegetables) in the restaurant or cocktails at the Pisco Bar and Lounge. Coya Dubai will also host live music and a variety of displays by established photographers, artists, illustrators, sculptors, and poets, which will rotate throughout the year. For an immersive cultural experience you wonâ&#x20AC;&#x2122;t soon forget, make a point to book a table at Coya Dubai in the Four Seasons Resort when the restaurant opens at the end of this year.

December 2014 - January 2015

Intelligent SME

Rare & Fabulous

For outdoor enthusiasts, Fujifilm launches weather-resistant lens T

he telephoto high performance lens boasts powerful image stabilsation and the world’s first Triple Linear Motor The Fujinon XF50-140 mm is the latest addition to the X-series line up of lenses to accompany Fujifilm’s world class X-series cameras. This telephoto lens has a focal length equivalent to 76-213mm (according to 35 mm equivalent), and a constant F2.8 aperture throughout the range. The length of the lens barrel remains constant throughout the entire zoom range as an ideal telephoto lens. The lens is weather-resistant, dust-resistant and works in temperatures as low as -10°C, making it the perfect companion for the X-T1, which has the same levels of protection. The lens is designed so as to make it simple and easy to use by the photographers in a wider range of conditions. The high-performance gyro sensor, a unique image stabilization algorithm and the bright F2.8 aperture, while the world’s first Triple Linear Motor allows comfortable shooting with fast, quiet auto focusing. Combined with a camera body, the lens is approximately 60% of the weight of a full-size system, considerably reducing the burden on the photographer and making it light in weight and portable. Compatible models are – X-Pro 1, X-E1, X-E2, X-T1, X-T1GS. It’s available at the price of AED 5,874.

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December 2014 - January 2015

Intelligent SME

Get Informed

Dear tourists, panoramic view of Dubai’s streets is now online!

oogle launched its Street View applications in Dubai on December 9, 2014 (Tuesday) with an aim to give digital users a 360 degree, panoramic and street-level view of the main streets, attractions and towers in the dynamic city. Dubai is the first Arab city to have a complete Google street view, and there were many reasons for choosing the city to have a Street View, Najeeb Jarrar, Product Marketing Manager for Middle East and North Africa (Mena) at Google, said in a Gulf News report. “We decided to start with a city that is receiving large numbers of visitors so this can help them,” he added. “At the same time, it is a

city where residents are extremely internet savvy and this service would benefit them as well. There are also residents [in Dubai) who use the maps on a daily basis in their movement. Moreover, the regional office of Google is based in Dubai,” explained Jarrar. UAE is among the top countries in the region for internet penetration, with over 6 million of the 9.2 million population using the internet. “Anybody who uses Google maps will be able to see clear and nice pictures of the shops and buildings [in Dubai],” said Abdul Hakim Abdul Karim Malek, director of GIS Department at Dubai Municipality. Google cooperated

with the municipality for the project. The product is expected to benefits individuals, businesses and companies, both officials of Dubai municipality and Google said. There will be no need to wait for a long time for a food delivery, or a technician to fix electricity or water problems, or a shipment to be delivered at your doorstep, or even looking for a new place to relocate, they added. The project will also help tourism operators. “For us, as tourism industry, we are focusing a lot on technology,” said Essam Abdul Rahim Kazim, CEO, Dubai Department of Tourism and Commerce Marketing (DTCM).

December 2014 - January 2015

Intelligent SME

Get Informed “In fact, we see technology as a principal driver for tourism industry,” he told Gulf News, noting that most of tourists use technology to decide how, when, where and what to visit. Last year, Dubai received 11 million tourists who stayed in hotels, official figures showed. Many others stayed with their relatives and friends. Kazim said the target is to receive 20 million tourists by the year 2020. “This is considered a tourism attraction element and adds to Dubai’s international reputation,” Malek added. Nearly 80 per cent of the world’s population use Google maps and Street View product, which is available in the vast majority of cities of developed countries, he said. The process of viewing Dubai’s main and commercial streets took some nine months to complete, Jarrar explained. However, he stressed that this doesn’t mean nine months of photographing the streets of the city. Some days were spent double checking for a smooth transfer of data. “A lot of teams were involved … It is a large team,” Jarrar added. The teams were handling different tasks, including driving the car, organising the launching process, dealing with the concerned governmental departments, working on the system to stitch the imagery together and make sure that data is going to the data centre. Google car is a standard car

mounted with a camera that can take 360 degree view. Street View product was first launched in the United States in 2007. Google cooperated and partnered with many governmental departments to obtain the proper and legal permission, including Dubai Municipality, to conduct the project. When asked about any obstacles faced during the process, Jarrar said, “It was simple, easy and straightforward.” However, some sizzling temperatures and dusty weather conditions halted the work like in any other country in the

world, he said. Both Google and Dubai Municipality emphasised that the privacy of people was highly respected in the process. Also, Google has its own privacy guide lines that are applied worldwide. They included blurring cars’ number plates and people’s faces. “The privacy of people and even cars was guaranteed,” said Malek. “You will see, you will witness that we are driving in traffic among other cars. It is a normal experience and that is what we wanted. We wanted to make sure that when the user views the images, they will be

able to see it in normal conditions, not in a totally open and empty street,” said Jarrar. As for updates, Jarrar said, “Hopefully, we will be able to drive [around] Dubai more regularly and you will see more updates. Dubai is one of those cities where it is rapidly developing. You see new roads, new towers and new places every day,” he said. Asked about the next city in the Arab region, Jarrar replied, “We are driving and expanding in a lot of cities at the moment and we hope we will be able to cover the rest of the UAE really soon.” Already, Jarrar said, Google Street View car is driving around in Abu Dhabi.

December 2014 - January 2015

Intelligent SME

Get Informed

Dubai Chamber, Dubai SME jointly launch CSR guide

ubai, UAE: To help small and medium enterprises (SMEs) integrate strategic corporate social responsibility practices within their organisations, Dubai Chamber of Commerce and Industry in partnership with Dubai SME, an agency of the Dubai Department of Economic Development, launched the How to guide book on CSR for SME’s during the Networking Conference on CSR for SMEs at the Chamber premises on December 8, 2014. The Conference was attended by Mr. Atiq Juma Nasib, senior vice president, commercial services sector, Dubai Chamber, H.E. Abdul Baset Al Janahi, CEO, Dubai SME, and task group members of Dubai Chamber Sustainability Network and representatives of the business community. The launching of the guide came as part of a Memorandum of Understanding (MoU) signed recently between Dubai Chamber and Dubai SME for the development of CSR projects by SMEs and to raise their awareness of responsible business. The handbook contains a general checklist based on the four pillars of CSR including workplace, environment, community and

marketplace as well as case studies from two of the SME members documenting their CSR journey. It is a joint effort by the members of Dubai Chamber Sustainability Network including wasl, TNT, ABB, UAE Exchange, Summertown, Axiom Telecom and Eros Group, as well as the strategic partners Paramount and SamTech under the guidance of the Chamber’s Centre for Responsible Business. In his welcome address Mr. Atiq Juma Nasib said: “SMEs are an important market segment for Dubai Chamber. They make up the majority of our members and over 90% of the UAE business community and are also an important driver of the economy – creating jobs and leading expertise. “It is therefore important that we engage them to implement strategic CSR that has a positive impact on their business in terms of growth and competitiveness and the society at large,” he said. “The launch of the guide developed by Dubai Chamber Sustainability Network members, will further the cause of the program of creating a platform for the exchange of experiences, ideas and initiatives to recognise the

good practice already taking place in the UAE,” said Mr. Nasib. “Dubai Chamber is delighted to be working with Dubai SME to raise awareness and encourage CSR implementation amongst SME businesses while enhancing their competitiveness locally and internationally,” he added. On his part, H.E. Abdul Baset Al Janahi said: “As part of our partnership with Dubai Chamber, we will encourage and involve the SME community and entrepreneurs in out efforts to advance the CSR profile of the emirate which plays a leading role in social responsibility initiatives, bringing positive changes to communities worldwide. “Today, companies carefully craft CSR strategies that build linkages – between the enterprise and government, the environment, the local community and the business partners, employers and employees and the benefits are immense for the company, as it attracts significant goodwill, sees improved financial performance, enhanced brand image, increased sales and customer loyalty, increased ability to attract and retain talent, and easier access to capital,” said Al Janahi. In their presentations, Vineetha Mathew, Senior Executive CSR Training, and Kevin Giersch, Senior Executive CSR Advisory, Centre for Responsible Business, spoke about how to make your business more effective, productive and responsible as they also explained the Dubai Chamber and Dubai SME Partnership Programme. Paul Briers, Projects Director, Summertown and Samir Abdul Hadi, Founder & CEO, SamTech Middle East, shared their success story through Entrepreneurs on their CSR journey and secrets to success while Premchand Kurup, CEO, Paramount Computers, and Jassim Al Bastaki, Director General, Café to Go, talked about actions you can undertake today to build Competitive CSR advantage for your business.

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December 2014 - January 2015

Intelligent SME

Business Announcements

Emirates NBD bags international accolade for ‘Mobile Banking Service’

mirates NBD, a leading bank in the region, announced on December 9, 2014 that it has been recognised for ‘Mobile Banking Service’ at the prestigious Banking Technology Awards 2014 held recently in London, making it the second international award the bank received this year for its mobile banking app. Organised by Banking Technology, a leading financial technologies magazine published in London, the industry awards recognise financial services organisations that implement best use of technology solutions for

attracting and servicing online customers. The accolade was received by Duncan Steele-Bodger, Country Head – United Kingdom, Emirates NBD, on behalf of the bank. The jury at Banking Technology Awards was particularly impressed by Emirates NBD’s efforts in creating a leading mobile banking app that offers a series of mobileonly propositions aimed at simplifying the everyday banking requirements of customers. Commenting on the awards, Suvo Sarkar, General Manager - Retail Banking and Wealth

Management, Emirates NBD, said: “We are delighted to have won yet another recognition for our mobile app, which reaffirms the bank’s commitment to smart banking initiatives aimed at making our customers’ lives simpler and more convenient. Innovative ‘on the go’ solutions add significant value to customers by providing increased convenience; therefore we expect mobile banking to assume central role in facilitating everyday banking requirements. “Going forward, you will see significant changes across all our channels that will provide simpler, better and smarter banking services for our customers,” Sarkar added. As part of the bank’s digital banking strategy, Emirates NBD has made significant investments in new technology in the last 2 years, and has introduced an array of industry-first innovative solutions such as DirectRemit, Emirates NBD mePay, and ‘Shake n Save’, as well as IPO subscriptions through mobile banking. Emirates NBD’s ‘Shake n’ Save’ product represents a new frontier of mobile-only products in the region. With this product, the bank’s customers can save on impulse and earn better interest rates.

Mashreq launches property price index

ubai’s property prices have skyrocketed this year as compared to 2013, but usually owners of these investments are unaware of the true market valuation. Although Dubai boasts a RERA index that aides in finding the true value, but other emirates lack this facility. They simply depend on real estate agents to price tag their units. "There is no official sales price index for investors and so I generally leave it to my broker to decide the price," RS Shah, a British citizen, who has been buying properties in Dubai, said in Emirates 24|7 report."Sometime, we know the broker has inflated

the price, as they assure you to get a higher price. When that is not possible, they lower the prices. This in fact wastes a lot of time in finalizing a deal," he adds. To bridge this gap, Mashreq , a Dubai-based bank, has now launched a property price index, which promptly indicates market valuation for your property. The index may, in fact, give you a heads up on the expected pricing for your listing. According to the Mashreq price index, a 102 square metre apartment in Burj Khalifa in Downtown Dubai will currently fetch AED 4.1 million. Online listings put the price in the range

of between AED 4.5 million and AED 5 million. Similarly, a 100 square metre apartment in Jumeirah Lakes Towers is valued at AED 1.1 million. Online listings put the prices between AED 1.5 million and AED 1.8 million. Mashreq does clarify that the current market valuation is an "indicative market valuation of the property", which is based on its property price indexing. "It is a fair estimate and does not take into consideration any actual details of the unit such as age, construction quality, floor rise, views, etc. To arrive at an exact evaluation you can consult a registered valuation agency or any other competent authority," the bank added.

