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August-September 2012Intelligent SMERare & FabulousAwaken the sensesOn the lush green island of Mahé in Seychelles is a beachcalled Anse Louis- a secluded, untouched beach withtransparent turquoise sea and sand, the land of Maia.Situated on 12 hectares of award winning gardens, Maia is apure and tranquil refuge from the cares of the world. It is a placewhere the soul is stilled and the spirit is renewed. A place whereevery need is anticipated and every desire fulfilled.Maia houses 30 villas with ocean front, ocean view, oceanpanoramic and signature view. All villas are air conditioned, eachadorned with exotic wood and its own large swimming pool.Visit the all-day dining area and the La Prairie Spa for exquisitetreatments. For reservation email: reservations@southernsun.sc orcall +248 4390 000.30 villaswith ocean front,ocean view, oceanpanoramic andsignature view.11

August-September 2012Intelligent SMERare & FabulousA seaside home away from homeThe Resort at Pelican Hill in Newport Coast is an extraordinary destination located on some of themost exquisite land anywhere in Southern California with expansive views of the Pacific Ocean.With Palladian-inspired architecture from Northern Italy, The Resort offers 204 bungalow guest roomsand 128 villas that give guests the feeling of a home away from home, along with world-class restaurantsin classic al fresco settings, a luxurious spa and a golf course designed by Tom Fazio. The Resort islocated between the exclusive communities of Laguna Beach and Newport Beach. A place to escapeyour busy life and enjoy time with friends and family. For more enquiries log on to www.pelicanhill.comor call +1949 467 6800.12

August-September 2012Intelligent SMERare & FabulousTimeless collectionBond St, the icon of Italian59 luxury handmade shoes for men,represents the ideal balance betweencreativity, experience and attentionto detail. This combination is unique,incomparable, and versatile, akin to theman that chooses it.From the intuition of Nino Sterzabegan in 1959 the adventure of 59 BondSt with the name Bond Street. Bornto a family of master craftsmen, heinherited the passion and art of handcrafting classic men’s shoes.The 59 Bond St man pursuesbeauty, discreet and sophisticatedluxury uncommon and unostentatiousand expressing himself with hispersonal style. The brand is partneredwith Quantum InternationalGroup Holding which will sell anddistribute these masterpieces in theGCC, Russia, Belgium and India.59 Bond St is currently available atGallaries Lafayette in Dubai Mall andphotographer Ayaad Damouni is theirMiddle East Ambassador. Priceon request.13

August-September 2012Intelligent SMEOpen Forum“Entrepreneurship runs in myblood”Farah Anwar Vahedna gives her perspectiveof working in a family business.The passion and fervor that all first timeentrepreneurs face is more intense in familybusinesses with everyone pitching in and rolling uptheir sleeves to do the needful.Igrew up in a family businessenvironment. When at the age ofsix, kids around me were makingtrips to the playground, I spentweekends in the late 80’s standingbehind the sales counter helping thesales staff write out bills on doublecarbon-copy books. At 13, when myfriends spent Christmas break hangingout at the brand new cool spot of the90’s, Deira City Centre, I was helpingmy father sign cheques as he calledthem out to me. At 16 when everyonewas off at summer camp, I was helpingwith the inventory count for the close ofthe fiscal year.Growing up in a family businessI remember different parts of mychildhood having been linked tomilestones in the business’ history - Igot my braces during the Russian boomof the 90s, took figure skating lessonsduring the depressive years of the GulfWar and the subsequent GCC boom.In fact, you can say thatentrepreneurship runs in my blood.My siblings and I got into businesswith a brand new company; my daddid the same with his siblings as didmy grandfather before him. This serialentrepreneurship has run in my familyfor generations. As a business owner,I can go on about the challenges ofentrepreneurship - already the odds areagainst one as 80-90 per cent of newcompanies fail in the first five years.Adding family to the equation makesthings more interesting and morechallenging.The wealth creation vehicle inall cases is the family itself and notthe firm. No place can vouch for thisbetter than the UAE where more than80 per cent of successful home-growncompanies are family businesses.Why is this so? One thing thatseparates family businesses from nonfamilybusinesses is the desperate need16

August-September 2012Intelligent SMEOpen ForumFarah is the managing partner of Ashraf Electronics with experience as a financeprofessional at a prominent multinational, International Investment bank and Privateequity house. farah@ashrafelectronics.comto succeed. Similar upbringing and theinvestment of shared family wealthoften ensures that all stakeholdershave a single-minded purpose to seethe business succeed at all costs. This,of course, means that the pressureto succeed is twice as high with theemotional investment in the businessexceeding the monetary investment.Because of this most family businessestend to be risk averse, choosing insteadto opt for the less risky alternative.Risk taking is a major issue as so muchmore is at stake. Emotional assets arealso thrown into the equation makingbusiness decisions not only a cognitiveexercise, but also a sensitive process.The passion and fervor that all firsttime entrepreneurs face is more intensein family businesses with everyonepitching in and rolling up their sleevesto do the needful. There is a high levelof support with family members oftenopting to take key management roles.In the case of a fresh enterprise, theenthusiasm trickles into every aspectof domestic life. There is barely a mealthat we have together, that doesn’tinvolve some talk of the business.Each one of these meals is an inspiredexperience as each member bringstheir stories from the day to the familydinner table. Issues are debriefed, staffis discussed, competition is evaluatedand anecdotes are chuckled over. Thismakes for a very cohesive managementteam and some veryspecial bonding time.Another wayin which familybusinesses tend to bedifferent is in the factthat corporate valuesare often an extensionof the family’svalues. The businessis an extensionof the family’sconsciousness asstaff and customers get woven into thefabric of our extended family. Manyof our long standing customers haveattended family weddings, funerals andeven graduations. The enterprise livesand breathes its corporate values ratherthan having empty words on a companyprospectus.Due to the fact that there is somuch invested in the business from allquarters, everyone including the familycat has an opinion on how things shouldbe done. Regardless of whose nameis ultimately on the signing papers,each member is consulted and mostdecisions tend to be unanimous.While this gives us the addedbenefit of approaching a problem fromdifferent angles, decision making isa heated affair that gives everyonean opportunity to flex their mentalmuscles. It’s no surprise then thatalmost all decision making is madeat the dinner table rather than in theboard room. Needless to say, this is anexcellent training ground for the young.This brings me to one of the mainissues plaguing multi-generationalfamily businesses-direction. Althoughthere is a shared goal to see thebusiness succeed, opinions on howto get there vary greatly. Once newfamily businesses are establishedentities, leadership succession and longterm growth become major issues. Ihave seen many scions of successfulbusinesses families who have grownup knowing that they will inherit thefamily business. In some cases thespirit of entrepreneurship is kindledvery early in life, in others it can lead tocomplacency and a sense of entitlementknowing that at some day a portionof daddy’s business will, by default,come to the next generation. This senseof entitlement is the enemy and, inmany cases, the beginning of the endbecause the hard work and sweat putinto making the business successful isunderestimated. Perhaps this is whythe 30 per cent of family businessesthat do end up surviving more than twogenerations, either end up staying thesame size or contracting butrarely growing.Watching the progression of familyenterprises has made me very aware ofthe vision required to incorporate theneeds of growing families.The business plan needs to makeprovisions for offshoots and strategicspin-offs as a newer generation entersthe business. Business disputes need tobe managed as such preventing themfrom seeping into family life. Thiscan be done with organised corporatestructure, roles and accountability,and a move away from the organicentrepreneurship model. I have hadthe good fortune to work for largemultinationals while benefiting fromthe experience of generations ofentrepreneurs.We’ve seen the business evolveand we’ve evolved with it learningto cherish all the varied opinions,appreciate the wisdom of an oldergeneration, while enjoying the zealof the newer one. We’ve accepted ourinherent risk aversion and have learnt topush the boundaries. While challengesin entrepreneurship are a given, thelessons are valuable life lessons. Whatbetter way to enjoy this education thanwith your family by your side.17

August-September 2012Intelligent SMEAnnouncementsUAE gets lion’s share of GCC construction projectsBuilding projects worth overUS$57.8bn were awarded tocontractors in 2011 acrossall building sectors (residential,commercial, hospitality and retail),with the sector likely to increase by13 per cent to US$65.5bn by the endof 2012, according to new research byVentures ME.In 2011, construction projectsto the value of US$46.52bn werecompleted in the GCC, a figureexpected to increase dramatically, up71 per cent to US$79.75bn in 2012.The research stated that the UAEcontinues to garner the largest shareof the total GCC building constructionmarket- accounting for almost half (48per cent), with Saudi Arabia taking afurther third (33 per cent) followed byKuwait, Qatar, Oman and Bahrain.The value of commercial realestate projects is set to almost doublein 2012 to US$15.3bn from US$7.7bnin 2011, as the GCC continues to be aleading luxury destination for retailers.Currently four of the six GCC countriesrank among the top 20 global retaildestinations, according to the GlobalRetail Development Index.The hotel and hospitality sectorwill also witness enormous growththroughout 2012 with project valuesset to triple to US$7.3bn, up fromUS$2.7bn in 2011. This growth is adirect result of the increased demandfor hotel space in the GCC where roomrevenues are set to reach US$22bnin 2012.DIB announces first half 2012 net profit of AED555mMohammed Ibrahim Al Shaibani, chairman, Dubai Islamic Bank.Dubai Islamic Bank announced its financial results for thefirst half of the year ending June 30, 2012. Net profit for thefirst half of 2012 reached AED555 million, up from AED552million in the same period of 2011. For the second quarter of 2012, netprofit reached AED310 million, compared to AED245 million for thefirst quarter of 2012, an increase of 27 per cent. Net revenue for the firsthalf of 2012 increased to AED1,826 million from AED1,801 million inthe same period of 2011, an increase of 1.4 per cent.“DIB has been able to achieve sustained profitability whilecontinuing to strengthen its balance sheet. Assisted by a prudentstrategy of diversifying our funding sources, DIB remains highlyliquid and superbly placed to support the financing needs of the UAE,its economy and its people. Moreover, our recent Sukuk, which wasfour times oversubscribed, served to underscore investor confidencein the DIB business model,” said Mohammed Ibrahim Al Shaibani,director-general, Ruler’s Court of Dubai and chairman of DubaiIslamic Bank.50% Of 1 bn SME fund allocated in 3 months: HSBCOver half of an AED1 billionfund aimed at SMEs has beenallocated just three monthsafter its launch, according to HSBCBank Middle East.The bank has also stated that 57 percent of the HSBC International TradeSME Fund has been awarded to UAEbusinesses since it was announced on15 May 2012.Commenting on progress, RanaAl Emam, head of Business Banking,HSBC Bank Middle East Limited,UAE said: “We are very excited toannounce that over AED570 million ofthe International Trade SME Fund hasbeen allocated. Focusing the Fund onbusinesses with cross border tradingrequirements is vital given the growingnumber of businesses positioningthemselves to take advantage ofinternational trading corridors to growand succeed.”88 per cent of the Fund allocatedto date has been awarded to businessesseeking to trade internationally. Tradecontinues to be a strong area of focusfor HSBC both regionally and globally.A trade bank by origin, HSBC believesthat it can continue to add value tothis segment through leveragingthis strength, its global footprint andextensive expertise.According to the breakdown sofar, 69 per cent of the Fund allocatedso far has gone to customers that didnot previously borrow from HSBC,while the remaining applicants arefrom HSBC’s existing customer base.In addition, 30 per cent of the totalFund has also been allocated to Emiratiowned businesses, added Al Emam.20

