opinion

Do you REALLY need to raise money for success?

Do you REALLY need to raise money for success?

I asked this question on Facebook on Oct 13, 2017.

Wow, was I in for a surprise! A lot of people had a lot to say on the topic – and it did provoke an extensive conversation.

Most people who answered decided to pick a side and go with either “Yes – it is impossible” or “No – it has been done before”.

Many questioned the definition of “success”, opining that success is dependent on the nature of business, the people involved, and their dedication to succeed despite all odds. Money definitely helps, but its not the most important factor..

Some shared stories like ZOHO, Mailchimp, Nike (who did not raise venture capital), and a few local entrepreneurs said they have succeeded with bootstrapping (but don’t recommend it, its painful!).

Some opined that even with money, startups can fail – and that is true. One point made questioned the involvement of the investor (not just the investment, read interference). But many mentioned the investor involvement brought other support, which was invaluable for scaling and growth.

Here is my opinion, in summary :

The answer to this question is nuanced – and, not simple. It IS possible to build a company, a successful one, without outside (read VC/Investor) cash. Though, for scaling and the speed needed today to entrench oneself, a deep pocket supporter seems essential. My personal peeve is the fact that a lot of (majority?) of startup founders seem to think that there is no startup without funding – that seems to be a resounding NO!

Would you like to be a part of the conversation? Go here and share your thoughts with my peers!

 

By: Category: Blog Tags: , , , , , , , ,

The Network Effect

The Network Effect

I have always believed in the power of teams or networks… they multiply your capabilities and significantly increase your reach. My association with TiE has been an awesome such learning.

In this interview, I speak about the beauty of being able to work outside the box as an entrepreneur and the availability of some illustrious and successful TiE Charter Members through what I call “The Network Effect”.

Having worked with some of these members, who are now friends, across various cities, it is truly a glorious network that is under-utilised and can be applied to create some of the best entrepreneurs in any field of interest. As the President of the Dubai Chapter of TiE, its my endeavour to assist as many budding and wannabe entrepreneurs as possible!

Here is the video, courtesy of TiE Talks.

By: Category: Blog, Media Tags: , , , , , , , , , , ,

Innovation critical to Dubai’s success

A lot has been said and seen about Dubai having built something out of what was considered nothing.

A long time ago, its founders started a tradition of welcoming people with diligence, ideas and perseverance to come here and prosper, which has continued in its various reincarnations. In recent years, its speed of growth and buildings evoked the envy of many a competitor and as the boom slowed down, the hankering began. While there are some areas where more prudence would have been desired, a lot of pioneering work often gets criticized. It does not require a rocket scientist to understand that time has come to reinvent and rebuild on the strengths, which are many, and build on its long tradition of entrepreneurial innovation.

Like our founding fathers, it’s time to welcome the creators. Creators are those who look beyond the ordinary and build things that leapfrog them and those around them into prosperity. Be it artists, designers, programmers, thought leaders or free thinkers – we need more of these to come and make Dubai the beacon of creativity and creation in the region. Remember a majority of jobs and opportunities are created by small businesses, those with less than 20 people. Reduction of licence fees, visa costs, rentals and front loading of the setting up process will make Dubai attractive for a lot of such people.

A case has often been made for the economic downturn having made Dubai an unattractive market. But then Dubai was never a local story – it was the best gateway to the whole region. The strength of its infrastructure, geographic location and connectivity are beyond compare, despite the financial downturn and impossible to match by any other city, by far.

Building on strength
Let’s build on this strength to remove all hurdles to its success. Let the government consider removing all barriers to setting up new ventures, and actually encourage small companies. In the past large corporations have had an advantage of being able to negotiate better terms due to their clout, Let’s turn it in favour of innovation and enterprise. Remove the link between license and real estate and the overemphasis on transaction-based clusters.
The downturn has made business in these clusters unviable and counter-intuitive to enhancement of small and medium enterprises (SMEs). Encourage the filling up of empty real estate by people who will actively commit to create, bring innovation to the fore and create jobs and support the economy.

Let their success be counted by the number of real partnerships and enterprises they generate with the national youth. Dubai was built by people who thought outside the box – encourage this pioneering spirit by reiterating the need for such initiatives. New leaders of the national workforce need to be guided, but at the same time encourage them to think anew and not to fear failure, nor be afraid to air their ideas.

What we need is a change in sentiment to one that is encouraging, inspiring and full of positive ideas for a future that beckons. Undue emphasis has been given by some quarters on the odd headline emphasising the eternal tussle of tradition and the drive to being a modern metropolis. With growth and modernization comes a lot of responsibility and balancing the yin and the yang is a delicate are. But, in the drive to excellence we need to focus on the larger goal and probably be prepared to such instances being blown out of proportion.