December 2014 - January 2015

Intelligent SME

Business Announcements

Dubai imposes 4.22% cap on 2015 healthcare price rises

ubai Health Authority (DHA) recently announced that it will impose a cap of 4.22 percent on price increases for healthcare services in the emirate in 2015, according to a report published in the Arabian Business. The report suggested that the price regulation model is based on the annual rate of inflation published by the Dubai Statistics Centre. Essa Al Maidoor, director-general of the Dubai Health Authority said: "This model essentially aims to regulate price increases of health

services in the private sector. The price increase will be regulated in a calculated and transparent way so that it facilitates a sustainable health system. The regulation will be applicable for all polyclinics, clinics and hospitals in Dubai and services provided to Dubai insurance policies. The aim of the price regulation model is to ensure balance between allowing price increases and protecting patient's interest." He added that the deadline for healthcare practitioners to apply

for a price increase will be the end of November, with the increase fixed for 12 months. "This ensures sustainability, is fair towards providers and at the same time protects patient rights," added Al Maidoor. Dr Haider Al Yousuf, director of health funding at the DHA, said: "Price regulation of healthcare services is a best system applied by various countries. It is an important tool to ensure that quality is rewarded. This essentially means that price regulation incentivises quality outcomes."

Axa Gulf introduces specialized insurance unit for SMEs

XA Gulf, one of the largest and leading international non-life insurers in the region, has launched a dedicated sales unit offering insurance solutions for small and mediumsized enterprises (SMEs) in the UAE. As per Dubai SME, an agency of the Department of Economic Development, SMEs represent 95 per cent of companies in Dubai, contributes to 40 per cent of Dubai GDP and employees 42 per cent of Dubai workforce. This reflects the critical role that this sector plays in achieving and nurturing the overall development across diverse economic sectors. More generally speaking in the GCC region, SMEs starts to be perceived as an essential pillar for creating sustainable growth, a statement said. In a recent survey, AXA insurance Gulf, interviewed more than 300 SME business owners from Abu Dhabi, Dubai, Sharjah and northern Emirates with a goal to understand SMEs and self-employed main risks, fears, concerns and needs. The

survey also looked to understand how to improve the company’s guarantees according to very specific needs and where it can raise risk awareness, importance of prevention and risk mitigation. The study revealed that only 11 per cent of SMEs were fully confident regarding their insurance company. They still see obstacles with growing business and citing a lack of confidence, over-complexity and lack of knowledge of the importance of explicit insurance. All those barriers show major stumbling blocks for SME owners to obtaining adequate protection, the survey said. The study also showed that SMEs often prefer to remain uninsured or underinsured as they are under the impression that their key risks cannot be covered. Jerome Droesch, CEO of AXA Gulf said: “We have created our dedicated SME unit because we need to address the lack of trust and change the perception insurance is too complicated and costly.” “The objective of the unit is to support and educate SME owners

on risks through a specialized team of experts. This team will meet business owners in their offices and analyse their specific requirements to provide adequate prevention and protection measures. “Finally, the team will regularly follow-up with SME customers and monitor the evolution of their businesses to verify their insurance needs continuously,” he added. In addition, AXA in the Gulf will enhance the support to SMEs during their fledging year and beyond and this is will be achieved through a newly launched dedicated hotline that business owners can access for advice and information, Droesch said. The new SME business unit aims to provide consultancy and advisory services to SME business owners, and carry out risk diagnosis of the level of protection required for each business according to their industry and activity.

December 2014 - January 2015

Intelligent SME

SME Booster

Empowering treps with the right tools With suitable guidance and education, entrepreneurs can scale up their business and positively impact the economic situation of a country, believes Noor Shawwa, Managing Director, Endeavor UAE.

ost entrepreneurs have the potential to take their business to the next level. However, factors such as cost of failure, limited management expertise, lack of mentors and limited access to smart capital often hold them back. Established in 1997, Endeavor is a non-profit organization that helps entrepreneurs realize their potential by providing mentorship by an unrivaled network of seasoned business leaders. Endeavor has more than 20 offices around the world, with plans to grow to 25 by 2015. Endeavor’s UAE affiliate was launched in Dubai in December 2013. “Endeavor basically identifies high-impact entrepreneurs those who show the promise and potential to transform their businesses into success

stories. When you find enough of these entrepreneurs, provide them with mentorship from world-class, successful business leaders, and help them to scale up their business, they can create employment and fundamentally change the economy of a country,” explains Noor. An example of this is Globant in Latin America, where Endeavor has been present since 1997. “Globant of Argentina is an excellent example of a company that has significantly scaled up with support from Endeavor. The company was selected in 2005 when it had about US$10 million in revenues. Last year, they generated over US$158 million dollars in revenues and were recently listed on the New York Stock Exchange,” says Noor.

Often, companies are so caught up in their day-to-day operations that they rarely have the time to step back and assess their business model. Endeavor can help them see this.

However, getting selected as an Endeavor Entrepreneur is not easy. Out of the 30,000 entrepreneurs screened, Endeavor currently services 990 selected entrepreneurs. Noor likens it to securing a spot at Harvard University: only the brightest and the best make the cut. “For an entrepreneur to be selected, they have to be at an inflection point and ready to scale up. We don’t work with start-ups since the mentorship that they are seeking is quite different. We focus on ‘scale-ups.’ We find those entrepreneurs who really have the potential and desire to scale-up and become the ‘50 million-dollar businesses.’ Once they get selected, we connect them to an advisory board—people from our board members and mentor network. We also roll out other services in parallel to support their growth.” Entrepreneurs then have three to four mentors who help them shape the strategy of the company and steer them in the right direction. Some notable names on the board of directors in the UAE include Fadi Ghandour, Founder & Vice Chairman, Aramex; Joseph Ghossoub, CEO, MENACOM; Patrick Chalhoub, Co-CEO, Chalhoub Group; Avishesha (Avi) Bhojani, Chairman, International Management Ventures; Nilesh Ved, Chairman, Apparel Group; Ahmed Galal Ismail, CEO, MAF Ventures and several other top successful CEOs and entrepreneurs of the region. Endeavor also goes a step further and connects the selected entrepreneurs to investors. “We

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Intelligent SME

SME Booster don’t push entrepreneurs to take on investments from investors with whom we forge partnerships, we only introduce them and the investment is then solely at the entrepreneurs’ and investors’ discretion,” explains Noor. With such a unique business model, how does Endeavor manage to sustain itself? Noor says that most of its funding comes from its board members, who make an annual financial contribution for the first three years. Further, entrepreneurs who get selected are required to make a small financial

contribution, which helps Endeavor offset its reliance on board members. Since its inception in the UAE, four entrepreneurs have been selected: Propertyfinder.ae; Duplays; Mumzworld and Dubai Desert Extreme. In addition, over 16 companies are actively going through the selection process. The selection process has four steps. First, someone from the local team visits the entrepreneur and does an initial introduction and screening. The second stage involves the entrepreneurs having

Noor Shawwa, Managing Director, Endeavor UAE.

one-hour meetings with six of Endeavor’s mentors. These are one-on-one sessions where mentors offer feedback. A local panel, consisting mostly of board members, then assesses who would be best suited for the program. The final decision is taken by an International Selection Panel where panellists and entrepreneurs from around the world meet between five or six times annually. A unanimous vote is mandatory. “About eight to ten candidates are nominated per year,” explains Noor, “The last meeting was in Istanbul; the next few are scheduled to take place in Miami, Singapore, and Santiago. Propertyfinder and Duplays were selected here in Dubai last December. Mumzworld was selected at the International Selection Panel in Indonesia and Dubai Desert Extreme was selected in August in New York.” While Endeavor mostly relies on referrals to find high-impact entrepreneurs, it also actively searches for promising candidates to join the network. So, is it hard to find these high-potential entrepreneurs? Noor says it isn’t hard in a place like UAE, which is teeming with entrepreneurs. However, he feels that there is tremendous scope to encourage more entrepreneurial ventures in the UAE. “Often, companies are so caught up in their day-to-day operations that they rarely have the time to step back and assess their business model. Endeavor can help them see this.” “The most common reason for us to turn down an entrepreneur is when we find that the entrepreneur is not receptive to feedback,” says Noor. “An entrepreneur should be receptive to feedback to benefit from Endeavor.” Endeavor would not be a success without the backing of mentored entrepreneurs who have gone on to achieve success. Entrepreneurs who ‘graduate’ from the Endeavor process when they achieve success are pleased to come back as mentors and investors themselves and pass on their expertise to the next generation of budding entrepreneurs. Endeavor becomes a great channel for them to give back.

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Intelligent SME

Success Story

Look up at Baytâ&#x20AC;&#x2122;s success, you can be like them too!

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Intelligent SME

Success Story Following is the edited and condensed transcript of the interview:

ISME: Bayt.com has been one of

the most successful online business ventures to date in the region, what’s your secret sauce?

Rabea Ataya founded the online job search engine on a belief that technology alone can turn the wheels of fortune of a region crippled with unemployment. Although low internet penetration back in 2000 was a huge threat to its sustenance, but the desire to make a locally-groomed brand a globally recognised entity kept the chief executive officer at Bayt.com determined and driven! The Intelligent SME investigates the unique and innovative characteristics that catapulted Bayt.com into a remarkable success story.

RA: Our formula is clear: look at plugging the gap where people need significant assistance in leading a decent life. In the Middle East, the Arab spring had proven that the answer was: finding jobs. So, we built a solution that capitalized on technology for scaling and efficiency, and then we got obsessed about continuous improvisations – summing all three ingredients and presto, the result is Bayt.com. Bayt.com has been leading the online recruitment scene in the Middle East since its launch in 2000. Born at a time when there were only two million internet users in the Middle East, the online vertical was created to address the unemployment issue in our region by using the internet as a tool to enable job seekers easily access more jobs. We took a technologycentric approach with a belief that technology has the power to do amazing things. It can help people get a better job or start a business. It can change the way we live. The low internet penetration was very risky, but the desire to build a private, Middle Eastern institution that is globally recognized was bigger and more important than anything else at that time.

a significant period of time to define the values that determine our success as an organization, and the behaviours that map to these values. At Bayt.com, we are constantly measuring where we’re improving, and where we need to improve.

ISME: What was the wisdom behind starting Bayt.com? Could you take us through the behind-the-scenes history of the company-aim, target, milestones, etc.?

RA: Almost 15 years ago, a group

of young men and women came together with an ambitious mission: to empower people with the tools and information they need to build the lifestyle they want for themselves. A bit of orthogonal thinking led us to build a solution that capitalizes on technology, and that provides people with what they need most: jobs. That’s how Bayt.com was born: to address the unemployment issue in the Middle East. At that time, the idea was quite challenging (but not impossible!)

ISME: Who’s been the biggest source

Challenge number one: Availability of jobs. We all agreed that the first thing people really need to build their lifestyle of choice is a good job. There is no underestimating the importance of a job to a person’s self-esteem and wellbeing. But we come from a region crippled with record rates of unemployment. More than a decade later, the Arab Spring proved just how strong the need for jobs is.

RA: It is a people’s business. People are our inspiration. Bayt. com happened because we looked at what the region needed most – jobs – and then decided to make it possible for both job seekers and employers to connect and find each other in the easiest, most efficient way possible. Indeed, Bayt.com’s success has been a story of hard work, persistence and an unwavering commitment to excellence, innovation and integrity, practiced by each employee. As an organization, we have invested

Challenge number two: Access to information. In the year 2000, internet penetration in the Middle East stood at less than 1%. We decided that the internet was the perfect channel because it enables job seekers to easily access and apply for jobs. A research we did with the Mohammed bin Rashid School of Government 14 years later proved us right: today, there are more than 135 million people in the Arab world using the internet. This is coupled with a mobile penetration rate of around 110 percent on a regional level, and more than 71 million active users of social networking technologies.

of inspiration in your early days of work life? How did Bayt.com happen to you?