August-September 2012Intelligent SMEAnnouncementsJust Falafel enters Qatar, Lebanon marketsAUAE start-up business, Just Falafel has established an extensive networkof store locations across the UAE and Jordan and is now opening up in theQatar and Lebanon markets. “Our goal for 2012 is to open one store a weekglobally, and to date, we have delivered on this objective. Lebanon and Qatar arekey growth markets for the Just Falafel brand and we are confident that our outletsthere will exceed expectations, once residents experience our fresh, healthy andglobally-seasoned approach to this traditionally Middle Eastern delicacy. We’reexpecting 10 stores to open in Lebanon and Qatar, alone, in the next 12 months,” saidFadi Malas, CEO, Just Falafel. The first Just Falafel outlet opened in Abu Dhabi,Fadi Malas, CEO, Just FalafelMiddle East luxury market to grow 15 pcCyrille Fabre, partner, Bain & CompanyGlobal luxury goods sales aredefying initial concerns overEurozone turmoil and fearsof a cool down in emerging markets,and will exceed €200 billion in 2012;according to Bain & Company, in itsLuxury Goods Worldwide Marketstudy, which was launched recently.Bain further stated that the Middle Eastluxury market will grow by 15 per centin 2012, leading the strong performanceof the global luxury market.Cyrille Fabre, Bain & Companypartner who leads the Retail &Consumer Products practice for theMiddle East, said: “The Middle Eastremains a crucial component in thesustained growth of the global luxurymarket. The region has opened excitingDubai SME concludes seminars on businessmanagement skillsDubai SME, the agency ofDED mandated to developthe SME sector, successfullyconducted three seminars recently totrain SME owners and entrepreneursin strategic business managementskills and building customer-focusedorganisations.Dubai SME used one of theseminars to emphasise the power ofnon-verbal communication led by Dr.Mutasem Al Titi, a leading non-verbalcommunication expert in the MiddleUAE in 2007. With franchise rights for more than 300 additional branches, JustFalafel is fast becoming the leading vegetarian fast-food chain in the Middle East.East. The seminar showed how the rightbody language can help communicatewith confidence and conviction in anegotiation.The power of excellent customerservice was the focus of the secondseminar, led by Anas Abu-Hamam,managing director and co-founder ofproject management and consultancyfirm Platinum CPD. The seminar drewan outstanding response from the SMEcommunity, indicating a high levelof interest among them in integratinggrowth possibilities for key industryplayers and continues to be a majordestination for a wide range of luxurybrands. Bain’s latest study reaffirmsthe robust shape of the global luxurymarket and likewise underlines thehuge growth potential of the MiddleEast region.”“Brands must develop strategieswith much wider reach than everbefore,” said Claudia D’Arpizio, a Bainpartner in Milan and lead authorof the study.“The lessons they learned inearlier emerging markets will help, butthey now must manage even broaderdiversity of consumer preferences, andmore variations in their model of howto take products to market,” she added.customer service as a key competency.The third seminar was aimed toencourage entrepreneurs to applyinnovative project managementtechniques for improved efficiency,problem solving and resourceutilisation. Omran Zbeida, corporatetrainer and certified programmedevelopment director led the seminar,presenting proven ways to plan andmanage successful projects and theimpact of such strategies on businessexpansion and bottom lines.22

August-September 2012Intelligent SMEAnnouncementsThinking entrepreneurial: Third MiddleEast SME Forum 2012After the success of two editionsof SME forums in Abu Dhabiand Qatar, the third MiddleEast SME Forum 2012 will take placeon September 17- 18, 2012in Abu Dhabi.SMEs play a significant rolein growing, diversifying andstrengthening a country’s economicbase. They create employment,enhance competitiveness, andcontribute positively to socio-economicindicators, such as GDP growth and thenumber of middle-income householdsin an economy.The third Middle East SME Forum2012 will bring forth industry leadersto share their successful experiencesand address the audience with theupdated information, policies and SMEsupported ventures. Best practices indeveloping a thriving SME culturewill be discussed by AlexandarWilliams, Director, Strategy andPolicy, Dubai SME. The topic willfocus on inculcating and developingentrepreneurship qualities at an earlyage to understand and identify potentialbusiness ideas and copewith challenges that mayintervene.To boost SMEdevelopment acrossthe region a jointcollaboration ofgoverning entities andthe private sector iscrucial, thus the needof institutionalising adedicated governmentagency to championSME development witha focused, executableSME development planwill also be addressed.Dr. Adeeb Mahmoud AlAfeefi, director of foreigntrade and export support,Abu Dhabi Department of EconomicDevelopment, will explain how exportscan contribute to a company‘s andnation’s growth by addressing theaudience with his topic - Exports andRe-Export Trade.Over 21 presentations will beenriched by six panel discussions in justtwo days of the event. Presentations,discussions and case studies will touchthe SME ecosystem in the MiddleEast environment, challenges andopportunities towards business start upsand also best practices and successfulstories in the region’s SME sector.Ahsan Ali, director, credit andoperations, Khalifa Fund for EnterpriseDevelopment and Abdullah Al Jufaili,general manager, SHARAKAH Fundfor Development of Youth Projects(S.A.O.C), will discuss and share theirknowledge and experience on the paneldiscussion titled ‘Access to Finance andCapital Management is a Challenge forSMEs’. This panel discussion sessionis an open discussion where each panelmember will stress on the challengesSMEs still face in securing creditfinance to their business.A panel discussion titled ‘OngoingGovernment and Private SectorInitiatives towards SME Development’will brainstorm ideas on coaching,resource gathering and other amenitiesrequired to ensure sustainability andprofitability across all SMEs. Thissession will analyse the current SMEsituation in the Middle East andevaluate methods of sustainabilitythrough profit generation in thefuture times.Essam Disi, senior manager,Policy Formulation, Strategy andPolicy Department at Dubai SME;Najla Al Midfa, senior manager,Entrepreneurship Developmentat Khalifa Fund for EnterpriseDevelopment; and Fahad A. Al-Semari,managing director, Saudi AramcoEntrepreneurship Centre Companyare the featured panelists who will befeaturing in this discussion.For more details log on to www.fleminggulf.com/3rdSMEForum.The third Middle East SME Forum 2012 will bringforth industry leaders to share their successfulexperiences and address the audience withthe updated information, policies and SMEsupported ventures.23

August-September 2012Intelligent SMEAnnouncementsTee off and network!Dubai Golf in collaboration with Dubai SME launches ‘The GulfFinance SME Golf Cup’, a corporate team golf event.Dubai Golf in collaborationwith Dubai SME, theagency of the DubaiDepartment of EconomicDevelopment, mandated to develop thesmall and medium enterprise sector,has announced the launch of ‘The GulfFinance SME Golf Cup’, a corporateteam golf event sponsored by GulfFinance, specifically aimed at theSME market.The event will provide SMEs witha unique platform to network withother SMEs within Dubai, offeringparticipants the opportunity to engagewith potential buyers and suppliers andexpand the profile and awareness oftheir company.Commencing in November,the qualifying rounds of this newevent will take place on the stunningchampionship Faldo Course at theEmirates Golf Club. The coursecombines a stunning visual designwith the nuances and challenges ofany championship course, providinggolfers an exceptionally enjoyable andchallenging golfing experience. ThereCommencing inNovember, the qualifyingrounds of this new eventwill take place on thestunning championshipFaldo Course at theEmirates Golf Club.are a total of four qualifying roundsplanned; leading to a grand final, whichwill take place on The Majlis course -home of the Dubai Desert Classic - inApril 2013. The winning teams willcompete against each other to win thetournament trophy and the coveted titleof ‘The inaugural Gulf Finance SMEGolf Cup Champions’.Christopher May, general manager,Dubai Golf stated: “This is a fantasticevent for Dubai which provides golf asa platform to bring together a diversegroup of business people from the SMEsector. We are very excited about thisyear’s launch event at Emirates GolfClub and are confident that the eventwill continue to grow over the yearsand help facilitate strong and mutuallybeneficial relationships.”Abdul Baset Al Janahi, chiefexecutive officer of Dubai SME added:“We are delighted to partner with DubaiGolf to organise this tournament forSMEs in Dubai. We always encouragenew platforms for business networking,and would like to see Dubai’s SMEscontinue to do business and have thebest exposure possible among theirpeers and partners.”Gulf Finance chief executiveofficer, Edward Allely said: “As alender with a tremendous amountof confidence in the SME sector, wenaturally relished the opportunity tocollaborate with Dubai Golf to host thisinaugural SME Golf Cup. The eventwill play a pivotal role in connectingSMEs and encouraging a sense ofcommunity - significant factors giventhe abundance of small businesses withhuge growth potential within the UAE.”SMEs are being invited toparticipate in the event by enteringa team of four players including aminimum of two players from theircompany. Each team of four selectstwo qualifying rounds and theiraggregate score for both qualifyingrounds will contribute to their totalscore with the top 24 teams qualifyingfor the Grand Final. Those SMEs thatare registered with Dubai SME willautomatically be able to avail of apreferred rate of entry.The event is also supportedby Intelligent SME as the officialmagazine and a number of additionalevent partners are expected to furthercome on board in support of thebespoke golf event.24

August-September 2012Intelligent SMEOut and AboutA.R Ramachandran, managing partner of Ethics Plus receves the first prize inthe Brand Creativity contest from Rafat Wahbeh, senior manager- CommunityDevelopment, Business Village, The award was an identity creation package worthAED65,000.Helen Kay, owner of Helen Kay Gifts receives the second prize sponsored by TheWholeThing. The award consisted of a sales plan development package worthAED18,400.received by Sahel K Ataie, chairman ofthe company, and consisted of auditingservices for a year worth AED25,000sponsored by Quantum Auditing. Hethanked Business Village and DubaiSME for organising this initiative.“Thanks to the organisers, SMEs likeus have been fortunate in receivingservices that will help the business. Wechose the auditing package which is astrategic move, and it will help furtherour efforts,” noted Hassanain Anver,director of sales and marketing, SRSInternational.The winner of the social mediaaward worth AED15000 was AshrafElectronics Trading LLC. FarahAnwar received the award sponsoredby Cactix. “This competition has beenvery exciting for us. Until now, our solefocus has been the retail and export sideof the business. But now we’re goingto activate our social media strategy,thanks to this contest,” said FarahAnwar, partner and co-founder, AshrafElectronics.Other participants were givencertificates of appreciation. A raffledraw ended the event, with the award ofZotac Mini- PCs to two lucky winners.Simon Wallace, CEO,theWholeThing, Joe Moufarej,managing partner, TAGbrands, VinodKumar, director, Business Village,Dinesh Singh, CEO of QuantumAuditing, and Mohannad AbouHammoud, managing director, Cactixat Business Village were also present atthe award ceremony.Sahel K Ataie, chairman of SRS International, received the third prize which was auditing services for ayear worth AED25,000, sponsored by Quantum Auditing.Farah Anwar, partner at Ashraf Electronics Trading LLC receives the social media award worthAED15,000, sponsored by Cactix.27

August-September 2012Intelligent SMESME FinancingInvest in just a clickSam Quawasmi andChristopher Thomasof Eureeca.com havebrought to the UAEa transparent fundraising platform forSMEs. A TIS report.Crowd funding, a globalphenomenon has slowlymade its way to the MiddleEast with pioneers SamQuawasmi and Christopher Thomas,founders of Eureeca.com, changing theway businesses receive much neededcapital for their growth.Hailing from a background ofinvestment banking and finance, theduo is familiar with the problemsfaced by new and growing businessessuch as acquiring capital. “Ever since2008, there has been a drop in terms ofopportunities and options available tobusinesses to find ways to fund theirgrowth. Sam and I knew that therewas a solution to this and we’ve beendiscussing this for many years,” offersThomas.Being a market that they arefamiliar with, Quawasmi and Thomasset up in Dubai toprovide opportunitiesto the UAE SME sectorthat falls to the tune of200,000 companies.“The world is facingdifficulties and thesolution is start-upsand SMEs that are the main driversbehind any economy. Many SMEs faildue to the lack of access to capital andthis is where the idea of Eureeca wasoriginated,” says Quawasmi.Eureeca is an online marketplacethat is open to entrepreneurs, investorsand experts. Businesses that havethe right information, business plan,structure and strategy, and have been inexistence for 3-5 years and are alreadyin the expansion phase are eligible to belisted on the website. “However, startupsand business ideas also have a placeon our site although they may constituteonly a small part of the opportunityportfolio,” Thomas remarks. Smallinvestors will now have a chance toinvest in SMEs and start-ups withas little as US$100 using their bankaccounts, credit cards, or paypal andbecome shareholders of the business.How does it work?The entrepreneur applies byfilling up an application form that asksbasic questions about the businessproposition.Then this informationpasses the due diligence processconducted by a third party complianceagency which will assess theinformation, perform fraud preventionchecks, credit and bankruptcy amongother checks, on the business and thebusiness owners. This will ensurecompliance with ‘Know Your Client’28

