The Intelligent SME 8th Edition

The art of insurance

Rajagopal Sukumar, founder, MD, Al Nabooda Insurance Brokers, on why insurance is not a commodity Pg-26

SMS your name to 055 9023185 to attend or e-mail us at response@spiholding.net to register.

The summer bonanza

Retail industry spices up Pg-38 SME auto sector’s speedy recovery Pg-40 UAE hospitality - A full house! Pg-42 Travel & tourism: Offers galore Pg-46

What goes through the mind of an entrepreneur before embarking on real business, writes Premchand K. Pg-16

CONTENTS JUNE - JULY- 2012

09 Rare & Fabulous

Success is a destination. Have you arrived?

16 Entrepreneurship: A comedy of errors!

Premchand K. outlines the life of an entrepreneur and his journey to success.

18 Meet the CEO

Vinesh Bhimani, managing director, Kimoha Entrepreneurs Limited, gives an account of how he differentiates himself from competition.

20 Announcements

Important updates you might have missed.

24 Education: Business or responsibility?

Nothing is more solid than the business of education.

26 The big interview

Rajagopal Sukumar, founder and MD of Al Nabooda Insurance Brokers, on why insurance is an art.

28 The ‘power of small’

IT solutions that will lend a competitive edge in the market.

30 ‘Positive outlook ahead’

Vikas Thapar, GM-consumer finance and head of business banking, Emirates NBD, enumerates best practices for SMEs.

52

Business protection: Why it matters

The business of summer

37 Alliance partner

Supported by

A look at sectors that are doing exceedingly well during the summer months.

32 Financing for growth

The Dubai SME100 companies discuss initial public offerings as the way forward.

50 Managing everyday business issues

John Lincoln’s application of the 6Ps of business management.

54 We’re looking for you!

Robert Jeans writes on how SMEs can reach out to their potential customers.

58 Overcoming challenges of sales

A winning business strategy for SMEs.

72 The unlimited nature of abundance

Creating bulletproof confidence required in order to be successful.

78 For love of the arts

Miriam Walsh on her quest to provide a platform for artisans in the UAE.

80 Let’s get social

Farrukh Naeem tackles the subject of SEO to inflence website visibility.

Be a Connector

THE POLICY 6TH MIDDLE EAST INSURANCE AWARDS

Commercial Lines Broker of the Year 2011

Is the right ‘specialist’ giving you the wrong advice?

Trust only an insurance expert with your life, medical, car, home or business insurance.

It’s unlikely that you would take car repair advice from a lawyer. Similarly, it makes little sense to take insurance advice from just about anyone who claims they have the ‘perfect’ solution for you.

With Al Nabooda Insurance Brokers, we employ experts with sharp minds and their hearts in the right place, so you can be sure you’ll get an accurate evaluation and the right advice, whatever your insurance needs may be.

Plus, you get exceptional value and a worry-free experience, because as brokers, we’re neutral and can offer the best solutions from the best providers based on your exact requirements.

Talk to us today. It’ll be a reassuring experience.

• Comprehensive range of insurance solutions • Competitive rates • Swift, hassle-free solutions • Speedy claims assistance • Excellent customer support • Choice of 'A' rated insurers • In-depth yet easy-to-grasp comparisons

T: 04 350 3646 E: advantage@nigulf.com W: www.naboodainsurance.com

Editor’s Note E

ver since we launched the first issue of The Intelligent SME, we have focused on the lack of financing opportunities for SMEs in the UAE and the region. Numerous company owners that we have engaged with have spoken to us about the trouble they take to access good sources of funding, without which growth is not sustainable.

Recently, I attended a seminar, organised by Dubai SME for the Dubai SME100, and I was quite pleasantly surprised that experts were beginning to chart out strategies to take SMEs to the public market. This has been one of the outcomes of the recession, and “small” is also getting its due. The seminar had some insightful presentations on financing opportunities for SMES, and experts emphasised the importance of the IPO route.

I have also recently come across bankers discussing about the SME Friendliness Index, which conducts research targeted at enabling banks to further understand the needs of the SME sector. Given the fact that only 14 per cent SMEs, here, have had some kind of bank financing available to them, this recently launched initiative should make a difference. It should bring banks closer to the SME sector and help both parties understand each other better. We also urge you, our readers, to write to us at editor@theintelligentsme.com with your thoughts on this new initiative, and as well as any other ideas that could help SMEs access capital. We encourage you to write to us with your responses.

Sandhya Divakaran

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.

Chief Executive Officer & Publisher Shantanu A.P Account Director Vijay G. Editor Sandhya Divakaran Consulting Editor Utpal Bhattacharya Expert Contributors John Lincoln Phil Bedford Anesh Jagtiani Farrukh Naeem Michael J. Tolan Zed Ayesh Dr.Sameer Kumar Nita Maru Carole Spiers Rupert Connor Richard Taylor Robert Jeans Premchand K. Jan D’Sa Kevin Abdulrahman Shraddha Barot Amariei Art Director Aneesh Varghese Web Designer Hoze M Photographer Arzai Zafar Editorial Enquiries & Contributions Tel: 04-2659704, 04-2650312 Fax: 04-2690566 E-mail: editor@theintelligentsme.com Advertising Enquiries Tel: 04-2659704, 04-2650312 E-mail: response@spiholding.net Subscription Enquiries Tel: 04-2659704, 04-2650312 E-mail: response@spiholding.net Response Executive Evelyn V. Bernasol SPI Publishing Post Box: 89735, Dubai, UAE Tel: 04-2659704, 04-2650312 Fax: 04-2690566, 04-2651708 E-mail: response@spiholding.net

www.theintelligentsme.com Follow us on twitter: @intelligentsme Facebook: facebook.com/spi.holding

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

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

Sportiness and efficiency, new Audi A4

A

udi has now updated the eight-generation Audi A4 with a formidable design, new drivetrain, chassis and infotainment solutions to further strengthen its position as its global bestselling model.

The Audi A4 boasts cleaner, distinctive and pronounced horizontal lines at the front, with a revised engine hood, bumpers and a single frame grille.

The interior of the Audi A4 is now more elegant than ever. Many control elements are framed in chrome; the steering column stalks,

10

The Intelligent SME

ignition key and the ergonomics of the optional MMI navigation plus infotainment system have been redesigned. Further improvements have been made in the operation of the automatic transmission, the air conditioning system, Audi drive select and the leather multifunction steering wheel as well as the interior colours and upholstery range.

The new model has reduced fuel consumption levels by 11 per cent on average, despite the increased power and torque of the engines. In the UAE, the Audi A4 is available with an entry level engine with 120

hp and a higher-powered one, which produces 170 hp. A 2.0 TFSI with 211 hp and quattro four-wheel drive, as well as a top of the line 3.0 TFSI quattro, which has a supercharged V6 producing 272 hp, are also available.

The entry to the updated Audi A4 starts at a base price of AED115,900 including three years warranty and roadside assistance. The A4 2.0 TFSI quattro and 3.0 TFSI quattro are available from AED160,000 and AED177,000 respectively. All models other than the 1.8 TFSI 120 hp come with five years or 100,000km free service.

Rare & Fabulous

S

A unique lifestyle experience et on the stunning Saadiyat Beach, a new beach club is now offering its members an unrivalled experience of luxury, relaxation and bespoke hospitality.

The Monte-Carlo Beach Club, Saadiyat, is now open, bringing a slice of the Riviera to Abu Dhabi.

The Monte-Carlo lifestyle is built around the concepts of exclusivity, relaxation and chic living. The beach club, Saadiyat, offers a vast and cool

swimming pool where one can bask in the sunshine or relax in private cabanas.

The exclusive members-only club can be accessed for an annual fee. Non-members can use the beach and pool area for a daily or weekend entrance charge.

Bookings are also taken throughout the week for diners to sample authentic cuisine from around the Mediterranean, from the French

and Italian Rivieras, to the Levant at the various restaurants.

Four restaurants and lounges have been specially tailored to ensure all tastes and whims are catered for: from light refreshments to laid-back fun and refreshing drinks at Bubbles Bar, an array of Mediterranean specialties and a perfect place to party.

For more information, email: info@montecarlobeachclub.ae or visit www.montecarlobeachclub.ae

The Intelligent SME

11

Rare & Fabulous

A

Refined luxury and welcoming comfort n iconic beachfront project, the Jumeirah at Eithad Towers provides an urban sanctum of welcoming comfort, organisational ease and elegance to meet the demands of the modern business world, and become a home to the staging of memorable events.

Refined luxury furnishings and interiors that highlight the world’s finest marble, crystal and other carefully selected materials form a stunning and tasteful backdrop for

12

The Intelligent SME

clients to add their own individualised splash of colour.

The Jumeirah at Etihad Towers features a 280m tall luxury hotel, a prestigious office tower with 46,000 sqm of leasable office space, and three towers housing 885 apartments and an observation deck. The connecting four-level podium will feature contemporary restaurants and over 30 premium boutiques.

The hotel also offers a private beach, Talise Spa, three pools, gym

and an extensive conference centre with 13 meeting rooms and the grand Mezzoon Ballroom.

The dramatic sculptural forms of the towers complement the sophisticated and contemporary interior design.

Art works from His Highness Sheikh Suroor bin Mohammed Al Nahyan’s private art collection provide a local Arabian touch in public areas and conference prefunction areas.

Rare & Fabulous

UAE’s first sustainability marketplace

T

he Change Initiative, a new UAE-based venture is the first-of-its-kind marketplace dedicated to promoting sustainable solutions for consumers and corporations alike.

The Change Initiative concept and marketplace was developed

by Gundeep Singh, in light of the

sustainability challenges that the world is facing today.

The marketplace offers integrated products and solutions from over 50 leading brands and multinational firms, operating in the sustainability space such as, Schneider, Vitra, Ecover, Siematic, Volkswagen and IBM. The facility

will cater to consumers and corporations who are interested in making environmentally responsible purchases for their home or in the workplace from energy saving light bulbs and eco-friendly detergents to sustainable furniture, water fixtures and other innovative, technological solutions.

The Intelligent SME

13

Rare & Fabulous

Relax and rejuvenate this summer

C

elebrating the colours and rhythms of modern Asian hospitality, Amari the hotel and resort brand is offering sensational sapa packages specially designed for relaxation and rejuvenation.

Offering an attractive selection of complimentary benefits, including traditional Thai massages and discounts on a variety of spa treatments, the Amari Spa Packages provide all the essential ingredients to escape for a relaxing and rejuvenating summer break.

From a two or three-night stay in the coastal retreats of Pattaya or Krabi to a two-night stay in the bustling capital of Bangkok, the Amari Spa packages offer the ideal opportunity to escape to the tropical paradise of Thailand. With a choice of city or island location, superior accommodation as well as the very best in Asian hospitality, Amari hotels offer the perfect relaxing spa holiday.

Embark on a journey, to wherever your heart desires, and discover the beauty and spirit of a culture that has fascinated travellers around the world for centuries.

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The Intelligent SME

Open Forum

Entrepreneurship: A comedy of errors!

T

he Gulf region boasts of a fairly large number of first generation successful entrepreneurs and an equally large number of failed startup ventures. It is believed that 90 per cent start-ups fail within the first five years. Of the remaining, nine out of ten fail within the next five years. The tenth year is a tipping point.

Why, does this happen? Almost all failures within the first five years are because of inadequate capital (poor cash flow management). In the next five years the failures are primarily because the founding team has lost its passion - that original 16

The Intelligent SME

If you have a passionate reason for setting up a business you can always find the right business idea and invent a way to give it shape, writes Premchand K. adrenaline that fired their imagination at the time of setting up the business.

The message to all entrepreneurs is loud and clear. You need to constantly measure and calibrate three things in your business: cash in, cash out, and the fire in your belly.

This is the irony in the life of a first generation entrepreneur.

Invariably he would have come from a family that encouraged learning, securing high marks consistently, graduating with honours and joining a reputed company with the highest salary offer. He then goes through the corporate rigour, and during the tenure with a single or multiple

organisations he understands the nuances of business. The enterprising executive is then exposed to sales, marketing, technical support, finance, production, even as he specialises in one function. He is also (more often than not) very handsomely compensated, yet is unhappy. Office politics, promotion policies, relationship with bosses, slow decision making process, lack of time, inconclusive meetings, all combined make him restless, disgruntled, disenchanted, and a bundle of unhappiness.

Then a host of questions arises in his mind - “Why am I doing this, what

Open Forum

I am doing? Will I not be happier if I am my own boss? With my own small team, can I not do significantly better than what this company is doing?

Can I not make more money?” The intelligence he has garnered over the years also makes him weigh the risks of an entrepreneurial journey.

The more analytical you are, the less is your risk-taking propensity. One common trait across most successful entrepreneurs is abundance of courage and low analytical skills.

They go by their gut - there is no place for logic here. So our executive quits and creates a start-up with a small founding team and a small capital. It is great fun - small is indeed beautiful!

Then the irony ticks in. An organisation is like a human being.

It has to grow. It cannot stand still.

One cannot remain small, although small is beautiful. And growth requires food - cash in this case. He now realises a harsh truth that is diametrically opposite to his original assumption. He cannot take cash out of the business; he has to leave cash inside the business to enable growth.

As the business grows, one by one, original assumptions fall by the wayside. An organisation in any sector has to go through the following four phases: start-up, build, growth and scale. As the entrepreneur goes through these phases, he realises that the skills required to succeed in each of these four phases is completely different. Ability to select the right operating team is of paramount importance. Start-up and build phases bring tremendous excitement and the growth and scale phases are absolutely challenging. Irony kicks in again. The entrepreneur realises

during the growth and scale phase, the colour, the form, the behaviour of his once beloved start-up is really no different from the company he left.

It is a bane of all large organisations and, now, his company is a large one. The subtle difference is that what the entrepreneur owns now is a significant portion of the ‘asset’ called the company.

So, before embarking on your entrepreneurial journey, be very, very clear in your mind on the ‘why’ part of it. Think deeply about the future and define your exit strategy. It is no longer as easy as a “resignation.” You cannot get into life with the objective of making money. You must have a much higher objective.

Success or happiness cannot be pursued. It must ensue, as the unintended consequence of one’s dedication to a cause, far greater than oneself.

Entrepreneurship is definitely not for the faint-hearted. An opening batsman on the first day of a test

match in the game of a cricket has the mental disposition of an entrepreneur about to start a new commercial venture. He has no idea how the pitch will behave, how the climate might change, how the opposition will bowl, and more importantly, he has no idea how many runs he needs to score to help his side win. A middle order batsman on the last day of the test match has a completely different mental disposition. The game is still cricket and batting remains the only source of accomplishment.

Entrepreneurship is a test match and not one-day game - it is a test of character, temperament, staying power, determination and the will to succeed far more than luck, knowledge or skill.

So, all you would be entrepreneurs, please check your courage quotient before you dive.

Once you dive, it will be a fun ride - a comedy of errors. My personal experience bears me out.

Welcome to the club of entrepreneurs.

Premchand K, is the CEO of Paramount Computer Systems. Paramount has established a reputation for providing practical security solutions that are both business driven and cost-effective. This has enabled the company to secure the IT Infrastructure of leading government undertakings, banks and financial institutions, airlines and transportation companies, telcos, universities and large corporates in the region.

The Intelligent SME

17

Meet

the

CEO

A value driven enterprise

Great entrepreneurs never lose sight of the purpose of giving value to the market.

The Intelligent SME spoke to one such entrepreneur, Vinesh Bhimani, managing director, Kimoha Entrepreneurs Limited.

TIS: How did Kimoha come into being?

VB: Having given up a successful career as group general manager of my uncle’s business in Oman, my wife and I came to Dubai in 1988 unsure of what to do, albeit business being our broad goal.

We set up a small office in Jebel Ali. I had the experience of procuring locally manufactured items in my previous job. So, that is what I began with, on a commission basis. We started trading in the food business, by importing food stuff and supplying to local agents. As we gained firm foothold in Dubai we set up a manufacturing unit to search for opportunities in paper products and packaging. We also booked a site with Jebel Ali Free Zone to develop an industry. We decided to import paper for fax and telex rolls, and convert these into smaller roles and introduce these products in the market. Those days my message was: “Keep us on roll, so your business is rolling.”

We began this business in a very small way, but it was a great experience. We were delighted when 18

The Intelligent SME

during his visit to Jebel Ali, H.H Sheikh Mohammed Bin Rashid Al Maktoum, Vice President of UAE and Ruler of Dubai, saw the telex rolls that were being printed for Etisalat, Oman, and Iran.

He turned towards H.E. Easa Saleh Al Gurg who had accompanied him on the occasion, and urged him to build a relationship with us. This resulted in a fruitful partnership with Al Gurg Stationery. We have come a long way now, building the brand.

We also recently moved into a bigger facility to keep pace with our growing operations.

TIS: Please explain your current operations.

VB: Kimoha Entrepreneurs Limited is a market leader in self adhesive labels and auto ID solutions. Our wide ranging products line-up include different types of paper rolls - engineering rolls for construction or CAD applications, communications rolls for telex and fax machines, transaction rolls for point of sales applications and automatic teller machines, queue management machines and parking ticket machines

Meet the CEO

- plain and printed labels and sleeves for a variety of applications, such as packaging, logistics, rebar, steel or metal identification, baggage tags and boarding passes for the aviation industry. We also provide solutions for auto identification products and services such as Avery, CAB, Zebra, Argox, Toshiba-Tec, Motorola, RIM and so on.

TIS: How have you diversified your portfolio of products?

VB: I used to do extensive travelling, and it was during one of those trips that I had the idea for my next product. On a trip to Japan, I found out about baggage tags and boarding passes, which used to be supplied from Germany. Shortly after I read somewhere that Dubai Airport was going to introduce baggage tags as well. I gained more knowledge through exhibitions and consultants and a strategic partnership with IATA. And, thus, we soon became the first baggage tag manufacturer in the Middle East and now we supply to 35 airlines globally. Many other products soon followed.

TIS: Is Kimoha a family business?

VB: I have a two-family business; one is my immediate family consisting of my wife, brother and brother-in-law who are my partners and the other being my extended family - the staff of Kimoha. This group of 227 people is my family. We provide for living expenses, such as education and health. We conduct prayers every morning to create a positive environment. We make sure we provide for our staff.

TIS: What type of challenges did you face in your journey, and how did you overcome them?

VB: I have had a lot of challenges in my life. Any product that is introduced in the market is immediately duplicated by 10 others.

It’s just a matter of time. But then what wins the day is one’s business approach, the value given and the

customer satisfaction. We go out of our way to help our customers.

TIS: What is your marketing

approach and what keeps you ahead of competition?

VB: We’re 10th in the international orientation list of the top 100 companies in Dubai; and so, there is a salesman in every one of us; we have a solid, focused marketing strategy.

Marketing involves many factors, including preparing the market.

We are an innovative company, developing products, implementing technology and finding the right market. We identify the needs of the customer, the needs of the market, and build our technology around these needs, to ensure that we are ready to provide the best solution with value.

TIS: What would you consider as your professional achievement?

VB: We meet all international standards. The Kimoha team functions at the highest level in the market; we are now both customer and business partner’s first choice. We are also recognised as a technology driven force in the Gulf by our business partners. Whenever there is a new wave of technology or products, our partners would rather have us launch them here in the Middle East.

This is an outstanding achievement, and it speaks volumes about our credibility and our professionalism.

This has been reflected in our position in the innovation list of Dubai SME. TIS: How do you ensure quality of your products?

VB: We have a quality assurance team, and we personally oversee works in the factory many times during the day. We use the best raw materials and the best technology, and we are economical and efficient.

We have established processes for quality control and quality assurance. We are one of the first companies in the region to obtain ISO accreditation. We are always trying

to improve methods and find simple ways to do it. We brainstorm often to come up with new ideas to improve our quality in every area. Kimoha has recently invested in an AED3 million labelmaker, with Xeikon technology.

This will be the first digital label press in the Middle East. This would produce much faster turnaround times for short-run jobs that are common in the UAE. This development will also aid us in obtaining new clients, while catering faster to our existing ones.

TIS: What made you set up in Dubai?

VB: We are at the right time, at the right place with the right product.

Dubai is an easy ground for doing business, owing to its infrastructure and enormous re-export potential.

The business acumen of our rulers is exemplary. In my 25 years of working here in Jebel Ali Free Zone, I cannot recollect having to deal with power cuts even once. Dubai is the right place to launch a product and create the market for it.

TIS: What is your opinion of the

industry, and what would you change about it?

VB: Ours is an industry that has enormous potential to grow.

Competition too is intense and ever growing. This factor if viewed in a positive way should bring the best out of all players.

Besides, the industrial sector as a whole is carving a niche for itself in the GDP of the nation. Growth in turn attracts employment and brings in technology. This makes it important for government to offer vital sops to accelerate industrial growth. The Industrial Group of Jebel Ali Free Zone, of which Kimoha is an active member, carries out constructive dialogues to see how our contribution to the nation’s development can increase. Being a member of Dubai Export Development Corporation, Kimoha actively participates in all their programmes so as to try and spread its wings in the untapped territories as well.