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Success Story At present, Bayt.com is the leading jobsite in the Middle East, and one of the most trafficked websites in the world. We have over 17.75 million members and over 40,000 employers, with more than 10,000 job postings available to job seekers for free on any given day. Working from our 14 offices, it has become one of the most trusted, admired and respected brands in the region. Over the years, we have won numerous awards of recognition, including the “Leading E- Commerce Website in the Pan Arab Region” by the Pan Arab Web Awards (2007), the “Company of the Year” award by the TECOM Investments Pearl Awards (2009), SME Advisor Stars of Business Awards (2011), the “Top Companies to Work for in the UAE” award by the Great Places to Work Institute (2011, 2012, 2013, and 2014), the “Gulf Capital Business of the Year” and “People & Culture of the Year” by SMEInfo Awards (2012). We were also listed in the World Economic Forum’s 28 Global Growth Companies for 2014.

ISME: Let’s fast-forward to today. Dubai has continued to grow despite all challenges-how do you find yourself and the company you’re associated with in this transformation?

RA: Dubai has always been a great place to start a business, thanks to the thriving economy, innovative business environment, and ease of setting up new ventures. In fact, our surveys show that, for wouldbe entrepreneurs, Dubai rates as one of the top cities in the Middle East in terms of the ‘ease of starting up a new business’. It is also the number one destination when it comes to its ‘lack of bureaucracy in procedures and paperwork’. It’s a city that changes and grows constantly. And adaptability and openness to change is actually one of our key values at Bayt.com. A change in the economic climate, for example, will garner even more change from us. Change leads to innovation, and so we embrace it. Since our inception in 2000 and until this day, we have had the pleasure of working with thousands of companies across all industries in Dubai, the UAE and the entire Middle East and North Africa 26

Dubai has always been a great place to start a business, thanks to the thriving economy, innovative business environment, and ease of setting up new ventures. In fact, our surveys show that, for would-be entrepreneurs, Dubai rates as one of the top cities in the Middle East in terms of the ‘ease of starting up a new business’.

region, helping them find top talent to grow their business, and providing them with ever-changing, world-class HR solutions.

ISME: What would you characterise

as accomplishments/proud memory of Bayt.com?

RA: There have been many, but we are particularly proud of winning several awards for being a top place to work by The Great

Place to Work Institute for three consecutive years (2011, 2012, 2013, and 2014) and the “People and Culture of the Year” from the prestigious SMEInfo Award (2012). Our team’s satisfaction really starts with the firm knowledge that we are contributing to something important that is bigger than us.

ISME: In an age where there’s stiff competition from niche job search websites Akhtaboot, Laimoon, and

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Success Story

Nabbesh-what are the key strategies you’ve adopted to sustain the glory you’ve achieved?

RA: We believe in providing our

users with more options to find a job they love. The more choices you give, the more likely you are to succeed. But choice without great technology is useless. If you have a haystack, you need to be able to help users find that needle in the haystack.

ISME: Going ahead, what is your

strategy for Bayt.com? Do you want to own more portals in niche segments, or diversify to other business entities altogether?

RA: Our strategy has always

been to empower job seekers and employers alike with the tools and information they need to build better lives. We will continue to create best-of-breed products and services to help employers hire quickly, efficiently, and costeffectively the best talent out there, and to help job seekers connect with their dream jobs. Today, both job seekers and employers want the best in a short timeframe; and this can only be found on online platforms that are easy-to-use, efficient, and offer a large margin of flexibility, accessibility and choice. We also believe that the near future of the web is largely mobile. The infrastructure and tools for

safe, reliable mobile purchasing has been advancing rapidly in recent years. We have launched an exciting mobile application that allows professionals to search and apply for their ideal jobs through their mobile phones, regardless of when and where they are. Another important change happening with the web is that of big data, as today, the massive amounts of information online can be analysed to help people make better decisions. In the context of Bayt.com, it’s no secret that measurability is the key to success.

ISME: What kind of attributes do you look for while hiring a candidate?

RA: We always look for a cultural fit, and we assess all candidates against our values first and foremost. We strive to be the best. We do so by learning continually, producing with pride, and being innovative. We ask questions like "What have I done today to expand my knowledge horizons?", "Is the work that I am doing today, given the constraints, the absolute best work I am capable of?", and "Am I pushing myself beyond what was asked of me?" ISME: Recently, you have been

recognised as one of the 28 ‘Global Growth’ companies at the World Economic Forum, what qualities, according to you, have contributed in achieving this title?

RA: As mentioned earlier, at Bayt.com, we have invested a significant period of time to define the values that determine our success as an organization, and the behaviors that map to these values. Global Growth Companies are chosen based on demonstrating key features, one of which is innovation. Since Bayt. com was founded, we have striven to empower people with innovative tools and technologies to lead their lifestyle of choice. This recognition by the World Economic Forum is another great milestone in our path to achieve our vision of being a Middle Eastern institution that is a globally recognized, respected and admired indispensable extension of people's lives. ISME: Can you illustrate top five

business and strategy tips for young entrepreneurs and businesses?

RA: (1) Just do it; (2) Persist; (3); (4) Stay true to the dream; (5) Prioritize Ethics / honesty

ISME: As we sign off, let’s get to

know the legacy you have planned. It’s the year 2040, how do you see Bayt.com and what do you see yourself doing?

RA: We see an Arab world filled

with great job opportunities, and we see Bayt.com helping people all over the world find jobs they love!

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Success Story

Banking on customercentric approach Looking through his rimmed-glasses and wearing a sophisticated look, Rohit Garg carries an air of erudition in his personality. He holds the position of head of business banking at the Mashreq Bank, exuding confidence and an intimate understanding of the ever-shifting dynamics of the Middle East economy. From his seat, he is continuously developing strategies to plug the funding gap and help small scale companies to turn into full-fledged, marketable and successful businesses. “As the country’s economy continues to grow steadily in the wake of an optimistic sentiment, which is backed by Dubai’s victory to host the Expo 2020, the emirate has become a magnet for SMEs

to start their businesses. The population growth will therefore accelerate consumption, creating a host of opportunities for SMEs to engage and prosper. An entire value chain will be created that would require banking facilities,” explained Garg in an interview with the Intelligent SME’s Samar Manzar. So what differentiates Mashreq from the others? “Our customercentric approach is the biggest strength,” he exclaimed. A key part of the strategy, Garg elaborated, is to provide SMEs with bothfinancial and non-financial support. Below is the edited and condensed version of the bank’s vision for the SME sector and profound insights on what entrepreneurs need to succeed and sustain in this market.

SM: A majority of banks in the region are attempting significant credit exposure and systematic penetration across the SMEs with various services-What are the factors driving the banks’ desire to get involved with this sector?

RG: UAE’s economy could be divided into two components: hydrocarbons and nonhydrocarbons. With the former, a lot of money has been invested in the exploration and production. As companies engage in high-scale downstream activities, a value chain is created with tertiary SMEs like manpower suppliers, labour camp maintenance, catering, etc. There’s a cycle that’s driving the SME space, with 60 percent of the overall country’s GDP being driven by this segment. However, the sector still has a funding gap. The current estimation suggests that about 8 per cent of the funding requirements are being met, and this includes the entire MENA region. So, there’s a big opportunity here When the population grows, consumption

drives a lot of activities where SMEs are engaged. As they become credit-worthy, there would be a real need for banking facilities. These are the reasons driving the banks toward the SME space.

SM: Do you believe the risks relative

to this sector are beginning to decline? If yes, please elaborate why?

RG: The banks are into the

business of taking risk. However, one should know to differentiate between uncertainty and risk. A few years ago the country’s economy was clouded with uncertainty in aftermath of 2008 property crash. However, the uncertainty has declined because the economy has recorded steady growth. On the other hand, enabling infrastructures like the credit bureau has come into picture to provide financial information. As the availability of financial information goes up, so does the credit-worthiness. The risks are not going to change; however, the enabling infrastructures can help in identifying these risks.

SM: What regulatory initiatives, in

your opinion, could further empower the SMEs in the region to drive the economic engine?

RG: The biggest regulatory

initiative is the establishment of the credit bureau, wherein the first phase explores the personal credit history of individuals, and the phase two provides information on entities and enterprises. So that’s a big step forward. Secondly, an initiative on the bankruptcy problem is required. Thirdly, if the central bank could give the status of the priority sector lending and also provide some SOPs related to capital, it will again help propel the SME space.

SM: How is Mashreq’s business

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Success Story

Risks are not going to change. However, enabling infrastructures can help in identifying these risks.

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Intelligent SME

Success Story banking segment doing? What are the major challenges you encounter while expanding your base? What measures have you taken to overcome these challenges?

RG: Mashreq has been in the

market for over forty years now, and it has been supporting the SMEs in one form or the other. Though the nomenclature of business banking has been changed three years ago, we’ve done quite well in supporting the SMEs through their lifecycle. The whole business is structured around the customer, and this approach is driving our endeavours. Besides the product and services offered, we also identified that SMEs are looking for credible information. They’re also looking for new customers and suppliers all the time. Also, they need efficient banking services that include trade accounts, financing products, etc. We have a wide range of banking products, offering services to an extremely small entity as well those that are dealing on a much higher scale. We have business insurance that covers all their businesses in a bundled way. We have sharpened and enhanced our services to suit the needs of individual SMEs. For instance, if you have started up a new business without a company’s financial track record, but you’ve a good financial history as an individual, then we can offer them funding. This is called the selfemployed personal loan. We offer small business loans, business credit cards, trade working capital, commercial mortgages, foreign exchange services as a lot of companies buy and sell goods from abroad, etc.,. In a nutshell, we offer solutions to every need of our clients. We are the only bank in Dubai that offers FX services 24 hours a day and 365 days of the year. And we are proud of that In addition, we also cater to non-financial needs like how you get new customers. We have recently launched a new portal called the SMEXchange, which is free for both-customers and non-customers. This is a onestop shop to access all sorts of information. In this portal, we also have a ‘marketplace’ where you can display your services and network with all the participating

SMEs. It’s like a business matching service. We have also started a series of monthly seminars called the Start-Up Academy, where we discuss topics pertaining to the SMEs. So that’s the three-pronged strategy for the SMEs. With all that in place, we can really say that we have succeeded in supporting our customers throughout their journey for them to focus on business growth.

SM: What criteria do SMEs have to fulfil in order to access these loans?

RG: Firstly, track record of the

individual or the company is really important, covering an approximately two years’ time frame. Secondly, we also look at the account conduct that tells us how you have dealt with your banking partner. Thirdly, we look at the non-financial parameters: the relationship with the buyers and suppliers.

SM: Which industries/companies

have you cherry-picked to scale-up your lending activity? Or, do you follow the ‘chain-relationship’ (the successful vendors and suppliers of large corporations) method while offering loans?

RG: It is a unanimous decision to

encourage growth and embrace the SME demography. Mashreq bank caters to SMEs established in all sectors, but an establishment with a fraudulent track record or poor account conduct will not be entertained. In the context of chain-relationship, we do cater to tertiary suppliers. However, when the lending activity involves a multinational, they are required to comply with a distinctive structure.

SM: In an age when companies have a plethora of financing options for scaling up, which includes crowd funding, venture capitalists, angel investors, etc.,-what advantages do SMEs avail in choosing a bank loan?

RG: Firstly, banks aren’t competing with venture capitalists or crowdfunding entities. Secondly, the SME division devised in Mashreq is not mandated to provide risk capital. When an SME enterprise commences business and needs risk capital, venture

capital and crowdfunding options are viable. It simply boils down to a definitive calculation, if a startup has 90% failure rate, a bank will not be able to compensate for the loss, however, venture capitalists can.

SM: What kind of Shariah-compliant

services are you offering to this sector? Is there a growing demand for these services or it boils down to the figure, ultimately?

RG: We offer a variety of Sharia’hcompliant options. Moreover, Mashreq follows the principle of Sharia’h first, so all our clients are offered befitting this category. There are people who also do opt for it. It isn’t an extensive market, but clients who wish to render Sharia’h-compliant options, are provided with the same coupled with convenient service.

SM: Moreover, the trend of providing SME equipment financing options to purchase assets like machinery, vehicles, etc., is growing in the region-what facilities are offered at Mashreq Bank catering to this segment?

RG: We do offer finance for

equipment needed to set a company in motion. There is asset backed securities (ABS) finance that we recommend.

SM: Three tips for a novice entrepreneur. RG: First and foremost, invest in an accountant. If not a fulltime accountant, then a part-time accountant serves the purpose, but this is critical to any business operation. Secondly, choose a banking partner that renders stability and provides appropriate banking and financial solutions to the looming quandaries. Thirdly, take risks and expand business operations carefully. Be optimistic, but also be a realist. SM: One characteristic that defines Mashreq as a bank?