August-September 2012Intelligent SMESME Financingregulation for which a fee of US$250is paid. Once this is completed,businesses provide a refundable depositto Eureeca of two per cent of theirfunding target, after which the businesspitch is ready to go onto the website.“The company will then be listedon the website and will have a threemonthtime period to hit the fundingtarget. Once the company has reachedits funding targets our lawyers then takeover to complete the ‘share swap’ andthe company receives its funding in thecompany bank account,” adds Thomas.From an investor’s perspective,the site is very open and democratic socompanies, whether large and small,have access to the same information.“They can view information, assessbusiness plans, view comments madeby entrepreneurs, they can like it,share it, and invest. If they decideto invest, they can invest as low asUS$100 dollars. To be listed on oursite they need to go through our verybasic account opening procedure, someinitial checks and they need to paycompliance costs on the first investmentthey make,” Thomas points out. Ineffect, this model raises funds in smallamounts from many individuals.ResponseThe initial response towards thewebsite has been overwhelming,the Eureeca founders confirm. “Welaunched the beta phase last monthand in just a week we received 65applications from entrepreneurs and200 subscriptions to the site. We’vebeen overwhelmed with the responsefrom entrepreneurs, investors andexperts. It just shows how right theEver since 2008, there has been a drop interms of opportunities and options available tobusinesses to find ways to fund their growth.Sam and I knew that there was a solution tothis and we’ve been discussing this for manyyears.Christopher Thomasmarket is here in Dubai and the UAE,”Quawasmi says.Being an online platform, theentrepreneurs, investors and expertshave the liberty to communicate freelywith each other. “Think of the siteas online marketplace, so you, as anentrepreneur, have your own space toupload your information, documents.This can be peer reviewed, critiquedand challenged by the crowd. Withinthat space, experts, investors andother entrepreneurs have the ability tocomment through chat rooms, internale-mail, Q&A areas, forums and othersocial media networks. All of thesecan be voted on, shared and discussedwithin this ecosystem,” Thomaspoints out.Although the crowdfundingmodel might be a new conceptin the Middle East, investorswho have been exposedto this source of fundingare apprehensive of theconcept. Most investorsand investment firms wouldprefer to conduct their ownscreening and examination ofthe company, so as to ensurefor themselves that the ventureis indeed investment-worthy.“We negotiate our own terms withcompanies, and having every detailon an online platform that is open toall, is a hit to the confidentiality ofour processes and clients,” opines Dr.Edward Roderick, co-chairman andmanaging partner of Envestors MENA.Ultimately, the founders ofEureeca envisage opening up thewebsite to investors and entrepreneursbeyond the UAE market. The conceptof a transparent website that gives thesame information and opportunities toall is the selling point of this endeavour.The world is facing difficulties and thesolution is start-ups and SMEs who arethe main drivers behind any economy.Many SMEs fail due to the lack of accessto capital and this is where the idea ofEureeca was originated.Sam Quawasmi29

August-September 2012Intelligent SMECover StoryTransformingbusiness bankingIntelligent SME spoke to Dr. AdnanChilwan (AC), Deputy CEO, Dubai IslamicBank, on the recently launched Al IslamiBusiness Online service.ISME: How do you currently viewthe SME sector in the UAE and how doyou think it will develop in the future?AC: The SME sector is a vibrant andexciting part of the UAE economytoday, accounting for an estimated85 per cent of all businesses andcontributing nearly 40 per centof the nation’s gross domesticproduct. The growth of theSME sector, driven bystrong leadership from thegovernment, is playing akey role in the ongoingdiversificationof the UAEeconomy. AtDubai IslamicBank (DIB),we aremeeting anincreasingnumber ofhigh calibreentrepreneurswith verysound businessplans seeking shortand medium-term businessfinance.Looking ahead,I think it is inevitablethat we will start to seeincreasing numbers of these companiesmake the transition towards becomingtrue multinational corporations, byexpanding their businesses into newmarkets in the Middle East and beyond.I also anticipate furtherdiversification within the sector. Today,approximately three quarters of SMEsoperate in the trade and retail sector.In the coming years, I think we willsee this estimate fall as the UAE’smanufacturing and services basecontinues to develop.ISME: What are the factorscontributing to the development of theAl Islami Business Online service?What was the need that inspired theprocess?AC: Al Islami Business Online isa natural continuation of DIB’s longterm strategy to transform the currentmodel of business banking. Often, onlypersonal banking customers get accessto the latest developments in financialservices technology, but DIB believescompanies should be able to benefit aswell.It was with this in mind thatwe developed Al Islami BusinessOnline, which meets the clear need ofbusinesses in the UAE for simple, fastand efficient online banking services.30

August-September 2012Intelligent SMEBusiness Evaluation“Earnings can be pliable as putty when acharlatan heads the company reportingthem”- Warren Buffetalmost all public companies, only aboutless than 10 per cent of the marketcapitalisation can be explained fromthe expected cash flows generatedduring a known planning period ofsay, five years. Trying to predictanything beyond a five or a 10-yearbusiness plan time horizon has toomany uncertainties, and is not worththe paper it is printed on. So analystsuse the growth factor to forecast theterminal value or the continuing valueof the business. This terminal value orcontinuing value accounts for about95 per cent of a company’s marketcapitalisation. If you do not believe me,take a look at some of the largest andwell known businesses in the world.Their revenue numbers are well knownand reported and it is easy for you tocheck this.Here are some valuation methods:Asset based valuationThis is done by estimating thevalue of the company’s assets. As assetsare used to generate revenues, this oftenunderestimates a growing business.Conversely, if a business has a largeasset base but does not generate muchmoney, then the business is not worthpurchasing!There are three well known asset basedvaluation methods. They are:Modif ied book value technique - Thismethod adjusts the company’s assetsby looking at the historical value of theassets and adjusting this value to reflectcurrent market values.Replacement value technique -The value of a company’s assets areadjusted by deducting the cost it takesto replace or replenish the assets.Liquidation value technique - This isusually used in a forced sale situationand assessed as if the company hasceased operations and its assets areliquidated and sold.Market comparable valuationThis is difficult as no one business is thesame. The intrinsic value of a businessEvery businessvaluation followssome basicprinciples that youshould always keepin mind.can only be understood by goingbeyond just comparing valuations ofother like businesses.In this method, the value ofcomparable companies sold is dividedby the earnings of those companies toderive a multiple to determine value. Inthis valuation technique, a company’scurrent earnings are multiplied by themultiple factor to determine the valueof the company. It goes without sayingthat the higher the growth potential orlower the implicit and explicit risks, thehigher the multiple and therefore thehigher the valuation.In addition, a lot of ambiguousfactors like a company’s vulnerabilityto market and economic risks (lowermultiple), the over dependency on afew key people for the success of thebusiness (lower multiple) and othersdetermine the multiples.Goodwill factors like a company’sreputation, unique location orcustomer relationships are oftenmisrepresented when determiningvaluations using this method.The common methods of doingmarket comparable valuation include:Earnings multiple ratio method - Acompany value is determined bymultiplying the earnings to a multiplethat iscomparedto sale ofother similarbusinesses.Normalisedearningsmethod - Thisis similar tothe earningsmultiple method but it adjusts theearnings for “unusual” items like theowner’s salary or normalising theearnings impact for extraordinaryevents that affected the earnings such asnatural disasters or fires and others.Cash f low based valuationThis is one of the most commonand more accepted methods as it takesinto account the value by determiningthe cash flow streams of the companyand the growth potential.In simplistic terms, Free CashFlow is the amount of cash generatedby the business minus the operatingand capital expenditures and otherreinvestments made, and the growthpotential of the cash flow is estimated.These cash flows are thendiscounted in today’s value by usinga required rate of return which takesinto account the opportunity cost ofthe money if it is invested in otherinvestments as well as the borrowingcosts. The tax benefits for the interestpaid for the borrowings are also takeninto account.“Earnings can be pliable as puttywhen a charlatan heads the companyreporting them”- Warren BuffetAs Warren Buffet, the Oracle ofOmaha, and the famous Americanentrepreneur said, it is important thatSME owners and investors thinkseriously of their accounting practicesand methods if they have plans to selltheir interests in a business.If you have business exit andretirement on your mind make sure thatyour financial records are impeccable,well managed, traceable and audited byreputable firms. Do not underestimatethe value that you might have to forgoif you do not have proper and auditablerecords. Get experts to adviseand help you.Finally, always ask yourself ifyour business growth is sustainableand how you could make it sustainable.Otherwise, all that blood, sweat andtears that you put into your businessmight not pay off. Growth matters! AsPeter Drucker, the famous Americanmanagement guru said “Erroneousassumptions can be disastrous.”34

August-September 2012Intelligent SMESales ManagementSales: skill or talent?Zed Ayesh elucidates the sales process and how it can be improvedfor added response and increased revenue.For any business it is crucial toearn sales revenue, regardlessof the way the company is setup by delivering its productsand services to its consumers.SMEs are faced with manychallenges - generating revenue beingthe most significant of them all. It getsinteresting if the SME needs to hireand use sales people to sell its productsand much more interesting when SMEsare using sales people to sell a service,which is intangible. This makes salespeople more important in the revenueequation. As a result, this dictates anew set of challenges for SME ownersand decision makers: hiring the rightsales people, managing them, gettingthe needed revenue and what to do withsales people when revenueis not being generated.Some questions repeated by SMEmanagers include: how do we knowthat we are hiring the right sales people,and how to get the expected results, andhow to manage a sales force? Achieversand non-achievers alike, thesequestions are raised by SME managersdue to their lack of knowledge andexperience in sales, and for them sales36

August-September 2012Intelligent SMESales ManagementThe targeted market segment should bewithout any doubts clearly indentified.management takes up more time thanrevenue generating activities.A recent write-up by salesstrategists Richard Wellins, CharlesCosentiane and Bradford Thomasconcludes that the two major problemsin sales as a business activity are lackof leadership and coaching among salesleaders and the substantial gap in salesskills. These major problems emphasisethe fact that sales as a business activityis misunderstood by sales people andtheir managers that hire and managethem.Wellins, Cosentiane and Thomasalso mention that more than 40 per centof sales people don’t have the skills todo their jobs (My personal experiencetells me that the percentage is muchhigher!).According to another study, salespeople do not achieve results due to thefollowing reasons: poor selling skills,lack of motivation to sell, and lack ofindustry knowledge.Furthermore, sales leaders inSMEs, who are also owners anddecision makers, generally tendto direct their sales executives ina wrong direction because of theirown misconceptions and inaccurateknowledge of sales as business activity.Selling is not about manipulationor control. It is not about having theability to convince a customer to buysomething that he doesn’t need orwant, neither it is the ability to talk,and nor it is about chasing a big sale.SME managers are faulted, in manyinstances, when it comes to sales as abusiness activity in this region, as theylook down upon the profession and hirea low skilled sales executive for a lowsalary than a highly skilled person witha high salary. They hire sales peopleoften putting them on anon-motivational compensationscheme, which ends up driving theorganisation backward.The above mentioned reasonscreate a significant hurdle for SMEmanagers, both internally andexternally, and the results are negativeto say the least. It also leads to lostopportunities, chasing wrong leads,an inability to identify target segmentsof the market, apart from frustrationsSales people arenot achievingresults due to thefollowing reasons:poor selling skills,lack of motivationto sell, andlack of industryknowledge.caused to sales people and businessmanagers. A weak sales department is afinancial drain to an organisation. ManySME managers recognise the financialdrain and cash flow strains which forcesa good number of SME managers toseek help within this area of expertise.For all SME managers and otherpeople seeking answers and advice inthis area of the business, it is importantto know that sales is a skill that canbe learned, developed and masteredby individuals and organisations. Theargument that sales is a talent or a gift isnot true; some people are introvert andsome are extrovert, but this does notplay a role when it comes to achievingresults in sales. It is also true thatsome people are more persuasive thanothers, and which is an added value,but persuasiveness alone will not makea customer buy if they are offeredsomething they don’t need or theycannot use. Persuasiveness is also lesseffective in B2B activities.An organisation has much to do,to be able to have appropriate salesskills.The targeted market segmentshould be clearly identified.The products and services soldby an organisation should be clearlyframed with all necessary knowledgeprovided to all individuals withinthe organisation, especially thoseinteracting with the customers.An organisation should clearlyidentify the method in which it is goingto deliver its products or services to theclients.An organisation should equip allits employees in the sales process withbetter products and service knowledge,installing pride in the employees.37