The Intelligent SME

19

Announcements

Updates you might have missed Merlin Digital among top 5 digital vendors in GCC

M

erlin Digital was awarded second place among the top five digital lifestyle vendors by the Middle East Retail Academy. The company was awarded from a list of nominees that included Sony, Samsung, LG and Canon.

The UAE-based company was also recently ranked tenth in the innovation list of Dubai SME100, a list of the top 100 SMEs in Dubai.

“By introducing and focusing on innovative products Merlin Digital has excelled in all markets. Being innovative means being first to introduce certain lifestyle products into the market,” said Rohit Bachani, sales director - EMEA, Merlin Digital.

“This year we have opened our own outlets in Singapore and we are opening our own store in Abu Dhabi

as well. We are highlighting the latest in Merlin Digital technologies and also new partners we have signed up under our umbrella - notably Secu4 from Switzerland, Click Car from Switzerland and Pleo the Robotic Dinosaur. We have also started selling screen protectors from a company called Wrapsol that manufactures in the USA,” Bachani added.

Banks to realise AED6b SME financing opportunity

Launch of the ‘SME Friendliness Index’ held recently at Business Village, Dubai.

D

ubai SME, the agency of the Department of Economic Development mandated to develop the SME sector, has launched the ‘SME Friendliness Index’ to enable banks access 230,000 SMEs in the UAE and realise the AED6 billion SME financing revenue opportunity.

The index is based upon a

D

six-month landmark research that requested over 30,000 SMEs for their feedback, engaged with 487 SMEs, and 21 banks. The ‘SME Friendliness Index’ is a signaling tool that gives constructive feedback to banks about how their SME strategies are actually working. Banks know the satisfaction of their customers with

Dubai FDI connects with UK investors

ubai FDI, the foreign investment office of the Department of Economic Development, in association with The Links Group organised a roadshow in the UK to highlight the robust investment environment and growth opportunities in Dubai as well as provide an overview of the trends and patterns in foreign direct investment

20

The Intelligent SME

(FDI) inflows. The ‘Opportunities Dubai’ roadshow toured London, Edinburgh and Derby.

“Working in an expanding network of trade associations and investment promotion agencies enable Dubai FDI to reach out to investors worldwide. Such partnerships facilitate exchange of vital business knowledge while the

reference to their competitors and identify how their product, pricing, communication and relationship management strategy are working.

The Index is accompanied with an SME Tool Box that will enable the Banks develop their strategies to serve the SME market. The study enumerates the different challenges of the banks in serving the SME sector - quality of financial reporting, lack of credit history, inadequacy of collateral, informal management, short term planning horizon, and weak cash flow management. Dubai SME will also launch a website www.bebankable.ae in September 2012.

“Dubai SME intends to work closely with the banks to support them use the study finding and the Friendliness indicator to realize the SME opportunity,” added Abdul Baset Al Janahi, chief executive officer of Dubai SME.

member agencies competitively bid to attract FDI into their respective territories,” said Fahad Al Gergawi, CEO, Dubai FDI.

Participants in the roadshows were also able to conduct one-on-one meetings with the delegates to learn about opportunities in specific sectors in Dubai and the procedures involved in business start-up and relocation.

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Announcements

Updates you might have missed Dubai Exports targets specific industry sectors

D

Mariam Al Afridi, director of exporters’ services, Dubai Exports.

ubai Exports, the export promotion agency of the Department of Economic Development - Government of Dubai, has drawn up a sector-wise outreach programme for 2012 to interact closer with industry clusters and address their export-related needs more effectively.

A major feature of the initiative will be workshops, held prior to and during major trade fairs and exhibitions, to highlight international opportunities for member companies in the corresponding industry sectors.

Companies attending the workshops can also learn about the services and support provided by Dubai Exports in leveraging export opportunities.

“The workshops will help Dubai Exports to strengthen the association with major industry sectors and closely align our services, strategies and programmes to the needs of businesses. Meanwhile, companies can gain critical knowledge on accessing new markets and connecting with potential customers, across industry platforms,” said Mariam Al Afridi, director of exporters’ services, Dubai Exports.

Licences issued by DED rises 26%

T

Premises of the Dubai Department of Economic Development at Business Village, Dubai.

he number of trade licences issued by the Dubai Department of Economic Development (DED) in April 2012 reached 1,459, an increase of 26 per cent over the same period in 2011. The commercial sector accounted for the highest increase in number of licences (29 per cent) followed by the professional (24 per cent) and tourism (18 per cent) sectors, compared to April 2011.

The total number of licences amended in April 2012 was 5,251, a 10 per cent increase over the same period in 2011, while the total number

22

The Intelligent SME

of business registration and licensing (BRL) transactions reached 47,082, compared to 39,934 in April 2011, an increase of 18 per cent.

The total number of commercial activities licensed in April 2012 was 4,123, with general trade leading the list of the top 10 licensed activities (187) followed by dyes and paints (151), carpentry and flooring (149), tiling of floors and walls (144), sanitary extensions and wares (138), and installation of air conditioning systems, ventilation and air purification (130).

The service categories and numbers reflect positive improvements in the local real estate sector.

In addition, businesses across Dubai remain upbeat on growth and revenues with expectations riding high, especially in the manufacturing sector, as reflected in the quarterly business survey conducted by the Dubai Department of Economic Development during the first three months of 2012.

The composite Business Confidence Index (BCI) for Dubai, according to the survey, stood at 120.5 points in Q1 2012, indicating an optimistic outlook for the next quarter. BCI crossing 100 points is seen as indicative of a positive sentiment within the business community.

A majority of businesses in Dubai foresee sales increasing or remaining steady and plan to retain their employee count through to the second quarter. The survey also reveals an even brighter outlook among export-related businesses, rising confidence among small and medium enterprises and a stronger investment focus on upgrading technology.

Announcements

Updates you might have missed DBWC discusses sustainable business practices

Network Majlis held recently by the Dubai Business Women Council tthat discussed the importance of sustainability. The event was held at Dubai Chamber of Commerce and Industry.

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ubai Business Women Council (DBWC) recently hosted a new session of the Network Majlis that discussed the importance of sustainability in business.

The session was held at Dubai Chamber of Commerce and Industry

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(DCCI) with Deanna Othman, general manager, Priority and International Banking Middle East, and chair Diversity & Inclusion, UAE, Standard Chartered Bank, as guest speaker. The discussions tackled various issues related

to sustainability, including the emergence of low carbon economies that are becoming a major change driver across national economies and industry sectors. The speaker, provided practical examples of how sustainability has delivered long-term shareholder value and contributed to socioeconomic growth, citing Standard Chartered’s experience in cultivating a sustainable business model.

Othman said: “It is a great opportunity to share our expertise and experience in pressing issues related to sustainability through the Network Majlis. Dubai Business Women Council is a very influential organisation and we are therefore pleased to work with them in advocating the critical importance of sustainable business practices in our society.”

Women in UAE ready to advance career prospects omen in the UAE are ready to accept more responsibility to further their career, a global survey shows. The findings are part of external research titled The Path Forward, which was fielded

by Accenture to gain insight into behaviours and attitudes regarding women’s careers.

At least 100 respondents participated in the survey in most countries, including the UAE. Altogether, 3,900 business executives

from medium to large organizations across 31 countries took part in the survey. In the study, as much as 80 per cent of the women surveyed in the UAE said they accepted more responsibility to further their career.

The key findings of the research in the UAE show that as global trends UAE companies are investing with success in their female workforce by taking multiple initiatives that support women’s career advancements: continuous

“Champion of the Earth”

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r.Sultan Ahmed Al Jaber, CEO, Masdar, has received this year’s United Nations’ Champions of the Earth award.

Organised by United Nations Environment Programme (UNEP), the award seeks to honour individuals whose actions and leadership have made a far-reaching positive impact on the environment. The award

is a precursor to the United Arab Emirates’ participation at the 20th anniversary of the United Nations Earth Summit in Rio de Janeiro in June, during which governments and civil society will review progress and renew their commitment to global sustainability.

The award highlights Dr. Al Jaber’s achievements in advancing

learning, work/life balance programs, participation in professional networks and right counseling/mentorship.

When asked about the greatest barrier to their career advancement, respondents cited a lack of opportunity or a clear career path (40 per cent) four times as often as they cited family responsibilities (11 per cent).

However, a good percentage (36 per cent) say they have no impediments to career growth.

clean energy technologies to mitigate the threats of climate change through Masdar. Abu Dhabi’s renewable energy company invests in clean technologies, deploys renewable energy projects and is building a city that adheres to the most rigorous sustainability standards. Masdar also invests in intellectual and human capital through the Masdar Institute of Science and Technology.

The Intelligent SME

23

Education & Growth

Education: Business or responsibility?

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How can we encourage enterprising thought leaders from our schools and universities? Sandhya Divakaran finds out. very business has its own motive for operating. The same goes for education.

There is no business like education that has been growing in leaps and bounds. In fact, according to Apollo Global, the global education market has consumed over US$2.3 trillion in spending early this decade. This does not include capital expenditures on private education.

Education, therefore, is always in demand. Furthermore, the business of education might have a more solid footing than most other businesses.

Says Prof. Richard Gillingwater, dean at Cass Business School, London: “Nothing is recession proof, but the education sector is more solid than any other business as there is always a demand for it.”

Although this sector has a lot of demand, the continuation of this business is also predetermined by market trends. “Recession hits across industries and education is no different, it depends on the kind of programmes offered and the kind of institution that is in place,” offers Prof. Christopher Abraham,

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The Intelligent SME

“We would like to nurture entrepreneurship in our students because of a two-fold gain: more job creation and economic development.

”

Prof. Christopher Abraham

head of SP Jain Centre of Global Management.

Current demand

Trends in the global business environment have indeed given rise to specialised programmes that were not offered in institutions previously.

Ten years ago, the curriculum for an MBA was very generalised. and this has now changed to diverse specialised programmes. “For example, in the UAE and Singapore there has been keen interest in marketing, finance and logistics and supply chain management owing to

these regions being logistics hubs.

Many logistics professionals are looking for specialised qualifications within that sphere due to the immense opportunities available,” adds Prof. Abraham.

There are two main reasons students flock to study at the Cass Business School’s Dubai Centre: one reason being the Islamic finance elective in the MBA curriculum, which is very popular. Secondly, students who are looking for a career change often take the opportunity to build a network of contacts in the UAE before relocating.

Quality of education

The quality of education has undergone many changes particularly in the Middle East. Primary schooling is also being regulated by quality assurance bodies such as the Knowledge and Human Development Authority by rating individual schools on the basis of set parameters.

In this regard, Dr. Vijayam Ravi, academician and educationist, believes that schools must go beyond traditional education methods to bring out holistic learning in children.

Education & Growth

“Nothing is recession proof, but the education sector is more solid than any other business as there is always a demand for it.”

Prof. Richard Gillingwater

“We want children to become leaders of tomorrow, and thereby equip them with the skills beyond textbook learning,” she emphasises. Dr. Ravi is a pioneer in the Indian education field, for creating a ‘single text book’ system in India. She believes children should be inculcated with values such as integrity, compassion, and conviction.

Among other responsibilities, Dr.Ravi today mentors IFFS, a unique co-ed boarding school in India that has declared that it will never have more than 360 students studying in the school. Dr.Ravi says that education is not a commodity.

She adds that personalised attention is very important for creating leaders of tomorrow, and management of schools must focus on the teacher to student ratio to bring out the best in children. As for higher education, clusters such as Dubai Academic City have their quality assurance bodies that ensure the quality of educational curriculums is maintained.

Raising the quality of education, upholstered by technology upgradation, requires a lot of investment, and, therefore, makes for an interesting opportunity for private organisations. “This business has immense potential. If you look at the schools of today, there is a lot of scope. The best schools are not able to fulfill the demand. If one has a good business plan, and can set up a good school that offers top class education, why not?

However, education is sacred, there has to be commitment, dedication, long-term vision and growth while setting about this business,” Prof Abraham points out. Adding to this

sentiment is Ehsan Razdavideh, regional director, MENA, head of the Dubai Centre of Cass Business School, who believes there are two kinds of education providers - a kind that believes in top notch quality, and another that focuses on profits.

Over time, the quality of education provided has improved, although not up to global standards, nevertheless, not far behind. Thanks to the concerted efforts of the governments of Sharjah, Abu Dhabi, and Dubai that have created the infrastructure and environment to attract some the best universities in the world. In the early days of its inception, Dubai Academic City was a centre for 2000 students. Currently, the campus caters to 8,000-9,000 students, according to latest figures.

of students who are now moving away from relying on jobs to set up a business on their own. In the future we will be looking at more intensive workshops on entrepreneurship, and collaborations with SME forums. We would like to nurture entrepreneurship in our students because of a two-fold gain: more job creation and economic development,” notes Prof. Abraham. Colleges like Cass already have an ongoing entrepreneurship programme in London that will be brought to its Dubai campus. “Our approach has been to encourage entrepreneurship and to provide the right conditions for it. We’d like to play a part in producing MBA graduates who go out and build businesses. We have a fund set up in London for entrepreneurs, and which we hope to make available for students here too,” discloses Prof. Gillingwater.

Integrating technology and on-campus learning is a way forward.

Strategy simulations, mobile apps for case study discussions, and e-readers are a few of the innovations at SP Jain Centre for Global Management, at a time when top grade colleges like Harvard and MIT have launched online courses free of cost. What cannot be taught online is developing

“We want children to become leaders of tomorrow, and thereby equip them with the skills beyond textbook learning.”

Dr. Vijayam Ravi

The way forward

How can schools raise the bar when it comes to the standard of education provided? Integration with technology and a focus on entrepreneurship will be key inclusions. Many colleges are now focusing on entrepreneurship courses. “We have a good percentage

competencies and skills. “Schools and colleges must now focus on building holistic human beings who have not only the knowledge, but also the emotional, decision making, problem solving, innovative, and communication competencies. These are smart skills that can create world class global leaders,” says Prof. Abraham.

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The Big Interview

The art of insurance The Intelligent SME spoke to Rajagopal Sukumar, founder and MD of Al Nabooda Insurance Brokers, and winner of the prestigious ‘Young General Insurance Professional of the Year’ award from the Chartered Insurance Institute, London in 2005.

TIS: The insurance industry has

TIS: The CRM used by Al Nabooda

RS: When I started working at the

RS: Computers should be used as proactive tools, as these days technology makes jobs so much easier. But I found the market, here, lacking in terms of supply of the kind of IT framework and strategy that is core to our company. So, we started an application for motor comparison engines, then enlarged its scope to include medical comparison engines and then took it to corporate solution engines, which has data on products and brokers.

Insurance is not a commodity, even though distributors would like to describe it so. It’s a professional service, it’s like art. It has to be tailored, according to requirements of individual users, depending upon the industry in which they function. Of course, the model has to be scalable, depending on a client’s requirement. So, we ensured the transfer of certain areas of our knowledge to a digital platform, the ANIB CRM. We digitised significant information, helping to train and aid even inexperienced underwriters. This CRM is our own proprietary product. It hasn’t been used in any other company. So, we compare between cases and get the best information available.

changed over the years. What positive moments have you seen in your experience of more than 20 years?

age of 17 in 1991, every process was manually carried out. I was in India, and it was the time the Indian insurance industry was beginning to be computerised. I still remember that all systems were running on COBOL language, but the processes were limited to inputting data and taking prints of these data. It was a glorified printer then.

I’ve been part of the transition from machines operating on COBOL to Windows. When I came to the Gulf I found that the technology used here was far more advanced.

During the mid ‘90s we saw the advent of many applications that used a computer for more processes than menial printing jobs.

These days all the departments in an insurance company, be it claims or underwriting, are linked to a central data system, where you can get statistics, make an analysis, take meaningful data and so on. I was an underwriter for most of my career, and these updates were very important to me. Then in 2005-2006, I saw some CRMs coming into existence.

It’s been quite a journey for me, and the industry has changed quite a bit in this time.

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The Intelligent SME

Insurance was your brainchild. How did you come up with the plan to get the application in place?

TIS: What challenge is the industry experiencing currently?

The Big Interview

RS: Currently, we’re facing a shortage of talent in the market. This was not the case 20 years ago. The business of insurance has grown enormously in the past few years; we’re facing a shortage of qualified people with sound education in the insurance sector. It is the same situation all over the world. This could, probably, be attributed to the fact that there aren’t many avenues for training. Insurance is an ocean with many sub sectors; I have myself studied the subject for two years as a full time degree. As an underwriter you are supposed to know everything, from property, to medical, engineering, and so on. You are supposed to foresee the risks, and so, read up a lot. It’s a very vast industry.

At times, we even have to follow the weather pattern! A good underwriter should be willing to listen, and be open to all available information.

TIS: As an industry leader, would

you recommend courses to leading educational institutions?

RS: Yes, we have done so in the past; there were some curriculums, but they have been discontinued.

The primary centre for learning is the Chartered Insurance Institute, London, and each country has an institute that is affiliated to it, with the exception of the US and Canada.

These are professional courses, but there is nothing to educate students in the graduate level, or even at the school level. Being a major industry and only second to banking, graduation courses on insurance could have been very useful.

TIS: How are insurance professionals faring in the current economic scenario?

RS: When the industry was caught in the economic turmoil, it coincided with the entry of a few big players in the market. They were looking at high growth, but eventually what happened was that the industry didn’t grow, especially since the construction sector lost its appeal.

And so, it turned into chase of an ever

“The business of insurance has grown enormously in the past few years; we’re facing a shortage of qualified people with sound education in the insurance sector.” smaller target group by too many players. In certain segments the rates have reduced by 50-60 per cent in the last couple of years. This affects the profitability of insurance companies, and which in turn affects the profit of the insurance brokers, since they earn commissions from the sales of products floated by the insurance providers.

A distributor’s responsibility does not end after selling a product.

The distributor has to be there to help a client at the time of claims too. Unfortunately, the focus often remains on selling, and not after-sales service. The market is crowded, but the customer is no fool. They learn to understand the value of service provided, rather than just a reduced premium rate. Pressures to sell are still there in the market. Some brokers have closed down and moved out of the market.

TIS: Which are the insurance

verticals that are showing positive signs, in terms of product sales?

RS: Health care is still positive, as the cost of health care has increased, and it is a universal need. Retail motor insurance, property, and marine insurance are also picking up.

The trends show that Dubai is still relying on trade, and those insurance sectors show strong growth. I don’t see much progress in construction.

Everything ultimately also depends on regulations that come into effect.

A change in the legal framework will mandate a change in the way we do business.

TIS: How are you adding value to your clients?

RS: As a practice, every year when we renew contracts of existing clients, we scout around the market to see if this is the best offer we can give

to our clients or if we can upgrade the services and reduce the claims ratio, which will reduce the premiums. We have 10,000 clients on the retail side and around 250 on the corporate side.

We have 70 people managing these clients.

We started small, in 2007, as a firm of three people and slowly grew into a strong team. We make sure that our clients are given the best possible service so that they remain our client for a considerable number of years.

We have many clients like this.

TIS: What guidelines would you

give to business owners on the kind of brokers to do business with?

RS: Ultimately, it’s the individual’s choice. I would say, insurance is tested at the time of claim. A good insurance representative should be able to advise you on all the options available for the cost that you can afford. You need to assess the provider or broker in terms of the service they provide you post-sales, and, in case your claim is rejected, how well they work to get your losses covered. Even if they don’t do that, you need to evaluate if they would be willing to give you technical expertise when the case is handled in the court.

TIS: What is your advice to the SME sector with regard to insurance?

There are some companies that are in the high-risk sector, such as import and export, manufacturing, and so on. I would advise SMEs to have an insurance philosophy right from the start. A lot of our clients are SMEs, and the risk and insurance philosophies must be embedded in the company strategy. With that, you should learn to evaluate as you grow. You have to decide what kind of cover you need and if that cover aligns with your overall strategy.

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IT Competency

The ‘power of small’ SMEs adopting IT solutions to simplify their businesses will have a competitive edge in the market. A TIS report.

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Mazen Jabri, head of channels and ecosystem, SAP MENA, M.Shailesh, head of information systems, JAFZA business unit, Flemingo International, Luis Murguia, SVP ecosystem and channels, SAP Europe, Middle East and Africa (EMEA), and Nimah Mansoor Faqihi, managing director, Mansoor Ahmad Mohammad at a media round-table hosted by SAP in Dubai.

MEs have historically driven innovation and invention. This has resulted in greater contributions by the SME sector, to the economies of countries without exceptions. A round-table hosted by SAP recently highlighted the need for SMEs to adopt IT techniques in a big way in order to be competitive in the market, sporting world class standards.

Speaking at the event, Luis Murguia, SVP ecosystem and channels, SAP Europe, Middle East and Africa (EMEA), said: Information technology is a key pillar for SMEs to become a prime engine of economic growth in the UAE.