RG: We have tailored our solutions and bearings to truly cater to the customer & delight them. Therefore, I’d call us ‘Customercentric’.

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Intelligent SME

From the Entrepreneur

A brief chat with Randa Al Himyari

The Emerging Emirati Entrepreneur of the year on what made her nursery chain-Petit Bout Chou- a unique business model. ISME: You have recently won the Emerging Emirati Entrepreneur

of the year award, let’s begin with what does this recognition mean to you? Could you also tell us how tough was the transformation of an idea into a full-fledged business reality?

Randa El Heimeiri: Firstly, I would like to thank Tejar Dubai (an initiative by the Dubai Chamber of Commerce and Industry) for helping me develop business strategies according to the needs of the market. The support and mentoring by the expert committee of successful entrepreneurs and CEOs enabled me to put my business on the right track. Also, this journey has not been an isolated one as I had a strong support from my two business partners: Linda El Yaziji and Diana Roukoz. We had a common goal and vision to establish and run a chain of world-class nurseries for our diversified community. It is our consistent and committed approach to empower early child education that enabled us to grow this business. Our primary mission is to reinforce the children’s growth at all levels in their natural environment. We also strive to develop their scientific and creative competencies for the purpose of building their future identity. ISME: Who’s been the biggest source of inspiration in your early days of work life?

Randa El Heimeiri: As an Emirati, I am deeply inspired to carry forward the vision that

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Intelligent SME

From the Entrepreneur baba Zayed has set for us. His wisdom manages to spark the motivation and drive to explore the unexplored. Another key source of inspiration is my mother and her love for gardening. As a kid, I had seen immense patience in her when sowed and nurtured plants. I had learnt a lesson that just like plants don’t grow overnight, they need to be cultured and nurtured regularly to reap the fruits, businesses also need to be tended in the right direction for their growth. All you need to have is patience, commitment and faith. In the same light, we aim to cultivate and nurture the minds of these children so we can watch them grow and develop into beautiful individuals.

ISME: What was the wisdom behind starting this venture? Could you take us through the behind-the-scenes history of the company- target, milestones, etc.?

Randa El Heimeiri: My partners

and I established Petit Bout Chou in 2008 and Potentiel in 2012. Our purpose was laying a strong foundation of learning in the early years of a child’s life, which could be achieved in a safe, caring and playful activities environment. We wanted to promote physical, social, emotional, and cognitive development of all children. Our program was founded on the understanding that children grow within a complex set of inter-related systems consisting of the family, the school and the larger community. We wanted to groom them in honing their unique identities. Lastly, my association with Tejar Dubai has been a driving force and the journey would have been very difficult one without their relentless support.

ISME: Let’s fast-forward to today. Dubai has continued to grow despite all challenges-how do you find yourself and the company you’re associated with in this transformation?

Randa El Heimeiri: We are all

part of a vision! A vision that moved Dubai from sand dunes to skyscrapers. Nobody had imagined this, and no one can imagine what will happen in the future. We all learn from His Highness

I wake up every morning to challenge myself and not to compete with them. That’s what really makes us so different! Sheikh Mohammed bin Rashid Al Maktoum (Vice-President and Prime Minister and Ruler of Dubai) that the biggest challenge is the self challenge. Always challenge yourself when you start of a new day, once you do this, you set yourself new standards. There are many nurseries in Dubai offering good quality education. Still, I wake up every morning to challenge myself and not to compete with them. That’s what really makes us so different!

ISME: The kindergarten and

nurseries seem a crowded business space, with stiff competition from international brands-what are the key strategies you’ve adopted to sustain the glory you’ve achieved?

Randa El Heimeiri: We are the

only Emirati-based trilingual nursery here in Dubai. We distinguish ourselves through the development and implementation

of our vision of solidifying the Arabic language as the mother tongue, as well as offering French and English programs. Our programs are tailor-made for the completely cosmopolitan life here in the UAE and we are unique because we truly believe in the uniqueness of each child who can bloom in an environment rich in experience and exploration. We aim to provide every child with the kind of support he or she needs in order to develop and thrive in life. An important factor is that we also acknowledge the significance of engaging parents in the early education of their children and we support them as our partners. It is also crucial to empower our staff members and provide them with the required skills through continuous professional development and training.

ISME: Going ahead, what is your

strategy for the business? Do you want to own more nurseries, expand your footprint, or diversify to other business entities altogether?

Randa El Heimeiri: On the

education side, a bit of both. We are planning to franchise within the UAE and the MENA region. On the other hand, I am planning to venture into different businesses such as food & beverage (restaurant and cafes) and beauty salons.

December 2014 - January 2015

Intelligent SME

Meet the CEO

How to build an empire, the Akram Miknas way! 34

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Intelligent SME

Meet the CEO

ne of the biggest mistakes people do is that they limit themselves and their potential. The largest wall in the world is the Great Wall of China, but it has many entrances, just look for them, Akram Miknas, chairman of the largest advertising and communications network in the Middle East and North AfricaMCN Group, thoughtfully pointed out while addressing young entrepreneurs at the Emirates NBD Global Business Series last month in Dubai “My mother always wanted me to earn respect with my work. Throughout her life, she only insisted on the importance of education. Her message was so repetitive that I almost considered it as her last desire, and, thus invested significant energy to fulfil her wish,” he added recollecting his childhood memories.

The media mogul, who was born in Lebanon but is a Bahraini national, has been ranked third in the Middle East’s most powerful people in media, marketing and advertising. The Promoseven Holdings group, which he founded in late 1960s (Lebanon), owns some of the most sought-after brands like Universal Media 7, Seven Below, Weber Shandwick, etc. With a strong interest running into real estate and hospitality sector as well, Miknas has championed diversification through strategic investments in prime building across various countries, owning the franchise of Mc Donald’s in Lebanon and several leisure companies in the kingdom of Bahrain. Striding attentively in a freewheeling discussion, with his fingers clasped in a firm grip, Mr. Miknas shared the highs and lows of his life, his inspirations and strategies of doing business and how the attitude “I-can” has won him the fortune he enjoys today!

Following is the edited and condensed transcript of the interview:

TQ: Can I take you back to your

seventieth birthday, where your son gave a special ode to your success in a complete family gathering, what emotions were running in your heart?

AM: Moments like these cannot be described because they culminate a lot of emotions. However, the wholesome gathering of my family and special friends-who have shared significant life’s experiences with me-gave the celebration a really special meaning. TQ: Let’s flashback into your

childhood- your mother passed away when you were just twelve years old, can you tell us how did that affect you personally and how did you start developing your life thereafter?

AM: My parents were divorced, and I lived with my mother and her second husband. She died of cancer when I was quite young. During her last days, she was preparing me for coming to grips with her death. She even gifted me a tie and a jacket, explaining that nobody would give me one for a few years to come. And she was right! This gift was just

symbolic of how she wanted me to be seen. She wanted me to earn respect with my work. Throughout her life, she only insisted on the importance of education. Her message was so repetitive and frequent that I almost considered it as her last desire, and, thus invested significant energy to fulfil her wish. For my step-father, I was a new boy born at twelve. He tried to help me as well in seeking admission, but couldn’t do much. I had to pursue the dream of good education all by myself.

TQ: The important thing is that

education and learning had a special place in your life. It was one of the key factors in shaping your personality.

AM: Yes, good education was a priority for me. I studied at the prestigious International College of Beirut and, also the American University of Beirut majoring in Business Administration. Also, I was fond of American movies that portrayed young boys making an extra dollar by selling a lemonade or other titbits. Inspired by these stories, I sold door-to-door cosmetics and encyclopaedias to make my life a little better. Struggling with an inferiority complex, I somehow wanted to prove all the rich boys in the school that I was equal to them. I always tried to dress neatly and say the right things to people. A lot of people, I believe, actually bought things out of sympathy! Later, I started working for my university, making advertising campaigns and doing exhibitions. Irrespective of whether I was selling cosmetics, encyclopaedias, or, making advertising campaigns, I always managed to strike a deep chord with people through communication. TQ: Did you like daydreaming? AM: Yes, I enjoyed it absolutely.

After my mother passed away, I went to a lonely place and started kicking the stones, asking myself questions about who’ll be my saviour in this despair and struggles. I would usually end up dreaming about my mother, where I would often seek her guidance to find an escape from struggles.

December 2014 - January 2015

Intelligent SME

Meet the CEO TQ: Did you dream of today-

TQ: For the young entrepreneurs

greatness and prosperity?

trying to realise their Dubai dream, could you give us some insights on what are the driving factors required to achieve success in any venture?

AM:

No. I never believed in five or ten year plans. When I had a family, I remember the desire of having 25,000 dollars, which I needed as a guarantee to ensure that I can pay the hospital bills if anyone of them falls sick. In those days, I had a banker friend, who was also a client, working for the British Bank of the Middle East. One fine day he called for a meeting. As he was a client, I rushed to his service saying that I will come to meet you right away. That didn’t work with him. He negated my suggestion and said, “Listen, I am inviting you to have lunch with me tomorrow.” I didn’t sleep that night. I thought he’s going to fire me because, usually, when clients want to see you for lunch, it means that’s the last lunch with them (Laughs). He came in with his friendly charm, lacking the seriousness of someone looking to fire. He said, “I have a great news for you and, thus, I would like to ask you a question.” With slight hesitation, I brought myself to, “What question?” He calculated his words and said, “If you were given a lot of money, would you become a slave of your money, or, make the money your slave?” Surprised by his question, I stated that my bank balance doesn’t really have a lot of money. To which he reprimanded, “No. You, do.” He reminded me of the savings account I had made to achieve the goal of 25,000 dollars, which received small amounts of spare money every now and then. This account now possessed a million dollar. Explaining these details to me, he added, “I asked you this question because in most cases we have two people banking with us: (a) People who consider money as their slave and live well and (b) Customers who are a slave of their money, and they fail to live well.” I really loved the thought and it was quite useful in shaping my outlook towards life. I even felt that a million dollar is enough to retire from work! But the next morning woke up, struck with the realisation that I want to work and execute the ideas my mind processes.

AM: I believe that hunger is at

We own businesses across various segments-real estate, hospitality, manufacturing and industries, antiques and collecting and plenty of other interests. However, what made me really enter various disciplines is the fact that every time I gave a service to any client, I felt the need to support this service further.

the base of everything. I migrated from Lebanon in 1975, where I had established a company with seven friends who left me all by myself once the business started incurring losses, and reached Jordan by seeking a 500 dollars loan from a bank. However, my plans couldn’t really materialise as the country was more industrialdriven; whereas my business model was more services-led. It was a mismatch, basically. Then, I decided Turkey as my next destination as my wife hailed from the same country. I left my family in Turkey and moved to Dubai. I had a friend of mine here who kept me in his house for a couple of weeks. And that’s how I started making small printing deals to make ends meet. During this period, I also started an advertising company to sell local products. Now, the region had only one full-fledged weekly magazine, The Gulf Mirror, which had the reputation of expensive rate cards. On the other hand, the Intercontinental hotel had a mimeograph machine that published daily Reuters bulletin. As we were struggling to find a medium to start advertising, we approached Reuters with a proposition of printing their bulletins and circulating them in this part of the region. The advertisements were stapled along with the new sheets. That’s how I began my journey here…

TQ: A lot of people find it extremely

difficult to take the first step. Is it imagination or courage, or both? What’s the secret sauce for starting a business and achieving growth?

AM: Hunger can be defined in many ways. I don’t think it would be fair to say that businessmen are more successful than employees. Some of my employees have become millionaires. And I am really proud of this fact. I feel that every individual has a deep desire to excel in whatever he does, or wherever he is! He/she needs to

December 2014 - January 2015

Intelligent SME

Meet the CEO love their work. Love can only do one thing: it can ignite your mind to actually rationalise in doing the right things. It’s never the job that holds importance, but the attitude towards the job that makes it or breaks it. It’s also about observation, and the desire to do things better. One has to look out for gaps and opportunities where things can be done in a much better way.

TQ: How do you scale from a

couple of million dollar entity to billion dollar one? That steep growth trajectory is accomplished only by 0.1% of the total world populationCould you share some insights on these lines?