August-September 2012Intelligent SMESales ManagementZed Ayesh has over 20 years’ experience in management and business development.He is currently the managing director of Flagship Consultancy based in Dubai, andworks with clients on many aspects of the business from strategic planning, businessdevelopment, marketing strategies, pre-sales and sales management, across differentsectors such as government agencies, real estate, media companies, manufacturing,contracting, engineering firms, retail and shipping companies.An organisation should be plan andexecute lead generating activities; it isnecessary to tell the targeted segmentsthat you exist.For the executives, sales as abusiness activity is a process made ofsteps that require certain skills:Information gathering and collectionWithout accurate information ofthe targeted segments, sales peoplewill be shooting in the dark, which willend up in frustration for both the salesperson and the organisation.Pre-qualifying targeted customersKnowing the customers, theirbuying behaviour, the decision makers,purchase process of the customerand other information will make thesales person’s job much easier, moreeffective and will reflect positively onthe relationship between the customerand the sales person.Making appointmentsSales executives are more certainto secure an appointment with apotential customer if he or she canshow an interest in knowing him or her,rather than making a sales pitch. It is apractice that can be learnedthrough training.PresentationMore often, when makingpresentations to potential customers,sales executives focus on theircompany, their products or servicesEvery proposal madeto a client must besimple, concise,easy to read andunderstand, andfocus on the solutionand delivery methodof the solution to thecustomer.and how good it is. In most cases, thisis never effective enough to convincethe customer. The presentationshould be short, visual and shouldtell the customer how the productor service will benefit him and hisbusiness. The solution and the wayto obtain the solution should be clearin the presentation. Throughout thepresentation or discussions with thepotential customer, the sales executiveshould assess his client: is he goingin the right direction? Is he showingan interest? Is he getting questions?As mentioned in my previous articlethe sales person should listen to thecustomer with his eyes not ears.Simple proposalEvery proposal made to a client mustbe simple, concise, easy to read andunderstand, and focus on the solutionand delivery method of the solution tothe customer.DiscountsIt is a given in our part of the worldthat no matter what a salespersonpresents, the customer will always askfor a discount and better costing. Thisis done, in most times, disregarding thequality of the product or service, whichonce affected, reflects negatively onthe organisation. Compromising onquality to meet the price requirementsof a potential customer is a dangerousproposal for any organisation. Thefocus of any negotiation with potentialcustomers should be about the solutionprovided and the benefits of such asolution to the potential customers andhis organisation. Small discounts thatmeet the current market culture areunderstandable, but in any case, shouldnot affect quality.Create goodwillBeing with the customer whenhe gets his first order and/or his firstservice with your organisation has agreat impact and everlasting effect. Inaddition, excellent customer servicewith shortest possible turnaround timewill help in future sales.Successful sales people have fewthings in common such as being goodlisteners, building and strengtheningrelationships, and being self motivatedand disciplined individuals. These keypointers should help sales executivesimmensely in their career.38

August-September 2012Intelligent SMEHR StrategyCreating a healthy workplaceculture means making afresh evaluation of the jobdescription and talents ofevery person in the workplace andhow to utilise them more effectively.Organisations need to move awayfrom an over-reliance on IT, systemsand processes, and adopt attitudesthat are more successful in employeeengagement. They need to value therichness of cultural diversity and toexploit the range of abilities that arealready within the organisation.Team empowermentIt is vital for managers to fullyengage with their teams, but it has tobe recognised that they cannot alwaysbe ‘all things to all people’. Whilstthey need to be firm but fair, they mustalways strive to be ‘good listeners’.Managers need a comprehensivetoolkit of skills as well as having an‘open door’ policy to encourage a twowaydialogue between themselves andmembers of their team.It is always necessary to get ‘buyin’from them in order to establishloyalty and commitment in return.Whilst it may not be possible to paymore money, praise and recognitionwill encourage employees into‘wanting’ to do more for their managerand for the organisation. Both lineand middle managers reportedlyspend a considerable amount of theirday dealing with underperformingemployees, yet middle management donot always have the necessary peopleskillsto manage their teams effectively.Identifying the needs of individualmanagers and providing necessarycoaching is therefore vital if they are tobe able to fulfill their role and provideregular constructive feedback as wellas being proactive, instead of alwaysbeing reactive to daily problems.Seeking to understand the reasonsunderlying poor performance andto address the causes thereof is animportant part of a manager’s role. It isnecessary to ensure that a performancecontract is a two-way agreementand includes details as to how amanager will contribute in enabling anemployee to achieve his/her maximumperformance.Employee engagementAn ‘engaged’ employee is one whois fully involved in and enthusiasticabout his or her work. Spending moretime exploring individual needs andcareer aspirations is a key elementin securing employee engagementand the retention of high performers.Empowering managers to managestaff and take responsibility for theirperformance review is a regularresponsibility. This also meanshandling the team as a human entity -encouraging the ‘feel good’ factor- andallocating roles and responsibilitiescorrectly.Effective communicationCommunication within thecompany has to be effective at alllevels, in order to attain efficientunderstanding and appreciation ofgoals, targets and deadlines etc. It isimportant to have a two-way dialoguebetween management and staff;between the CEO and the board andbetween the board and line managers.Effective communication hasbeen found to be a weakness inmany organisations, from the largestto the smallest, and not enoughtime and training is given to theissue. Middle managers often findthemselves promoted to a positionwith responsibility for a team withouthaving the necessary communicationskills to manage that team effectively.Listening and non-verbalcommunication are equally asimportant as verbal communication.The careful listener can often identifypotential stressors at an early stage andmanage them accordingly and thereforereduce the impact on the organisation.Creativity and innovationCreativity and innovation is thelifeblood of any organisation and it canbe stimulated by effective leadership.The mission of every leader shouldbe to search continually for ideas andprogrammes that are superior to thosealready in existence and which canlead to a competitive edge. However,all too often, creative thinking is seenas the preserve of departments such assales and marketing or research anddevelopment. Creative leaders havea mindset that enables creativity tohappen, as if by chance.Management needs to fostercreativity and involve their teams withthe challenges of the organisation.Creativity is contagious and ideas needto be nurtured. Formal brainstormingsessions can be established withindividuals taking ownership to providefresh insight into business challengesand solutions.Praise and appraisalNothing can be more importantthan giving praise for a job welldone. A regular appraisal identifiesstrengths and weaknesses and allowsfor assessment of CPD and on-the-jobtraining. An appraisal is a two-way41

August-September 2012Intelligent SMEHR StrategyCarole Spiers has spent 20 years as CEO of a leading UK Stress ManagementConsultancy, working with equal success both in the UK and the Gulf. She is a BBCguest broadcaster and sought after international Motivational Speaker. Carole is aweekly columnist for Gulf News and is regularly called by the press for comment.Her new book, Show Stress Who’s Boss! is available on Amazon and in all good UAEbookshops. Book Carole for a high-impact, charismatic presentation at your nextconference. info@carolespiers.co.uk.,www.carolespiers.comprocess which enables the managerand employee to agree targets forperformance and have an agreed workplan. Whilst an appraisal should be anongoing process, it is also necessary tohave a formal timetable for review.Recognition and rewardBeing valued and recognised isan essential element within a healthyworkplace culture and almost asimportant as the monetary reward onoffer. Recognition and reward haveto be commensurate with the task, butundervaluing skills at any level can leadto low productivity and poor morale.Providing benefit packages over andabove the basic salary is another way ofexpressing recognition andenhancing reward.Effective corporate goal settingTo be effective within anorganisation, individuals need tobe aware of the corporate goals andwherever possible, have a stakein achieving them. Bonuses andperformance-related pay are greatincentives for employees at all levels.High moraleThe morale of an organisationis fundamental to its success. Highmorale suggests a well-motivated andenergised workforce that is keen tosucceed. Employees will be committedto meeting and even exceeding targetswhen morale is high and it is thereforean essential ingredient for sustainablesuccess and competitive advantage.Corporate inspirationTeam members need to feel thatthey are working for an organisationthat is not only successful butinspirational - a place where otherswould seek to work if they had theopportunity. Its name and imageshould suggest distinction, bothinternally and externally. The userbenefits of the company’s products andservices should be made known to allemployees, at all levels. There shouldalso be clear evidence of high ethicalstandards in all the company’s dealings.Increasingly, this extends to socialresponsibility in the outside world. Incommercial competition, employeesshould still feel that they, and theorganisation, have integrity.Anti-stress interventionsStress needs to be managed fromthe boardroom right throughout theorganisation. CEOs should attend stressmanagement boardroom briefings sothat they can fully appreciate that workstress can damage profitability as wellas the health and safety of employees.A structured approach will be neededin order to grow a healthy workplaceculture which in turn will ensure thesustainable competitive advantage ofthe business.Resilience is also important toindividuals at a personal level. Thosemanagers and employees facing anuncertain future will need all the innerstrength they can muster to energisethemselves to take advantage ofchanging circumstances. Strengtheningpersonal resilience will help retainperformance levels.Employers, faced with makingchanges to their staffing levels, willneed to maintain a concern for theirstaff when they leave for reputationaland sound business reasons, for theremay be times when businesses andservices need to recruit the same skilledemployees once more from a shrinkingpool of expertise.Positive attitudes and common goalsIf you think a goal is achievablethen the chances are it is. A positiveattitude is everything in a successfulorganisation. The moment negativitycreeps in, creativity and motivationrush out! Positive affirmations fromthe boardroom to the workforcegive an organisation more chance ofsucceeding and meeting its targets. Acohesive team will also have commongoals and a positive attitude as teammembers will support both each otherand the business.Corporate wellbeingOrganisations need to addressnot only their employees’ cognitivecapacity but also their physical,emotional and spiritual health andwellbeing in order to fully gainthe benefit of those capacities. Asuccessful approach to sustained highperformance must consider the personas a whole, addressing all these factors.Corporate entrepreneurshipEmployees need to start workingin a socially entrepreneurial manner;identifying opportunity for andchampioning socially responsibleactivity, in addition to helping thebusiness achieve its business targets.Embrace diversityOrganisations can be enriched throughthe wealth of cultural differences thereare within them but, again, this needsto be exploited in a way that everyonegains an advantage or benefit.Organisations can implementa scheme of healthy workplaceambassador champions who willlive and breathe the culture of theorganisation and bring sustainablesuccess to the business. It is notcomplicated to grow a healthy culturebut it does need to be a priority in theminds of senior board members toensure that it is followed through at alllevels throughout the organisation.42

August-September 2012Intelligent SMESales StrategyThe sales objection inoculatorsPhil Bedford explains how to go about writing a testimonialand the value it generates for businesses.Otherwise known as thetestimonial, this is one ofthe most powerful toolswe have in helping to closesales and one of the least correctlyutilised.Most testimonials we see are“shallow” and pretty much useless.Anyone looking to use your servicesneeds to see real value or ROI fromusing your product or service.A good format for a testimonialwould be to firstly mention theproblem or situation which causedyou to employ the particular serviceor product. Secondly, you can addyour experience of using the productor service. Thirdly, input the resultof using the service and any returnon investment as well. The followingexample puts these three key points togood use.Most testimonials we see are “shallow” andpretty much useless. Anyone looking to useyour services needs to see real value or ROIfrom using your product or service.ExampleHi Phil- I know this has been along time coming, but I do not givetestimonials for the sake of it, onlywhen I have witnessed great service orbenefit.I am now into week 10 of theReferral Institute Certified NetworkerProgramme, and am delighted with theresults so far. I can categorise my ROIin 3 areas as below;1. Financially- I received businessto twice the value of my initialinvestment in the programme, withinfour weeks.2. Personally- I am 46 years of age,and quite honestly thought of myself asa good networker, therefore somewhatsceptical of the possible benefits of theprogramme. I also almost convincedmyself that I really did not have time to44