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The advances in business-oriented solutions for mobility, analytics and cloud are driving the competitiveness of SMEs by empowering business leaders and entrepreneurs with the best in class technology innovations to gain clear insights of the business dynamics at their finger tips, any time, any place.”

Murguia also commented that although SMEs were consumerfocused, they often lacked structure in their business process, which in more ways than one, was a setback.

With the government recently calling for the creation of 20,000 jobs over the next decade, and Emirati employment rate hovering

around 13 per cent, the ‘power of small’ enterprises is particularly pronounced.

Also present at the event was Dhiraj Daryani, research manager, IDC MEA, who remarked that the total IT spending currently in the MENA region was around AED20.7 billion, of which the SME sector accounted for 36 per cent. However, in spite of this large spending, new technologies such as cloudbased solutions was lacking, while hardware was the dominating factor.

He also said that IT security was a priority for these companies and that there was a need for right solutions in the market.

IT Competency

“The best way that SMEs are preparing for growth is to have sophisticated business systems in place that allow them to operate like big companies and ultimately compete and win business.”

Dhiraj Daryani, research manager, IDC MEA

“The best way that SMEs are preparing for growth is to have sophisticated business systems in place that allow them to operate like big companies and ultimately compete and win business. But it doesn’t end there. Smart SMEs are also standing out from the crowd by investing in the big trends of 2012: mobility and cloud. In doing so progressive companies are not only investing in technology innovations, but are garnering result in terms of higher revenue expectations to drive impact,” Daryani added.

SAP holds a US$500 million definition for SMEs. Also, 79 per cent of all SAP SME customers originate from over 3000 value-added reseller channel partners who provide localisation, regional and industry expertise and support.

SAP EMEA has had an SME focus since 2005 with a specific spotlight on the UAE since three years. Near 80 per cent of SAP’s customers are small businesses and medium sized companies. The solutions for SMEs include SAP Business One - a single integrated solution for successfully managing small businesses - and SAP Business All-in-One, a customisable and extensible solution for midsize companies with deep industry best practices built in.

“We want to see SMEs that are more agile and able to operate round the clock. We want to see SMEs with enhanced visibility and decision making that can not only lead to better employee productivity, customer engagements and responsiveness, but also help them keep pace with larger companies and gain a competitive edge in their marketplace,” said

Mazen Jabri, head of channels and ecosystem, SAP MENA.

The round-table also featured two SME representatives that had implemented SAP’s SME solutions.

“As a business grows, more pressure is put on existing systems to support the day-to-day operations. If these systems are inadequate, the skilled employees who have helped grow the business are swamped with timeconsuming administrative tasks. As a company representing global brands, we were looking at an integrated solution to serve our current requirements and enable continuous growth…we are now able to know the status of our orders, we have reduced overstocking and achieved better cash

flow control,” said Nimah Mansoor Faqihi, managing director, Mansoor Ahmad Mohammad, house-ware and consumer goods wholesale and distributors.

“Today an SME like ours needs it all: a business solution that is flexible to meet the current and future needs while being affordable, quick and easy to implement, configure, maintain and provide the transparency into business information as the foundation for smart decisions,” said M.Shailesh, head of information systems, JAFZA business unit, Flemingo International.

The company owns and operates travel retail shops and provides supplies to travel retail operators.

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SME Financing

‘Positive outlook ahead’

The Intelligent SME met with Vikas Thapar (VT), GMconsumer finance and head of business banking, Emirates NBD, to understand best practices essential for SMEs.

TIS: Have you expanded the scope of services for your SMEs clients since 2011? If so, how?

VT: Today Emirates NBD is the largest bank in the region. From the very beginning, we have ensured that we create a comprehensive value proposition for our customers.

We focus on three verticals of services for our customers and the scope has been improving and expanding gradually. Starting with basic banking services that encompasses cash management, transaction banking, remittances, preferential prices and so on; the second vertical, which we focus on is assets, which is the entire lending proposition, consisting of term-loans, working capital and more. The third vertical, set-up recently, is advisory services on trade services, investments, or treasury related transactions.

TIS: Emirates NBD’s lending to

the SME sector increased by 30 per cent in 2011. What are the current figures? How many companies do you lend to now?

VT: We have similar aspirations for 2012 and Q1 also has seen robust growth on all fronts of our business, whether it is lending or transaction oriented accounts. Our banking activities cater to about 60,000 SME clients, and we have relationship managers for about 35,000 companies. The remaining companies fall under the micro-SME category, which we manage on a portfolio basis.

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TIS: In your opinion, as an industry

expert, what are the sectors that look promising in the current economic situation?

VT: Real estate used to be the barometer for the UAE. But the sector has gone through some challenging times. Now we are seeing some improvement in the real estate sector in certain pockets of the UAE. Also, SME as a sector is moving through a more stable phase from a UAE perspective.

Manufacturing, F&B, logistics, transportation, and media - these are the verticals where we’re seeing a lot of traction happening in the UAE. New companies are either setting up in these sectors, or existing businesses are expanding.

TIS: What

are the qualities and capabilities required

by SMEs to bridge the gap of acquiring financing?

VT: We need to understand the life cycle of an SME. SMEs generally start up by depending on their own

internal sources, which we call seed capital. Partners put in equity, and they often start on a smaller scale.

Generally, during their life cycle, SMEs tend to focus more on the front end, by which I mean sales and business development.

They may not put enough focus on the back end - namely their accounting, managing their financials and so on. There’s a gap there, unlike a large corporate,

SME Financing

which will have everything in place from day one. My suggestion to SMEs is to first of all manage their books of accounts as best as they can to ensure their financials are in place.

They should have a good accountant or chartered accountant to audit their books and give them right advice.

Secondly, they shouldn’t be using short-term funds to finance long-term requirements or vice versa. Also, they need to ensure transparency of documents. The divide between personal and business transactions should be clear with personal transactions limited, well documented and justified. Finally, SMEs need to maintain their bank accounts to ensure there are no bounced cheques, negative balances and so on.

TIS: What are the best practices that SMEs should fulfill after the loan application?

VT: First and foremost the usage of funds is very important. They should use the funds for the purpose for which they have availed the loan and should not divert the funds into some other operation. Secondly, there are few terms and conditions that a bank provides to customers, and one of which is that they have to submit their quarterly, half yearly or annual statements. Business owners should ensure that they are servicing those requirements. They need to service the repayments properly, and pay interest on time so that they don’t face any issues of withdrawal or restriction of facilities.

TIS: As a bank, how do you manage

relationships with your SME clients?

Do you focus on client acquisition, or aiding them in growing to the next level with knowledgeable advice and support?

VT: At Emirates NBD we have a

unique system in place called the ‘Hunter-Farmer’ model. This model entails acquiring customers through the ‘Hunters’ or the sales officers. The interaction of the hunter is primarily to get as many customers as possible.

These accounts are handed over to

the farmers, who are relationship managers. These relationship managers then do the entire profiling of the customers, understand their requirements and help them grow their businesses, while also recommending the best products and services suitable for that particular business. In effect, our approach is a combination of acquiring customers and nurturing them to the next level.

The nurturing continues as long as a customer has an account in the bank.

TIS: How do relationship managers

keep themselves updated with market trends to cater to SMEs?

VT: We’ve set up a very robust system within our unit. We’ve got an internal products and portfolio team that studies market trends and on a regular basis keeps evaluating our relationship managers on their skill sets. One way of doing this is the general certifications that they have to go through, primarily on basic banking services, namely lending proposition, credit, trade and treasury. Any trends are monitored by this team, and based on these trends we look at upgrading the skill sets of our relationship managers. Currently, we have around 70 relationship managers and 50 relationship officers to service clients. We’ve got around five-six persons in the products and portfolio team that evaluates new requirements.

TIS: How do you manage potential clients - companies who are not eligible for a loan, but may be in the future?

VT: Our relationship managers sit with our customers, nurture them, groom them and understand their current requirements. They then advise them on the best solutions in a structured format on alternate products they can use to keep their business growth on track. Our database analytics team churns out data in terms of what customers are potential targets for our products and services. Information keeps going back to relationship managers.

TIS: These days, there seem to be

intermediaries that manage proposals and paperwork for companies before they approach the bank for finance.

Is there a culture of consultancy that is developing here, and how does it affect banks?

VT: As a bank, we prefer to deal directly with a customer. Consultants may aid the company with book keeping and advise them for financials and accounts. But as long as the interaction with the customer is concerned, we prefer to do it directly with our customers. The process becomes more transparent.

TIS: What are your other levels of engagement with the SME sector?

Do you have other CSR projects?

VT: We’ve always been working with the SME sector. Emirates NBD was the first to tie up with Dubai SME100. We also have a lot of alliances with various business councils and always welcome any opportunity for SME growth at events organised by these agencies. Either we join in these monthly events with a speaker opportunity to disseminate information, or our relationship managers attend these networking events to engage with customers.

TIS: What are your plans for the

SME sector for the next few years?

VT: As a bank with an SME segment, obviously we want to continue our growth path. We’ve been successful for the past few years and our aspiration is to double this growth in three to four years. Our strategy and resources are aligned towards that. We have many expansion plans in place.

TIS: What is your forecast for the economic situation of Dubai?

VT: From my perspective, the Dubai economy has been resilient, and there is a definite positive outlook. We’ve been resilient for the past few years when the global economy was down, and currently there are positive signs.

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SME Financing

Dubai SMEs urged to go public The Dubai SME100 companies are now deliberating on financing options, including IPO to fund future expansion and growth plans. A TIS report.

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onnectivity and communication were the buzz words at Dubai SME’s latest seminar on financing for growth, which highlighted various aspects of raising finance and the way forward to future success.

The aim of the ‘Financing for Growth’ seminar, addressed by a panel of capital markets experts, was to raise awareness and inform CEOs and senior executives that attended the event about the various financing options available for them, including debt and private equity as well as listing on an exchange.

The panelists at the seminar were Azhar Zafar, partner, transaction advisory service, head of mergers and acquisitions, Middle East and

CEO of Ernst and Young Corporate Finance Limited, Andrew Tarbuck, partner, Latham and Watkins LLP, Karim Schoeib, managing director, head of investment banking, SHUAA Capital and Malik Ahmad Jalal, vice president, Riyada Enterprise Development, Abraaj Capital.

Moderators of the event were Craig Hewitt, SVP-Head of Business Development, NASDAQ Dubai, and Fahima Al Bastaki, SVP-Division Head Business Development, Dubai Financial Market.

The panel ruled that business continuity, governance and exposure, and costs were the key considerations in raising capital.

SMEs will help to tackle the challenge of unemployment in the Middle East by creating more jobs,

noted Jalal. He added that flexibility to expand was an important attribute for SMEs and that there was now a shift in opportunities from banking and real estate sectors to ones such as health care and Arabic content.

Schoeib added that strategic alliances are likely to help these regional companies widen their footprint. He, however, advised companies to chart out their own terms while building strategic alliances.

Schoeib also pointed out that establishing the right communication tools would aid in approaching financiers, while emphasising that it was important to learn how to communicate with other companies.

Tarbuck advised companies to bridge the gap between lack of capital and

Fahima Al Bastaki, SVP-Division Head Business Development, Dubai Financial Market, Azhar Zafar, partner, transaction advisory service, head of mergers and acquisitions, Middle East and CEO of Ernst and Young Corporate Finance Limited, Andrew Tarbuck, partner, Latham and Watkins LLP, Karim Schoeib, managing director, head of investment banking, SHUAA Capital, Malik Ahmad Jalal, vice president, Riyada Enterprise Development, Abraaj Capital and Craig Hewitt, SVP-Head of Business Development, NASDAQ Dubai, at the ‘Financing for Growth’ seminar held by Dubai SME.

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SME Financing

Representatives from the Dubai SME100 companies attended the ‘Financing for Growth’ seminar held at Business Village.

opportunity by learning how to communicate as a public company.

Participants at the seminar also discussed the advantages of an initial public offering (IPO) when it came to raising funds for growth.

“Today’s SME being tomorrow’s large company, the relevance of an IPO market is immense,” said Zafar. He added that financial track record and management stability were important considerations in the IPO journey. Adding to this, Jalal said that enabling platforms such as IT infrastructure, communication, corporate governance, and innovation were also key factors.

“The inherent costs are for legal documents and for investment banks. The earlier you put in your governance structure, the lesser investment you add in the later stages. Get the right people and the

right processes fixed. During the IPO journey, you mostly don’t need to pay upfront because you are in a fund raising process,” he suggested.

Accessing financial capital remains a major challenge for many small and medium enterprises, including successful and wellmanaged companies. Achieving it in the right way is an important strategic decision as it underpins the growth potential of the company, whatever its stage of development.

Abdul Baset Al Janahi, chief executive officer of Dubai SME, said: “I am delighted to partner the esteemed DFM and NASDAQ Dubai to push the frontiers further on access to SME financing through this workshop. The listing preparation processes of DFM and NASDAQ Dubai are SME-friendly, thus promising to make it smoother and

Participants at the seminar also discussed the advantages of initial public offering (IPO) while deliberating on the topic of raising funds for growth.

less onerous for SMEs to list.”

Al Janahi added: “I hope Dubai SME100 companies and other ambitious SMEs will take the opportunity to learn more about the IPO route and prepare themselves should they decide to list one day.

Dubai SME believes that a number of SMEs are capable of exercising the IPO option in the next few of years.”

Al Bastaki, said: “As the main driver of any economy, the SME sector, on average, contributes 75 per cent of the economic activities, and this percentage edges up to 90 per cent in some countries.

“Through such events, DFM and NASDAQ Dubai join hands with Dubai SME to educate SMEs on funding options and endeavour to prepare these companies to go public.

Undoubtedly, our national economy is privileged with a wealth of SMEs qualified for this significant step.

Going public and listing is imperative for companies looking for finance through capital markets and for investors that are looking to invest in fast growing economic sectors.”

Hewett said: “As the region’s international exchange, NASDAQ Dubai enables issuers to sell shares at their market value through a book build IPO. Owners need to sell no more than 25 per cent of their companies, enabling them to retain control after listing. These advantages, together with access to international as well as regional investors, are designed to give SMEs and family-owned businesses the fresh capital they need to prepare for the next stage of their journey.”

More than 50 representatives from over 40 SME100 companies attended the seminar. A case study from Mani Foods Industry LLC, one of the SME100 companies, was also presented to help SMEs understand the challenges and opportunities of raising risk capital for growth.

In additon, Drake & Scull chief corporate affairs officer Zeina Tabari also gave a case study on her company, which listed on DFM in 2009. She spoke about the company’s experience in preparing for its IPO and life as a company after listing.

The Intelligent SME

33

Property Insights

‘Rock bottom reached’ Rajan Israni, owner of Caistor Associates, spoke to The Intelligent SME on the improving real estate business in Dubai.

TIS: How would you describe the current real estate scenario?

RI: Property enquiries have

increased in the last two months notwithstanding all the negative reports on the industry until recently.

If you take the instance of our building Suntech Tower, we are getting increasing enquiries on the rates from companies. And, more importantly, when people come to us, they are not asking for drastic discounts in the rates.

Mostly they are accepting the rates that we are quoting.

I feel we have reached rock bottom in pricing in the

market, rent or sales, and people find that current rates are quite attractive.

They are not negotiating, which they were even six months back, when they were doing quoting heavily discounted prices. Real estate is cyclic; whenever the financial climate is undergoing a crisis, the first sign of recovery is when people feel prices have hit rock bottom. So, the first stage is of deals continuing in that corrected state. The second stage is appreciation of these rates. We expect that in six months to a year’s time, all the vacant spaces will have been sold.

After this period of time, the rent will start increasing gradually.

TIS: Have rents actually started increasing?

RI: At great locations you may

find marginal increase, primarily in important areas of business or near to the metro. But in other areas, the prices are unchanged. So, agencies would first look at filling their vacancies to about 80-90 per cent occupancy, and then think of increasing the prices.

TIS: As a

real estate developer why have you focused on commercial properties?

RI: When

we started shop here in Dubai, our 34

The Intelligent SME

target audience was companies that would set up operations in the emirate, and we selected Dubai Silicon Oasis because there weren’t many developers that developed commercial properties. We had to our advantage the infrastructure of Dubai Silicon Oasis, and being under the free zone we felt that this structure would attract foreign companies.

This free zone is unique because companies are allowed to set up their offices if they possess a licence under Dubai Department of Economic Development, or with an NOC from Dubai Silicon Oasis, and which is not the case with all free zones. We have a dual advantage by constructing in this part of the city.

TIS: Do you think that residential real estate is more secure?

RI: Residential real estate is doing

slightly better than the commercial market. This could be attributed to the boom time of the economy. Rents were sky high in those times and people could not afford to live and work in Dubai. But now, since the rents have reduced, the prices are now attractive for those people working in Dubai. Even for those who have migrated to the UAE due to unrest in the Gulf region, Dubai is an attractive and secure location to set up their home and business.

TIS: What is your opinion on the

new law coming into effect end of June 2012, on refund of monies to end users, owing to untimely project handover by developers?

RI: We have heard of it. It should

be taken in the positive spirit by all developers. However, in the event

Property Insights

of non-issue of projects, the reasons behind it should also be enquired into.

Sometimes, if infrastructure is not in place, the master developer constructs a building in an area that is devoid of necessary amenities.

A majority of developers have not delivered what they promised during the boom time. We have full confidence in RERA on dealing with the cases justly. I fully support this new law because there should be a check on developers who do not deliver projects on time. If there are difficulties, there should be consideration for the developers too.

Even communication helps, by giving buyers an update on each stage of construction of the properties that they purchase.

TIS: How do the regulations introduced by RERA affect developers like yourself?

RI: Regulations have undergone

many changes over the years in Dubai. The concept of freehold is new, and experiences have been varied in the real estate sector over the years. There have been faults from buyers and developers. RERA watches over the entire market and their oversight helps to keep the market stable.

One of the best regulations, in my opinion, is the introduction of the escrow account and the mandate that the developers must have the proposed land in their name before they begin construction. Another good development is that developers cannot begin the booking process for the construction until they have finished 10-15 per cent work in a project. Also, if a developer has done the work, and a buyer has not paid the charges towards securing the property, the money paid so far by the buyer could be forfeited in accordance with the stage of the work. In addition, RERA advises brokers and buyers to check on their website for the registration of developers and agents. This way, many corrective measures are in place to help prevent cases of fraud.

TIS: Recently many buyers have

Real estate is cyclic; whenever the financial climate is undergoing a crisis, the first sign of recovery is when people feel prices have hit rock bottom. been charged for non payment of dues. Has this happened to you as well?

RI: My business model is completely different. When we set up the business in Dubai we were relatively new to the market in spite of years of experience in the real estate industry. Therefore, we planned on finishing our project with our own equity and let our work speak for ourselves, instead of answering too many questions on our credibility. As an end user, if you see the property with your own eyes, and are able to measure for yourself, isn’t that better than a picture or a 3D model? We have, therefore, reduced the burden for the customer considerably.

RI: The government or RERA can

encourage financial institutions to start lending to buyers that plan to purchase finished projects. Banks have, in the past, experienced many defaulters, but there is no point looking back. They should, once again, start lending to genuine end-users and partner with genuine developers. Once there is property that is ready for sales, whether it is commercial or residential, the end-user must be encouraged to buy the property with help from financial institutions. This would enhance confidence in the real estate industry and more people would come forward to buy. Even strategic partnerships between developers and banks can be encouraged to lend to end-users.

TIS: What quality measures have

TIS: What trends do you see in the

RI: This is one particularly positive

RI: The future seems to be very

to be put in place while developing a site?

aspect of constructing in Dubaigood systems of administration and inspections. The most important part of a building is its structure.

One has to be very careful in this regard. At every step of construction we are required to inform Dubai Municipality, and they send an engineer, who checks each stage and inspects the quality of that stage.

Now, things have become even easier because one can apply for inspection online. All the approvals are documented in an inspection sheet, and when we apply for a completion certificate, we have to submit this inspection sheet. This is the same in all the emirates.

TIS: What suggestions do you have

for the improvement of the industry?

future? Do you have any projects coming up?

bright for real estate, as it is the foundation for all other industries.

Dubai infrastructure is far superior compared to other nations, and this will only encourage people to move to the emirate and set up operations.

In three years’ time, although the market may not be the same as in 2007-2008, we expect property rates to have increased considerably.

As for upcoming projects, we have 10 plots under our name in various locations in the city. As of now we have completed two projects, and we have seven more in the pipeline. In December we will begin a residential project in Dubai Silicon Oasis premises. Another project will be launched near Maktoum International Airport during the same time.

The Intelligent SME

35

Illustration : Aneesh Varghese

The business of summer Does business take a dip during the summer months? Not anymore. The Intelligent SME takes a look at the sectors that are doing exceedingly well during the summer months.