What will speak louder than anything is our success to build on our strengths to achieve the pinnacle in our carefully chosen areas of excellence. The new generation is not afraid of hard work, in fact, it revels in challenging times. It’s time to channel their drive and power through the guidance of the more experienced into making Dubai cement its position as an unparalleled hub of innovation, entrepreneurship and creativity.

This article originally appeared on Gulf News.

By: Category: Media Tags: , , , , , ,

Taking a bite out of the latest food frenzy

Stores selling the humble cupcake are popping up all over Dubai as the city goes on a major sugar rush and entrepreneurs clamber aboard the bandwagon. The trend reflects the go-getting nature of Dubai and the eagerness of its citizens and residents to latch on to any business opportunity. And the emergence of all those new outlets could be seen as a response to the economic downturn as people seek new financial opportunities in a weakened jobs market.

But though the little iced treats are selling like hotcakes some experts warn the craze could turn out to be half-baked. They say the cupcake economy reflects a classic get-rich-quick business pattern where a new type of product emerges and everyone immediately tries to grab a slice of the action.

As a result the segment grows too quickly and becomes too large, businesses over-extend themselves financially, supply greatly exceeds demand and eventually the bubble bursts. Comparisons are being drawn with the dotcom crash of 2000 and the proliferation of coffee shops in London a few years ago that left a number of people with burnt fingers.

Emirati entrepreneur Ahmed bin Shabib said the cupcake market was already saturated, while Prashant K Gulati, the head of the local arm of an entrepreneurs’ organisation, said new ideas were copied quickly in Dubai. “A lot of entrepreneurs do not put enough thought into market research,” added Gulati. “Instead they copy fads. I would be extremely careful not to ride another fad.”

However, store operators remain unfazed. Indeed, a rising tide of entrepreneurs and home business operators, buoyed by heightened demand, are drawing up business plans and sorting out their finances, while some are already making expansion plans. The global rise in cupcake uptake started in New York as a reaction to the recession. Experts there say the cakes are considered an “affordable indulgence” and are being lapped up by people looking for an instant sugar high. But in Dubai, the trend is being driven by the novelty factor.

Dalia Dogmoch, a partner in Kitsch Cupcakes, which opened last November, said: “Our sales have risen by 15 to 20 per cent each month. We have been very well received ever since we opened. In a climate like this, that is extremely fortunate.” The number of outlets trying to grab a slice of the cake in the UAE is difficult to determine as the segment is largely unorganised, with many suppliers operating from home – but competition is growing, say those in the industry. In the UK, researcher TNS Worldpanel values the cupcake market at £7.3 million (Dh43.8m).

Emirati entrepreneur Shayma Al Fardan, who claimed she and partner Fatima Al Abbas were the first to offer cupcakes with their Sprinklez business in 2006, said she was not surprised by the boom. “When there is a good idea everyone will catch on, and the number of new players has just been astounding,” she said. The company operates out of a kitchen and is planning to open its first outlet soon.

Canadian-born Farah Gokal-Ghazzawi, who runs Sweet Stuff with her sister Aaliya, dismissed the “fad” accusation. “Cupcakes have been around for the past 60 years or more,” she said. “If it was going to fade it would have done so. Also, Dubai is so competitive and businesses thrive on competition.”

Dana Jallad, who owns the Dubai franchise of Amman-based Sugar Daddy’s Bakery and is managing director of Sugar Daddy’s International, said her Dubai outlet had done better than the original store in Jordan. “As long as you put a quality product out there people will come to you, recession or no recession,” said the marketing executive-turned-entrepreneur, who opened her store last December. “But behind all of that there has to be a proper plan, a definite business model, for how one wants to take the brand forward,” said Jallad. “It has not been easy to start up the business but we have had a pretty good journey so far and we have had fantastic acceptance for our product.

Both Gokal-Ghazzawi and Jallad are already eyeing GCC expansion opportunities. Kitsch Cupcakes, however, does not want to “spread itself too thin”, said Dogmoch. “We would love to expand eventually but it is not about expanding quickly, but expanding properly,” she said. An increasing number of home-based cupcake bakers are jumping into the fray.