AM: It’s luck, I would say! One of the biggest mistakes people do is that they limit themselves and their potential. The largest wall in the world is the Great Wall of China, but it has many entrances, just look for them. I have an interesting story on how we won the BMW account. In 1982, we had just two clients: Cathay Pacific and one small firm. I was send to pitch for BMW, but I ended up telling them, “I don’t agree with your platform. You’re communicating with the mind of the people. In the Middle East, individuals are full of themselves and egotists, you got to be speaking to the man.” I proposed them an advertisement that read: Are you a man enough to drive a BMW? The guy looked at me and said, “Do you really think we are going to accept that idea?” I replied that this my proposal if you want to take this brand further. The asked me to work and improvise on this concept and come back in thirty days. We went back to them and won the business a month later. At that point of time, I was really hungry to excel. In three years’ time, we took the brand from 200 cars a year to 2500. I almost carried those cars on my back. Let me tell you, I wasn’t really looking at the money, but exploring success. And I found it. TQ: What pushed you into

diversifying your business to such a large scale?

AM: As a matter of fact, I am the

MCN chairman, but my group is known as the Promoseven Holding and I am chairman of this entity too. We own businesses across various segments-real estate, hospitality, manufacturing and industries, antiques and collecting and plenty of other interests. However, what made me really enter various disciplines is the fact that every time I gave a service to any client, I felt the need to support this service further.

TQ: You’ve built many brands

in your life. What are the most memorable ones that you built from scratch?

AM: One product that will always stand out is poultry. When I just started my business in Lebanon, I met a gentleman named Philip Maslalla, a chemical engineer. During a freewheeling conversation, he mentioned he had the capital and wished to start an entrepreneurial venture. He intended to start a poultry business. Initially, I advised him against building a farm but a brand. He believed that advertising and marketing can churn out the desired outcome, hence, he invested half of the capital to shape the brand. The brand was called Le Poule. The products of Le Poule were expensive as compared to the other brands in

the market. The trick to trigger brand engagement was storytelling, so a TV commercial was filmed. The concept was simple: Le Poule delivers hygienic products. The quality control and production process was explained with utter clarity, thus, people did not mind paying extra. Within 6 months, Le Poule had amassed approximately 50 percent of the market share. Due to faulty distribution process, the brand had saturated. During the war, the idea of retouching the creative and artistic aspects of the TV commercial was pitched. Maslalla was skeptical, however, eventually surrendered to the whim. The TV commercial was a hit. However, it also caused the profits to spiral down. It was then, Mr. Maslalla advised me to re-connect with my roots. He asked me to spend a week surviving in the poorest place in Lebanon to better understand the needs of the customer base. I travelled to Karantina, which was known as the worst part of Beirut (Lebanon). I stayed with an Armenian family, but couldn’t survive for more than three days. On my return, I had learnt my lesson about customer engagement and we hit the market with a bang! By 1975 Le Poule owned 70% of the market share. The other brand that I’m very

December 2014 - January 2015

Intelligent SME

Meet the CEO proud of is BMW. Middle East was never considered an outright contending market by BMW. Dubai was a developing region, therefore had economic constraints. Likewise, Bahrain wanted to keep the conservative media at bay and Egypt suffered from raging bureaucracy. Morocco was the only country that welcomed the idea of hosting an event for BMW. This event landed up on the front page of Stern magazine.

TQ: When organizations become

large they deviate from their roots. How have you managed to keep holdings like FP7 and MCN still in the race?

AM:

My ideas were getting outdated, so I quit MCN and handed it over to my successor. The business has grown tremendously. However, even today, my greatest passion is pitching. I like to talk to clients about boundless possibilities, potentiality and capabilities. I did venture into new avenues. We had constructed three new towers in Beirut that have become a landmark now. I enjoyed the entire process because I was keen to learn new things. This project sparked an interest in real estate. I’ve just finished a project for the lower income strata and will start on the next soon.

TQ: What do you feel about digital and new media?

You have to understand that failure and success are a part of everyone’s life just like black and white, and one has to love both of them in the same way. If we don’t fail, we won’t ever succeed. I don’t really mind my people failing, but I would be upset if they do the same mistake over and over again.

AM: I’m still getting a hang of it. TQ: How do you handle failures and disappointments?

AM: During my childhood, there was not a single day when I hadn’t encountered problems. You have to become resilient. Success and failure are shades of the same colour. TQ: Failures and disappointments-

what would be your advice to people on handling difficulties?

AM: I am a Lebanese who was born just at the time Israel became a country. I’ve never known a day without problems. You have to understand that failure and success are a part of everyone’s life just like black and white, and one has to love both of them in the same way. If we don’t fail, we won’t ever succeed. I don’t really mind my people failing, but I would be upset if they do the same mistake over and over again. TQ: We transport ourselves to May 29, 2044, it’s your 100th birthdayWhat would you like us to celebrate here tonight? AM: Sympathetically, the crowd

would be saying, “Poor old man!” (Laughs). I have museum based on the concept of moving images, which has everything to do with images before electricity and until Charlie Chaplin. It’s one of the world’s largest so far on this concept. I would, perhaps, love to spend time at the museum. That’s probably what I would be doing and people gathering to ask me about moving images.

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December 2014 - January 2015

Intelligent SME

Marketing

doesthisreallywork##

Twitter for Business Every year, there seems to be a lot of hype around a certain social media platform and 2014 was the breakthrough year for Twitter. The platform became the fastest-growing and most talked-about social media site (crossing the 255 million monthly active users mark). Tish Tash advises on how your business can take advantage of this platform.

he online social networking and microblogging service launched in 2006 needed a bit of time to prove its mettle, outside its celebrity fandoms-but it managed just fine. It was successful in attracting a host of global brands â&#x20AC;&#x201C; retailers, airlines, FMCGs, technology companies - who learned how to use the platform and the 140-character messages to their advantage: creating better customer experiences and increasing sales. Dell, for e.g., has recently announced that it achieved $7 million in sales just hanging out on Twitter. Thatâ&#x20AC;&#x2122;s certainly #timewellspent. Ubiquitous presence of hashtags aside, can Twitter help small businesses? We think it can. It can help raise awareness, build

their profile in the community, gauge their market and interact with existing and potential customers. Plus, just like all other social media channels, it is costless - though it may be fairly time consuming. Small businesses, should start exploiting Twitter for

all its worth #asap. Here are a few reasons why:

Personalisation: Personal

interaction, service and speed is typically what sets small businesses apart from large corporations. Itâ&#x20AC;&#x2122;s also what Twitter

December 2014 - January 2015

Intelligent SME

Marketing Join in: search for Twitter users in your community with many followers (the ‘influencers’) and watch what they’re saying. Start by following and interacting with them; eventually some will follow you back and that’s how you’ll start building a community base.

helps you deliver. Flywheel Dubai (@flywheeldubai), the indoor cycling outfit, uses Twitter as a two-way customer service channel. On one hand, there’s all the info and updates that Flywheel is able to communicate at one go to its cycling fans and followers, along with responses to incoming queries; on the other hand, there’s a great level of engagement. The best part, they don’t need any tools to measure the engagement, they just scroll down to see the people chatting.

Promotions: Everyone loves offers and discounts and twitter is a great place for these. Nando’s (@nandosuae) the original flamedgrilled chicken PERi-PERi restaurant runs regularly Twitter exclusive promotions (such as the recent quest to find ‘The Best Nando’s Griller in the UAE’). It’s highly rewarding for the business and its customers: for Nando’s, this a cost effective marketing tactic; for loyal customers, it’s great fun and tasty chicken. When promoting a special offer, keep in mind a few tips: tease the offer in advance to raise interest; maintain a heightened level of tweets during the campaign to keep up the momentum and make sure to respond to followers to keep the conversation going. Promoted Tweets: Twitter’s advertising network is open to all businesses and it’s a straightforward equation: it’s a pay-per-action (pay-per-follow) model, where advertisers are charged when users interact and react to the content: they ‘retweet’, ‘reply’, ‘favourite’ or ‘follow’ the advertiser via the promoted tweet. Just like Facebook, it offers targeting options by geography, gender, interest and device; and you can track the progress and performance of the promoted tweet with a set of analytics. Tempted to set up your own Twitter account? Here are some basic twitter etiquette tips to get you started: Profile: have a short and effective

description of your business with a link to your company website and a nice visual.

Mind your content: participate in discussions and retweet interesting posts from others. Share news about your company too, but don’t overload. 80% of your Twitter time should be on plugging and interacting with others, as this is what makes the conversation worthwhile for your followers; only 20% of the time should be spent on business relevant posts.

Tag your customers, partners or other businesses whenever you mention them in your tweets. Avoid multiple exclamation marks, abbreviations and make sure all words are properly spelt.

Keep it interesting: start a hashtag discussion thread; run a Twitteronly competition; in short look for tactics that would keep your followers engaged. And don’t forget to tweet during the weekend too. Find your voice: approachable, responsive and friendly is the best voice on Twitter. That’s probably how you’d like your company to be perceived and talked about as well. Twitter handles and punctuation: tag your customers, partners

or other businesses whenever you mention them in your tweets. Avoid multiple exclamation marks, abbreviations and make sure all words are properly spelt.

Beware the #hashtagmania: though, technically it’s not Twitter if there’s no hashtag, this is also the #mostoverused, #abused and #irritating feature. Use it in moderation. Don’t use multiple hashtag in a single tweet for the sake of it. It’s not funny or witty, and there’s no gain from it either. Use your hashtags if there’s a point in it. Ultimately running a business takes up a lot of time. However, from a marketing standpoint, it’s essential today to have a strong presence at least on one social media platform. The least you can do, is give it a try and see if Twitter is the one for you in 2015- #doesthisreallywork? 43

December 2014 - January 2015

Intelligent SME

Sales and Marketing

The hidden treasure in networking Robert Kiyosaki, author of Rich Dad Poor Dad said, “Most people work, but successful people build networks.” Phil Bedford points out that getting the right approach will go a long way towards making sure that networking starts working for you.

or many people ‘networking’ is all about shaking hands, handing over business cards and closing deals (or trying to close deals). Over the last few articles, I hope we have managed to open the reader’s eyes to the post proactive ways to network, which includes refraining from ‘scored earth’ method of networking that most people employ. It’s about farming, building relationships with people rather than just seeing them as potential direct revenue, which is a short-term and limited approach. When we network correctly, there is a hidden benefit that many successful people know well. Given the right people, one can derive powerful information and strong support for leveraging their businesses. While being connected is relevant to everyone in life, it is particularly business owners who need to have access to information and support. Most shrewd investors know, for example, that if you really want to know the best investments, you do not wait until they are talking about it in the papers or in the news. It’s too late then. This kind of information is gleaned through contacts, people in the know. People with an “in”. Everyday business problems can often be solved by knowing people who we can call for advice and solutions or even just to provide an “ear” to our thoughts. This advisory or master-mind concept is taught by nearly all the world’s business gurus but many

December 2014 - January 2015

Intelligent SME

Sales and Marketing entrepreneurs struggle for years before they consider its value. One of our biggest draw backs as entrepreneurs is we often don’t like to ask for help. Robert Kiyosaki, author of Rich Dad Poor Dad says, “Most people work, Successful people build networks. The second hidden benefit to a strong network is support. This comes in many forms. To highlight a few, this could be emotional or financial. As business owners we tend to be at the top of our company. The buck stops with us. We no longer have a boss to go to for help. When stressed, we turn to our spouses who often carry the brunt of our frustration or snap at staff.

When demotivated and depressed, who can bring back the positive vibes? We need people who understand what we are going through who can be sympathetic,

My tip for this week is to carryout a people audit and see who you are currently hanging around with.

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.”

understand and advice if needed. People who have been there or going through it. When we surround ourselves with other entrepreneurs who have experienced our journey, or fears and our excitement, this can be an enriching and refreshing experience. Just being around positive people can often be all that we need to refuel our drive and get back into the fray. If you were to take a snap-shot of the people who are around you at this point in time. Do they add value, good information, support, energy and drive or do they drag you back. Is their mind set ‘can do’ or ‘can’t do’? Napoleon Hill said, “We are the average of the people we surround ourselves with.” Many of the problems we are experiencing could be self-inflicted unconsciously by simply being around the wrong people. I tell my clients to ‘networkup’, which means look for people who are even more successful than what you are! Start to hang around them, learn from them, try and help them. Successful people often like to help other people become successful, they appreciate the ‘can do’ attitude. The ‘can’t do’ person will often ‘network-down’ to make himself or herself feel good about their situation and to meet people the can blame the world with. My tip for this week is to carryout a people audit and see who you are currently hanging around with.