>>>

Retail industry spices up summer

C

Dubai’s retail sector is all set for higher growth with the onset of summer promotional campaigns. A TIS report. ome summer and heat, one starts to think that life in Dubai will become dreary with everybody flying out of the country for vacations. But that’s not true anymore, as the efforts of the authorities in making the summer an exciting time for doing business is paying off. Some sectors are looking forward to the summer, especially retailers across the emirate.

Indoor activities are spruced up during summer, with all the malls offering a plethora of retail, dining and entertainment options, all under one roof. This summer is also no different with the introduction of 38

The Intelligent SME

government supported events, such as the Dubai Summer Surprises (DSS), which has, in its journey of 15 years, helped increase footfall within the malls. Attractive discounts and deals as well as family entertainment are part of this campaign.

The DSS has helped changed the concept of summer in Dubai, putting the emirate on the map as an international summer holiday destination. “The first edition of the DSS was launched in 1998, welcoming 600,000 visitors, while last year’s edition welcomed around four million visitors with a total visitor spend in 2011 of nearly AED9

billion, compared to AED850 million in the first edition of DSS,” said Laila Suhail, CEO of Dubai Events and Promotions Establishment at a press conference held recently.

Majid Al Ghurair, chairman of Dubai Shopping Malls Group says: “Summer is very busy for the retail sector, unlike the general myth it carries. People spend a lot of time indoors in malls, which offer a lineup of fun activities, bargain deals and raffle draws. There are more outlets opening up in Dubai, and mall space is in demand as always.”

The traditional concept of summers being dull and boring has

Special Feature

Dubai now portrays itself as being a regional trend setter in integrating leisure, retail and entertainment sectors to offer residents and visitors a great experience. shifted to a central pillar that drives the emirate’s retail sector. Dubai now portrays itself as being a regional trend setter in integrating leisure, retail and entertainment sectors to offer residents and visitors a great experience. Initial research by Dubai Events and Promotions Establishment has highlighted that footfall in the malls have increased tremendously as compared to the previous year.

Promotions seen during this time of the year serve as a lucrative method to generate sales, notes Al Ghurair.

“Also, it gives an opportunity to win big and experience the best.

Mall promotions of any type serve as a strong catalyst to reinforce the economy of the country,” he adds.

The fifteenth edition of the DSS campaign offers customers a chance to win prizes worth AED3 million. Additional promotions for DSS include roadshows in the GCC and India to generate awareness and

increase footfall for the campaign.

Retailers estimate an increase of 15 per cent in business for malls this year.

Al Ghurair Centre, one of the oldest malls in the emirate is also all set to woo customers during the DSS with its themed events for families.

“With a fabulous combination of exciting retail offers, entertaining events calendar, and the promotion offering daily prizes, we are expecting a large influx of shoppers at our mall to make it one of their more memorable shopping experiences,” notes Salem Al Ghurair, CEO of Al Ghurair Centre.

Dubai has proven itself as a destination where shopping is an increasingly popular leisure activity, attracting not only those living in the country, but also shopping tourists.

Euromonitor’s latest retailing industry overview states that the bulk of those visiting the UAE to shop are from

the GCC region, although there was also a marked rise in the number of Chinese, Russian and Indian tourists shopping at the malls.

However, the overall growth in retailing is said to be constrained, as there was a marked shift from buying to window shopping, owing to economic uncertainty, the report states. In spite of this trend, the growth for the retail space in the UAE was valued at US$22,438.2, according to Euromonitor.

Among those responsible for this growth are a number of local franchisees operating international brands and domestic grocery retailers. The first group includes Majid Al Futtaim Hypermarkets’ Carrefour and Al Futtaim with IKEA, Ace Hardware, Marks and Spencer and Toys R Us. These players benefit from offering strong brands, bolstered by the general notion that international brands offer superior quality.

Retailing is already seeing a stronger performance with mall groups increasing their investment by expanding outlets volumes and brand portfolios. Fuad Mansoor Sharaf, senior asset director - asset management, shopping malls for Majid Al Futtaim properties, says, “2011 proved to be a successful year - our longest standing mall Deira City Centre saw the addition of retail space to the mall to include fashion, accessories, beauty, jewellery and lifestyle stores in 2012 to compliment the 55 new stores opened last year.

2012 will see Mall of the Emirates expanding its retail mix with over 20 new shopping and dining options.”

A combined 1,320 retail outlets across Mall of the Emirates, Deira City Centre, and Mirdif City Centre offering competitive promotions and deals encourages footfall during this period, he adds.

The Intelligent SME

39

Special Feature

Although hit hard by the economic recession, the automotive industry in the country has shown strong signs of recovery. A TIS report.

C

ar dealers in the UAE are optimistic on the outlook for this year, with auto sales in the country growing faster than anywhere else in the region. They are confident that their sales will grow, in what seems like a challenging year on the back of the global financial crisis.

40

The Intelligent SME

The reason for the optimism can be attributed primarily to easing lending conditions, as banks are increasingly showing leniency to borrowers, while charging them less. Over 70 per cent of new car purchases are made on credit in the UAE. A combination of relatively high living standards, a growing population in the UAE, as

Illustration : Aneesh Varghese

Auto sector set for speedy recovery

well as a resurgence in oil prices, have been the key driving forces behind the growth of the auto sector.

“The automotive industry is set to get back up to speed this year, as bank loans gradually become more easily available and affordable and consumer confidence returns following the global economic downturn,” a UAE-based banker said.

According to a Business Monitors International (BMI) report, consumers are more interested in buying cars based on price rather than prestige, with prices determining the pace of growth. In fact, BMI expects the recovery and car sales to be delayed and demand to remain flat or even decline if price of automobiles rise by 10 per cent or more.

Free zone growth In the last three years, Jebel Ali Free Zone’s automotive sector amounted to AED14 billion in 2011 from AED10 million in 2009, signifying a growth of 40 per cent. This robust growth has reflected the sector’s rapid recovery.

Special Feature

The global automotive industry is projected to rise seven per cent this year. Since the Middle East is one of the world’s largest importers of automobiles and automotive products, this growth is expected to accelerate further in 2012.

Meanwhile, a number of logistics service providers have been setting up regional distribution centres to cater to the requirements of leading automotive players. The reason these logistics service providers are choosing to expand or set up operations in the UAE is to capitalise on opportunities in the burgeoning vehicle and aftermarket sectors in the Middle East.

Growth trajectory

Datamonitor expects the UAE automotive markets to record a compound annual growth rate (CAGR) of approximately 10 per cent over 2010-2014, which will further spur demand for aftermarket parts. In fact, the parts supply chain runs much smoother for automotive players if there are UAE-based parts hubs to take care of the distribution in this region.

These distribution centres are able to serve as a hub for the entire Middle East region due to their favourable geographical positioning. The benefits of this are two-fold: firstly, lead times are

significantly reduced and the supply chain is disruption-free, enabling automotive players to better optimise their inventory, and rapidly adjust to changing market dynamics.

Secondly, they help automotive companies to achieve sustainable

development goals by reducing airfreight for parts ordered in the region. Datamonitor predicts that the automotive logistics industry in the UAE will experience a positive trend over the coming years, reaching a value of US$815 million in 2014

Parts and accessories

A

uto-parts and accessories represent the largest group for imports and re-exports in the UAE’s automotive market. Traditionally, over 50 per cent of these imported parts and accessories are re-exported.

“This business will always be thriving because car owners will always need spare parts for replacement,” a Dubai-based businessman says.

“Even if a single new car is not sold, there will always be loads of spare parts and accessories sold at any given time in Dubai,” Mohammad R, a garage owner points out. Mohammad, who set up a small garage to repair and refurbish used cars for further resell, says his business has been flourishing since he set up his company four years ago in the aftermath of the global financial crunch.

“Some people could not afford buying new cars, especially since the crisis was gaining momentum. So, I decided to buy used cars from those who were willing to buy new cars, but couldn’t sell their old ones.

After renovating these cars, I am able to sell them at a much higher price compared to what I I bought them for, while also recovering all my refurbishing costs,” he explains.

Summer business

“S

ome people like it when it’s winter in Dubai.

I prefer the summer heat,” says Salim Nissarali, marketing executive at Upgrade tyre changing services company.

“Our business booms during summer time.

Tyre bursts or wear and tear due to heat or fakes, all these keep us busy during the hot weather,” he jokes.

His views are echoed by Zaur Azim, owner of a garage in Rashidiya. “It’s true that in summer we are busier than during cooler times. Unlike in the West, people here start getting problems with their vehicles when the summer approaches,” he explains.

“I think we are the busiest during summer because ’ air conditioning of cars tends to start malfunctioning in summer,” says an Al Quoz-based electrician.

According to Al Amani spare parts trading, sales are brisk during summer, despite the fact that most of the UAE’s expats and local population is out of the country on vacations.

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41

Special Feature

Summer travel jingles Jan D’Sa investigates unique travel propositions that woo residents of the UAE to explore new experiences outside the country during the summer months.

D

espite the fact that Dubai has created a lot of programmes and initiatives, such as Dubai Summer Surprises and ‘Do More in Dubai’ for the summer, this period may still see an exodus of Dubai residents, giving a boost to outbound travel. Apart from family vacations, there are quite a few major events happening around the world, giving people a wider choice of activities beyond the UAE.

Various tourism organisations, in conjunction with tour companies, create enticing packages for Arab tourists to visit their festivals. Some

320 280

examples are summer holiday packages offered by Atlantis Holidays that are the official representatives of Azerbaijan’s ministry of tourism and culture for the GCC region. Unique outdoor activities, such as fishing and hunting as well as a visit to the mud volcanoes, half of which are concentrated in Azerbaijan, are novel experiences.

Another place that Gulf residents may choose to go is Singapore-where the annual Great Singapore Sale will run till July 22-to plan their Eid Al Fitr shopping. Statistics shared by the Singapore Tourism Board in the

Inbound visits from Middle East and Africa

240 200 160 120 80 40 Q1 Q2 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008

2009

Nigeria

Saudi Arabia

2010 South Africa

2011 United Arab Emirates

Source: ETC - European Travel Commission 2012

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The Intelligent SME

Middle East show that GCC tourists spend more in Singapore than tourists from other Asian countries or even from the West.

Other examples of packages for the discerning Middle East tourist is one by London’s five star luxury Corinthia Hotel, which has devised a membership package called ‘Visitors Quartz’ at their wellness facility, named ESPA Life. The innovative spa concept is an intersection of the spa and the medical fields and will make it very tempting for Middle East tourists to try it out. Add to this the ‘The Seven Penthouses of Corinthia London’, a series of luxury two storey penthouses.

Thanks to the London Olympic Games this year, the UK’s department of transport is expecting 500,000 tourists in London between July 17 and August 18 of 2012; an extra 260,000 visitors to the capital is expected compared to the same period last year. The graph on page 41 gives an indication of the UAE residents’ travel to the UK over the last four years.

A new study entitled The Outbound GCC Travel Market Unique Trends and Characteristics of GCC Nationals gives insights on the outbound travel habits of 2,500 GCC Nationals from January to December 2011. The results were disclosed at the Arabian Travel Market (ATM) 2012, and is supposed to be a must have for any country that has an eye on Gulf travellers. The study

Special Feature

5.8 million tourists travelled from the UAE in 2011. Of these, 4.8 million travelled within the Middle East, while 1.1 million (19%) travelled to long-haul destinations.

Emirati tourist arrivals to Europe in 2011 totalled 0.6 million, representing 56.5% of Emirati long-haul outbound market.

Emirati tourist arrivals to Western Europe in 2011 totalled 581,000, representing 94.2% of Emirati arrivals to Europe.

Emirati tourist arrivals to Emerging Europe in 2011 totalled 36,000, representing 5.8% of Emirati arrivals to Europe.

UAE long haul outbound travel Million 1.5 1.0 0.5 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Long haul defined as tourist arrivals to destinations outside the Middle East. Source: Tourism Economics

Western Europe’s share of the Emirati market was 53.2% in 2011, a 0.4 percentage point increase from 2001.

Arrivals to Western Europe are expected to increase 13.1% through 2015, to 657,000.

Arrivals to Emerging Europe are expected to increase 14.1% through 2015, to 41,000.

Western Europe’s share of the Emirati market is forecast to rise to 54.0% in 2015, while Emerging Europe’s share is forecast to increase to 3.4%

Europe’s share of Emirati market 70% 60% 50% 40% 30% 20% 10% 0%

Western Europe Emerging Europe

5% 4% 3% 2% 1%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Long haul outbound from the UAE is forecast to grow 2.8% per year on average through 2015.

0%

Long haul defined as tourist arrivals to destinations outside the Middle East. Source: Tourism Economics

Source: ETC- European Travel Commission 2012

was authored by Sunil Malhotra, senior lecturer at the Emirates Aviation College, who shared that the UAE stands third (after Qatar and Saudi Arabia) among the top spenders abroad at a daily average of US$3,280. Extended vacations seem to be the norm, once again led

by Qatar and Saudi Arabia, with stays ranging from 14 days to 56 days. According to the findings, cultural experiences and familyfocus activities are usually the foci for every outbound trip planned by GCC nationals. The table on page 40 lists the criteria for travel by UAE nationals as well as GCC nationals.

According to Jacqueline Campbell, owner of the Travel Collection, there are many direct flights out of the UAE, and the “signs are towards Central Europe and Asia, in particular Singapore, Thailand,

Malaysia and Bali. I don’t believe there is one hot destination that the UAE traveller will target.”

Tourism boards tactics

The Middle East contributed to only 2.49 per cent of the total arrivals in Cyprus in 2009, as the recession means a shift from long haul trips to short haul destinations. However, 2011 proved to be a very good year with the total number of arrivals increasing 12.5 per cent. The UAE took the second place in the most number of GCC travellers to Cyprus.

The three hour flight also makes Cyprus a very attractive destination for the Middle East traveler.

With Ramadan earlier in the summer of 2012 and shorter breaks envisaged for the rest of the year, Vassilis Theocharides, director Cyprus Tourism Organisation (CTO)

Middle East and Arabian Gulf Office, believes that “Inter-Arab travel is the leader across the GCC.” In late 2011, the CTO launched an e-learning portal by the name of ‘Agents Love Cyprus’ so that Middle East travellers may have a chance to appreciate the beauty of Cyprus, all under one online portal. It has become a critical connection to link the Cyprus based agents and those based in the GCC countries.

Seung Hyun Hwang, the regional director for Middle East Korean Tourism Organisation (KTO), says: “We have created packages targeted at our Middle Eastern tourist clientele.

Seoul’s numerous shopping districts stay open late into the night. For those desiring a more family oriented holiday, Busan and Jeju Islands are ideal spots to enjoy a beach holiday.

Jeju also happens to be a great place The Intelligent SME

43

Special Feature

for honeymooners.”

According to him, most of the travel from the Middle East tends to take place before and after Ramadan.

“There is a shift in travellers’ attitude, now that Ramadan falls in the summer months. This means that there will be a holiday split into two periods - the first one from end of June to July 20 and the second one will start from August 20 ending by the first week of September.”

GCC Travel Market

Travel Criteria & Rating Scale - Top 20 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Family size(no of people)-USP-travel with maids Travel spend per person (USD / pp) Class of travel - F/J or Y Preference of service apartment for stays Travel decision-maker in GCC households Critical travel influencers-media channels Travel trip (Major) stay period in days Travel trip (Minor)- frequencies Flight preference- direct, non stop or via Importance of concierge services (MAAS) Importance of indulgence in luxury products / services Van/Mini bus rental for local transportation Importance of shopping at destination Dining & entertainment needs at destination Weather liking- for cold / raining season Preference of city center accommodation Preference of beach/ water activities Language preference for Arabic Role of travel agents in booking Preference for health tourism consumption

Source: Commissioned Research Rating scale - used a scale of 1 to 10 rating individual parameters, 1 is low and 10 high.

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The Intelligent SME

Cruise travel rides the wave

With the flourishing of cruise ports around the Middle East, the region is set to become an emerging cruise destination. The ATM’s Premier magazine reported that there has been a 76 per cent increase in the number of British passengers cruising in the Middle East waters.

Abu Dhabi’s Mina Zayed Port saw an 11 per cent increase with around 160,000 cruise passengers arriving at this port last year. The Mina Zayed Port has already become the prime embarkation and disembarkation point for the MSC Cruises luxury liner MSC Lirica.

The award winning Dubai Cruise Terminal at Port Rashid is now big enough to accommodate five cruise vessels at a time. Promising numbers reported by Department of Tourism and Commerce Marketing and DP World statements indicated a 30 per cent growth in tourist numbers for 2009 and 2010.

The benefits of cruise travel is that it allows for minimal unpacking while exploring various cities along the chosen route and sampling onshore cultural delights. It could also be a great way of escaping the Middle East Summer heat, yet sampling the Arab delights of nature.

Bottom line, whether one chooses to stay back in Dubai for the summer, take flight or cruise along to other lands and seas, there are enough activities to choose from. ‘Spoilt for choice’ becomes the mantra as outbound tourism companies and hotels zone into the needs of their targeted market, in order to offer the best packages possible.

Special Feature

A full house!

Dubai’s hospitality sector is poised for further growth in 2012 after witnessing 15 per cent rise in the number of tourists visiting in 2011, writes Jan D’Sa.

D

ubai has painted a pretty picture of its hospitality sector by being one of the best performers in the Middle East in 2011. Scores of tourists flock to the city all year round, and, summer seems to be no exception.

Being awarded the World Travel Awards for Best Middle East destination for the last two consecutive years, Dubai is strengthening its infrastructure to turn itself into a premier tourist destination. The HotStats 2012: UK, Europe and MENA Hotel Industry report suggests that a sign of Dubai’s recovery from recession is the go ahead received for many planned developments that were previously at a standstill, such as Dubailand, Palm Jumeirah and Business Bay. In fact, 2011 saw hotel openings of Ritz-Carlton DIFC and Jumeirah Zabeel Saray. This year, projects such as the Palazzo Versace Hotel in Al Jadaf and JW Marriott Marquis are expected to begin. According to the World Travel and Tourism Council report, in 2011 the UAE led the way amongst the GCC countries - with its travel and tourism contribution to GDP standing at US$22 billion. Enough reasons for Dubai specifically and the UAE in general, to become a popular travel and foreign investment destination.

ATM results discussed

UAE Vice President and Ruler of Dubai H.H Sheikh Mohammed bin Rashid Al Maktoum recently shared the 2011 statistics on the hotel industry’s performance at the last Arabian Travel Market in Dubai.

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Constant 2011 US$bn 300 250 200 150 100 50 0

2011 Direct

2012 Indirect

2022

Induced

All values are in constant 2011 prices & exchange rate Source: WTTC Travel & Tourism Economic Impact 2012

The statistics that originated from the National Council for Tourism and Antiquities - the federal government’s tourism regulatory body - reported that the UAE’s tourism industry itself generated AED22 billion, reaching seven per cent of the UAE’s total GDP. The Dubai tourism industry itself contributed 31 per cent to the Dubai’s GDP in 2011. A total of 14.5 million guests arrived in Dubai in 2011, a rise of 15 per cent over the previous year. The total of guest nights spent by these tourists was slightly over 44.3 million. Visitors from Europe topped the list, followed closely by Asian, GCC, and North American visitors in fourth place.

Hotel occupancy figures witnessed 15 per cent higher growth than levels obtained in the year 2010 as the occupancy rate of hotels rose to 70 per cent. The Department of Tourism and Commercial Marketing (DTCM) reported that the number of UAE-based hotel guests were 966,829 whilst Saudi Arabian guests were at 873,152 in hotel and hotel apartments. Germany led the Europe list with 275,663. How is this growth achieved? The various government departments have joined hands with various hospitality groups to offer attractive deals. To give an example, 2011 saw the growth of travellers from Australia crossing 13 per cent,

Special Feature

whereas travellers from New Zealand to Dubai saw more than four per cent growth. To boost more visitors from Gold Coast and New Zealand into Dubai, the Arabian Courtyard and Spa was chosen by DTCM Dubai office in conjunction with the DTCM Australia and New Zealand office to arrange a familiarisation event of Australia and New Zealand travel agents right here in Dubai. Habib Khan, general manager, Arabian Courtyard Hotel & Spa, says: “Dubai saw a healthy growth of arrivals from Australia and New Zealand in 2011.

In order to promote Dubai and true Arabian hospitality in a bigger way, we hosted a luncheon event for travel agents and media from these two countries.”

Attractions

With such promising numbers of inbound travel, what does Dubai have up its sleeve for the summer to entice continuous hotel occupancy? Dubai Events and Promotions Establishment (DEPE) has organised the Dubai Summer Surprises (DSS) taking place between June 14th and July 14th.

In addition to DSS, under the DEPE banner, are various spa deals that targeted at the GCC inbound traveller and residents who opt to stay in the emirate during this period.