Lily Tejeda, who has been taking orders from home since February, is looking at a possible store opening next year with her business partner and friend Rima. Tejeda, who bakes under the name Lima’s Treats, does not think the cupcake industry in Dubai is undergoing a bubble cycle. “Cupcakes have been around for a long time, it is just that now they have gotten more exposure thanks to movies such as Sex and the City,” she said. “And no, I do not think it is going to go bust. Each cupcake store has its own identity, its own speciality and there is plenty of room for everyone.”

The emirate’s cupcake story, it would seem, is following hot on the heels of New York, with many outlets even replicating names. And that worries Gulati, President of the Dubai arm of The Indus Entrepreneurs (TiE), a global non-profit group dedicated to fostering entrepreneurship. Gulati admitted he knew very little about the cupcake industry, but said new ideas were copied very quickly in Dubai. “If one idea is successful elsewhere everybody thinks it is easy to do. That is when it becomes a bubble. Today, in every industry, you will find ‘me-toos’.”

He said Dubai’s aspiring entrepreneurs should carefully consider the nature of the business environment before starting out. “There are a million other elements such as rent, hiring people, getting permits, the cost of licensing et cetera. Then there is the whole issue of branding, advertising and differentiating yourself from the growing competition. Small businesses might not be able to afford that.”

Businessman bin Shabib, who publishes the bi-monthly lifestyle magazine Brownbook, said the cupcake craze was already over. “Let’s say you are targeting a population of 170,000, which is a generous estimate. And let’s say about 10 per cent would buy a cupcake, that is roughly 17,000 people who are potential customers. Of that, how many would buy cupcakes regularly? Compare that to the estimated number of players, and I am not so sure. “They need to make sure they are organising themselves in a way that will cultivate a regular clientele, a regular audience. All of this goes beyond just selling cupcakes.”

Roundup

Kitsch Cupcakes
Mixing fashion and cupcakes, Kitsch opened in November last year on Jumeirah Beach Road following the concept’s success in Beirut.

Sugar Daddy’s Bakery
Opened in December last year, this outlet on Jumeirah Beach Road’s The Village Mall has already eclipsed the original store in Amman, say its owners.

Sweet stuff
Started by sisters Farah Gokal Ghazzawi and Aaliya Gokal, this is Jumeirah Beach Road’s third cupcake outlet and opened in June this year.

Sprinklez
Not to be confused with New York’s Springkles, this is one of the first cupcake companies to take off in Dubai in 2006, according to its owners. Still working out of a kitchen, Sprinklez recently signed a partnership with Emirati animated television franchise Freej .

Lima’s treats
A home-run business by friends Lily Tejeda and Rima, Lima’s Treats is eyeing a store opening some time next year. Currently, their biggest orders come from corporate event organisers.

Sweet secrets
Run from home by mother-of-two Karen Van Zyl, Sweet Secrets currently caters for private parties and events. Van Zyl says she has no immediate plans to open a store.

Scrumptious Cupcakes
Another home initiative, the owners of Scrumptious Cupcakes have been catering for birthday parties, weddings and themed events.

This article originally appeared on Emirates 24/7.

By: Category: Media Tags: , , , , , , , , ,

Social media comes into its own

For a few hours on Wednesday afternoon, the term #dubaimetro became one of the most popular topics on Twitter, currently the world’s fastest-growing social networking and micro-blogging website. UAE users who “tweeted” – posted it on their Twitter pages to coincide with the inaugural day of the Dubai Metro – saw it as a moment of pride – and a sign the country’s burgeoning social networking community was coming into its own.

For media experts and observers, it illustrated the influence social media wields today and the minefield of opportunities it represents.

“It takes a relatively high volume of ‘tweets’ over a relatively short period of time [to get something to be a trending topic],” said Alexander McNabb, a Dubai-based PR director and active blogger. “To our advantage, the US was asleep. Because in reality you need a much bigger community and we are still very small. But I think it’s a clarion call and it demonstrates the potential of this form of communication.”

Globally, Twitter has seen a dramatic 1,382 per cent monthly global usage growth, according to Nielsen, far surpassing Facebook’s 228 per cent. While Facebook remains the most popular social networking site today, Twitter is quickly evolving into an important component of brand marketing, Nielsen said in a study.

“If you use it properly, there’s no doubt that you can gain a true competitive advantage,” said McNabb. “And there’s no time like now to do that, before everyone jumps onto the bandwagon, and be effective without having to spend enormous amounts of money on advertising.”

McNabb’s company, Spot On Public Relations, on Thursday released the first Middle East and North Africa Twitter Demographics and User Habits Survey. The study, conducted last month, saw the UAE surging ahead in Twitter usage in the region, at 40 per cent, followed by Egypt at 13 per cent and Saudi Arabia at 11 per cent.