August-September 2012Intelligent SMESales StrategyAn experienced business trainer, Phil Bedford brings over a decade of experience tohis role as Master Franchisee for the Referral Institute. His expertise and experienceof working with both companies and networking associations, coupled with a passionfor training have helped him immensely. He regularly appears as a speaker in the UAEand abroad, educating people on how to build their business by word of mouth and“Creating Referrals for Life.”commit to the programme for the full12 weeks. How wrong I was! I nowhave a full kit of referral tools that I canuse with ease and confidence, givingme absolute certainty that 95 per centof my future business will come fromreferral marketing.3. My referral partners- I havealready generated in excess ofAED700,000 for my referral partnersvia other members of the CNPprogramme- the calibre of the delegatesis so high that I am convinced thatnumber will grow and grow.I could not recommend theprogramme more highly for anybodywho actually wants to learn howto achieve real success in referralmarketing, as long as you are willing toadopt all that is taught.Best regards,Peter CowanRealtime Learning, DubaiIt always helps to get a testimonialas soon as you can or the personmay disappear, however this is notnecessarily the most impactful time. Ifyou have laid grass seeds for example,you may wish to wait until there isbeautiful, thick grass before requestingthe testimonial. If it were requestedimmediately then one would assume itwould be more about the service thanthe result.How to get testimonialsI think it goes without saying, toask is probably the first thing to do, butthen many people are shy to ask. Sohere are some tips:Do a follow up audit and, if theycomment favourably, ask if it can beused or even expanded on.Offer to promote your client toyour network. They could start theIt is always good to provide an electroniccopy for your client to upload to websitesand LinkedIn.testimonial by saying what they do andthen how it has helped them. When youshare the testimonial it also promotestheir business to your network.Some behavioural styles offer toprovide testimonials, but then do notget round to it.Normally, the fast paced stylesthose we call go-getters and promoters.I suggest asking them verbally whatthey would like to say and then offerto write it for them and then get theirapproval. Do the work for them, theylike that.Frame itIt is always good to provide anelectronic copy for your client toupload to websites and LinkedIn. (Anote on LinkedIn: make sure you arerequesting testimonials from peopleyou have done work for. I often gettestimonial requests from people I havespoken to once. My immediate thoughtis if they are asking based on this thenthey either just do not understand whata testimonial is or they simply haven’tdone enough good work to havedecent ones.)How about framing one you havegiven to a client, it must be a reallynice frame. Not only will your client bemore likely to put it up on the wall. Italso becomes advertising for you.According to the CertifiedNetworker II Program, givingtestimonials is also one of the 18 tacticsto motivate your referral source, whichwill in fact, encourage them to referyou.Share with your networkMake sure you share yourtestimonials with your network.Especially for your true believers,this gives them a great tool to give topotential referrals. Provide at least onefor each of your products or services.Top 3Think of your top three salesobjections and strategically findtestimonials to counter theseobjections.VideoThe power of the web can beharnessed like never before. The videotestimonial has really come intoits own.You can use the same formatas mentioned above with the clientspromoting their own businesssubtly and then following on with atestimonial. Many people do not like toread, but they love to watch.UpfrontIf you can get highly trainedreferral partners they can even utilisethese testimonials as part of theirintroduction of you and your services.If introduced before the client can startto object, then we have already dealtwith the objection in advance. It is trulyan inoculation.45

August-September 2012Intelligent SMEBusiness LawNita 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 hasauthored several articles and essays on asset and wealth protection. Her focus is onsafeguarding families, heirs and businesses, under succession and inheritance lawsin Shari’ah jurisdictions. The Wills Specialists is a law firm based in Dubai, dedicatedto the business of wills, asset protection, business succession planning, offshorestructures and trusts. The firm is accredited by the Government of Dubai Legal AffairsDepartment, and by the Dubai Ruler’s Court. Their office location is Office Suite 1305,Saba 1 Tower , Jumeirah Lakes Towers. Dubai.Q. What is the main benefit ofowning property through an offshorecompany? Isn’t it better to have theproperty held in your own name?A. The inheritance laws in Dubai areneither straight forward nor the same asthose back in the UK or the EuropeanUnion. If a foreigner owns propertyin Dubai and passes away, the laws oftheir home country may not apply totheir assets. Instead, Shari’ah law mayapply. Under Shari’ah law, the propertyof the deceased is usually transferredto the closest male relative. There is noautomatic transfer of the property to thesurviving spouse either. By structuringyour property into an offshorecompany, you ensure that Shari’ahlaw will not apply to your assets andthose lengthy probate proceedings areavoided.Q. What type of offshore companiescan we use?A. Since January 1, 2011, the onlyoffshore company that can be used tohold real estate owned in Dubai is theJebel Ali Offshore Company. Thiscompany does not allow you to trade,give you residency nor work permits.The shares of the Jebel Ali OffshoreCompany can be held in personalnames but we usually have the sharesheld by an offshore company 100 percent. We recommend common lawoffshore jurisdictions such as BritishVirgin Islands. This means that if adeath occurs, Shari’ah law will notapply as your assets would be held inthe name of the offshore entity andnot in individual names. The probateprocess would also take place inforeign courts.Q. What are the other benefits ofholding a property in Dubai offshore?A. The offshore entity can be designedto suit joint investors. So a group ofinvestors can hold shares in an offshoreentity which ultimately protects theirportion of shares in the property. It alsoprovides confidentiality and privacy,hence protecting your assets.Q. If I already own property, can I stilltransfer this into an offshore company?A. Yes, you can transfer all freeholdproperty held in your own personalname into the name of the offshoreentity.Q. Can I own other assets through thecompany?A. Yes. A company is a legal entity andcan own any asset. So bank accounts,stocks and shares and properties in theUAE and internationally can all be heldby an offshore company.Offshore trustsAre you an expat resident in theUAE? Are you a partner or a shareholder of a business in the freezone orof an LLC? Do you own the freeholdproperty either jointly or in yourpersonal name? Do you have a localbank account? Do you have children?If the answer is YES, to either oneor all of the above questions, have youconsidered having a ‘trust’ in place tosecure your assets and your family’sfuture?Offshore trust formation is ahighly effective estate planning andasset protection tool, particularly inthe Middle East, where local Shari’ahlaw prevails. A legal consultancycan assist with all aspects of offshoretrust formation that help you put inplace wealth structures that addressfuture ambitions and goals as wellas your current needs. The followinginformation will help you determinewhether offshore trust formationwill fulfill your personal or businessobjectives. Those that own a businessor shares in a business should considerthe importance of having an offshoretrust in place.The use of a trust can provideasset protection for the settler andbeneficiaries in case of economic,political, family or business uncertaintysuch as unexpected divorce orbankruptcy.It also aids in succession planningallowing for the transfer of wealth in atax efficient and timely manner. A trustalso offers a solution to consolidateand administer family wealth. Further,a trust can overcome problems ofobtaining probate (or its equivalent) inseveral jurisdictions.More importantly, a trust bypassesthe local laws in the event of death. Italso aids in professional managementof assets for the benefit of vulnerablebeneficiaries who cannot manage orbe trusted to manage their own assets.This could include disabled children,addicts, or persons who might bepressured by third parties. The trustdeed is not a public document andprovides confidentiality for both settlorand beneficiary.The use of a trust can provide assetprotection for the settler andbenef iciaries in case of economic,political, family or business uncertaintysuch as divorce or bankruptcy.47

August-September 2012Intelligent SMEChange ManagementManaging the management ofchangeV. Ramkumar finds out what goes into bringing change acrossan enterprise.The greatest effort inchange management isin comprehending thechange itself. Simple as itmay sound, I have always found itthe most interesting, yet intriguingpart of implementing a process ororganisational transformation acrossboth SME and large enterprises.Let us understand this better. Wedeal with change across an organisationin three levels, based on the context andimpact that it tends to create. In simpleterms, this is reflected by the depth ofchange it brings in the organisation, thetime-span that this change tends to beabsorbed across the enterprise, and theeffort it takes to bring in this change. Sowhat are these?Individual unit levelThis is typically evident in a newfocus that organisations bring in,seen in unit level focus for a specificobjective, typically for a quickshort term one. A good example ina change sales effort -- bringing in anew direction and focus on the targetsegment, key account relationships,transforming the sales organisationto bring in higher customer focus anddriving higher sales performance.These have a high focus at a unit level,has a faster implementation timeframe,and relatively quick in getting itimplemented.Business unit levelBe it an entire business unitsuch as an operations function or afinance function, SMEs do bring inand implement change at a specificbusiness unit level. These are usuallydone over a period of time, and drivenby a relatively longer-term objective.Typically these initiatives are driventowards addressing key pain pointssuch as addressing increased customerWhile human tendency is usually to resistchange, in most circumstances, theacceptability of the change is much higher atan individual unit level.48

August-September 2012Intelligent SMEChange ManagementV Ramkumar is senior director at Cedar Management Consulting International LLC,a US based management consulting firm whose heritage includes being part ofthe firm founded by creators of the Balanced Scorecard. Ram has over 17 years ofmanagement consulting and strategic transformation experience. He can be reachedat v.ramkumar@cedar-consulting.comcomplaints in a certain area, reducingcost structure of a certain productionprocess, among others. Further, it doestake a higher effort to have these fullyimplemented.Enterprise levelThese include less frequentinitiatives that have a very high degreeimpact across the organisation. Whileunit level changes may be done morefrequently, enterprise level changesare not expected to happen too soon,and too frequently - or they wouldhave an adverse effect too. A verycommon example of enterprise levelchange is where an ERP solution isrolled out across the organisation andresultant change it brings in the waythe processes are rolled out. Not onlyis this change more long-term in itssustainability, but also has an effectacross the organisation and takes asignificant effort to execute.While human tendency is usuallyto resist change, in most circumstances,the acceptability of the change is muchhigher at an individual unit level. Asthe surface of change grows, so doesthe complexity of implementation. Thepoint to remember is that the enterpriselevel changes are not just trial and errorinitiatives. These call for very highinvestments, demand a fair degreeof management time, are assumed tobe the foundation layers for futuredirection of the organisation, and whenthey don’t bring in the desired results,the loss is significant.So what can be done here, and howdoes one ensure the change is managedwell, and even better, maximise thevalue derived from an effort of suchan organizational change? Based onover 17 years of consulting experience,I have always seen this best managedwhen four basic tenets of change arewell implemented. Let us explore themclosely:Communicate the benef itsSilly as it may sound; sometimesthe most impactful aspect of largeprojects is not in the execution of it, butin simple and direct communicationto beneficiaries. When the participantof change process is made aware ofbenefits that come with it, the degreeof involvement increases manifold.Taking extra effort to make employeesaware of benefits - be it simplerprocesses, reduced effort, increasedcustomer benefit or organisationalefficiency, the more clear thecommunication, the more effective itsacceptance. Ensuring completenessof message reduces second-guessingand mitigates an invariable element ofskepticism.Maximise participationI have always found ownershiplevels automatically driven when youhave participation levels increased.It does not matter if the involvementis in just one element of the projector many. The fact that an employeehad participated in it itself drives thesense of ownership. A word of specialattention here -- it is important that themost dissonant unit of the enterpriseor stakeholder gets to participatemost. The age-old technique of havingthe bully in the class being made themonitor almost applies in all situations,and change management is noexception.Celebrate changeUnfortunately, success doesnot receive the same attention asissues and challenges. Instinctively,management focus always tends tofocus on the areas of issues that needattention. While this is key to fix aproblem on a timely basis, it also tendsto dilute the opportunity of celebratingsuccesses. When an organisation isdriven towards a mission where changeis the foundation, every element ofsuccess on the way deserves a highervisibility and management appreciation- that is the key to institutionalisingimprovements.Drive change from the topWhat is important to my boss isimportant to me. And that’s universal!Unless the CEO and his direct reporteesembrace change, you do not expect it topercolate down the order.In most organisations, this happensto be the most common cause forcritical projects not taking off. Neithercarrot, nor stick does the miracle whenmanagement conviction is weak.Conviction needs to be demonstrated inmore ways than just lip service, and theresponsibility lies at the top.The best part of these initiatives isthat they are universal, and applicablein most situations. While all four areimportant, they are not necessarily ina certain order, and each of them havetheir own benefits and not required tobe implemented collectively.And a last word on change - as Isaid before, the most important part ofbringing in change is in comprehendingit. Let’s say it’s not about justcomprehending, the changebut about having both the causeand effect being comprehended byeveryone who matters!49

August-September 2012Intelligent SMESME FinancingCraig Hewett is senior vice president- head of business development at NASDAQDubai with responsibility for the commercial activities of the exchange. These includeproduct and market development, membership, training and market data. Prior tojoining NASDAQ Dubai in July 2011, he held the position of chief business officer atthe Bahrain Financial Exchange (BFX) from 2008. He brings a wealth of internationalexpertise in trading a variety of asset classes.market: this is because the exchangeallows a company to choose the IPOshare price itself, after talking topotential investors. By contrast, manyother regional exchanges impose anartificially low price. And a private saleof shares often fails to raise their truemarket value.Raising awarenessA listing on the region’sinternational exchange takes place in ablaze of publicity, which can be goodfor business. All that press coveragecan put your company on the map withpeople who previously knew littleabout it.A listed company is structured tohave an effective board of directors,good corporate governance and soundfinancial procedures. The publicdisclosures that are made by a listedcompany enhance its transparency,increasing public trust. This improvesa company’s long-term prospect ofsuccess.Active tradingOther advantages include a chanceto join an active trading platform that isused jointly by both NASDAQ Dubaiand Dubai Financial Market. Thisplatform can be used by more than550,000 investors who are registered toA listing onthe region’sinternationalexchangetakes placein a blazeof publicity,which canbe good forbusiness.trade the shares of more than 70 listedcompanies. If you list your company onNASDAQ Dubai, these same investorswill find it easy to buy and sell shares inyour company if they wish.Such trading, continuing on anongoing basis after the IPO, can bebeneficial for a company as it keeps itin the public eye. It also creates a readymarket for further issue of shares by thecompany, should it wish to carry outanother round of capital-raising.PreparationGoing public requires preparation,of course. This includes ensuring thatthe company’s financial accounts areprepared in the right way. The companyalso sets out basic facts about itsbusiness, and its senior management,in a document called a prospectusthat must be approved by the DubaiFinancial Services Authority (DFSA),NASDAQ Dubai’s regulator. TheDFSA is acknowledged as operatingto international standards, so itsapproval is an important tick in the boxfor potential investors as they decidewhether to buy a company’s shares.A company wishing to carryout an IPO needs help from externaladvisors for its accounting and legalneeds, as well as in preparing itsprospectus and selling its shares toinvestors. Fortunately Dubai is hometo many advisory firms that have therequired expertise. Combined withregular contact with the exchange andits regulator in the run-up to IPO, thisframework can make the listing processa straightforward exercise for any wellmanaged and committed company.As the economy recovers fromthe global financial crisis and morecompanies grow and prosper, theoutlook for SMEs to successfully raisecapital through an IPO islooking positive.51