The Emirates Grand Hotel, Al Bustan Centre and Residence and Ramada Downtown are some of the hotels that have jumped onto the promotions bandwagon with spa offers and

discounted room rates that extend till the end of Ramadan. Moussa El Hayek, chief operating officer, Al Bustan Centre & Residence says: “The Ramadan promotion will include free Iftar during the tourists’ stay, making it even more palatable to stay in Dubai by promoting its ‘feel at home’ concept. Summer in Dubai will also see the annual DSS where a lot of activities are happening around the city giving families, friends and loved ones a rewarding and unforgettable experience. In addition, our corporate rates are very enticing for local and international companies to use their premises despite the summer heat.”

On a similar note, Wael El Behi, acting general manager, Ramada Downtown Dubai, says: “Ramadan might be a challenging time for many of our international visitors; however, with our proper rate strategy in place, we will still attract tourists from other markets where it is winter.

Each market has its preferential hotel type; however, hotel apartments are more cost effective for family stay. The GCC market is the main traditional market for Dubai as a short summer holiday destination. We expect good crowd from the MENA region as well as Central Europe, Far East and South America.”

‘Do More’ campaign

If that’s not enough to entice the whole world to visit Dubai in the summer, the DTCM has devised a new initiative called ‘Do

More in Dubai’ aimed at boosting inbound tourism to Dubai during the summer of 2012. This operation is in conjunction with ‘Definitely Dubai,’ the brand signature of Dubai’s Tourism Department. Visitors to Dubai can select from more than 77 hotels and hotel apartments. The initiative is currently on for inbound visitors, while the domestic visitors’ promotion will start mid of June 2012.

The initiative will definitely be of interest for the Emirati nationals as well as residents who plan to spend the summer in Dubai.

Eyad Ali Abdul Rahman, DTCM executive director of business development and media relations, was recently quoted as saying: “Our aim is to increase the tourist growth by 25-30 per cent through the attractive promotional programmes for both the nationals and expatriates in the UAE and overseas visitors.”

Some of the ‘Do More in Dubai’ promotions include the Discount Shopping Booklet obtained at the Dubai Mall where discounts as much as 70 per cent can be availed on a variety of goods.

The ‘Do More in Dubai’ website makes it very easy for travellers to navigate through the city and choose their leisure activity.

With such an overwhelming array of activities available at hand for both inbound visitors and residents staying in Dubai for the summer, could this be a start of the new trend of ‘stay-cationers’ right here in the UAE? The Intelligent SME

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Business Law

Legal counsel for businesses

Illustration : Aneesh Varghese

Did you know that you could lose your inheritance if there is no proper will in place? Nita Maru answers a few queries.

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rotection of family legacies in the Middle East is a complicated, often underestimated area of the law and, as we have seen, Shari’ah Law, probably, operates entirely differently from the laws of your home country. It’s therefore important to have the assistance of a fully qualified lawyer to advise on wills and on business succession planning to best ensure that your assets are distributed according to your wishes.

Q. We own property in Dubai in joint names. Will I automatically inherit that property upon my husband’s death?

The general rule is that inheritance issues for Muslims will be dealt with in accordance with Shari’ah, and for foreigners, the law of the deceased’s home country will apply. There is, however, some

uncertainty with the law surrounding inheritance issues for UAE real estate owned by foreigners, and for this reason it is advisable to make a will to clarify a deceased’s wishes regarding the disposed of his estate.

This is reinforced by the fact that although you have property in joint names, in the UAE there is no ‘right of survivorship’ concept found in other jurisdictions (i.e. where property passes to the surviving joint owner upon the death of a joint owner).

There are, however, alternative offshore structures we can advise on to protect property here.

Q. If my husband dies will our joint

bank accounts get frozen?

In principle, the government will freeze accounts until all liabilities of your husband are cleared such as loans, credit cards and business debts; this can happen within one

hour of a fatality! The procedure for reactivating the accounts is complex; however, the process can be expedited if there is a will in place.

Q. My husband sponsors me and our

children. What effect will his death have on our visas?

The harsh reality is that your visa will be cancelled within 30 days and you will have to leave the country as you no longer have a sponsor.

However, there are contingency plans you can put in place for those wishing to stay in the UAE which I can advise on.

Q. Mr. Daswani and Mr. Kumar

are business partners and equal shareholders in an LLC company in Dubai, in the fashion/clothing trade.

Their business is growing rapidly and they are extremely successful.

Mr. Kumar is concerned with the implications in the event of death of either one of them.

In the event of a shareholder’s death, local probate laws are applied to a business, but the results may be unpredictable as shares do not pass automatically by survivorship, nor can another family member take over in lieu. However, we can secure arrangements to avoid lengthy local probate and guarantee business continuity.

Nita Maru is a British qualified solicitor and founder of The Wills Specialists (www. willsuae.com). With over 14 years of experience in senior legal positions, Nita has authored several articles and essays on asset and wealth protection. Her focus is on safeguarding families, heirs and businesses, under succession and inheritance laws in Shari’ah jurisdictions. The Wills Specialists is a law firm based in Dubai, dedicated to the business of wills, asset protection, business succession planning, offshore structures and trusts. The firm is accredited by the Government of Dubai Legal Affairs Department, and by the Dubai Ruler’s Court. Their office location is Office Suite 1305, Saba 1 Tower , Jumeirah Lakes Towers. Dubai.

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Business Management

Managing everyday business issues

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John Lincoln guides entrepreneurs with a framework of six Ps that really matter in the business world. mall business owners, SME investors and managers can apply this simple but useful framework in their every day conduct of business and their personal life. This is an unusual but simple and easy-to-remember guideline that gets to the heart of how every business manager does the “art of business.”

Most of us have learnt or heard about the 4Ps of marketing (Product, Price, Promotion and Place). The talented (but high priced) consultants at McKinsey have come out with the

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McKinsey 7-S framework (Structure, Strategy, Systems, Skills, Style, Staff and Shared values). The good folks in brand and communications somewhere have the 7Ps of branding (Profit, Persistence, Planning, Performance, Positioning, People and Principles). I am sure that there are numerous others that I am not aware of.

Whilst all of these are relevant and reliable frameworks developed by real experts, I have framed my own set of Ps that I use in day-to-day management.

I apply this framework in almost every situation, campaign or initiative that I am involved in. I have what I call for easy reference and clarity versus the other Ps, the “Lincoln Ps”.

Of course, these are not mutually exclusive nor are they completely exhaustive. They are a set of Ps that I have sourced from various sources and are relevant, assorted and framed in an easy to remember framework to address most management issues ranging from day to day activities to implementing large scale projects.

So, here comes the “Lincoln Ps.”

Business Management

A disciplined and deliberate application of the “Lincoln 6Ps” will at least enable your team and you to be like a pair of peas in a pod.

Purpose

What is the objective or purpose of a certain initiative, campaign or tactic? I am sure you will agree that there has to be a central issue, objective or outcome that is expected.

They may be multiple other significant factors that should or might be considered, however, there can only be a central issue.

Prof it

Is there a profit to be made? Do the profits meet the required hurdle rates? Is it feasible?

If something supposedly generates a high value, but if its feasibility or probability of execution is low, then it is not profitable. Are short-term profits, cash flow or positioning for growth important?

If these questions can be answered honestly, then you can determine if something is profitable or not.

Plan

Planning! Planning! Planning!

- Do you have a feasible plan to implement the initiative, tactic or campaign? Have you taken contingencies into account? Does it require a multi-scenario planning? If yes, do you have one in place?

6 Ps of Business Management

Process

How are you going to get your plan implemented? Is there a set of systems and processes that you can rely on to deliver or implement the plan? Are the existing governance processes adequate to get resources, manage, track and report progress of the implementation?

Pacing

How are you going to communicate the initiative? Who are you going to communicate to? What level of details will you communicate? Often folks

over-communicate too soon to the extent that an idea or an initiative gets shot down before it is given thoughtful consideration. On the converse, ideas lose momentum when it is under-communicated and very little buy-in is in place.

Do you have a concerted and structured view as to what, when, where, how, why and to whom something is communicated to?

Putting careful consideration to this often underestimated critical consideration could determine if a plan fails or succeeds.

People

Needless to say, people deliver results. Always pay full attention to your people. They truly are the biggest and most tangible asset that you (in your role as a manager) or your company has.

So in summary, you need a business purpose that makes a profit and creates incremental value for your shareholders. Always plan and make sure that a process is in place to implement the plans. You have to have a structured and deliberate way to pace the communications of your thoughts and ideas. Last but not least, people deliver results and they matter most. A disciplined and deliberate application of the “Lincoln 6Ps” will at least enable your team and you to be like a pair of peas in a pod.

John Lincoln has over 20 years of experience in telecommunications, worldwide and is currently the vice president of marketing (enterprise) at Du. He has extensive senior expertise in international telecommunications sales, marketing, business development and customer service delivery.

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Business Management

Business protection: Why it matters Richard Taylor and Rupert Connor explain the need for life assurance in business, namely, protecting main assets and shareholders.

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ife assurance continues to be massively under-bought and under-sold, often with disastrous consequences.

If you are in business, failure to protect your company, partnership and key staff could have disastrous implications in the event that one of you die prematurely or become ill and cannot work. Detailed here are some different scenarios that you should consider.

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Shareholding directors

The death or permanent disablement of a shareholding director could have a serious impact, both on the future of your business and on your family. So, what are the main points you need to consider?

Majority shareholders

Majority shareholders may have important voting rights that directly affect the running of the company. In

the event of a majority shareholder’s death, these rights would normally pass to the deceased’s dependents.

This could affect the company in two ways:

The dependents now have the right to a say in the running of the company. But do they have the necessary experience? And will they share the objectives that the surviving shareholders have for the business?

Or, they might prefer to receive

Business Management

The premature death of a key employee is likely to cause an immediate requirement for cash, so life assurance should be a top priority. the value of their shares in cash. But who will buy them? Unless the other shareholders have sufficient liquid capital reserves, they may be sold to a possibly hostile, third party, perhaps even a direct competitor.

Minority shareholders

Generally, it is the voting rights attached to a shareholding in a private limited company that gives them their market value. Minority shareholdings may not have significant rights and so the shareholder’s dependents may inherit shares that are virtually worthless. The only likely buyers of such a holding would be the surviving shareholders, but they may be under no obligation to buy.

The simple answer to both of these scenarios is shareholder protection. A legal agreement is signed by all of the shareholders, who agree to sell their shares in the event of their premature death and an insurance contract provides money for the surviving shareholders to purchase the deceased shareholder’s equity.

Don’t forget key staff

As your business is ultimately your people, its continued success may also depend on the special contributions made by a small number of ‘key’ men and women.

Your fellow directors or partners

should also be regarded as key people. The death or disability of any of them could threaten your company’s profitability. Indeed, its very survival could be at stake.

Key man (or woman!) insurance

The premature death of a key employee is likely to cause an immediate requirement for cash, so life assurance should be a top priority.

However, it is not just the death of a key employee that can create serious financial burdens for your company.

Today, many serious illnesses, such as a heart attack, stroke and cancer, no longer result in death but require lengthy periods of convalescence.

A key man insurance contract can be written on the lives of key staff that would provide money for this eventuality.

In case you remain unconvinced, perhaps a real life example in the form of the tragic death of training tycoon Phillip Carter in a helicopter crash on May 1, 2007, and the devastating impact Carter’s death had on his business may help change your mind. Carter, his teenage son, best friend and the pilot were all killed when his helicopter crashed in Cambridgeshire, a few hundred yards from home, after a trip to see Chelsea football club lose to Liverpool in a Champion’s League semi-final.

Following the disaster, shares in

Carter & Carter, a national provider of apprenticeship games, plunged and the company issued three profit warnings before its shares were suspended and it began talks with its banks over £130 million of debts. By March 2008 it was heading for administration with the loss of 2,000 jobs.

Fidelity International, the firm’s biggest investor, reportedly lost its £63 million stake, while the Corus pension fund took a £15 million hit from the collapse. It shows what an important man Phillip Carter was to the company and it has been highlighted that the collapse of his business may have been avoided had sufficient key man insurance been in place. At the very least it would have provided the interim leaders of the business some breathing space whilst deciding how best to proceed.

Not an especially pleasant topic to consider, but of vital importance to anyone serious about their business. These things do happen, as highlighted in devastating detail by the Phillip Carter example. If it can happen in a listed company that counted Fidelity as a major shareholder then it can almost certainly happen in your business.

The smaller your business the more vital your key men are likely to be to the profitability and longevity of your company.

Rupert Connor and Richard Taylor are independent financial advisors with Acuma Wealth Management.

As qualified advisors in the region, they help expats get their finances in order, and maximise the financial opportunities available offshore and plan for future events.

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Business Communication

We’re looking for you!

SMEs may be aware of their customers, but do they know how to reach them? Time to send out the search party - are your customers looking for you, questions Robert Jeans.

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s your customer contact your ‘weakest link’? One aspect many businesses fail to manage well is their lack of effective customer service management.

Anyone who has tried to connect with a business in the market will likely have come across this scenario. You’ve been searching for a business that provides a certain product or service. After spending hours reaching out to contacts and scouring the internet for a solution you’re looking for, you come across a business that appears to do so.

Thrilled to have made some progress in solving your particular problem you call the number on their website and one of two things happen:

Either there is no answer or you get voicemail and your return to the site for another contact number and achieve the same result;

Or after several rings a person answers the phone with “Yes?” you then have to enquire, “Is this the XYZ Company?” they respond, “Yes.”

Frustration ensues that you had to confirm that you reached the right number and you have to wonder if this person is interested in serving you at all. You explain the issue and are advised that the person you need to speak to is not there but you can reach them at another number. The cycle starts again as you call yet another number with no answer or voicemail.

Businesses invest massive amounts of time and money attempting to drive attention to their business, but then when the opportunity arrives they often drop the ball. Call management of communications is often overlooked and can be the single most important

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point of contact for prospective customers. You only get one chance to make a first impression and this is the moment of truth. Are you ready?

A simple, effective way to manage this is to do three things: Audit your business

Have your friends or family call the business number listed on your website (and in your marketing), and ask them to evaluate the experience by answering some questions: Did anyone answer? What was the greeting?

Were they able to answer basic questions about the business?

Did they offer to transfer the call to the appropriate person? Were they asked for contact details so someone could call them back?

If so, did anyone actually call them back? This simple task is often overlooked and could be costing you more sales then you realise.

Don’t expect customers to call back

Serving customers is not a right - it’s a privilege. It should never be the customer’s responsibility to chase down your sales people or jump through hoops to purchase your products or services. The customer has already shown interest in your brand when they could have looked elsewhere;

from this point on it is critical to make the purchasing experience easy. The customer should NEVER be asked to call back to another number; it’s frustrating for them and shows lack of interest from your business in serving them.

A simple way to manage this would be to test and ensure that incoming calls are transferred to the correct department / individual. If call forwarding

Business Communication

is not an option, customer enquiries with contact details should be communicated immediately to the appropriate department or individual.

Have a follow up system in place to ensure customer enquiries are being responded to in a timely manner.

Also ensure there is voice mail or an answering service in place to record customer’s enquiries after normal business hours.

Call management training

Ensure the people responding to customer enquiries are trained in managing communications by phone and email. This includes training in call management such as professional greeting skills as well as an up to date departmental and personnel phone/email directory. This is your prospective customer’s first point of contact with your business; you need to ensure your team is empowered to provide real ‘service’ to customer enquiries quickly and professionally.

Where are my customers?

You’ve put in place all the necessary processes to ensure incoming calls and emails are being managed; now, where do you connect to tell your customers about your products or services in a meaningful way? It’s time to send out the search party and get in front of them in the places they are already ‘hanging out’, looking for solutions.

Many businesses jump to get on the ‘Social Media’ train. However, there needs to be some strategy in place for this to work effectively.

There are hundreds of social media sites from the behemoths such as Facebook, LinkedIn, Twitter and You Tube to smaller niche forums.

Although the major players enroll millions of members, there is also an abundance of businesses presenting themselves in these forums.

The main issue is that there seems to be a lot of people talking, but are the businesses really listening?

To convert prospective customers into sales you need to develop a relationship with the market so they know you, like you and trust you.

To achieve this, integrate with internal groups within these forums which are created for like-minded members who share similar interests.

Sub groups and fan pages (market niches) make good prospecting pools to connect.

Evaluate the questions and conversations to identify the problems being discussed and how your offering might solve them.

Illustrate your value by offering free advice or information and establish a rapport with the group. In this way, you may become an established ‘resident expert’.

With the overwhelming advantages to prospecting online, many businesses neglect to realise there is often far less ‘noise’ offline and they can connect effectively in these places, especially when there are fewer competitors present.

Associations, events, social clubs or networks, and communities are all great places to connect with your target market offline.

For an example, let’s consider a dog grooming business. To start, begin by connecting with dog owners in their usual ‘hangouts’ such as dog associations, talent shows, vets, parks, pet supply stores and dog trainers and training schools.

Connect with them by offering free

information or services and establish a rapport with the group. These are excellent channels to develop reputation and brand awareness.

Solutions and results

Once you have the customer at your door, make sure you understand what brought them there. People don’t buy products and services; they buy solutions and results. If you are purchasing a computer does the value (the exchange of your money for their product) reside in owning a keyboard, monitor and hard drive or the solution the computer provides by enabling you to perform work or personal activities with greater ease and efficiency?

Similarly, when you get your car washed do you value having the car washed or the result of having a clean car?

Business such as Apple understand this and it enables them to focus their activities on what their customers are really interested in; the way their solutions benefit their customers. This allows Apple to not only mold their products and services around their customers’ needs in a way they will find valuable, but also enables Apple to convey synergy between their product’s benefits and their marketing messages.

The most basic rule in sales is to make your product or service easy to buy and easy to sell. With all the money and resources invested in getting prospective customers to your door - are you sure your customers aren’t being turned away at their first point of contact?

Time to send out the search party; your customers may already be looking for you - are you there?

Robert’s experience is based on over 25 years in the corporate and SME environments. He is a partner at Keyhole and has owned a variety of businesses in import/export, retail and consulting sectors. Keyhole provides experienced service and support to local SME businesses in a variety of aspects including sales and call management training. Keyhole recently released an eBook titled ‘Sales Secrets Revealed - Uncovering the Mystery of Sales Success’. Receive the first eBook of the six Module series on prospecting FREE by contacting Info@Keysandholes.com.

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Franchise Business Model

Franchising: The upside and the downside

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There are many factors that go into determining the right franchising business, explains Zakia Kazmi. ranchising is a very popular mode of business in the Middle East. Operating a franchise is a great business model, especially for entrepreneurs who would like to contribute to the business environment.

At a time when most people cannot predict keeping their jobs, franchising on the other hand has a 90 per cent success rate.

It would be pertinent to understand what exactly a franchise is: in simple terms, a franchise is an agreement between two parties which allows one party (the franchisee) to market products or services using the trademark and operating methods of the other party (the franchisor).

There are two types of franchises: business format franchising and product and trade name franchising.

Three primary elements define a franchise relationship: the use of a common trademark, the provision of assistance to the franchisee, and the collection of fees, royalties, mark-ups or other monies from the franchisee.

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Why franchise?

In order to franchise your company, your business should be established and profitable, it has to be unique in the marketplace, and more importantly, it should be readily teachable to others. The business should also be attractive in terms of proven return on investment, marketable, and a transferable model to other markets.

Companies usually franchise for three reasons. Typically, the franchisee puts in the initial capital to set up the franchise, which is an expansion for the franchisor. This enables a company to grow faster than it otherwise would, through corporate expansion, with a reduced risk and liability. Franchisees are far more motivated to succeed than salaried managers and, therefore, there are few concerns over day-to-day operations. Further, a franchise has to follow quality standards set by the franchisor, hence franchising only promotes increased quality at the unit level.

Why take up a franchise?

Leading franchisors provide substantial assistance to franchisees.

As the guidelines of the franchise are already set, the financial management and strategic planning tools as well as the business planning process is already charted. Also, the performance measurement systems, criteria for assessment and evaluation are already in place. Therefore, the benefits are many when it comes to franchising.

Franchise Business Model

Opportunity: Why a Franchise?

many common mistakes that entrepreneurs make. Many entrepreneurs may rush to sign the deal without reading, Concept management Sourcing product selection Field support understanding or asking preferred supplier Merchandising, business planning questions about the franchise relationship pricing hygiene and disclosure document. Thereby safety inventory they miss out on reading all management the responsibilities of the Financial management Package of franchisee and the obligations Franchise owner training/ and strategic planning tools benefits for customer service store of the franchisor. Many a time, Competitor analysis FRANCHISEE and staff appearance, Business planning process they do not seek sound legal customer selling, process Budgets and target or financial advice, or verify and staff selection setting oral representations of the franchisor, his representative Performance Information system Marketing/ measurement system or broker.