While the region’s monthly user number growth stands at a humble 17 per cent, 2009 has been a big year for Twitter, it said, with the total user community increasing at a healthy 300 per cent in the first six months. Twitter was inaccessible in the UAE until August last year when the website was unblocked by authorities.

And marketers better take note – an increasing number of users are also changing their perception of brands as a result of using Twitter, the research revealed. While a massive 70 per cent of respondents admitted to having formed a positive perception of a brand or company, 52 per cent said they have formed a negative perception. “More people are using it as a research tool. They are interacting and engaging with brands and are no longer just satisfied with having messages being thrown at them,” said McNabb.

Carrington Malin, Managing Director of Spot On Public Relations, said the number of users was reason enough for marketers to get involved in the social media sphere. “In the UAE, there are more than 800,000 Facebook users, that’s more than any newspaper can claim in readership,” he said. “There are about 6,000 people on Twitter, that’s more than most trade or weekly magazine can claim in circulation numbers. Consumers are on these platforms talking about things and interacting. Sooner or later they will talk about your brand. So it makes sense to be listening and monitoring. By not doing so, you run the risk of people shaping other information about your brand. And you risk being left behind.”

Emirati entrepreneurs Mohamed Al Awadhi and Peyman Parham Al Awadhi are not going to let that happen to their venture, an upcoming quick-service restaurant serving “fusion shwarmas” called Wild Peeta. For the past two years, the brothers have steadily built their brand online and are now confident they have created enough pre-opening buzz to ensure a positive reception. “We had no advertising or marketing budget. Instead we decided to invest in web services to optimise our presence online and actively interact with potential customers,” said Mohamed Al Awadhi. “It’s paid off handsomely. Through our participation on social networking sites, we have been on the radio, been featured in many magazines and television shows. It’s always a case of somebody who knew somebody else. That’s the beauty of social networks and that’s a great way to build a brand.”

Despite social media’s seemingly huge potential for brand building, many companies in the UAE have yet to warm to the concept. The Spot On PR research shows fewer than 30 per cent of those surveyed use it to promote their companies. Alexander Rauser, CEO of Dubai-based Omnia Connect, an “interactive agency” that provides digital solutions, said larger companies were “still trying to figure out how to use it best. While it’s a great tool for small businesses and entrepreneurs, larger organisations are finding that is not an easy medium to use and adopt,” he said.

“It’s not like advertising where you send a pre-determined message to the consumer. Here, you need to interact with people and you need to appoint someone specifically for that. And that’s where the problem is usually. Because we have a corporate culture that is highly moderated, organisations are concerned about content that goes live. There is red tape and hierarchies through which the message has to pass. That delay is not suitable for social networking where a lot of communication is in real time.”

The best way to get started is to go at it privately, said Rauser. “Create a private profile and observe how people interact and find similar people and information. Get your marketing manager in as well and eventually build a corporate profile. If you don’t have the time, get a PR company to do it for you or hire a consultant to help you out,” he said.

As rising internet usage propels the growth of social media, companies and brands have to try harder to stay relevant and interesting, said Robert Singleton, Online Marketing Manager for the InterContinental Hotels Group properties at Dubai Festival City. “One day customers may make their choice not simply by the look of a website or the message of an advertisement, but by how a corporation communicates with its clients online, and through their tone of voice when dealing directly with the public,” he said.

Singleton’s company has, in the past, organised various promotional and online competitions on Facebook and Twitter which have garnered huge responses, he said. It has also enabled it to answer direct questions from new and regular customers. “Within the hotel industry, social networking is still in its infancy, however the potential has been unmasked,” he said.

Prashant K Gulati, CEO and Managing Director of Optimistix Ventures, said he hoped Twitter’s growing influence would help foster a strong community in the real world. “It’s been a great medium through which entrepreneurs can support themselves, network and share ideas. So many of us have come together because of Twitter. Our circles would have never crossed otherwise,” he said.

Gulati, along with a group of Twitter users, is also the force behind the first Dubai Twestival Local, one of the 200 Twestival Local events taking place in cities around the world. To be held tonight at The Jam Jar in Al Quoz, Dubai, the networking event will raise money and awareness for Dubai Autism Centre. Twitter users in Dubai also participated at the first Twestival Global in February to help raise money for global charity Water.

“Twitter has been used as a medium for everything from blood donation to tackling complex issues where consumers have found a voice,” Gulati said. “I see it forming a connected community and something that has the potential to build relationships outside of Twitter. I see it helping serious people getting serious returns. But if it becomes a frivolous medium where people take advantage of it to spam and advertise, it will die.”