December 2014 - January 2015

Intelligent SME

Sales and Marketing

Sales Pitch? Answer challenging questions to win a deal No client buys your products or services, they buy the impact it will have on their commercial performance.

ne should orchestrate the sales process as a collaborative interactive session and you'll soon find yourself in the situation of a trusted advisor instead of just another company trying to make a sale, writes Peter Heredia. One of the toughest things in any business is to convince people to buy your product/service and answer the question: “What makes your product better than the competitor’s?” Sales people simply approaching clients to talk about their products and services are the most expensive form of marketing known to any business. Did you know professional sales people during the first meeting, known as the ‘information gathering’ stage of a sale, should spend no more than 20% of the time asking questions? The rest of the time should be spent listening to understand. Unfortunately, in the UAE market today there are many more talkers than listeners. Only by understanding what the client needs will allow you to present the correct solution,

and maximise the relevance of your proposal. Having worked with nearly 100 companies in the UAE, I have yet to come across a customer that is interested in everything available for sale. If this is true, in most businesses, why do sales people persist in broadly presenting their entire product offering when they first meet a client? No client buys your products or services, they buy the impact it will have on their commercial performance. It is your sales effort that needs to link what your company offers to achieve that outcome. In most cases, the cost of what you are selling doesn’t vary on how a customer uses your product or service. For example, if you use a courier service to send a multi-million dollar contract or a just a simple letter, they are both still paper and the cost of moving either from A to B is the same. However, it is up to the sales person to demonstrate a solution, in this case “reliability” that will increase the value of the deal and a positive impact on the client. Again, the only way to be able to present a powerful solution is to understand the client and later link your products to the impact it will have on their business. As value represents the price you are charging for the solution you are offering, the perceived value is what buyers base their decisions on. Therefore, the price objection many people feel is out there in the market is generally not correct. Either you are not talking to one of your target audience, or you have not demonstrated enough value (a solution that is worth what you are charging).

So when a sales person explains to their boss ‘they got a cheaper deal elsewhere’, they are really saying ‘I didn’t demonstrate enough value’. Why do many sales people in the UAE fall into this trap? The answer is very simple. They are too focused on their business. They live and breath their service and products everyday and fall into the trap that many of us do and assume others have more knowledge on what they are talking about than they actually do. Having structure to their meetings, ensuring they ask open questions and listening to the answers will eliminate this wide misconception. If a sales person can get this correct the rest of the sale, including proposing a solution, negotiation, handling objections and closing the deal will be much easier. Let’s have a look at the impact on your sales figures when more focus is placed on understanding your clients business. If a sales person is working on 20 opportunities valued at AED 20,000 monthly, and they are closing 20%, how many deals are they winning? Yes, the correct answer is four generating AED 80,000 monthly. So this means 16 are saying NO. Let’s not jump to conclusions here and assume if you sell value all 16 that are saying NO will start saying yes. Why? Because selling value is not straight forward and is not something you implement overnight. In addition, it is tough to know from the outset if all of these 16 are part of your target audience, so in truth the best sales person in the world cannot convince a client if your product is not positioned or priced for what they are looking for.

December 2014 - January 2015

Intelligent SME

Sales and Marketing Let’s say that with a slight company focus toward selling value, it still doesn’t work with 15 of your clients. This means that one more client is saying YES. How does this affect the numbers? Let’s have a look. Not only will you get an amazing 25% increase from your new business, but in the majority of cases this should be more profitable as you are not increasing your cost of sale and sometimes other fixed costs.

Case Studies Label Printing:

A large multinational signed an agreement to supply labels as the quality was of a higher standard than their current supplier. The impact of an improved quality ensured that their product would get more attention on the shelves of supermarkets and therefore sell more.

Value: When focusing on value, the sales person did not sell printed labels but instead increased revenue to the customer’s organizations. International Courier: A sales person implemented

Before Selling Value Focus on Selling Value

Number of Opportunities 20

Deal Value

20,000 AED

Yes

4 5

16 15

Total Revenue

80,000 AED

100,000 AED

Percentage Increase

25%

new technology to ensure the logistics manager of a small company goes home earlier as he was staying an hour late every night. He also established that since the manager had an 18 month old baby.

Value: The sales person never sold

Value: The solution was not about getting parcels from A to B, but being able to spend more time in his son’s life. Selling Lap Tops: A customer was looking for a light laptop as he had a bad back. The sales person understood about the discomfort getting in and out of the car and how much he had to pay going to the chiropractor.

a laptop, he convinced the client to buy for ensuring more comfort and saving money.

Peter Heredia is the Managing Director of Max Sales Solutions. He has worked with sales teams around the globe for more than two decades and boasts a ten years strong track record of the Middle East market. His passion is helping smaller businesses to significantly improve revenue performance by focussing on the productivity and efficiency of their sales teams. Please connect with him on peter@ maxsalesolutions.com.

December 2014 - January 2015

Intelligent SME

Marketing

Transforming fear & failure into triumph Your life should be a process of continuous evolution of learning, transitions, risk taking, failures and transformations if you want to achieve more than your few moments of fame, writes PK Menon.

eople from all corners of the world flock to the UAE in droves each year to try their ‘luck’ at breaking into a new market, irrespective whether they’re entrepreneurs, start-ups or corporate executives. But given that research suggests that almost half of the world’s expats fail to cut through in their new venture, it’s clear not everyone comes prepared for the hard slog they will face once they arrive at their destination. So what do those that succeed do differently to those that don’t? Quite simply, the difference lies in their attitude towards fear and failure and their tenacity to persevere when the odds are against them. Indeed research has shown that the world’s most successful people don’t achieve great success despite their failures; they succeed because of them. Basketball legend, Michael Jordan summed up the importance of failure beautifully when he famously said, “I've missed more than 9,000 shots in my career. I've lost almost 300 games and 26 times, I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed.”

Life isn’t just an upward climb

Some people seem to think that once they’ve climbed to the top of the corporate ladder or started the business they’ve always dreamed of, they’ve ‘made it’. But life isn’t just an upward climb, especially in the 21st century game we’re

VISION COU R

AGE

December 2014 - January 2015

Intelligent SME

Marketing

Courage walks past fear all playing today where change is always just around the corner and competitors are constantly vying to take the top spot. Life today must be a continual evolution of learning, transitions, risk taking, failures and transformations if you want to achieve more than your few moments of fame. Indeed the level of success any professional aspires to achieve hinges directly on their ability to learn from failure. This is true no matter what their profession, their industry or where in the world they are located.

Courage walks past fear

Human behaviour is predominantly driven by two factors - the avoidance of pain, and the pursuit of pleasure. Fear is the underlying factor that drives both behaviours and explains why people are compelled to actions that fail to serve their best interests. Furthermore, the fear of failure is a fundamental cause for procrastination and inaction. While many will challenge the idea, it is ironic that

EN PATI

PATI EN

most people are just as fearful of success as they are of failure. Why? For the simple fact that both bring us out of our comfort zone. It is only when we develop the courage to walk past our fears that we can begin to appreciate and benefit from the immense potential that lies within. In North America’s Rocky Mountain Ranges, the American Bison is known for deliberately turning to face the violent storms common to the area while other animals flee westward in an unsuccessful attempt to outrun it. The fearlessness shown by the American Bison pays off. Known for its tenacity and resilience, the American Bison has discovered the answer to a problem many humans fail to grasp in their lifetime – the need to put fear aside and tackle a challenge head on. Today as we compete on a global stage, our challenges have moved from the savannas, forests and mountains to the boardrooms, stores, hotels and the Internet’s vast virtual world. The ultimate irony is, we all share the same fears - every single one of us. Like the American Bison, successful people have the resilient, tenacious mindset that enables them to put their fears to good use. In other words, courage is not the absence of fear. It’s the will to overcome it so that fear becomes the driver rather than the dictator.

The key steps to transform failure into triumph

1. Clearly define your vision or purpose – Why are you here and exactly what do you want to achieve? 2. Patience – Understand that the ‘get rich quick’ scheme exists only in fairy tales. It takes patience, sacrifice, tenacity, grit and constant deliberate practice to become the authority in any space. 3. Flawless execution – Inspiration has a shelf life. One of the most common reasons people fail to last the distance is that their initial desire, no matter how strong, fails to translate into action.

Top 7 traits of successful people

1. They show resilience and immense courage whenever

Prakash ‘PK’ Menon is one of the most influential leadership, retail and supply chain and logistics authorities. He is the author of three books – Driven - Accelerate Your Career with Smart Transitioning, Supply Chain is Sexy - Harnessing the Retail Revolution and Fail Smart - The Undeniable Link Between Failure & Success. Please connect with him on pk@thoughtleadersme.com

5. 6.

they hit a cross road in their journey towards achieving their vision. They face their fears head on and don’t just set goals; they roll up their sleeves and get on with it. They say ‘yes’ more often because their growth mindset tells them anything is possible if you set your mind to it. They neither compare themselves to anyone else nor do they have unrealistic expectations of others. They understand that giving in to fear prevents them from achieving their vision. They understand that talent is overrated and see the pursuit of lifelong learning as an investment in themselves. They believe that quality beats visibility hands down and do it well regardless of whether anyone’s watching or not.

At the end of the day, fear prevents us from achieving our goals and being true to who we really are. It’s up to you to make your authenticity shine. Don’t fall into the trap of complacency. Be relentless in your push towards fulfilling your passion and never stop learning in order to build on your existing skills. Remember, your vision is far greater than every challenge you will face. When it comes to gaining the competitive edge and achieving victory in the 21st century, don’t ask, “Why me?” Believe in yourself and ask “Why not me?”

? 49

December 2014 - January 2015

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Mind for Business

How fear makes your profits tremble? We must acknowledge that fear is a very human problem. In a bid to overcome fear, Sachin Thombare says that one must equip employees with tools like negotiation, communication and leadership skills to help them identify and eradicate fears that hamper their performance at work.

magine for a moment that you are a caveman about 15,000 years ago. You have had a great day at work and now returning to your cave. As you approach a grassy area, you sense strange movements ahead and you stop. You are absolutely clueless whether it is a 5 pound hare or a 500 pound Sabre Tooth Tiger that lurks in the grass just a few miles away. You freeze, keep staring and quickly a gust of wind ruffles the grass revealing that it is indeed a Sabre Tooth Tiger waiting for you with baited breath and foot long canines sticking out of its hungry mouth. In an instant (far quicker than a second), your mind decides whether to run from or to stand your ground and fight. Now imagine 15,000 years after this incident, another human being who works for you thinks he has had a good day at the office and is getting ready to go back home. As he leaves his cubicle, he spots you standing just around the corner and he remembers that he has not worked on that report that you had asked him to complete last week. In an instant (far quicker than a second), his mind decides whether to run from there or to stand his ground and fight. The situation here is the same as it was 15,000 years ago with just two little differences: you are not a

500 pound Sabre Tooth and he can neither run nor fight! The fight or flight response is a mechanism in the Limbic system of our brain that has ensured the survival of our species for many millennia. While our environment

The fear of making a sales call, the fear of sharing an idea at a meeting, fear of the competition, fear or peers and colleagues, fear of new technology, fear of success or fear of failure to name a few. has changed drastically (there are now offices instead of jungles and bosses instead of tigers), the response still operates in more or less the same way. Throughout our history, there is one thing that has protected and

served us and has also prevented us from achieving far greater heights. That one thing is fear. Fear is probably the most interesting emotion that we humans exhibit. To begin with, there are only two fears that we are born with; the fear of loud noises and the fear of falling. All the other fears in our lives are learnt responses. We have actually learnt to fear specific people, events, situations etc. It is also ironic that the object of fear for one man could be the source of pleasure for another. A snake on the road is an object of fear for most people but a source of intrigue and pleasure for a herpetologist. It is also ironic that if we were to be purely fearless, we would be dead. It is wise to be fearful of speeding cars while crossing the road. Fear also has numerous derivatives; terror, fright, horror, alarm, panic, trepidation, dread, distress, worry, angst, unease, nervousness, timidity, discomposure, hesitation etc. While the basic emotion remains the same, its intensity and magnitude determine whether a particular fear is a phobia or just a slight hesitation. This in turn will decide how easy or difficult it is to overcome the fear. So what has fear got to do with profits?