POS system promotions Criteria for assessment There is a huge variety of Shop systems management and evaluation franchises to choose from, so take your time and speak on the discounts to you. Moreover, Finding a suitable franchise to other franchisees before local and national franchising for the

While searching for a suitable you take a decision. Always talk to franchising operation as a whole is franchise, firstly, assess what you, closed franchisees and understand supplied by the franchisor. Ongoing as a business owner or entrepreneur, their reasons for failure. Analyse your research and product development is would like to do, and find out the market and devise a great marketing also supplied by the franchisor. reasons behind attaining strategy based on your findings.

Though franchising may self-employment. Next, assess Determine the best location for your seem positive, there are a few your business and interpersonal franchise and always keep a track of disadvantages to be discussed: the skills and break these down into your competition. franchisor must be paid his royalties detailed actions. It would also be

It is also important to maintain and the contract with the franchisor prudent to calculate the amount of working capital for the day-to-day has to be renewed after a certain money that you would need to earn, operations. Many franchisees fail to period of time. Doing business may as you would also have to prepare recognise the need for finance; some not be too flexible as the methods for sufficient funds to meet cash do not even know how to make a are pre-described and dictated by shortages. Although you would be proper loan request. the franchisor. You may be forced self-employed, you would still need

Therefore, taking up a franchise to buy raw materials supplied by the to follow the franchise system. is a tedious task, and it would be franchisor, rather than cost-effective

However, there are many better to hire a consultant, who materials available in the market. advantages associated with would spend the time to educate Therefore, you may not get to make franchising: firstly, franchisors have you on the franchise industry. The all the decisions on how to run your a vested interest in your success. consultant will also help you define business.

Also, the marketplace has already your qualifications, so that you do been scrutinised by the franchisor not waste time and resources on Common mistakes and deemed successful for the franchises that are not suitable for

Although franchising may seem business. The franchisor will utilise you, by using an unbiased approach to like a lucrative business, there are collective buying power and pass help you achieve your goals.

Leading franchisors provide substantial assistance to franchisees

Zakia Kazmi, owner of Kayzed consultants, has more than 15 years’ experience in the franchise sector, having worked with many established franchise businesses. She has expertise in franchise development, franchise marketing, franchise management, brand development and ISO certification across the region.

She has been instrumental in getting various brands from UK, Canada, US, Malaysia and Europe, representing franchisors and master franchisees in domestic and international franchise transactions.

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Sales Management

Overcoming challenges of sales Zed Ayesh explains how SMEs can overcome challenges in sales and put in place a winning business strategy.

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ales conquests remain among the biggest challenges for SMEs across the board. As business experts, we see two main categories of business based on sales challenges: newly established international business in the region and newly established local businesses.

The first category is faced with more external challenges such as market understanding, competition, perception and local business process,

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while the second category is hindered with staffing, training, business models, value proposition, time management, delegation and the most common among the two is sales and sales management.

Based on deep knowledge and observation of SMEs in the local market, there is much to be done to help SME owners and managers to better manage their sales team to become more efficient. This means conserving limited resources and

increasing revenue, which is the ultimate business objective.

Assuming that the business idea is valid and the product or service being sold has valid value proposition, here are a few tips: Time

Time is a valuable asset for an SME. When it comes to sales activities and sales management efforts, time is the most undervalued asset. We all get 24 hours a day

Sales Management

Be aware of how you spend your time if you are in sales, and be aware of how your team is spending their time, if you are in sales management. without paying for it. The trick here is that once it is gone we cannot get it back. What we do during that time, the number of people we see and number of contacts we excute to convey our value proposition is controlled by our activities in that time frame. The process of better managing sales for yourself or for your company can be described as efforts in time.

If a sales person can contact 10 prospects in eight hours he or she, surely, will have better results achieving more sales than say, putting across a sales pitch to only three prospective clients in the same amount of time. Be aware of how you spend your time if you are in sales, and be aware of how your team is spending their time, if you are in sales management. It is important to understand the sales efforts including

lead generations activities, which may include but are not limited to advertisement and promotions.

Managing a sales team

You can make sales, you can make excuses, but you cannot make both at the same time. One of the most difficult issues that SME owners and managers’ face is managing their sales team. This could be attributed to the perception in this part of the world; “that the sales profession is not viewed favorably”; sales people are disliked and more times than other they are resisted without being given the chance to show or tell their story.

Sometimes external pressure of sales combined with internal pressure puts a sales person on the defense, and some other times he or she gets into a comfort zone where enough time is not spent in getting more sales

by establishing more contacts. They simply make excuses, among which some are very valid.

In the past few years I think I have heard it all, and, every once in a while I still get surprised by new and original excuses. My answer to such excuses is that no one said that sales would just roll in; you have to go and get it. When your sales person starts to make more excuses for not making the efforts (not the sales) then it is time to let him/her go.

Empower

It will make a huge difference when all the staff in a company are empowered through training, knowledge, involvement, bonuses and encouraged to become a part of a sales team even though their primary function in the company is not sales.

Getting staff to be a part of an overall organisation is critical unused asset, which can make a huge difference once used in the proper manner.

It’s easy enough to get the staff to become a part of a sales team if they feel valued as individuals and as employees in addition if a sense of pride is installed in them. This is done through actions, not words.

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Sales Management

To start the correct sales process a sales person must start with listening to the prospect, trying to understand and evaluating what his prospect is looking for.

Listen

Usually a sales person wants to finish his sales pitch early on in a meeting so that he can close on the deal quickly. Many times if not all times, when that happens, the sale is lost without ever coming back. The sales person starts giving his pitch without asking a prospect what he or she is looking for, what issues or problems they are trying to solve.

The lack of sales process understanding is the number one sales killer in this region. To start the correct sales process a sales person must start with listening to the prospect, trying to understand and evaluating what his prospect is looking for. It is a misconception among SME managers that a good sales person is a good talker, which is a huge problem. Research has found that introvert individuals achieve better results in sales compared to extroverts. To sell more you have to listen more.

Pre-qualify your prospects

In this region sales persons try to sell to anyone and everyone. Maybe that is why in most cases they are not liked. They are not spending enough time on researching prospects and potential buyers before they approach them. To ensure successful results from sales activities a sales

person must ensure if the person he is contacting is the right person for the products or services being sold. It is more complex when the prospect leads the sales person into believing that he is that person and it is much worse when such a prospect is not even a prospect, but simply doesn’t have anything better to do with his time; To be able to distinguish true prospects from non prospects is a skill that can be developed with time.

Listen with your eyes not your ears - many prospects say many things that indicate their intention of buying, but their actions tell a different story: believe your eyes.

Numbers don’t lie

When managing sales activities as well as the sales team, it is crucial to understand the numbers - all the numbers, including but not limited to revenue, lead generating efforts in numbers, and sales effort in numbers. When working against a quota, knowing your ratio matters: how many calls it takes to secure a meeting, how many meetings it takes to secure a presentation, how many presentations it takes to secure a request for proposal and how many proposals end up as sales. When you know your numbers and understand your ratio, then sales becomes an easy thing to manage.

Persistence

The more “No’s” you get, the closer you are to a “yes.” Sales can be a very frustrating job with rejections and dead ends, in addition to building contacts and structuring your ratio makes it an uphill task. If you are just starting up a business or a career in sales, it is important to know that a sale as an activity, an effort and as a career requires persistence; this is the one virtue that is essential for the success of any sales person.

Make it easy to buy from you

The one thing that I hear all the time is when buying a product or a service from a small business, one has to go through so many complications to finish the purchase, as if it is the customer’s fault that he bought that item or service from the SME. SME owners and managers do such things with the objective of getting paid and not having any liabilities toward the customer during and after the purchase is completed and maybe due to lack of resources, nevertheless they end up losing the customer for good.

When thinking about operating, an SME owner or manager must provide service that sells.

Exceeding customer expectation is a long-term, winning sales and business strategy that can keep the clients and revenue coming.

Zed Ayesh has over 20 years’ experience in management and business development. He is currently the managing director of Flagship Consultancy based in Dubai, and works with clients on many aspects of the business from strategic planning, business development, marketing strategies, pre-sales and sales management, across different sectors such as government agencies, real estate, media companies, manufacturing, contracting, engineering firms, retail and shipping companies.

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Business Networking

The Number 1 trait of a good networker While there are a number of skills associated with networking, the number one trait of a good networker is follow up, notes Phil Bedford.

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eaving a networking event with a handful of great contacts is always a good feeling. It means, to many of us, it has been a justifiable use of time. We need to make sure that this investment in our business is not wasted. After all, our time spent networking has a value to it.

We should have an hourly rate in terms of what we are worth to our businesses, which means that while networking, your time has a “cost” to your business. There is also the “cost” associated with the time you are not doing other tasks, such as attending to existing clients or preparing proposals. It could be a “cost” to your

personal life, perhaps time spent with family if it is an evening event.

To turn this potential “cost” into an “investment” we need to make sure we are not wasting our time.

Metaphorically, networking is the Ferrari you buy yourself, and then leave parked in the garage, because you didn’t want to learn how to drive or that you drive incorrectly, which results in a damaged Ferrari.

Therefore, if we are not networking effectively and efficiently, it becomes a waste of time, rather than the potential benefit for our business.

While there are a number of skills associated with networking, the number one trait of a good networker is follow up. If you don’t follow up with the people you met, spent time chatting to and starting a relationship with, then it is often a waste of time.

How to remember them

I suggest- when you meet a person of interest at an event- making notes after the conversation on their business card with action points based on the conversation and also some points to help you remember them.

Then in the future when referring back to the card you can reference the conversation and your memory bank which makes the reconnect more personal.

One problem for many people is that they get home or back to the office, put the cards on their table, and then proceed to catch up with work.

After a day or so, they see the cards

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Business Networking

“Pouncing” on everyone you meet trying to sell to everyone and then following up with sales emails does not encourage people to see you as someone interested in them.

and move them to one side, out of the way, and promise to themselves to deal with them later on. Three days later the cards are still there, and making the table cluttered, so they are moved to a “storage place for cards” out of the way, quite often this is a draw or business card holder. Now they are “lost” and forgotten.

I would suggest following up with the people you meet within 24 hours. It shows you to be on the ball and efficient as well as valuing the conversation you had. Not bad traits for a new business relationship.

If you receive a decent follow up email wouldn’t it also be polite to reply to it? I am amazed at how many people do not.

Follow up appropriately

This all depends on what you discussed and agreed at the time. If they ask you to be in touch with a view to doing business, then you have their permission to set up a meeting with the same agenda.

If you agree that you should sit and discuss opportunities such as referring each other, then follow up and suggest a date and time.

I need to point out here that following up is different with each of the four behavioural styles: some are best to follow up with by phone and others by email, what you say when suggesting the meeting will also enhance or detract from your success.

I would suggest gaining some extra knowledge in this area by learning

more about the Platinum Rule, DISC or Room full of Referrals.

If you just had an interesting chat with no clear outcome, it is appropriate to follow up by saying nice to meet you and I look forward to seeing you again.

A big “no-no” is to send the people you meet an assumptive sales email telling them they need your services possibly along with loads of information about the company or product. Don’t believe me? Well, think of the last time someone did this to you, the chances are, you deleted the email.

The key point of networking is to be remembered favourably. To become visible so that people think you are a good person, professional and they would like to get to know you more. “Pouncing” on everyone you meet trying to sell to everyone and then following up with sales emails does not encourage people to see you as someone interested in them. It shows you are only interested in what you can get from them.

Maintaining contact

Let’s face it, it’s pretty much impossible to stay in touch with everyone we meet. We all know between 250 and 2,000 people and to keep in touch on a 1-2-1 basis with them all would leave us no time.

Yet, if we do not stay in touch in some way, then they will soon forget about us. It is important that people remember us and what we do, even if

we do not see them from year to year.

I would guess we all know someone close to us who has bought from a competitor because “they forgot what we did” or “someone came knocking at the right time”.

We need to filter these contacts to see which key people we need to be in touch with regularly - those “Referral Partner” relationships with which we can pass each other regular high quality referrals (profitable relationships). From the people who become potential referral sources who provide or to whom we can give less regular referrals (credible relationships), to those people who become part of our network but we do not know well from whom chance referrals may come or become part of our support or information networks.

To maintain the relationships and stay in touch with the wider sphere of your contacts, moving them into permission based CRM is a good move. Offer them the opportunity to get free tips from you through some form of newsletter. By adding value you are not taking from them.

As best-selling author and change agent Seth Godin states, the old days of interrupt marketing are dying and we need to be adding value by permission.

Categorize them in your CRM system with people who express a need to know more about your product from those who at this point simply want tips. I find constant contact is excellent for this (www. constantcontact.com) although there are other management systems out there. Whatever action you take, I suggest putting yourself in the recipient’s shoes and thinking how they would view this.

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.”

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HR Strategy

How to motivate without money Carole Spiers suggests ways to make employees appreciated without having to increase their remuneration.

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ith the current economic climate, and many companies being unable to pay their employees more money, what are the other alternatives left open to the management that can be used to motivate teams? Is it even possible to do so without giving additional financial reward? The good news is that it may be easier than you might have thought, others have done it and if they can, so can you!

Illustration : Aneesh Varghese

Motivating factors

One of the most effective ways of motivating a team is to ensure that they understand the aims of the organisation for which they work, and, that they are supported

by management towards the achievement of those common aims.

Where company policy dictates that there will be no increased remuneration, there is still an absolute need to get team commitment. Any 64

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manager is only as successful as his or her department and that means that the team must be properly advised of the overall position and the need to conserve funds and to increase efficiency in order for the organisation to survive. In this context, there are many positive ways

to motivate a team, and here are few strategies to start off with.

Talk to your team There are a number of ways in which an employer can show his/ her appreciation for work done well.

Each individual employee should be

HR Strategy

If you want your team to be fulfilled emotionally as well as financially, then a word at the right time, in the right place, can make a huge difference. asked what else, other than money, is important to them, and to tell them that you value their input.

Feedback

The completion of confidential feedback forms or questionnaires will give your team an opportunity to be open and honest about their feelings both towards you, and the company, and what ideas they might have for improvement.

Outside team building activities

These would take place away from the workplace and can lead to a much happier and healthier working environment, and such exercises can also help in the resolution of pre-existing issues within the team.

Lunchtime activity

Every month, have one lunchtime activity where you discuss how things are going, and what improvements can be made. In simple terms, involve everyone all the time.

Listening

‘Communication’ is not only talking to your team, but also listening to them. It is important to confirm their full understanding of the company objectives and their individual role(s); it is also equally important to indicate the importance of their specific feedback to the achievement of designated targets and the fulfilment of published standards.

lot further than you might think. If you want your team to be fulfilled emotionally as well as financially, then a word at the right time, in the right place, can make a huge difference.

Saying ‘thank you’ for a job well done, either personally or in front of a group, is only good manners, it also happens to be a very effective motivational strategy.

Other ways that have been employed are for the staff canteen to offer healthy, appetising food; ‘quiet rooms’, so that people can unwind and relax between working sessions or, maybe, even yoga and relaxation classes to demonstrate to employees that their hard work is appreciated.

profile to the individual concerned.

‘Employee of the Month’ award

At the end of each month, an award can be given to the employee with the best productivity, when they have done a really great job.

They can also be mentioned in the company newsletter, the website or notice board. Anywhere that gives

Constructive feedback

Not everyone gets everything right first time and if you are only ever known to criticise and not give praise, then just watch motivational levels fall! So, if you do need to give feedback to a member of your team, always end on a positive note.

Flexibility

There are many jobs that are very boring; so, try and rotate them so that the boredom factor doesn’t get in the way of performance. Find out ways to engage with the team. Talk to them and ask them how you could improve the boredom factor. The key here is communication.

Make your ideas theirs

People hate an inflexible, rigid way of working. Instead of telling people how you want something done, ask them in a way that will make them feel like they came up with the idea themselves.

Incentivise

Small incentives, such as McDonald vouchers to take out the whole family, spa days out, arranging coffee and pizza for those staying late, etc., may be token gestures that are inexpensive, but they do show, albeit in some small way, that you appreciate your team’s input.

Being appreciated

Praise from the CEO goes a The Intelligent SME

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Ideas board

Asking people for their ideas and suggestions and ensuring that some of them are implemented can be very motivating. It makes people feel valuable, part of the team and integral to the business.

Employee absenteeism

If one of your team is off sick for more than a day or two, then a small note asking how they are, will go a very long way to getting them back to work and showing that you see them as a person, and not an automaton.

Take an employee out to lunch

This could be done completely spontaneously. Just walk up to them and say ‘how do you fancy lunch?’

They maybe a bit bemused to start off with, but when they realise it was just a ‘getting to know you chat’, see them come back into the office with a big smile on their face!

Birthdays and anniversaries

With company intranet systems now firmly in place in many companies, everyone can now be advised when it is a special day for someone in the firm. With e-mail and iPhones, it is so easy to send a text or a message to that individual. It transforms a firm into a family.

Health benefits

Bring in a masseur (or a masseuse) once a month and, maybe, subsidise their fees. I don’t suggest that the employee doesn’t pay as there needs to be some personal responsibility. But the company

could certainly pay towards a service that could be appreciated by many members of staff, at all levels.

Special interest groups

I bet you don’t know what special interests your team have. Well, if you don’t know, it is probably because you haven’t asked them. You may find that you have people who like walking and you could arrange for a company group that walks at lunchtime or at weekends. Or some of your employees might be really talented singers or pianists. How about a talent show at the end of the year? Does this cost - No! Will it bring the organisation together and working well together - of course, a resounding ‘Yes!’ Healthy workplace culture

Make your office a place where employees feel that they belong to a family. Not a family of relations but a family of colleagues, at work. It’s about working in a ‘WE’ culture where everyone has a role to play from the CEO downwards to the person who cleans the office.

Everyone should be treated equally as an individual in terms of respect and value, as everyone has their role to play in a successful and sustainable business. Motivating a team is always easier if you fully understand that all team members may not necessarily be motivated by the same factors that motivate you. In other words, what pushes your button doesn’t always push theirs! The most effective teams are those who feel valued, supported and recognised.

If a team fully understands the company’s mission statement and the challenges that come with it, then they are more likely to work harder towards achieving the company’s goals.

Furthermore, a majority of people tend to respond well to being given the opportunity to make decisions and take on additional responsibilities. Apart from their designated job responsibilities, certain team members might welcome the opportunity to work for a charity that is associated with the company, where they feel they can make a real contribution, outside working hours.

Whatever motivational techniques work the best, it is essential to ensure that your team feel they are making a valuable contribution towards the company’s objectives.

If you look after your employees and ensure that their working environment is conducive to productivity, that you have good communication channels at all levels throughout the organisation - be it large or small - then you will know that you are doing your best to retain valuable talent and that they will have no reason to look elsewhere.

There are few things that are more demotivating than a high staff turnover.

And finally, don’t forget to smile when you come into the office. Watch the reaction and see motivation levels increase as you walk in. As we know that to both give and to receive a smile, costs nothing - it’s win-win.

Every day! Good luck.

Carole’s credibility is rooted in 20 years’ success as CEO of a leading UK stress management consultancy, working with equal success both in the UK and the Gulf. She is a world authority on corporate stress, a BBC guest broadcaster and author of a new book ‘Show Stress Who’s Boss!’

Carole is an inspirational motivational speaker, and a weekly columnist. ‘Show Stress Who’s Boss!’ is available online (http://www. showstresswhosboss.co.uk) where you will also receive a signed copy of the book + FREE stress test card and in all good bookshops in the UAE.

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International Accreditation

Food safety first Adoption of international food safety management system standards ensure sustainable growth for organisations operating in the food chain, writes Dr. Sameer Kumar.

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nsafe food causes many acute and life-long diseases, ranging from diarrhoeal diseases to various forms of cancer. The World Health Organisation (WHO) estimates that food-borne and waterborne diseases together kill about 2.2 million people around the world annually, of which 1.9 million are children.

Threats to food safety constitute a growing public health problem, and WHO’s mission is to assist member states to strengthen their programmes to improve the safety of food all the way from production to final consumption.

In the year 2005, International Organisation for Standardisation (ISO) took an initiative to publish and release a process based food safety management system - ISO 22000:2005 to promote food safety, globally.

Food safety is a concept or management system, according to which, food will not cause harm to the consumer when it is prepared or eaten as intended.

What is food chain?

This includes the sequence of stages and operations involved in the production, processing, distribution,

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Food safety hazard Food safety hazards could be biological, chemical or physical agents in food, or a condition of food with the potential to cause an adverse health effect. The term “hazard” is not to be confused with the term “risk” which, in the context of food safety, means the probability of an adverse health effect (such as becoming diseased) and the severity of that effect (death, hospitalisation, absence from work, etc.) when exposed to a specified hazard. Food safety hazards include allergens.

storage and handling of food and its ingredients, from primary production to consumption. This also includes the production of feed for foodproducing animals and for animals intended for food production.

The food chain also includes the production of materials intended to come into contact with food.

ISO 22000:2005

This international standard specifies requirements for a food safety management system where an organisation in the food chain needs to demonstrate its ability to control food safety hazards in order to ensure that food is safe at the time of human consumption.