This article originally appeared on Emirates 24/7.

By: Category: Media Tags: , , , , , , , , ,

Non-resident Indians give mixed verdict

With the announcement of the Indian budget 2009-2010 on Monday, the local Indian community had a mixed reaction. While they were pleased with the cuts in personal tax and an increased total budget expenditure, some non-resident Indians (NRIs) believed there was a lack of focus on the community outside the country as well as on infrastructure. They also expressed concerns on the rising fiscal deficit.

Venu Rajamony, Consul General of India: “The budget highlights the mantra of the government. The focus will be to bring back growth of nine per cent at the earliest. If growth is sustained, there will be a huge opportunity for companies in the UAE. It will bring more investment and more tourists to the UAE. There is an unprecedented purchasing power in India’s villages. We have already seen a shift and that is also an opportunity that the UAE can target. Growth will boost the trade and relations between India and the UAE.

Krishnan Ramachandran, chief executive of Barjeel Geojit Securities: “The stock market reaction to the budget, is more on account of an over-expectation than to the budget itself. The budget, though may seem to be lacklustre, retains the overall impetus on the growth parameters that have been seen over the last five years. The medium to long term still looks quite attractive for the Indian markets.”

Yusuffali M.A., Managing Director of EMKE Group and Board Member of Abu Dhabi Chamber of Commerce and Industry: “A very balanced budget given the current economic scenario. The finance minister has tried to bring in certain financial policies and procedures to rein in the global slowdown. The thrust given to private public joint ventures is a big boost to us, especially the NRIs.”

Paras Shahdadpuri, president and member of administrative board, Indian Business and Professional Council (IBPC): “The budget lacked innovation and bold initiatives. The government could have come out with some bold initiatives in the field of infrastructure and reduce the fiscal deficit to three to four per cent of GDP [gross domestic product]. However, the finance minister deserves credit for giving special attention to agriculture.”

Raju Menon, chairman and group managing partner of Morison Menon Chartered Accountants: “It is a balanced and populist budget. This budget can be looked up as a startup year budget for a five-year plan to alleviate poverty by half. It appears to me that it is more of a socialistic policy budget.”

Prashant Gulati, secretary-general and member of administrative board, IBPC: This is a very lacklustre budget. People were expecting a larger exemption of personal tax. The budget seems to be peripheral. There are a few positive things that I noticed in the budget: the removal of surcharge and commodity transaction tax, which is actually very populist. One thing that would affect us is the increase in customs duty of gold and silver.

Bharatbhai Shah, businessman: “In trying to justify “Aam Aadmi” [common man] poll agenda by UPA [United Progressive Alliance], the finance minister has missed the opportunity. He has done more damage in his speech highlighting small factors and re-visiting bank nationalisation and cheering government expenditure. Privatisation of PSUs [public sector units] being ruled out, government inefficiencies will continue to rule and waste huge resources.”

Kamal Vachani, director of Al Maya Group: “Priority to infrastructure development and increased spending for farmers and the poor are the welcoming steps. Five per cent customs duty on set-top boxes will boost the local electronic industry, as well as the cut in customs duty on LCD panels from 10 per cent to five per cent, which was the demand of the industry will benefit the industry in big way.”

K.V. Shamsudheen, chairman of Pravasi Bandhu Welfare Trust: “The budget is very progressive. It has given emphasis on infrastructure, agriculture, education, rural development and employment generation. However, Non-resident Indians are totally neglected in the budget.”

V.P. Nagarajan, senior general manager of ETA Ascon: “The announcement started off very well with a lot of objectives of reducing poverty by half by 2013 but the finance minister failed to outline what steps will be taken to achieve those objectives. This alone is not sufficient to push the economy to the much created momentum.”

Jitendra Gianchandani, Managing Partner, Jitendra Chartered Accountants: “The budget is an inclusive one, and is on expected lines. The finance minister has done a good job. It is infrastructure focused, rural oriented and common man-friendly. It has a long-term perspective and has a broad view as well.”

Farina Ahmad, chief executive of BSEL Infrastructure Realty: The budget lacks focus and direction. It is increasingly becoming clear that the CFO of the country, Pranab Mukherjee, is unable to read the minds of India Inc as well as individuals. He has not articulated how he will pep-up the economy and grow GDP from 6.7 per cent to 9 per cent. The allocation to infrastructure is shockingly low.”

This article originally appeared on Gulf News.

By: Category: Media Tags: , , , , , , ,