December 2014 - January 2015

Intelligent SME

Mind for Business Let me explain.

In the 1990’s Korean Air suffered a spate of crashes. Amongst them was the crash in Guam that killed 228 people on board. Amongst the reasons cited were the captain's poor execution of the non-precision approach, the captain's fatigue and other technical factors. What was most interesting, however, is that the investigation also blamed Korean Air's lack of flight crew training as a cause for the crash. Subsequently, the ‘power-distance’ theory was blamed as a major

reason for the crash. The younger co-pilot saw the pilot as a superior and did not correct him even if the consequences were going to be so dire. The fear of confrontation led to death. Fear plays a very important role at the workplace whether it is a pilot, a manager, an engineer or an accountant. While the big fears such as fear of losing the job or fear of losing one’s reputation or fear of the boss are prominent, it is the other fears that are important too. The fear of making a sales call, the fear of sharing an idea at a meeting, fear of the competition, fear or peers and colleagues, fear of new technology, fear of success or fear of failure to name a few. It is these fears that play out in offices all over the world with frightful consequences. It is just that the corporate world does not always suspect fear as the culprit. These are instances where the sales target has not been met because a talented sales person suffers from a fear of making sales calls or when great ideas are not shared for fear of rejection or when an accountant does not point out a financial irregularity in time or when nobody wants to go the extra mile for fear of taking responsibility. Even if fear is blamed as the culprit, the classic way of dealing with it is to make the person more fearful. The logic being that a bigger fear will make the person overcome the smaller fear. How many times have we heard sales heads unflinchingly tell the rookie salesperson – “you

Sachin Thombare is a hypnotist, a master practioner of Neuro Linguistic Programming and Gestalt therapy. He is the creator of the Subtle Skills™ training platform and trains corporate clientele on enhancement of human potential. Sachin is also an intervention based coach who specialises in turnaround strategies.

better make those calls or lose your job.” Another classic approach is to introduce a desired object to make the person overcome the fear – “convert those calls and you get a super incentive that is even more than your salary.” While both these approaches do work to some extent, they leave behind them a trail of heavy employee turnover and increased costs to name the main damages caused. There are also numerous other ways in which a business suffers because of fear that is not diagnosed or corrected. So the real question is - what can be done to minimise the impact of fear on the business? To get to a solution, we must acknowledge that fear is a very human problem. Therefore in order to overcome fear, we must equip employees with tools that help them identify and eradicate fears that hamper their performance at work. We look at communication, leadership or negotiation as skills that can be taught or learnt. It is time we think of fear eradication as a skill that can be taught to people. The good news is that this is possible through training. The field of alternate psychology has tools that can be very effective at fear eradication. These tools can be made available to organisations through group trainings and workshops. So the next time you see fear eating at your bottom line, make sure you use something more than the carrot and the stick. Make sure you use the training room.

December 2014 - January 2015

Intelligent SME

SME Booster

Driving client loyalty

with account management

entral to any business model is the ability to spot the need of the customer, and addressing it effectively. Business models that have their products or services at the core and customers around them tend to disintegrate soon, as the needs and demands of the market place is never the same forever. Successful enterprises always focus with the customer being the nucleus - the products, services, channels, processes and the entire organization are built

around the customer and his changing needs and preferences. Considering the fact that the effort involved in identifying the prospect, investing in the sales effort that help converting the relationship to becoming a customer and executing the transaction - are all well demanding of management time, would it not then be logical that the relationship is further invested in, to increase stickiness? When a customer relationship is progressed from being transactional to that

of a long-term partnership, the result is not only a deepened loyalty, but also a model of a much higher orbit, that of advocacy. The challenge however is, that the management bandwidth and high caliber resource pool is always limited, and it is hard to spread this thin. And this is where the concept of Key Account Management (KAM) truly plays a vital role. While we all know it, the challenge is in coming to terms with the fact that every customer is

December 2014 - January 2015

Intelligent SME

SME Booster not a key account – a very common pitfall that companies end up in the euphoria of actively engaging with its customers. Pareto principle always helps – it helps to know which are those 20% customers who drive 80% of the business. Depending on the primary focus of the organization, the maturity of the industry, the core ‘business’ measure may be that of revenue or profit or market-share. What is important to recognize here, is that you determine the key customers who can make a difference to your organization - both quantitatively by driving your business growth, and qualitatively by being a promoter of your services to their peer group. So how does a well-established Key Account Management strategy really deliver benefits? In simple terms, it provides a more conducive framework to drive a higher customer engagement, which in turn helps drive a higher customer loyalty and retention. However, that is but a means to a larger goal, which is to maximize customer value – both monetary and nonmonetary. While the operational benefit is always a higher walletshare, it eventually helps position the organization’s differentiated value proposition, resulting in larger mind-share in the medium to long-run, to bring in a sense of true partnership. Sustained investment in a relationship is much beyond that of focusing on repeat orders or providing a beneficial pricing. A true key-account-anagement (KAM) model has 3 important facets to address: • Strategic: Set the scope for the Key Account Management – determining who is a key account, defining the value proposition,

formulating the go-to-market strategy and most importantly establishing the measurement and monitoring its progress • Functional: Ensuring that the strategic objectives are then translated into operational tasks and actions which help in planning, coordinating and controlling the relationship at a sustained level of intensity • Organizational: Perhaps the most important facet of KAM is in the successful alignment of the organization to that of the customer. In a manufacturing setup, for instance, KAM Strategy is truly successful when there is higher access to customer information, when a customer could be involved in the production or delivery cycle, and thereby bring in an efficient supply chain process. The question then is, what about other customers who are not qualified as KAM? Again, no customer can be unimportant to an organization. It’s a function of what stage and phase of relationship one is looking at to drive this strategy. Where the customer offers an attractive business proposition but the relationship strength is low, the focus is on development. Contrarily, where the attractiveness is less but relationship has been built over the years, the focus is on maintenance. KAM is typically applicable to customers who offer both. And what if the customer is neither? Of course, the relationship then gets opportunistic and tactical.

The elements of any KAM Strategy can be classified into 5 core initiatives: 1. Developing a company-wide appreciation of KAM, and building an organizational

V Ramkumar is a Partner at Cedar Management Consulting International LLC, a US based management consulting firm whose heritage includes being part of the firm founded by creators of the Balanced Scorecard. Ram has over 20 years of management consulting and strategic transformation experience. He can be reached at v.ramkumar@cedarconsulting.com

culture around it. And this starts right at the top, and calls for the CEO’s time and commitment. Assigning the right account manager to each KAM customer, forming key account plans and enabling a 2-way interaction. Providing for the framework to hear the customer’s voice. Determining the right engagement model with the KAM – including mapping of who’s who and the respective counterpart from within your organization – both for sales and service. Defining the targets and joint activities, and working towards achieving target benchmarks – which also call for investments that need to be made to strengthen the relationship A continuous monitoring process to review the progress

It takes the best to deliver the best. Needless to say, KAM relationships flourish and genuinely reward with dividends when you assign the best of your resources in managing the partnership and delivering the services. This is key, and seeing this through calls for a sustained commitment to this model. And more importantly, rewarding the performance and recognizing improvements that come along the way are key for effective motivation and serve as the best incentive to the team that delivers. After all, unlocking true potential calls for the having the right key to account management!

December 2014 - January 2015

Intelligent SME

Business Law

Spotlight on the legal growth catalysts There is a need to create a positive and financially stable environment to help SMEs breathe, grow and contribute. With the 2014 legal implications calling the shots, this dream seems to come true.

recent statistic from the World Bank indicates that SMEs contribute to around 45% of employment and 33% of GDP in emerging economies. This global trend has also seen similar impacts in the UAE. SMEs are responsible for 60% of contribution to the UAE’s non-oil GDP, 86% of private sector employment as well as a 90% contribution to overall UAE employment. However, in spite of most SME’s positive influence on GDP and employment, several upcoming SMEs face severe hurdles on the road to establish themselves financially. At present only 4% of banks are willing to provide loans to SMEs, and the rejection rate for SME lending is at a massive 70%. The UAE is determined to turn things around for SMEs. The World Bank’s ‘Doing Business 2014’ report indicated that the country has set up a positive environment for ‘ease-of-doingbusiness’, which ranks it at 23rd out of 189 economies. This year has also seen the development of several legislative measures which should provide substantial improvements to the development and sustainability of SMEs. The Legal team at Kashwani Law Firm

further discussed the implications of this new legislation on SMEs and entrepreneurs. The first significant legal change was the approval of Federal Law No 2 of 2014, which contains several benefits for SMEs. The new law will form a new category for SMEs, establish a dedicated council and determine incentives to be offered to small business owners. This law was issued to support UAE nationals with ambitions to create successful projects and enterprises with the overall aim to continue providing support for the development of the economy. It also aims at increasing government support for SMEs, requiring governmental institutions to dedicate no less than 10% of their deals to SMEs. This motion will help stabilize the relationship between all government institutions and entrepreneurs who own SMEs. A co-operative association will prove to be an important component of any successful knowledge-based economy. This law will also facilitate a culture of research, innovation and creative entrepreneurship in line with the growth of the UAE. Recently, a new labour law has been passed which will ensure

that the salaries and benefits for Emiratis working in private companies are on par with those in the public sector. At the moment, the number of Emiratis in the private sector is low, because the private sector cannot match the higher salaries and benefits of government workers. However Emiratis could be attracted to the private sector if there are chances of employee engagement and opportunities for development. The SME law could create new job opportunities for UAE nationals as the UAE acquires its status as a hub for entrepreneurship and innovation. On the flipside, a law that required the private sector to lift wages would probably negatively affect small businesses and entrepreneurs first. There is also expected to be

December 2014 - January 2015

Intelligent SME

Business Law Roustam Farman joined Kashwani Law Firm in 2013. He has extensive experience in handling international business transaction cases, CISG matters and monitoring and controlling legal department activities in the group. He specializes in Civil Law, Corporates and Real Estate. He has worked on a number of high profile cases involving clients such as Hauni Maschinenbau and Nokia. You can connect with him on r.farman@gmail.com

an amendment to the Companies Law, which could potentially benefit startups. This new law develops the establishment of new companies by eliminating the requirement of having to dedicate a capital of at least 150,000 AED ($40,000 USD) in order to establish a limited liability company. There are also hopes to start a program to offer support for companies facing financial problems by allowing their closure in a systematic manner and with minimal loss, which would further encourage the spirit of creativity and entrepreneurship. This would allow entrepreneurs the ability to launch new startup ventures while accumulating less risk. Federal Law No 2 of 2014 is also going to be responsible for boosting the funding to start up an SME. It will assist SMEs by

securing the financial resources they require, and enhancing the cooperation and coordination between the various entities involved. The banks will now be legally obligated to provide loans, thus paving the way for several upcoming entrepreneurs who wish to engage effectively in the business world and translate

Federal Law No 2 of 2014 is also going to be responsible for boosting the funding to start up an SME.

their aspirations into successful enterprises. The incentives offered by the SME council would also include credit and funding facilitation, financing, marketing and reduced licensing costs. The law also includes additional benefits to inventors, patent owners and companies that invest in research and development. Furthermore, a conducive environment for SMEs will help to propagate healthy competition, and an increased ability to achieve optimal performance. The UAE will be hoping to emulate the success of similar legislation in countries such as South Korea, Singapore and Sweden. Considering the great changes on the horizon, this is a very exciting time of progress and advances in the UAE. Kashwani Law Firm has successfully navigated the metamorphosis of this region for over 27 years and is eager to support the sustainable economic diversification of the country. SMEs are set to play a prominent role in enhancing the countryâ&#x20AC;&#x2122;s GDP and Kashwani Law Firm is dedicated to offering tailor made solutions to entrepreneurs who wish to succeed in their endeavours. Once implemented, these new laws will strengthen the legal infrastructure and boost the economy. The increased support and flexibility would encourage businessmen to not only be more creative, but also more proactive. Such legislative changes will not only add value in a financial sense, but also to the reputation and society of the UAE.