August-September 2012Intelligent SMESME FinancingHarshit H. Jain is a seasoned banker with over 25 years of global banking experienceand commercial success across Asia and Middle East. He is the founding CEO ofInnoVention Solutions, a young and versatile consultancy and training firm whichfocuses on providing consultancy, training and advisory services to banks, financialinstitutions and corporate customers (Institutional clients as well as SME clients) in theMiddle East, North Africa and South Asia (MENASA) region.standardised message formats forall transactions. SWIFT messagesmaintain high security using a PublicKey Infrastructure (PKI). There isno downtime for SWIFT networks,therefore, a member bank receivingthe message cannot deny receivingit. Furthermore, it is a high securitynetwork that has known no virusattacks in over 39 years of service andhas operations centres and regionalprocessors. It is a very secure networkthat transmits data, and not funds.How does the SWIFT network work?SWIFT network works likea typical postal mailbox networkconnecting its members- be it banks,financial institutions or corporationsexceptthat it is a global network andvey secure at that. It uses addresses,called the SWIFT Bank IdentifierCode (BIC), which are standardisedaddresses to route messages from onemember to another member withinSWIFT globally.SWIFT BIC addressBBBB CC LL (bbb) which isdeciphered as:BBBB being the unique fourcharacterBank codeCC is a unique two-characterCountry codeLL is a two-character Location codeexample, the more common currencycodes are: AED for UAE Dirham, CHFfor Swiss Franc, CNY for ChineseRenminbi (Yuan), EUR for Euro, GBPfor British Pound, and so on. Thesecurrency codes are also easily availableonline.Apart from the SWIFT BIC codesand the currency codes, SWIFT hasdone a tremendous job in developingstandardised Message Text (MT) types.These messages support the businesstransactions of SWIFT users coveringvarious types of bank transactions.These are:MT 1xxMT 2xxMT 3xxMT 4xxMT 5xxMT 6xxMT 7xxMT 8xxMT 9xxCollection and cash lettersSWIFT facilitatesinternationalpayments, but itis not a payment,clearing or settlementsystem. It is alsoincreasingly servingas a standardsorganisation.Customer payments and cheques (MT 103- Customer Transfer)Financial institution (bank-to-bank) transfersTreasury markets- foreign exchange, money markets andderivativesSecurities marketsTreasury markets- precious metals and syndicationsDocumentary credits and guaranteesTravellers chequesCash management and customer status (balance andtransaction reporting).bbb is a three-character Branchcode (becoming less prevalent withcentralization of operations or datacentres at banks)Another component of a SWIFTmessage standard is a currencycode. These are used extensively inaccordance with ISO standards. ForNow you can see what the bankmeans when it says it is waiting for theSWIFT MT-103 before crediting thefunds into your account. It is the MT-103 Message Text from the remitting(your customer’s) bank which has notyet been received (sighted) by yourbank!In line with a shift to the web-basedworld and to cater to the increasingdemands of its members, SWIFT hasalso developed XML-based Messages(MX) which serve to complementthe traditional MT messages. Thesemessages also enable the transfer ofricher data for more complex businesstransactions and are ISO 20022compliant.53

August-September 2012Intelligent SMEBusiness ManagementEnd-of-service benefits:Change is afoot!RiskFundinggratuity liabilityMarket riskBusiness riskCredit riskOperational riskReputational riskRichard Taylor and Rupert Connor commenton upcoming changes in gratuity schemes andtheir implications for businesses.Businesses operating in theUAE are very familiar withthe end-of-service benefitscheme known as gratuity,from which expatriate workers havebenefited for the last 40 years.Upon termination ofemployment,employeesfromcashflowreceive a lump sum calculated on thelength of their salary and contract. Thisis the practice throughout the MiddleEast, although it does differ slightlyfrom country to country. For example,Saudi Arabia has no limit on theamount that can be received while theUAE limits pay-outs to the equivalentof two years’ salary.As with everything, the currentsystem has its positives and negatives,but it does look as if the winds ofchange are blowing. Let’s just take aquick look at some of the changes thathave been thrust upon businesses inrecent years: Pre-2008 when businesswas booming, the Emiratisation policywas introduced. In 2009 as we slidinto recession the Wage ProtectionSystem (WPS) was introduced. In2010 as we started to emerge from therecession, there was a relaxation ofthe NOC and Visa rules. In 2011,increased corporate governancewas on the agenda. In 2011/12, theDubai Department of EconomicDevelopment announced theyare looking into a universalpension scheme for workers.So clearly, change is onthe agenda and this only looksset to continue, with the lastdevelopment mentioned likely to havethe most impact on gratuity legislationin the future (a pension scheme wouldreplace the current system). Coupledwith this, the government is startingto focus on and enforce the existing54

August-September 2012Intelligent SMEBusiness ManagementRupert Connor and Richard Taylor are independent financial advisors with AcumaWealth Management. As qualified advisors in the region, they help expats get theirfinances in order, and maximise the financial opportunities available offshore and planfor future events.gratuity rules. There have been severalrecent court cases where formeremployees have questioned theirgratuity entitlement and the courts havealways sided with the employees. Inone case it led to the court awarding theex-employee US$3 million.UAE law does not stipulate thatbusinesses have to make separateprovision for their gratuity liabilities,which can be very significant, and asa result most businesses fund it out ofworking capital. It is interesting thatmaking separate provision forend-of-service liabilities is aninternational accounting standard andis mandatory in many jurisdictions. Wewouldn’t be surprised if that is the casehere before too long.Not funding your gratuity liabilityis a big risk to your business andfunding from cash flow should not beseen as a viable solution. Businessescontinue to grow and recruit newemployees, and existing employeesextend their length of service so theliability will continually increase.So we know the governmentis strictly enforcing the currentlegislation, we know they are lookingat alternative systems (i.e. a universalpension scheme) and we know thatfunding your gratuity liability fromyour working capital isn’t the beststrategy for your business. But what’sthe alternative?Group savings accountsGratuity liabilities should beappropriately funded and ring-fencedto protect both your company andyour employees from these risks. Bycreating a separate account investing ina range of assets you could reduce yourrisk exposure and allow your companyto concentrate on growing profitability.A gratuity account keeps yourpayments ring-fenced and separatefrom the rest of your business. It canbe managed as part of a group savingsaccount, with any additional savingsmade by the employer and/or employeealso being kept separate.This enables you to invest ina balanced portfolio of funds thatmatches your company’s gratuityfunding investment strategy, and helpsto mitigate the potential impact of stockBelow are some of the main risks associated with funding yourgratuity liability from cash flow:Market risk: When markets are depressed and you need to reassess the numberof people your business needs, this is when your gratuity liability is at its worst.Business risk : Using your cash flow allows no safety net during the bad times.Credit risk: By using money from within your business to fund your gratuityliabilities, your ability to pay your employees at end of service may bedependent on your creditors paying you.Legal risk: The number of court cases against employers not fulfilling theirobligations is growing. This could lead to your business losing it license tooperate.Operational risk: The risk of not providing this important employee benefitcould mean that valuable opportunities to attract and retain loyal and productivestaff could be lost.Reputational risk: The operational risk mentioned above could lead to yourcompany being benchmarked below that of your competitors.market volatility. Many employershave found that this has the potentialto become self-funding. Employersmay elect to pay regular or singlepremiums and use the proceeds topay their liability when an individualmember leaves service. Depending onthe scheme set-up it may be possibleto use excess fund for the benefit ofthat employee. The employer retainsfull control over all accounts andinvestment decisions.Employee benef itFurthermore, this arrangement canenhance the benefits you offer to youremployees and aid your recruitmentand retention of key talent. Studiesshow that 67 per cent of employers whohave implemented such schemes tofund their gratuity liability agreed thatit facilitated employee retention andloyalty, with 66 per cent agreeing thatthis system had led to an increase inemployee motivation and productivity.Change to gratuity legislation issurely coming, with the most likelyoutcome being a compulsory workerpension scheme.Employers can either wait forit to be forced on them, have no sayin the structure of the scheme andforego any of the additional employeesatisfaction benefits (it has been shownthat employees respond far better toan improvement in their benefits thatwas taken as a voluntary as opposed tomandatory decision by their employer),or they can take matters into their ownhands now and implement a schemethat suits them and extracts maximumemployee satisfaction.And just as crucially, implementingsuch a scheme is sound financialmanagement of your business, muchmore so than funding an unknown, butpotentially significant, gratuity liabilityfrom your working capital.55

August-September 2012Intelligent SMELeadershipHow to find gold in your office?Business leaders can break barriers withtheir team by nurturing and encouragingsuccess, writes Michael Tolan.With the 2012 Olympicsstill lingering in theminds of so many of us,it’s not difficult for usto imagine the dedication, hard workand sacrifices that were made by somany athletes just to have a rare chanceat grabbing a precious medal for theircountry.It’s interesting that every fouryears the eyes of the world are onthe competitors, who in fact are theperformers, whose challenge is to breakbarriers. This is the name of the game,to do better, be better and to become thebest.Yet, many of the tired and wearyare forgotten instantly for their heroicefforts, having walked or limped awaywithout the prize, dreams fading of thatone ounce shiny token tied to a ribbon,marking their holder’s achievements foreternity.World records have always beenchallenged in these events, as someonenew steps up to defeat what wasconsidered to be the best timings orscore possible to be made by ahuman being.Breaking barriers.It is no small wonder that, the 2012Olympics were no different and thatevents 100 years from now will attractnew barrier breakers.The unthinkable, the impossible,become miracles at first, exhilaratingmoments, and then accepted aspossibilities and finally commonknowledge and fact.Spectacular feats of courageare shining examples of the human‘strength of spirit’ that sets ourimaginations alight, speaking to us allin one common voice, in one language,the language of possibilities andexcellence coated in perspiration, thetrademark branding of hard work.We therefore find ourselvesspectators, bound to each other’shumanity and celebrate each victoriousbroken barrier as our own, witnessingthe impossible as it manifests itself intothe ‘possible’ before our very eyes.As the dust settles, and the winnershead home, we all go back to our livesand quickly disconnect from theunion we held so firmly in appreciatingthe art of human achievement during56