It is applicable to all organisations, regardless of size, which are involved in any aspect of the food chain and want to implement systems that consistently provide safe products. Meeting any requirements of this international standard can be accomplished through the use of

Statutory and regulatory authorities

International Accreditation

Crop producers Food producers Primary food producers Food manufacturers Secondary food manufacturers

Producers of pesticides, fertilizers and veterinary drugs Food chain for the production of ingredients and additives Transport and storage operators Producers of equipment Producers of cleaning and sanitizing agents

Wholesalers Producers of packaging materials Retailers, food service operators & caterers Service providers customers

internal or external resources.

ISO 22000 standard specifies requirements to enable an organisation to plan, implement, operate, maintain and update a food safety management system aimed at providing products that, according to their intended use, are safe for the consumer. It also demonstrates compliance with applicable statutory and regulatory food safety requirements. ISO 22000 also evaluates and determines customer requirements and demonstrates conformity with those mutually agreed customer requirements that relate to food safety, in order to enhance customer satisfaction.

The standard mandates effective communication of food safety issues to suppliers, customers and relevant interested parties in the food chain. It also ensures that the organisation conforms to its stated food safety policy, while demonstrating such conformity to relevant interested parties. Under

this standard the company can seek certification or registration of its food safety management system by an external organisation, or make a self-assessment or self-declaration of conformity.

All requirements of the ISO 22000 are generic and are intended to be applicable to all organisations in the food chain, regardless of size and complexity. This includes organisations directly or indirectly involved in one or more steps of the food chain. Organisations that are directly involved include, but are not limited to, feed producers, harvesters, farmers, producers of ingredients, food manufacturers, retailers, food services, catering services, organisations providing cleaning and sanitation services, transportation, storage and distribution services.

Other organisations that are indirectly involved include, but are not limited to, suppliers of equipment, cleaning and sanitising agents, packaging material, and other food contact

materials. This international standard allows an organisation, such as a small and/or less developed firm (a small farm, a small packerdistributor, a small retail or food service outlet), to implement an externally developed combination of control measures.

Benef its

There are many benefits associated with the implementation of this standard. It ensures consistency in food safety and quality, leading to sustainable growth.

By implementing this standard, organisations can have marked reductions in food hazards and market claims, while improving their professional image. It also opens up the scope of the company’s operations to new markets and customers, owing to increased efficiency and reduced costs.

Overall, it also enhances employee morale and goodwill of the company with regulators.

Dr. Sameer Kumar, CEO, Universal Consulting FZE, is a quality professional with an experience of working in more than seven countries. He has provided consultation and training to more than 400 clients in the UAE, UK, Thailand, Singapore, Hong Kong and India. He has completed his MBA, PhD and is a Six Sigma champion by qualification and lead auditor of ISO 9001, ISO 14001 and OHSAS 18001. E-mail: ceo@ucfglobal.com.

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Leadership

Healthy leadership spawns growth in enterprises

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Michael Tolan explains why lack of commitment to vision and customer experiences can spell disaster for many companies. assion is a much bantered buzzword in the corporate world these days, often found intertwined in mission statements from companies around the world.

However, in many cases, passion remains only a plaque on the wall and too seldom seen in action. Of course to understand this, consider your own experiences with local

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businesses that have fallen short of your expectations.

Poor customer service, for example, is a sure sign that passion does not resonate from the head of the company into its corporate body.

There are several factors to consider in understanding this divide from passion to mediocrity.

One of them is a commitment to excellence on the part of the leader of

the organisation. This is sometimes caused by a myopic perspective of the original vision of the company.

While many entrepreneurs began their enterprise with the best of intentions, sadly in order to make ends meet, cut corners and prioritise revenue generation over fulfillment and outstanding customer relations.

What these leaders are often unaware of, is that this sends a mixed signal to

their rank and file employees that it is acceptable to make a sale, but it costs too much to give a better service. As a result, many of these organisations that fall into this cycle of attempted survival experience a higher rate of attrition, loss of employee moral and loss of connectivity with the pride and esteem they all look for in a corporate family.

Gone unchecked, this phenomenon works like a virus, first from the head of the organisation who is not totally and utterly committed to a clear mission and vision, and then trickles down to the customer base and then back to the receivers of unhealthy complaints about the company’s performance.

Naturally no one intends this to happen to their business in the beginning, but business is a totally alive and dynamic organism, with no time to stop and refuel, it must always refuel in motion. Lack of resources, poor sales, economic downturns, competition that erodes market share can all create a catalyst for underperformance.

So what is the cure to this syndrome of unhealthy business?

Just like the human body, an organisation needs to undergo its own wake up call for an awakening of how important it is to have and maintain a healthy business unit. This can only come from committed leadership that re-dedicates the longing desire to regain good and sustainable health.

In order to start the process a real diagnostic evaluation must be initiated with a totally unbiased and sometimes even distant analysis.

As the human body falls into disease, a healer will want to check the vital signs, temperature, pulse and respiration, blood pressure and complete physical exam.

This is where some business consultants can make a measurable impact to help coach the leader through this diagnostic process. After this, they might propose the question if it is time to seek a partner that can balance the lack of resources in the company, whether they be financial, technical or HR. Although this may sound egotistically threatening to

Illustration : Aneesh Varghese

Leadership

some entrepreneurs whose pride is on the line, the leaders who have picked things up and turned them around have seldom done so without experiencing a certain amount of discomfort once they have made the commitment to redirect the company on a solid road to good health.

Naturally, the best road to sustaining a healthy organisation is preventive medicine. Just as the natural healing properties of exercise, plenty of rest and a good healthy diet serve the body, the entrepreneur who plans ahead, understanding his or her own SWOT, prior to launching, will be better equipped to lead the organisation away from potential

pitfalls of disarray. The leader who continues to implement best practices in his company, provide training to his staff, maintain top standards, and builds this into the ultimate business plan, is more likely to succeed.

Therefore, healthy leadership is not an accident; it is a lifetime of unshakable commitment to excellence in behaviour and culture, which will sustain success more often than not.

Sharing this passion and this vision and being resolute in every step of growth will ensure that the entire corporate family will be better equipped to meet any challenge on the road ahead.

Michael J Tolan is senior consultant for Potential.com, an organization that develops excellence practices, provides coaching and training to SMEs in the Middle East and North Africa region.

He is also the head of the Leadership Academy for Excellence within the Potential Group.

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Leadership

The unlimited nature of abundance Anesh Jagtiani explains why creating bulletproof confidence is a must for success.

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id you know that one of the most important things that separate people who are highly successful from those who aren’t is a mindset, which is based on abundance instead of scarcity?

Just think about how much easier it is to be confident and to be immune to things like the fear of failure, or the fear of poverty if you honestly believe that there is an endless source of supply when it comes to the things that you want.

So, how do you create this

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kind of mindset, and develop the bulletproof confidence required in order to be successful and achieve your peak potential? It begins with understanding the unlimited nature of abundance.

There is more than enough if you believe there is. You’re, probably, already aware of the significant impact your thoughts have on your actions and attitudes.

You have to see to believe, according to what you think, and these beliefs influence your actions, and it’s these actions that influences

the results in your life.

And this is how self-fulfilling prophecies are formed. People believe something, it inspires their actions, and then they get results, which reinforce their beliefs in actions they were involved in.

So, what do you think this means if you’re always thinking about how there’s not enough to go around with?

This is a scarcity mentality, which causes people to play it safe and to not go after the things they want.

And, as you might guess, these people never get what they want

Leadership

very often, and this just reinforces the idea that good things are scarce and hard to come by.

Belief of abundance

On the other hand, there are people who are constantly thinking about how there is an endless supply of abundance, which is available to everyone who has the courage to go after what they want. These people develop beliefs, which are consistent with those thoughts. And, naturally, these beliefs lead to actions, which cause these people to have more than enough of what their hearts desire.

These results continue to reinforce the belief that abundance is everywhere if you just know how to look for it and if you focus on it.

So, what you get is more abundancebased thinking, abundance-based beliefs and actions, which bring about more and more abundance.

You’ve probably seen evidence of this in your life: People who are happy, enthusiastic and driven are constantly attracting things into their life, making them happier, more enthusiastic and fuelling their drive.

For example, wealth creates opportunities to acquire more wealth; happiness creates opportunities to acquire more happiness.

It is a matter of fact that good health, good relationships and all the other good things in life are available to you in abundance, provided that your thoughts are reinforcing the belief that there is, and always will be, more than enough to go around with.

The sooner you begin your life based on the assumption that there is already an unlimited supply of what you want available to you, the easier it will become for you to get more of the things you want.

Developing the mindset

By now, you’re probably more than convinced of the importance of building an abundance based mindset. But how do you actually go

about doing it?

Easy, you just start asking yourself how you would act if you already had more than enough of what you wanted. For example, how much more confident and assertive would you be if you knew that you already had the kinds of relationships you wanted.

How much less fearful would you be of financial setbacks if you knew that you had an abundant supply of money?

In other words, the sooner you begin your life based on the assumption that there is already an unlimited supply of what you want available to you, the easier it will become for you to get more of the things you want.

To your brilliance!

Anesh Jagtiani is the CEO of Empowering Leaders Group (M. E). He is a professional speaker and trainer. His leadership programme helps managers motivate and retain their top people, improve their effectiveness in communication and maximise the bottom line of companies. He is also a TV anchor of a show called TOP GUNS on ZEE TV where he has interviewed the 12 most successful Indian entrepreneurs of UAE. He can be reached at anesh@elgme.com or www.elgme.com

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Leadership

Present with power Kevin Abdulrahman gives vital tips on how to make presentations impactful and focused.

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eft your presentation preparation to the last minute?

Are you unclear about what must go in it?

Have you got too much to say?

Perhaps you may be struggling with a brain freeze and nothing comes to mind?

You could even be in a position where you have practised your current presentation, but are nervous about forgetting key points, or stuffing it all up.

You want to get it right when it matters!

Whatever the case, if you need to stand up and give a presentation or make a public address, allow me to help you with some last minute 74

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quick-fire thoughts, which many of my clients have said to be invaluable.

Apply what I share with you, and I guarantee that you will witness a dramatic impact on the quality of what you deliver, how you deliver it, and your audience’s response.

First of all, scrap everything you have. Let’s start fresh by asking the question: “What is the purpose of your presentation/speech?” The answer should form the basis of what you will speak. It is imperative that you start with the end in mind in order to ensure that your presentation has a crystal clear focus.

How much time have you got?

If you have 10 minutes, then you can safely deliver one key message with impact. You may have a few sub points, but stick to having one

key message. Work on the rule of thumb of having one key message to every seven to ten minutes that you have. If you are speaking for 30 minutes, then you can have three to four key thoughts that you can work on delivering. Brainstorm your thoughts. Write everything that comes to mind. Don’t hold back. This is your opportunity to include anything and everything.

Now things get interesting.

Eliminate the points that are not imperative towards the purpose of your talk. You may think it is important. You may think it is interesting. You may love it for whatever reason. But if it does not fit in with the purpose of your presentation then it must go.

Less is more.

Leadership

It is imperative that you start with the end in mind in order to ensure that your presentation has a crystal clear focus.

Does it f low?

Before your presentation could make sense to your audience it must first make sense to you. Recite it out loud and see if your points ‘make sense’ and are in the ‘right order’.

Often when practising (out loud), certain slides get adjusted to create a flow.

Make your message stick in your audience’s mind by sharing a story or anecdote. Don’t complicate it or make it fancy. Ensure it is simple to understand and, more importantly, relevant to your message.

Leaving it to the last minute is never a great idea, but if you have something coming up tomorrow, then these tips will have a dramatic impact and make a world of difference to your presentation. Remember, your audience today demand that you are

able to present at a world class level.

Learn to present with power and you will stand out and have an edge over your competition.

I look forward to hearing how these tips have helped you own your crowd.

Avoid memorising This may sound counter intuitive since many professionals will often grin with pride by saying that they have memorised their presentation.

The truth is that you will only end up blocking yourself when it’s game time.

What you must do is set up a structure. If your presentation was a story that you are telling a friend, does it have a start? What about the finish? And a flow that connects the two? A simple story line can help you remember and link your thoughts from start to the finish.

There are numerous elements that you need to work on before, during and after any presentation/ public address that you have to give.

Kevin Abdulrahman is a celebrated leadership speaker and a world class public speaking coach whose client list include ambassadors, associates, athletes, CEOs, CFOs, delegates, diplomats, directors, entrepreneurs, investors, managers, partners, politicians, VPs, presidents and royalties.

Those serious about wanting to present with power and speak to impact, inform, influence and inspire can reach Kevin at www.ownyourcrowd.com

The Intelligent SME

75

The Intelligent SME & Business Village present Talks that empower

Plan your company’s success (A talk on corporate governance and succession planning)

Free Registration - Hurry! Limited Seats Just SMS your name to 055 9023185 to attend or email us at response@spiholding.net [Assured covered parking for attendees]

Date: June 27, 2012 Time: 6.30pm.

Venue: Room No.13, 2nd floor B Block, Business Village, Deira.

Why you should attend?  The factors that go into making a structured path to better management practises  Know-how on corporate governance implementation  Turning a one-man business to a larger institution and enabling effective monitoring of the company.  Understanding Sharia'h Law and the importance of having a Will to protect assets and family  Learn how to protect your livelihood against unfavourable local laws  Get advice on all legal aspects on how to plan Estate.

Speakers Ekta Kaur is a dynamic Solicitor working with The Wills Specialists based in Dubai, UAE. She graduated with Law LLB (Hons.) from the UK and went on to complete her LPC at the College of Law, Bloomsbury London.

She has had over 6 years experience in advising a broad range of high net worth individuals on all aspects of Trust and Estate planning and with drafting of Wills, Tax planning, the Administration of Estates and applications through the Court of Protection, UK. She also advices on the setting up of offshore structures and on the implications of Shariah Law, in the Middle East, on expatriates and Muslim clients.

Alec Aaltonen is a Program Manager at Hawkamah Institute of Corporate Governance. Alec joined Hawkamah from HSBC Global Asset Management in London, where he engaged with boards of companies on their corporate governance practices. This entailed detailed corporate governance analysis of companies and covered areas ranging from executive remuneration schemes to board balance and audit independence. Prior to HSBC, he worked for a corporate governance consultancy in London as a Corporate Governance Executive. He holds Bachelor and Masterís degrees in International Relations, a Graduate Diploma in Law and a Masterís degree in International Commercial Law. Strategic Alliance Partner

Corporate Partners

Alliance Partners

Hospitality partner

Media partners

Supported by

www.theintelligentsme.com facebook.com/theintelligentsme

linkedin.com/company/spi-holding

Please follow us: @intelligentsme

THOSE WHO MADE A MARK.

WOMEN ENTREPRENEURS

For love of the arts The Intelligent SME spoke to Miriam Walsh (MW), a talented artisan, entrepreneur and one of the founding partners of ARTE on her quest to provide a platform for artisans in the UAE. TIS: How did ARTE come about?

Please tell us the story of the journey?

MW: I have been an artisan in Dubai for many years, before ARTE was set up. Markets must be in my blood with a close family member starting his career of retailing at the Dutch markets.

By 2005 I had met my partner Paul Townsend and his family already a few times at events around town, and we got talking. I felt let down by the management of quite a 78

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few of these events, together with the dynamics of artisans, work, market, and sales being out of sync. For Paul it was more a case of badly run event experiences and mostly the fact that he had to compete with imported products. In July of 2005, we chatted and agreed that we would do a better job with the artisans of the UAE in our mind as the most important factor. We then invited a number of fellow artisans and discussed our plans, which were well received. In September we ran our first event with

30 artisans in the Crowne Plaza in Dubai.

TIS: How much of ARTE was a

business venture vis-Ă -vis a real passion for what you wanted to do with art and craft in the local market?

MW: Paul and I both felt that the business side of the life of the artisan, selling through soukhs, was greatly misunderstood. Many a time we attended a soukh where the organiser supported a charity, and donated the

Women Entrepreneurs

Over the years we have learned that vendors who do not sell fall out and, therefore, only the strong, best, most creative artisans can afford to stay. table monies for their benefit, and, never thought about attracting clients and visitors to come to the events.

It happens that you have no or low sales; we did, however, insist that people had to be aware of the event, to give us an opportunity to make a sale.

ARTE did start from passion, and a great drive to support artisans to gain a better respect and self worth all around.

TIS: Is managing ARTE different to any other business venture?

MW: We are dealing with artisans

who create art, craft and design and we experience a great connection between us all, a great understanding of the highs and lows, the successes and disappointments. Friendships are easily created and the bonds are tighter and deeper. We have, therefore, asked one of our non artisan partners to help out with the financial side of the market; both Paul and I got too close to handle this properly and functionally.

TIS: Where do you want to take

ARTE in the future and, do you face challenges?

MW: At the moment our focus lies in attracting visitors to the soukhs through an intensive social networking programme. Our team now counts 13 volunteers and some of these are responsible for the graphic design, photography, PR / marketing, digital marketing, and blogging. We like to perfect what we are doing and maintain that the focus is the artisan.

The challenges that we face is that we sometimes feel that our success sets us back. We have nearly 2900 UAE-based artisans on our list of seven years. We have roughly 400 different vendors appearing

at our markets throughout a year.

Sometimes it takes longer than we like to get to know a new artisan, and so we are fighting to keep close contacts with all the vendors, also stimulating that vendors help each other. We are after all like each other; therefore we hope that vendors are also like each other.

TIS: How do you rate the quality

of art and craft displayed at ARTE? How do you endeavour to sustain the quality and improve it?

MW: We do not curate the art and

craft displayed at ARTE. We do, however, work hard to make sure that all products are handmade in the UAE by the artisan. We find that visitors to the soukh give vendors the best feedback. Paul and I do not feel that we can judge the art or craft. Over the years we have learned that vendors who do not sell fall out and, therefore, only the strong, best, most creative artisans can afford to stay.

Having travelled much these last few years and having a deep passion for soukhs I visit many across the globe. I have not seen many that match the variety of ARTE, and quality of works represented.

TIS: Have you seen any change in the quality of the people coming to ARTE as buyers?

to your country to do business?

MW: I cannot comment here, I have lived in Dubai for 22 years and I have not done any business elsewhere. I am, however, a shop retail child and so I know all about how incredibly hard the retail business can be. I guess we have to count ourselves lucky for the opportunity that we have been able to set up ARTE, providing a safe, fun, creative platform for the artisans of the UAE. TIS: What is your advice to the art and craft lovers in the UAE?

MW: Visit ARTE, chat with fellow artisans, and join the ARTE events with commitment. As for artisans, only to make products which are very close to their heart and made with passion and love.

TIS: Why did you stop the open

market? Are you going to start it again after the summer?

MW: We will not be running the open market at present. The documentation is very complicated, not covering the artisans, and also expensive. We have had many meetings at various levels and we have decided to focus on the artisans who create their own rather than those who import.

MW: Yes, it seems that with an increase of visiting expatriates to the market from the region and near region, the vendors have changed more to be regional and near regional.

Do visit www.arte.ae to get a feel of our vendors, and when and how we exhibit.

TIS: As a woman entrepreneur, have you found Dubai friendly compared

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79

Social Media

Let’s get social Have a question about social media and promoting your business online? UAE-based social media consultant and award-winning marketing strategist Farrukh Naeem answers your queries on using Facebook, Twitter, YouTube, AdWords, SEO and any other online services. Send your questions to farrukh@farrukhnaeem.com Q. I want to build a successful

website for my business. What is SEO and at what stage should I worry about it?

A. SEO refers to Search Engine

Optimisation, which entails all activities aimed at making your website and its pages easier for search engines to find, index and show when people are looking for something online.

Search engines could use more than a hundred factors to decide which results will show up first on search engine result pages (SERPs) when someone types in a search query using keywords. The top results get the most traffic.

Some of these factors which

influence your search engine visibility like keywords in your domain name, age of your domain name, a logical structure of your URLs, an easy to navigate and well planned site map, and the words your target audience might use to find what you offer must be taken into consideration before you start designing or laying out your website.

It is ideal to get your SEO specialist involved in the earliest stages of your website development - they can also give you valuable guidance in the most suitable platforms to use. A website built completely on Flash for example might be highly recommended by designers purely on visual appeal but might not be good idea for search

SEO must start early in the website development process - even the choice of a domain name makes a difference in search engine results. In the above top search results for “movers in Dubai”, note the highlighted keywords in the domain names and page titles.

80

The Intelligent SME

engine traffic because such sites are harder for search engines to index and understand fully.

Q. Can I increase my website traffic without buying internet advertising and paying for clicks and traffic?

A. Yes, you can get hundreds and

thousands of visitors to a website without any paid ads for web traffic depending on the searches in your business category and the competition for these searches. You can estimate the amount of traffic as well as competition in your market by using free or paid keyword tools for web search. Keyword tools show you how many daily, monthly, yearly searches you can expect for related keywords and how many pages exist that are competing with those keywords.