December 2014 - January 2015

Intelligent SME

Growth Strategies

2014: Lessons for SMEs As the year draws to a close, there is no better time to take a breather: look back on what you have achieved and what you’ve learned, go over the opportunities you might have missed, and start thinking and planning where to take your business next year.

ost small business owners get so immersed in their day-to-day tasks that they don’t really get the time to reflect on, or review where they are, and what’s ahead of them. Whilst the holiday season is probably the busiest time, it’s important to set aside a few moments to evaluate what you have achieved in 2014 and plan for the year ahead. Here’s a tried and tested approach that would help you review your business with a better understanding of your core priorities in 2015: product and business development, sales and marketing,

technology, human resources and finances.

sector. And you are part of it: your business matters!

Start with the good.

Differentiation is the operative

2014 has been a long and exhausting year for most small businesses. Especially those in their second or third year of operations. It’s likely that you will tend to remember only the long hours you put in, the sacrifices you made, or the disappointments you had to come to terms with. So, it’s easy to remember mostly the bad. That’s why, it’s always beneficial to start your business review with the good. SMEs everywhere are making a difference to the growth of the economy. In Dubai alone, SMEs represent more than 90% of the total business: they drive the economic activity of the Emirates; they contribute over 60% of the UAE’s GDP they provide 86% of the private sector employment.; and they are essential to creating a thriving and competitive private

word in product and business development. Every small business knows that differentiate is key to their survival and growth, because at this stage, most sales come from repeat customers or referrals. You need to offer products and services that stand out against competitors. That means you need to keep a very close eye on your industry and customers. You need to be swift and agile, so you could make any adjustment necessary to your business model or processes that will keep your product or service the top choice for customers. When EasyTruck launched in 2009, it was the only moving and storage company of its kind in the UAE. But their model was quickly copied in the following years and they had new competition. The only solution for them was to continue

December 2014 - January 2015

Intelligent SME

Growth Strategies to innovate and improve to make sure that their offering was still the best and the competition would scramble to keep up.

Keep up with technology. It’s a lot of work to keep up to date, at the pace technological innovation accelerates these days. But, it’s imperative that you do your best, so there’s no skills gap in the way you run your business. Data sharing and storage, CRM can be a huge issue for small business owner, especially if you’re not an IT whiz. But you don’t need to purchase expensive software and systems to get around this. There are many inexpensive options for small businesses that allow you to purchase the solution that is right for you; it’s easy to scale as your business grows; plus it’s so simple to understand and use that you can train your staff yourself (for e.g. OpenErp for operations management, or Amazon’s cloud). There is also a new suite of online services, some free and some paid-for (but affordable), from basic document collaboration (like Google’s) to video conferencing and scheduling that may come in very handy. These collaboration tools help small businesses connect people and information, plus they offer many other benefits, such as better project management and workflow.

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

capital, so they could support their growth plans: develop their distribution channel and enlarge their product portfolio. They heard of Eureeca, the crowdfunding platform. Within a week they put together the business proposal, took all the advice they could find on how to promote themselves,

Data sharing and storage, CRM can be a huge issue for small business owner, especially if you’re not an IT whiz. But you don’t need to purchase expensive software and systems to get around this.

Start with the good

and launched their campaign. Thirty-two days later they raised the capital they needed: $152,625 from some 20 investors, proving that crowdfunding works when the business has potential. Don’t forget about marketing. Most small businesses don’t have resources to allocate to marketing, but you do need to spend more time and money on it. First off, you need to understand what works for your business, then outline a strategy and a year-long plan. If you can’t afford to hire a specialist, start educating yourself and get familiar with some of the marketing automation tools which can be of great help.

Differentiation

Keep up with technology.

Be resourceful about finances

Be resourceful about finances. Despite their key role they play in growing the local economy, majority of the small businesses continue to face difficulties securing financing. In fact, the UAE’s total bank lending to SMEs is just 3.85 %. Whilst there’s increased dialogue between banks and various entities promoting the cause of SMEs, getting a loan from a bank, it’s still a faraway prospect for most SMEs. This is the harsh reality. But don’t let these circumstances slow down your growth. Where there's a will there's a way! If you have built a sound business, there’s always going to be interest in your business. Take IZIL for e.g. Like all start-ups, this Argan oil beauty brand self-funded with personal savings and loans from family and friends. But shortly after launch, they needed an immediate and feasible solution to raise new 57

December 2014 - January 2015

Intelligent SME

Tourism

Letâ&#x20AC;&#x2122;s take ecotourism to sun, sand and shopping land! Tourism contributes a significant fuel to keep the economic engine roaring. Safeguarding the natural resources and environmentally sustainable tourism, or ecotourism, could be a pertinent tool in achieving a fine balance between creating economic growth and preserving natural capital, explains Karen Osman.

requently cited as one of the fastest growing movements in the travel industry, ecotourism is becoming a greater focus in the UAE. Defined as: "Responsible travel to natural areas that conserves the environment and improves the well-being of local people," according to the International Ecotourism Society, how does it fit within the UAEâ&#x20AC;&#x2122;s fast-paced touristic landscape? The UAE is globally renowned for its rapid development the impact of building major

infrastructures such as iconic hotels, the worldâ&#x20AC;&#x2122;s largest mall, the man-made islands and so on, all require a high demand on natural resources. According to a report released by the World Wide Fund for Nature (2010), the UAE had the world's highest per capita environmental footprint for the third time in a row, positioning the UAE higher than Qatar, Denmark, Belgium and the United States. With plans to attract 25 million visitors by 2020, there is likely to be further strain on the environment.

However, inbound travellers will be reassured with steps taken to address the issue, with the launch of several entities, solely concerned with the conservation and preservation of the environment. Al Basama Al Beeiya (the Ecological Footprint Initiative) was set up in 2007 to understand the concept of the environmental footprint, how it is calculated and above all, how to reduce it. In partnership with other dedicated environmental organisations, such as The Emirates

December 2014 - January 2015

Intelligent SME

Tourism Karen Osman is the Managing Director of Travel Ink, a creative copywriting and translation company that caters exclusively to the travel, tourism and hospitality industry. Focusing on helping hotels, airlines, tourism boards and other tourism related companies with their content requirements, Karen Osman has over fifteen years of experience in publishing, communication and marketing across Asia, Europe and the Middle East. Karen can be contacted on Karen@group-ink. com or on 00971 4 368 0882. For more information, visit www.travel-ink.com Environmental Group, Abu Dhabi Global Environmental Data Initiative (AGEDI) and Emirates Wildlife Society and recently the Green Tourism Awards which strives to reduce the carbon footprint of the tourism sector's extensive developments, the UAE is demonstrating its commitment to considering the environmental impact of its tourists and residents. With ecotourism and sustainability at the core of tourism plans, the country is actively taking a leading role in the region with its adoption of ‘green’ standards across its various infrastructural projects. The country’s sustainable development and ecotourism strategy was initiated under the ‘Green Economy for Sustainable Development’. Through this programme, the UAE aims “to become one of the world leaders as well as a centre for the export and re-export of green products and technologies.” The initiative consists of six fields including; Green Energy, Investment Incentives, Green City, Climate Change Effects, and Green Lifestyle, which form a vehicle that enables the country to realise its objective. A decree (No. (22) of 2014) was also issued, which intends to develop and promote ecotourism by establishing six new wildlife preservation areas: Hatta Mountain Conservation Area, Al Wohoosh Desert Conservation Area, Al Marmoum Desert Reserve, Dubai Desert Conservation Reserve, Jabal Nazwa Conservation Area, and Al Ghaf Conservation of Nazwa.

The UAE aims “to become one of the world leaders as well as a centre for the export and re-export of green products and technologies.

The UAE’s commitment to ecotourism and sustainable tourism is impressive. Its efforts to continuously educate hotels, tour guides and other hospitality players can be seen in the various educational outlets and programmes, such as the Ecological Footprint- Heroes of the UAE website (http://ecologicalfootprint.

heroesoftheuae.ae).

It is essential that industry players clearly communicate their activities, objectives and results, not only to increase awareness of the ecotourism sector but also to encourage others to participate, bringing real meaning to ecotourism and sustainable tourism.

December 2014 - January 2015

Intelligent SME

Leadership

Take the super boss challenge What is the secret to become a more likable leader? Michael Tolan says that it doesn’t have to do with how tall and charming you are, or how often you give employees a raise, but your behaviour and attitude towards your employees.

f you are considering to setup a firm or operating an SME today, it may pay you to invest more time and energy in visiting research on how to get the most out of your employees. To put things into perspective, ask yourself the question: do your employees consider you a Super Boss? The responsibility of leaders in current scenario is to embrace the privilege of leading and guiding the foot soldiers and officers of the company. In order to develop an in-depth insight into how to accomplish this, it is suggested to use one of the oldest and time tested methods, to ‘Walk-a-Mile’ in the shoes of the employees within your organization. The first question you might

ask is why would anyone want to work for your company? Have you created or developed a career advancement scheme that supports continuing education and promotes upgrading the qualifications of your staff? Have you developed a robust recognition program that rewards performance from top to bottom? Does your business provide humanistic benefits such as health and dental care, with a focus on wellness? Is your staff getting a paid annual leave and at the same time encouraged to tap into the excellent travel deals that you have pre-negotiated in order to give them far more ‘bang for their buck’ as a result of simply being one of your employees? If the answer to all of these

fundamental questions is positive, then you could be on your way to being a Super Boss. Behavioural psychologists have long advocated that stress in the work place is the number one measurable factor for absent employee behavior due to fear of accountability, illness, career burnout syndrome and attrition. Why should this be any surprise if most employees are required to spend over 75% or more of their waking life away from their families while serving organizations like yours? HR professionals when cornered will admit that 70% of the people who leave their company might give a reason that they found a better job, but

December 2014 - January 2015

Intelligent SME

Leadership 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).

it is based on roots of not feeling appreciated or recognized by their supervisor. The International Career Incentive Association, an invitation-only internet based think tank, devoted to empower people within organizations says that 90% of today’s leaders actually need to polish their own people skills and leadership style. “What most owners of businesses fail to remember is that without their people, they will be running an empty shop, and when employees develop an attitude of complacency or apathy, they will cost the company even more money to sustain and then replace? The high cost of onboarding new employees and holding their hand through a 90 to 120 cycle to insure competence and

Why should this be any surprise if most employees are required to spend over 75% or more of their waking life away from their families while serving organizations like yours?

performance is rarely found on the P&L statement as a line item,” wrote a spokesperson of the association. The question then is if your employees do not rate you as a Super Boss, are you prepared for them to leave when any other competitor or headhunter reaches out to them or vice versa? Employees are the backbone of every single organization. They need to be nurtured and empowered with recognition, incentives, and career advancement opportunities to feel that their basic needs are being met and that their own self esteem will provoke them to proudly say when asked behind your back: what is it like is to work in your company? If you are doing it wrong, be prepared for stinging criticism and a poor rating and little chance of being of the top organizations that support employees. However, if you are prepared to integrate the magical ingredients named here by expert research to begin harnessing the true potential of the workforce, you are on your way to leading a super company, and becoming a Super Boss. Don’t be usual and never be normal, set the gold standard by walking the walk and caring for the people around you… it’s not just unusual… It is simply super. Fly Forward!

December 2014 - January 2015

Intelligent SME

Emirates NBD Global Busienss Series II

As he waves a magic wand on products to make them coveted brands, Akram Miknas (Chairman of the MCN Group) enthralled the audience at the Emirates NBD Global Business Series with his sharp business insights.

Jogging down the memory lane, Mr. Miknas said that hunger is the foundation of success.

Speaking about business strategies, Akram explained, one needs to look at opportunities on how to do a particular task differently and in a much better way. This difference shall give you an edge over others.

December 2014 - January 2015

Intelligent SME

Emirates NBD Global Busienss Series II

Akram Mikas was felicitated by Vikas Thapar, head of business banking, Emirates NBD.

Engaging in a Q&A round, the crowd picked some of the most practical insights from one of the most successful serial entrepreneurs in the region.

Up-close and personal with Akram Miknas

[Chairman, Middle East Communication Networks (MCN Group)] 63

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