August-September 2012Intelligent SMELeadershipMichael J Tolan is senior consultant for Potential.com, an organization that developsexcellence practices, provides coaching and training to SMEs in the Middle East andNorth Africa region. He is also the head of the Leadership Academy for Excellencewithin the Potential Group.the games. So what can leaders in thebusiness world take away from the‘greatest show on earth of possibilities’?Breaking barriers.For a start, examine the basic paystructure of each athlete? Accordingto Olympic rules, they should beamateurs, which, ipso facto means, theyare not driven to action by monetaryrewards.How about their job description?“ Your job is to do better than anyonein the history of sport has ever done inorder to get the gold,” seems to almostsum up the role.So why do athletes compete? Whydo they dream to become part of anOlympic team, sacrifice and overcomeso many boundaries for no moneyand take up the quest to accomplishwhat many would consider an almostimpossible task?Leaders today can be reminded thatthe human spirit is just that, a spirit,motivated to greatness by aspirationsof becoming the best, recognised asa champion by their country or peers,respected as someone who is ‘anexample’ to be followed.Companies that realise thesesignificant truths, that remember thesefundamental basics that glow in thehearts of everyone who has ever beenpraised for their performance, willalso break barriers. In fact, they willdiscover the real gold mines are hiddenwithin the very people around them.People fundamentally want to performwell, and they want to win.The medals that companies offerthat are over and above a paycheck willdetermine the amount of excellencewithin their ranks, and very often thecompanies’ loyalty quotient.Team members withinorganisations can be brought out of amundane haze that places them intoThe medals thatcompanies offerthat are over andabove a paycheckwill determinethe amount ofexcellence withintheir ranks, andvery often thecompanies’ loyaltyquotient.a daily rut. Creating the race trackof excellence is one of those secrets.They should be powered by the rightrecognition schemes and nurturingmanagement. Management and leaderswho understand the importance ofpolishing personal esteem by allowinggrowth creates energy of alchemywithin the organisation.When leadership at the helm of acompany realise and recognise that aglass of water instead of a whip will getmore authentic effort and appreciationout of its rowers, their ship will sailboundlessly into new uncharted waters.Nurturing, measuring, announcingand praising internal achievementsin people within the ranks of teamsdriving the organisation is the newmagical ‘neuro-fuel’ that costs next tonothing, and yet its ROI is huge.The corporate business race runby SMEs is a daily, minute-by-minutechallenge very often uphill.Set the vision and mission forthe team. Give them all a big enoughreason to run their best race, everyday.Measure successes and be boisterousin praising successes along the way.Remember, every sunrise is a newday of opportunity to grab the medalsof success. Keep in mind you arecultivating champions who hopefullywill run the longest marathon of all,their careers, with you. Give them thechance to win their own gold medalswith your own excellence awarenessscheme. Keep it authentic and genuine.Nurture the learning anddevelopment opportunities of yourteam and give them the chance toturn the impossible barriers into theirown personal career victories, so thatthey can proudly and confidently feeland say, while wearing your logo,“I’m Possible too!” Golden moments,priceless.57

August-September 2012Intelligent SMELeadershipStamp out negativity fast!!Anesh Jagtiani makes a case in point on thepower of positive thinking.You’ve probably heard that oneof the most common practicesof successful people ispositive thinking. But howeasy is it to really make this a practicein your life? Sure, you’ve probably hadgood days where you could keep yourthoughts positive and empowering.But what about those days when itjust seems that nothing is going rightand you can’t seem to keep the flies ofnegative thought from ruining yourpicnic? If you’re curious about thesolution to this dilemma, this simple yetpowerful strategy might be just whatyou’re looking for.Reframing your thoughtsThe first key to stamping outnegative thoughts fast is to acceptthat your thoughts not only influenceyour actions, but that they are alsoinfluenced by the actions which you takein response to them. In other words, whenyou allow fear to influence you to actfearfully, that fear is only going to growmore and more powerful.But if you refuse to allow fear toinfluence you to fearful actions, andif you choose acts of courage instead,you’ll find that your fear will take ona context: excitement. Think about this:biologically, the differences betweenfear and excitement aren’t any different.They both cause accelerated heartbeat,rapid breathing and a heightening of yourphysical senses.There is an enormous difference inthe frame of mind that accompanies fearand that which accompanies excitement,and that frame of mind is influenced byyour experiences.For example, if you fear rejectionand choose to retreat into the privacyof your own thoughts, you’re onlyreinforcing what you fear throughwhat psychologists call “self-rejection.”58

Have you ever changed your mindabout something?August-September 2012Intelligent SMELeadershipAnesh Jagtiani is the CEO of Empowering Leaders Group (M. E). He is a professionalspeaker and trainer. His leadership programme helps managers motivate and retaintheir top people, improve their effectiveness in communication and maximise thebottom line of companies. He is also a TV anchor of a show called TOP GUNS on ZEETV where he has interviewed the 12 most successful Indian entrepreneurs of UAE. Hecan be reached at anesh@elgme.com or www.elgme.comOn the other hand, you choose toact in courage by either approachingthat prospect, or speaking tothat member of the opposite sex whoyou’re afraid of being rejected by, yougive that fear a new context. And themore persistent you are in confrontingyour fear with acts of courage, the lesslike fear it will seem, and the moreexcitement you’ll feel.This is the fastest and mosteffective way to stamp out “negative”thoughts. Now, in case you’rethinking that this sounds way toosimple to be true...Making the switchHave you ever changed yourmind about something? Of course youhave...but what really changed? Mostlikely it wasn’t your mind; it was youractions...and those actions changedbecause your priorities changed. Inother words, you decided that a newaction was more important than youroriginal action.This is exactly the keyto reframing your thoughts by takingnew and empowering actions. The nexttime you’re overwhelmed by worryor fear, or any other kind of negativethought, ask yourself this: “What actionis this negative thought keeping mefrom taking?”If the action is stupid or if youdon’t have it planned out, then your“negative” thought might be completelyvalid. It might be telling you that youneed to develop a more solid plan ofaction. But if the action is somethingwhich would be beneficial to you orsomeone you care about, redirect yourfocus to what’s really important.Your thoughts and emotions areinfluenced by what you focus on, andthe more you focus on what’s importantto you, the less thoughts and feelingsof fear and worry will hinder you fromtaking positive action.You’ll also be more empowered toconfront your negative thoughts withacts of courage, and those actions willreframe your thoughts.TIPThe next time thatyou have a “negative”thought, stop and thinkabout what that thoughtmight be trying to tellyou. Most often, onceyou discover the sourceof your negative thoughts,they lose their power toinfluence you. But if youkeep trying to bury them,you’ll miss the insight thatthey hold, and the morepersistent they’ll become.What you resist willpersist.59

THOSE WHO MADE A MARK.WOMENENTREPRENEURS

August-September 2012Intelligent SMEWomen EntrepreneursFrom pom-poms tojewellery designIntelligent SME spoke to Helen Kay, ownerof Helen Kay Gifts on her journey ofentrepreneurship.ISME: How did Helen Kay Gifts comeinto being?Helen KayHK: The reason I took up the idea ofHelen Kay Gifts and gave it shape wasbecause it was a hobby for my childrenand I wanted them to have somethingof their own. Being UAE citizens, wehave the opportunity of applying for anIntelaq licence, where one can carry ona trade in the comfort of one’s home.I then joined the artisans at ArteDubai in June 2011. I had madepom-pom kits for children learningto make pom-poms. The summer wascoming, the kids were finishing school,and I didn’t want them to spend somuch time in front of the television. Ithought I should start doing something,something to do with jewellery or so,just as a hobby for the children. Butthen we got so good at it that eventuallyI sold my car and gold to raise funds forthis business, because I wanted to entera business. I bought cabinets, stock,and applied for the Intelaq licence,printed roll-ups, flyers and my websiteand other marketing material withthe help of my friend Gina who ownsGemah Solutions. I wasn’t comfortableworking with a male web designer andI’m lucky to have found Gina who hasbeen designing websites for her clients.The initial investment I would saywas, close to AED30000- AED50000to set up the business. It all beganwith simple jewellery, and we slowlydiversified to prayer beads, spectacleIt would be greatif we were givenadditional financialsupport duringthe initial years ofsetting up. But onthe other hand, Iknow that I havestarted this fromscratch by myselfand this gives me alot of satisfaction.62

August-September 2012Intelligent SMEWomen Entrepreneursholders and bookmarks and key chains.It was a struggle to go to potentialclients who would stock my products.I often walked into various malls witha trolley! But in the end it paid off,because I got my first client Books Plus,which houses my products in five oftheir outlets.ISME: Where do you source yourmaterial from?HK: I source all my material fromDubai. I have my part to play, as anentrepreneur, towards contributing tothe economy of the emirate. It’s veryrare that I do not get what I want in thelocal market.ISME: Since it’s been a year,can you mention the positiveand negative moments of yourentrepreneurial journey?HK: This business of mine is verytherapeutic. If you have a very stressfullife, this is definitely the way to go.I enjoy it when people select mycreations, and when I see them usingthe products. Sometimes when I get alarge order then it is a bit of a challengebecause then I need the extra help and Ihave to round up my children. It wouldbe great if we were given additionalfinancial support during the initial yearsof setting up. But on the otherhand, I know that I havestarted this from scratch bymyself and this gives me alot of satisfaction. Of course,winning the Brand Creativitycontest organised by BusinessVillage and Dubai SME was a positivemoment as well. It has been a struggle,but it was worth it, because I like beingindependent. I also took this up becauseI wanted my children to understand theimportance of being independent andperseverance. I want them to know thatnot everything is going to come to us ina silver platter.ISME: How do you deal with thecompetition in your industry?HK: Competition is always around.Having said that, you can’t make peoplecome to your shop and force them tobuy. It doesn’t work that way. Yousee, a major part of selling is customerservice. Always be polite to yourcustomers, no matter how demandingthey are, because they are your breadand butter. In the last year, I havebuilt up a regular clientele who keepreturning, and actually look for me,which is very encouraging.ISME: Do you have any future plans?HK: I’m starting a workshop forstudents in September, to teach themmy craft. They have something tofall back on and will help them inthe future. My future plan is to openup a store and then expand slowly tosix shops; one shop for each of mychildren. I also make baby baskets forfirst-time mothers. But at the presenttime it is on the back burner becauseI don’t get enough time from myjewellery business. On National Day,I display many of my pieces at fairsand exhibitions. I recently displayedmy pieces at the Princess HayaBint Hussein Islamic Centre duringthe month of Ramadan. Last year Isupplied my creations in 12 petrolstations around Dubai on the occasionof National Day.ISME: Where do you distribute yourproducts?HK: I distribute to the Dolphinarium,and Book Plus. I sell some of myproducts to other companies. Butthere’s more to be done- I would liketo have my pieces in the Dubai Mallaquarium. I had record sales last month,because the students and teacherspurchased them as gifts. I go to ArteDubai and I sell no end of my setsthere. My biggest sellers are, in fact, thebookmarks, which I makewith cut stones.63

August-September 2012Intelligent SMEDigital MarketingMaking SEO Olympics-worthyMany businesses are missing out on asurge of potential customers brought toLondon by the Olympics because they havepaid little attention to their rankings ininternet searches. James Reynolds explainshow businesses from London to Dubai canoptimise their site and attract a wealth ofadditional business.64

August-September 2012Intelligent SMEDigital MarketingJames Reynolds is the CEO of SEO Sherpa, a Dubai-based company that offers SEOservices. He has achieved considerable success in the field of internet marketingas a consultant and speaker. Already considered by some as an internet marketingexpert he has spoken at leading internet marketing events alongside industry leadersincluding Paul Lemberg, Dean Hunt, Stan Dahl, Simon Leung, Raymond Aaron,Rosalind Gardner and more. Visit James at http://www.seosherpa.comAs Londonsees thearrival of theOlympics,local businesses havebeen battling forcustomers fromthe extra tourismthe games bring.It is expected thatthere will be around260,000 extra visitorsin London for the2012 Olympic Games,compared to the sameperiod last year, meaninga total of around 570,000total visitors. Many of these touristswill be leaving the guidebooks at home,and opting instead to use the internetto search for everything they need toknow about the capital.According to Google Insights,sharp rises in searches for phrasessuch as ‘London restaurants OlympicPark’, ‘Olympic shopping’ and ‘Londoncinemas’ have been seen since visitorsbegan flocking to the city. Thosebusinesses who rank highly in suchsearches will be seeing extra traffic totheir sites, and hopefully turning thatinto extra custom.Mobile internet usage hasincreased exponentially in the last fewyears, thanks to cheaper andeasy-to-use technology. In the UKfor instance, according to the Officefor National Statistics, 45 per cent ofinternet users accessed the internetthrough their phone in 2011, astaggering increase from 31 per cent in2010. This is likely to increase muchfurther. Mobile technology also meansthey are accessing information aboutLondon and the Olympics in a way thatfar differs from previous games, whenthey might have relied on guidebooksand printed tourist literature. Manybusinesses now realise there hasnever been a greater need for a qualitywebsite that is easily picked up bysearch engines, and have brought in theassistance of an SEO service agency toensure their site is picked up by Googleand other search engines.There are strategies for businesseshoping to attract extra customers froman influx offor specialtourists or visitorsevents, such asconferences,sporting orcultural events(of which wehave many in Dubai) intheir own town or city.In order to attract prospectsto your site via the search enginesyou must first understand what yourpotential customers are searching foronline. Google publishes search datawhich details the number of peoplesearching specific key phrases and youcan use this data to identify the mosthighly searched phrases relating toyour product or service. Once you havepicked the most valuable phrases youshould thenensureyour site isoptimisedfor thoseterms.Contraryto popularbelief, youshould not‘stuff’ yoursite fullof key phrases, in an attempt to makeyour site more relevant to the searchengines. Google (as well as Yahoo andBing) will, in fact, penalise you forover optimisation if you try tactics likethis. If you include one instance of thekey phrases you want to rank for in thetitle of your website and then createvaluable content on your site relatingto those phrases you will be off to agood start. It’s then up to Google todetermine whether your site is morevaluable than your competitors. Theywill place the most valuable site at thetop of the results.Google’s search algorithmmeasures over 200 different rankingfactors when determining whichwebsites appear where in the searchresults. Whilst Google does not publishdetails of how their algorithm works,this is not important to achieve a highsearch engine position.ComplicationsMany people over complicate SEOand get caught up in the latest tricksand tactics to beat the search engines attheir own game. When you understandwhat Google wants; and that is to placeat the top of the rankings the mostrelevant, popular and valuable results,the latest tactics really don’t matter.The same things work today as they didten years ago; place valuable contenton your site relating to the keyphrasesyou want to rank for and then promotethat content with more quality contentplaced on other peoples websites.It is widely understood that Googlegives much consideration to the qualityand number of websites linking to aweb property when determining wherea website will appear in thesearch results.If a website is frequently linked to,or referenced in social media posts thisis a strong indication to search engineslike Google that the site is good. Thosebusinesses that have utilised SEO andsecured a top spot on Google will beenjoying up to four times more trafficthan their nearest rival. With over halfa million visitors flocking to Londonthose businesses are set to experienceunprecedented profit.65