Based on the search traffic predictions thus made, and the competition sized up, you can start to create content that caters to the searches while also looking for gaps in competition. According to the ‘long-tail’ theory of SEO, shorter terms are highly competitive and require excessive time and resources, while longer and specific queries have less competition and may yield faster results at a lower investment.

Q. How do I optimise my website text so that it shows up well in search engines?

Social Media

to the source page.

Your keywords and descriptions of the image should be used in the file name of the image, its ‘alt’ tag in the source code and, of course, captions help too. The ‘alt’ tags of images are seen as anchor text when images link to a page on your website, and can help search engines associate keywords and pages through image optimisation.

Q. Are there any practices that I

Search traffic accounts for most of the unpaid visits on websites - with well-planned SEO, you can get regular and free traffic to your website organically.

A. The best content on the internet is

one that provides value to the reader or user. However, even some of the best content is not easily found if it is not optimised for search.

One of the most important elements of your content is the title tag, which describes what your page is about. It is shown as the blue link in a search result. Title tags should be unique for each page of your website and should contain the keywords that describe the content of the page as well as match the searches you are trying to target.

Try to keep your titles under 75 characters so that they are not cut off.

Words in the beginning of the title tag (left) carry more weight than those at its end and, therefore, you should try and begin your titles with your keywords.

Filling in meta descriptions for all of your pages which have your page’s content summary and its keywords helps your search engine ranking - it also helps draw in a reader as this is what shows as a snippet of your page in the search results.

Meta descriptions should be limited to 150 characters and should be unique for every page. Search engines might choose to excerpt from other parts of the page too but having a description stacks the odds in your favour.

Heading, subheadings, bold text which uses your targeted keywords, but always in context of naturally flowing text, also helps readers scan

your page and search engines in weighing it for a given key word combination.

Using ‘anchor text’ in your web pages to link to other pages on your website can also be a useful device for SEO as well as user navigation. This is the text that has a hyperlink and it signals to a search engine what your linked page is about.

There are many other ways to optimise your content for search, but these are some of the most important ones that you must not ignore.

Q. Do I need to pay attention to my

website’s images for search engines?

Can images bring in traffic?

A. Yes. Images can be a very

valuable source of web traffic, specially with image sharing sites like Pinterest, which let users share images from websites that link back

should never engage in when doing SEO for my website? What are the risks of doing so?

A. Most sites in the world get a

majority of their traffic through search engines. If your website is found violating the rules of a search engine, it could get penalised, could drop in ranking, and could display a warning in case of malware or suspicious scripts and programs installed in its code. In the worst case, your website could get banned and delisted from search engines, losing traffic and business.

Below are a few practices you should always stay away from, to avoid any search engine penalties or bans.

Keyword stuff ing: Loading your source code and content with excessive amount of keywords works against you. Use keywords that describe the content of the page.

Duplicate content: Copied content or scraped content which is taken from existing web pages can get your pages flagged as duplicate results. Use fresh, original content.

Page titles and description tags are used by search engines to determine the relevance of a web page to keywords in the search query - they also help users decide which website they would like to visit.

The Intelligent SME

81

RESEARCH

WORDS

ENGAGE

FRESH

Cq

Cr

Cw

Ce

Cf

SPEED

URLS

As

Au

Are URLs short & contain meaningful keywords to page topics?

Does site load quickly?

Can search engines easily "crawl" pages on site?

Spam techniques may cause ranking penalty or ban.

VIOLATIONS

CRAWL

Ac

ARCHITECTURE

Do headlines and subheads use header tags with relevant keywords?

Hd

HEADERS

Do meta description tags DESCRIPTION describe what pages are about?

Hh

TITLES

Do HTML title tags contain keywords relevant to page topics?

Are pages fresh & about "hot" topics?

Do visitors spend time reading or "bounce" away quickly?

Do pages use words & phrases you hope they'll be found for?

Have you researched the keywords people may use to find your content?

Are pages well written & have substantial quality content?

Ht

HTML

QUALITY

CONTENT

These elements are in the direct control of the publisher.

ON THE PAGE SEO RANKING FACTORS

Below, some major factors or "signals" you should seek to have.

reward pages with the right combination of ranking factors.

to the uninitiated. But there's a science to it. Search engines

Search engine optimization — SEO — seems likes alchemy

THE PERIODIC TABLE OF SEO RANKING FACTORS

Vs

Vt

HTML +3

+3

ARCHITECTURE

LINKS +3

+3

Titles +2

Crawl +1

Quality

+2

+2

+2

Vt

STUFFING

THIN

Quality

Thin

-2

Speed +1

Text

URLs

Numbers

+1

+3

History

Vh

-1

Cloaking

-3

Written By:

Do you excessively use words you want pages to be found for?

-1

Vc

Vh

Link Spam

Vl

Paid Links

-3

Vs Vc Vp

-1

+1

Country

+1

Social

-3

Ps

History

Blocking

HISTORY

AUTHORITY

SHARES

REPUTATION

NUMBER

TEXT

QUALITY

SOCIAL

HISTORY

LOCALITY

COUNTRY

What do your friends think of the site?

Does someone regularly visit the site? Or "liked" it?

What city or local area is someone located in?

What country is someone located in?

Has site or its domain been around a long time, operating in same way?

Do links, shares & other factors make site a trusted authority?

Do many share your content on social networks?

Do those respected on social networks share your content?

Do many links point at your web pages?

Do links pointing at pages use words you hope they'll be found for?

Are links from trusted, quality or respected web sites?

Vl

Vp

Bp

Bt

LINK SPAM

PAID LINKS

BLOCKING

BLOCKING

Copyright Third Door Media

Have you created many links by spamming blogs, forums or other places?

Have you purchased links in hopes of better rankings?

Has someone blocked your site from their search results?

Have many people blocked your site from search results?

If searchers "block" site, hurts both trust & personalization.

BLOCKING

Ps

Ph

Pl

Pc

PERSONAL

Th

Ta

TRUST

Ss

Sr

SOCIAL

Ln

Lt

Lq

LINKS

Elements influenced by readers, visitors & other publishers.

OFF THE PAGE SEO RANKING FACTORS

Learn More: HTTP://SELND.COM/SEOTABLE

Do you show search engines different pages than humans?

Do colors or design "hide" words you want pages to be found for?

Design By:

CLOAKING

HIDDEN

+2

Ph

Locality

+3

Bt Bp Blocking

-1

BLOCKING

Negative "Violation" and "Blocking" factors harm your chances.

rankings. Several favorable factors increase odds of success.

1 (weakest) to 3 (strongest). No single factor guarantees top

Stuffing

Hidden

Authority

+3

PERSONAL

Ss Th Pl Shares

+1

Reputation

+3

Ta Pc

TRUST

Some factors influence more than others, which we've weighted

FACTORS WORK TOGETHER

Headers

Is content "thin" or "shallow" & lacking substance?

VIOLATIONS

Fresh

Cf

Engage

Ce

Words

+1

Description

Cw Hh Au Ln

Research

Cr Hd As Lt

Quality

+2

SOCIAL

OFF THE PAGE SEO

Cq Ht Ac Lq Sr

+3

CONTENT

ON THE PAGE SEO

Social media

Search engines have dedicated image search facilities. But if your images are well optimised for SEO, these could also come up high in text searches.

Paid links or link farms: Search engines can identify and track down unnatural links, and rank down your website. Earn your links with useful content.

Redirects: Also known as shadow domains, these are deceptive domains that try to trick users and search engines into clicking and arriving at a site or page.

Link exchanges: Link exchanges do not add value to your website and linking out to the wrong sites could be counterproductive. You can promote your pages by linking them on your other internet properties including social networks, blogs, video descriptions and press releases.

Here are some useful links for SEO guidance:

Google’s SEO starter guide (PDF Download): http://bit.ly/SEOGuidebyGoogle

Hubspot’s SEO Marketing Hub (Free articles, webinars and e-book) http://bit.ly/SEObyHubSpot

SEOMOZ’s Beginners Guide to SEO (online chapters and PDFs): http://mz.cm/SEOMOZGuide

Social media networks can be a powerful source for legitimate high quality, traffic pulling inbound links to spread your website content and bring in new and repeat visitors without any paid advertising.

Farrukh Naeem is a digital strategist and social media consultant based in Abu Dhabi, UAE. His marketing blog (copywriterjournalist.com) has a readership across 140 countries and his tweets (@farrukhnaeem) are followed by more than 11000 people worldwide. Farrukh helps SMEs and individuals build and grow their influence online using social media and online marketing.

The Intelligent SME

83

Personality

‘I am the brand I am selling’ The Intelligent SME delves into the life of Nitin Mirani (NM), an entrepreneur and famed performance artist.

TIS: Tell us about the journey of setting up Komic Sutra.

NM: I have worked in almost every

industry, and I have always found myself inclined towards stand-up comedy. Somehow I never let go of the idea of performing on stage to different audiences to see their reactions to what I had to say. The idea of Komic Sutra came to me in 2004 at around 4am, and I remember jumping out of bed and starting work on the presentation.

I have always believed and known that humour plays a very important part in everyone’s lives, especially in an expat market, where people are always working hard and long hours. Comedy was the break they needed, and it could even be therapeutic. So, in 2006, I decided to pursue it seriously and was very pleased with the response. I am proud to say that after having sold out shows in the Middle East, India, Hong Kong, Canada, Maldives and many more, countries, Komic sutra has now become a name people trust for quality ‘humour-tainment’.

TIS: How do you conduct your passion of performing as a business venture? How different is it from your other career choices?

NM: It is truly a blessing, because

my passion is what I do for a living.

Like any other business, loving what

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you do makes all the difference, which, I personally feel, is the key element to success. The concept of comedy extends to more than just performing on stage. I have been involved with many corporates on different levels providing them with humour solutions of all kinds, including scripts for corporate gatherings and videos.

The only difference now is that I am the brand, I am selling. However, the plus point is that I invest in my mind and cash in on the returns.

TIS: What challenges do you face as an entrepreneur and an artist?

NM: Like any other business,

sustainability and reinventing oneself are the most common challenges, especially since comedy is now becoming a very popular form of entertainment. But, at the same time, the audience is becoming very brutal and needs the best value for their time and the price they pay.

As a comedian, it sometimes seems impossible to come up with jokes that are not only funny, but also would cater to 85 per cent of a mixed crowd, that would at any given day, laugh at different things and surely have a different sense of humor.

Having said that the challenge is actually what excites me as an artist and pushes me to deliver what is expected. Once again I do and have always had a genuine urge to bring

Personality

smiles on the faces of people so that does help too, because I’m not selling jokes, I’m buying laughter.

TIS: How do you rate the industry of performance arts in the UAE, particularly in the comedy genre?

I have always had a genuine urge to bring smiles on the faces of people so that does help too, because I’m not selling jokes, I’m buying laughter.

NM: The UAE is without a doubt, the best melting pot of performance arts.

Artists from all over the world are enthusiastic to perform here. Comedy has always been a part of the local scene here, but it makes me really happy to see that there are so many genuine, open mic events coming up such as ONE UP, GET UP STAND UP and Dubai Stand-up whose plain motive is to provide a stage for other upcoming comedians and an evening of laughs to leave the audience de-stressed.

TIS: How do you, as a responsible artist, add value to the industry?

NM: I have always tried my best, to

not only be the artist, but also give a platform to other artists within the region. I’m more interested in the ‘comedy community’ and not the ‘comedy mafia’; hence I try my best to not only guide other artists, but also get them paid shows to fuel their passion as there are many talented comedians such as Lamya Tawfik, Salman Qureshi, Omar Kazim, Ray Addison, Ismail, Brent Jenkins, Omar Ismail and Abz Ali, to name a few. I am also in the process of working with some individuals with special needs to consider comedy as an outlet and would even have them as the opening act for one of my shows.

TIS: What is your advice to

entrepreneurs like yourself?

NM: Believe in yourself and never

be scared of competition. People who say ‘NO’ are only saying ‘Next Opportunity’. Be different and don’t try to hard to fit in because, maybe, you are born to stand out. And finally,

During a performance for the US army in Dubai

invest in people as they are the true force behind every organisation.

TIS: As an artist who has performed in various parts of the world, which would you consider your best audience?

NM: I would definitely have to say

the Middle East as I have grown up here, but performing at Carolines on Broadway in New York and the Famous Yuk Yuks Comedy club Toronto, which is the home of Jim Carrey and Russell Peters, have definitely been the highlights of my career so far.

fringe 2012, Hong Kong and be back to Dubai in September 2012 followed by the Indian and US tour.

Under the Nitin Mirani and Komic Sutra umbrella, I have already announced my new brand “Laugh Your Assets Off”, which would also specialise in clean comedy with tailor-made sets and would cater to the corporate sector locally as well as internationally and help you switch off from office.

TIS: What are your plans for the

future? Will you be setting up other brands within Komic Sutra?

NM: Definitely world

domination through comedy!

Komic Sutra, one of the only brands from the Middle East that has entertained packed houses all over the globe, would now go to Manila, South Africa, London, The Edinburgh The Intelligent SME

85

BE CREATIVE

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Upload a creative image, reflecting your company’s brand and what it’s about.

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The Intelligent SME & Business Village present

Date: May 24, 2012 Time: 6.30 pm-8.00pm Venue: Business Village, Dubai

The first event in the Comic Relief Series featured artists Ali Al Sayed, Omar Ismail, Mina Liccione, and Omar Shams of Dubomedy. The artists giae a rib-tickling performance at Business Village.

Empowering Decision Makers

Date: April 18, 2012 Time: 6.00pm.

FIND SUCCESS WITH FRANCHISING

As part of the Knowledge Series seminars, The Intellignet SME held a talk on franchising opportunities for the SME community,

by Zakia Kazmi, owner of Kayzed Consultants, who was the speaker at the session. The talk centred around the benefits and the shortcomings of franchising.

Empowering Decision Makers

Date: May 30, 2012 Time: 6.30pm.

EXPORT, SURVIVAL & GROWTH

Dr. Ashraf Ali Mahate, head of export intelligence, Dubai Exports, gave an introduction to the exporting process for SME owners and decision makers, as part of the Knowledge Series by The Intelligent SME, at Business Village.

Events calendar

Networking opportunities Important business events across the globe PETROCHEMICAL ASIA 2012 Date: June 20-12, 2012 Venue: Conrad Bangkok, Thailand

Spanning over two days, Petrochemical Asia will provide a perfect bridge between petrochemical complexes and refineries to truly maximise their synergies. Key topics covered include overcoming feedstock challenges and the latest processing technologies. Expect hard-hitting top speakers, latest technology show-cases, case-studies from operators, presentations from leading technology suppliers and consultants, and high-quality networking opportunities.

Website: www.petrochemical-asia.com SYRIAN MEDICARE 2012 Date: June 20-24, 2012 Venue: Fairground, Damascus, Syria The latest recent developments in medical science in various fields, the event is also considered an effective marketing tool to meet the relevant specialised customers directly (exporters, importers, doctors, decision makers, businessmen, and all relevant medical personnel).

Syrian Medicare is recommended to visit by all private and public medical and pharmaceutical sectors in the Arab and foreign countries.

Website: www.syrianmedicare.com E-CRIME GERMANY Date: June 21, 2012 Venue: Radisson Blu Hotel, Frankfurt, Germany

e-Crime Germany is designed to meet the needs of key stakeholders and decision makers who are responsible for managing information and technology risk, protecting sensitive data, securing technology and ensuring compliance with multiple regulatory requirements. The agenda provides strategic and technical advice, best practices and practical case studies that detail how in-house professionals can meet the demands of evolving business models.

Website: www.e-crimecongress.org 96

The Intelligent SME

RTECC 2012 Date: June 21, 2012 Venue: Sheraton Toronto Airport Hotel & Conference Centre, Toronto, Ontario

The Real-Time & Embedded Computing Conference (RTECC) ) is a unique, single day event dedicated to bringing up to date and in demand information about the real-time and embedded computing world to key engineering communities. It is for software and hardware engineers and managers developing computing systems for a variety of industries.

Website: www.rtecc.com SUMMER IN ABU DHABI 2012 Date: June 19- July 21, 2012 Venue: Abu Dhabi National Exhibition Centre (ADNEC)

A month long event of fun-filled, family-centric activities and awardwinning international acts and shows feature 11 mega activities and will be the highlight of a mega promotion with spectacular seasonal deals from Etihad Airways, the award-winning national airline of the UAE, and across more than 50 of the emirate’s hotels and attractions.

Website: www.adnec.ae

31St FACILITIES MANAGEMENT FORUM Date: June 25-26, 2012 Venue: Heythrop Park Resort, Oxfordshire The Facilities Management Forum is specifically organised for FM Directors and Managers who are directly involved in the procurement of FM products and services.

Website: www.forumevents.co.uk ASIA OIL WEEK Date: June 25-27, 2012 Venue: Goodwood Park Hotel, Singapore

The 17th Asia Oil Week, begins with the 21st Asia Petroleum Strategy Briefing on Monday 25 June 2012, the longest running Strategy Briefing

held in and on Asia within the global upstream industry. It provides an indepth examination of the competitive upstream oil and gas-LNG strategies in Asian exploration and development with diagnosis of portfolios held by corporate oil, Governments and National Oil Companies.

Website: www.petro21.com CWIEME Berlin Date: June 26-28, 2012 Venue: Messe Berlin, 22 Messegelande, D-14055 Berlin, Germany

The world’s largest Coil Winding, Insulation and Electrical Manufacturing trade shows with exhibitions in Berlin, Germany; Mumbai, India; Shenzhen, China and Chicago, USA. These events are narrow sector focused and serve the electro-magnetic, insulation materials and coil, electric motor and transformer manufacturing and repair industries.

Website: www.coilwindingexpo.com LAKII Date: June 27-30, 2012 Venue: Sheraton Abu Dhabi Hotel and Resorts, Abu Dhabi

LAKII is a launchpad for new brands as well as budding designers and a platform for the existing local, regional and international companies in UAE, GCC and international countries, to sell their products to thousands of visitors. This exhibition offers a great marketing opportunity to showcase unique Gulf and international designs.

Website: www.lakii-expo.com RAMADAN FAIR Date: July 26-August 19, 2012 Venue: Expo Centre, Sharjah

With 25 successful past editions to its credit, the show is the region’s leading multi-products consumer event that is a comprehensive shopping and entertainment destination for residents and visitors.

Website: www.ramadanfair.ae

Column

Avoid free lunches

Summing up

Utpal Bhattacharya explains why expecting a free lunch in business is un-businesslike and more than likely leads to failure.

B

usiness is all about delivery and track record.

It all boils down to if you have been able to manage expectations, not over-promise and not underperform.

Recently, I was trying to help an event organiser friend of mine, who was unable to sell stalls for one of his events. He had chosen a time and place, which was not very acceptable for most exhibitors. Yet, he was offering these stalls at a significant discount. I agreed to help him, as he was desperate. Since I was not taking a fee from either the participants or the organiser, I made a statement upfront that I was not to be held responsible if an exhibitor failed to pay up, or if the exhibition was not successful. And that, probably, saved my skin.

My event organiser friend did over-promise in order to get his customers booked. And because he was giving away the stalls at a throwaway price, he was able

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to convert some of my leads into revenue.

Unfortunately, the exhibition was an utter failure with hardly any footfall at the event. As always, when things go wrong, one spat leads to another, and it ends up being very painful for everybody. I also learnt a lesson, which is not to get involved in business deals without commitments.

Some of the participants who were known to me, and were at the exhibition, courtesy my information, made it amply clear that they were not happy with me. Some even accused that I should have been more careful in my “recommendation.” Of course, I had not recommended anything to anybody; I had just connected the buyer and the seller without any commitments to either side. But those who had lost money were not ready to concede that I was never a consultant to them, and was in no way responsible for their losses.

In business there should not be any free lunches, and that’s the

only way to get things right, as then everybody gets a role and is accountable. I have come across several business owners that try to get business leads free of cost, without paying for these leads. More often than not, things go wrong when leads come free of cost, as there are no commitments, attachments or accountability. The middle man or the consultant, who may have given the lead, had not done any due diligence on the lead, as he is not accountable, and it’s understood that he would not get paid if a deal went through. Of course, when deals don’t go right, then people learn lessons. But some forget these lessons faster than others.

My exhibition organiser friend turned up the other day at my office, and suggested that I help him in his next show, which was even bigger.

Besides, he said, he was planning to offer free stalls to participants of his earlier failed event to compensate them for their losses. I told him that he would have to pay me this time around for my time and consultancy, and that I would be held accountable if I failed in delivery. I told him that I would rather be fully committed and be paid, or remain his well wisher from outside. But I did give him a piece of advice,for free, that by giving free stalls, he would not gain any goodwill if it turned out to be another flop show. Instead if he spent that money in advertising about his show and got visitors to the event, participants will forget what they lost in the past. He is still thinking!