August-September 2012Intelligent SMEDigital MarketingLet’s get socialHave a question about social media and promoting your businessonline? UAE-based social media consultant and award-winningmarketing strategist Farrukh Naeem answers your queries on usingFacebook, Twitter, YouTube, AdWords, SEO and any other onlineservices. Send your questions to farrukh@farrukhnaeem.comQ. I have a Facebook page with many fans. But my postsdon’t seem to be reaching them all. What can I do?A. Facebook posts don’t reach all the fans of your page.Sometimes, less than 10 percent of your Facebook fans maysee your page update. Facebook has introduced the ability topromote individual posts of your Facebook page within threedays of posting to help you reach your fans- one update at atime. The ‘Promoted Posts’ feature is available to pages withmore than 400 fans.The most powerful advantage of a promoted post overtraditional Facebook ads or sponsored stories is that whileads are shown in a little area on the right hand side- promotedposts appear inside the timeline of your fans. Also, when yourfans interact with these posts- their friends see them too!You can now boost engagement levels of your Facebook fans by promoting yourposts and having them show up on your fans and their friends’ timelines for as littleas US $5-US$10.A new button with the words ‘Promote’ is now shown onthe eligible Facebook pages when you make a post. Clickingon that button shows you the options for promoting thatparticular post. Facebook gives you pre-determined budgetsranging from US$5 to US$100 and more- depending on howmany fans your page has.Promoted posts enjoy a higher visibility as they show up inside the timeline of yourfans- the most valued real estate on Facebook. The story in the timeline appears withthe words ‘Sponsored’ identifying it as a promoted post by an advertiserWhile promoted posts are also subject to approvals, usually the promoted posts startrunning as soon as you have set up the promotion and saved it. Posts older than 3days are not eligible for this feature.With promoted posts, you can make your posts reachmore of your fans and their friends (social proof). Also, youcan look forward to higher engagement levels of your page,which further pushes up its chances of more posts showing upin fans’ timelines.66

How didYogesh Mehta makePetrochem Middle Easta huge success?Stay tuned. October 10, 2012.Free registration for business owners and senior executivesSMS your name to 055-9023185 or visit www.dubai-gbs.comAn initiative by

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August-September 2012Intelligent SMECelebration SeriesThe Intelligent SME Celebration Series recently organised the launch of famed comedian Nitin Mirani’s new brand titled ‘Laugh Your Assets Off’ atBusiness Village.A show held as part of the Comic Relief stand-up comedy performances, ‘Laugh YourAssets Off’ caters to the corporate world as an antidote to stressful work schedules.Mirani is one of the pioneers of the Middle Easterncomedy circuit that began six years ago, and the founder ofKomic Sutra. He gave a riveting performance for businessowners and decision makers.The event was sponsored by Intelligent SME corporate partners Du and RAK Bank,strategic alliance partner Dubai SME, alliance partners Western Union Business Solutionsand Al Nabooda Insurance Brokers and printing partners Gulf Technical Printing Press.78

August-September 2012Intelligent SMECelebration SeriesArtistes Ismail Salehi, Lamya Tawfik, Sheida, Mo Fetto and Salman Qureshi, were part of the show.A stand-up Comedy ActDate: June 21, 2012Prizes sponsored by Dr.Martens were also awarded to four raffle draw winners.79

August-September 2012Intelligent SMEKnowledge Series SeminarDate: July 25, 2012Venue: Room No.13,2nd floor, B Block,Business Village,Deira.CSR is a powerful tool and concept for companies to use as they look to conduct business. It is also a strategyfor developing the future market while strengthening economies, the marketplace, communities, and corporateorganisations.by DimaMaaytah,Senior ExecutiveCSR Programs,Dubai ChamberCentre forResponsibleBusinessThe talk centred around global issues, CSR- its origins and definition, key trends in CSR and the keycomponents of CSR.The Knowledge Series talk was preceded by a networking session and an Iftar, beingthe holy month of Ramadan.Towards the end of the event, a raffle draw sponsored byWestern Union, was held. The prize – an iPad - was won byStephanie Fisher, consultant, Strategic Creative, handed overby Kennie Gwu, marketing manager, Western Union BusinessSolutions MEA.80

August-September 2012Intelligent SMEEvents CalendarNetworking opportunitiesImportant business events across the globe3RD MIDDLE EAST SME FORUM 2012Date: 17 - 18 September 2012Venue: Rocco Forte Hotel - AbuDhabiThis forum will gather SME officials,entrepreneurs, banking personnel,government bodies and associationsto discuss and understand aspectsof SME initiatives, economical andfinancial role in SME growth andentrepreneurship perspective in theMiddle East. Eminent speakers,relevant case studies and expertadvisory panel discussions would behighlights of the conference, providingan opportunity for networking andenhancing the scope of the SME sectorin the region.Website: www.fleminggulf.com/3rdsmeforumPOWER NIGERIADate: September 18-20, 2012Venue: Abuja International ConferenceCentre, Abuja - NigeriaThe event will be a platform for thelocal Nigerian energy industry to meetleading international companies and itwill provide the opportunity to networkand open sales avenues to ultimatelylead to development and investmentin the region. The show will cover allsectors of the energy industry, suchas power generation, transmission,distribution and alternative energy.Website: www.power-nigeria.comNETWORKING & FINANCINGOPTIONS FOR SMESDate: September 24, 2012Venue: Media Rotana, Tecom, DubaiFinding and securing the right type offunding can be a challenge. Discoverthe different types of funding availableand if they are suited to your needsin this informative presentation byEdward Roderick of Envestors MENALtd. Fees for the event is as follows:Early-bird online - Members: AED120,Non-members: AED150 (endsSeptember 21st); On the door (subjectto availability) - Members: AED170,Non-members: AED200.Website: www.heelsanddeals.orgINDEX 2012Date: September 24-27, 2012Venue: Dubai World Trade CentreINDEX 2012 is delighted to continuethe INDEX evolution by welcomingback six dedicated shows as well asintroducing five new product sectors.It is also a platform for promoting andsharing new trends and innovationwith the architecture and designcommunities.Website: www.indexexhibition.comSEAFOOD EXPO 2012Date: September 25-27, 2012Venue: Radisson Blu Hotel, DubaiDeira CreekAn international Exhibition on seafood,seafood processing, packaging anddistribution technology, equipmentand supply, is the only specialisedevent in the Middle East for seafoodand seafood processing industry. Itis an opportunity for your companyto network with over 8,000 seafoodindustry professionals.Website: www.dubaiseafoodexpo.comPAPER ARABIA 2012Date: October 1-3, 2012Venue: Dubai InternationalConvention and Exhibition CentrePaper Arabia features a broad rangeof Industry suppliers who want toreach the largest gathering of decisionmaking professionals in the MiddleEast.Website: www.paperarabia.comPRIVATE LABEL MIDDLE EASTDate: October 1-3, 2012Venue: Dubai World Trade CentrePLME has a proven track record inattracting buyers at the very highestlevel: senior decision-makers in retail,leisure, travel, import and export, andindustry professionals from a widecross-section of product and servicecategories.Website: www.privatelabelmiddleeast.comTELECOMS WORLD MIDDLE EASTDate: October 2-3, 2012Venue: Atlantis, The Palm, DubaiDiscuss tools and strategy to helpnavigate through the changinglandscape of the increasinglycompetitive telecoms industry. Theevent will be framed with morning andafternoon keynote plenary sessions,making sure the hard hitting issues aredebated by game changers and decisionmakers in the telecom industry.Website: www.terrapinn.comMASTERMIND PINK TANKDate: October 8, 2012Venue: Conference Centre, MediaRotana, Tecom, DubaiMembers will be divided up intoappropriate groups of up to 6 and willbe guided by a facilitator during the2 hour program. The MastermindPink Tank provides our memberswith a freewheeling environment inwhich everyone will participate. Theinvestment is AED150, and the eventis for members only. Pre-registration isessential before October 14, 2012.Website: www.heelsanddeals.orgGITEX TECHNOLOGY WEEKDate: October 14-18, 2012Venue: Dubai World Trade CentreGITEX is the ICT business gateway tothe Middle East, North Africa andSouth Asia Region. Focused onproviding exhibitors with highROI through direct businessopportunities with decision makers,GITEX has maintained its position asthe industry’s trend setting authority.Website: www.gitex.com81

August-September 2012Intelligent SMEColumnGet bigger withbankingSumming upUtpal Bhattacharya urges small businesses touse the facilities available with banks to makeit to the bigger league of companies.Banking has, in the recentpast, apparently becometerribly complex. Bankersof today are not only a verycautious lot, but somewhat afraid totake on anything new. They wouldrather deal with what they have andknow, and keep praying that thesebusinesses do not fail.And yet, can you accuse thesebankers of lack of enterprise? Whatwith all the accusations that havebeen doing the rounds about some ofthe top banks in the world not havingcomplied with the rules of the book;there are serious allegations of moneylaundering and negligence. We areliving in difficult times, and bankers arethe first people for politicians to blamefor all the difficulties that the world iscurrently going through. Of course itdoes not serve the purpose, even if ithelps politicians to avert the gaze ofthe angry public for the time being, asthe banking industry increasingly findsitself unable to do business even withgenuine parties.Recently, I was at a small gatheringof bankers, and one of the topics ofdiscussion was compliance. Therewas this banker who was confessingthat less than five per cent of the totalaccount opening applications forbusiness or corporate banking in hisbank, in the month June, got approved.The rest of the applicants weredenied a “simple” business account onIf a very small businesshas a yearly turnover ofAED12 million, there arebanks that will supportthem to grow withcredit facilitiesvarious grounds. I cannot confirm thisstatement, and I am guessing that it ismost likely an exaggeration. However,it has got me thinking that if this isan indication of what’s to come in thefuture, then small businesses will find iteven harder to get capital to keep going,forget expansion.From a point of view of a businessowner, especially an SME, thesedevelopments in the banking industrydo not augur well, unless one findsa way to use the system to one’sadvantage. There is no shortcut ofcourse, as I found out with one businessowner last week when he claimed thathe had met the “chief” of a bank, andhad been promised the moon. At thetime of writing this article, he was justbeginning the battle with his KYCs atthe junior relationship manager level:international banks are increasinglytightening banking procedures, andare institutionalising the processes, sothat there are no lapses in compliance.Promises from bankers may not helpmuch in the future, but proper caretaken to comply will certainly help.This is the reason why it hasbecome absolutely vital for smallbusinesses to understand banking,in fact study the system, or at leasttake help to use the system to theirbenefit. For example, if a very smallbusiness has a yearly turnover ofAED12 million, there are banks thatwill support them to grow with creditfacilities. However, owners of thesecompanies have to be aware of theopportunities that they have with thebanking industry, and should be ableto do basic credit proposals that wouldexcite bankers. If they are unable to docredit proposals, then they should lookout for consultants who will help themin doing these.The long and short of it is thatwhile banking has changed over theyears, the basic objective of banking forbusinesses has remained the same, aswithout banks small businesses cannotgrow to become large businesses.There would be hardly any examplesof companies making it big withoutbank funding. I have not come acrossany large business that has attained itsstanding on its own equity, but mostlythese have been able to use the bankingindustry to their advantage. You shouldalso get down to organising yourbusiness, so that you are able to makethe best out of your bank and achieveyour goals.82