Ketchup/Catsup

Published in Startup Bahrain and BizBahrain

A few days ago, I met an old schoolmate whom I haven’t seen in at least 15 years. After a healthy few minutes of catching up, I asked him what he was up to now. He told me that he had never had a steady 9 to 5 job and that he had worked odd jobs and was doing his “own thing”. “It figures”, I thought. He was never good at school and seemed to always be in trouble. As kids, we saw his parents in school so regularly that it wasn’t even shocking or worth talking about. He was what you called a troublemaker even though he had a heart of gold. But the conversation did not stop there. The more we talked, the more it seemed that “his own thing” was actually a number of legitimate businesses! The fact that he did it all on his own and the fact that he wasn’t exactly good at school was even more eye-opening. I asked him, “Since you haven’t taken the conventional route, how’d you get to where you are today?” The answer came so smoothly and without a shred of pride or pompousness, “I worked odd jobs till I saved enough money to set up shop in Dubai. I’ve always heard that Dubai had a lot of opportunities so that was my goal”. Just like that. He wanted to setup in Dubai. That was his long term goal. I asked him, “Why did you come back to Bahrain then?” figuring he’d say that he couldn’t make it in the highly competitive Dubai market (I’m still cynical here). “I had to sell it off because I had a couple of deaths in the family and I’m the only caretaker now”. Again, simple as that. Not because of what I thought, but a personal decision that HE made. This actually reminded me of a talk I recently watched by Angela Lee Duckworth who spoke about grit. Angela is a math school teacher who studied her students to see what it is that makes for better students who will more likely earn the most money and who land and keep better jobs. Neither social intelligence nor good looks or IQ were the answer but grit, the resolve and strength of character to keep pushing no matter what the circumstances. Grit according to Angela “is the passion and perseverance for very long-term goals” and “sticking with your future day in, day out”. Talent, Angela notes, is inversely related or unrelated to grit. This actually gives hope to people that might perceive themselves as untalented but have yet to find their purpose in life.   The meeting I had with the old school mate and the Angela video I watched re-enforced the idea that grit matters. A lot. Many of us including myself have been guilty of this. We have preconceived notions about being able to do something with minimal effort; we will be able to achieve our goals. It’s not quite like that as Angela’s talented students’ grades will usually attest the contrary. Those who had grit and took longer to learn their lessons actually scored better than the “talented” ones. You are not born with grit but you can certainly obtain it. By focusing day and day out on your goal and not stopping no matter what the obstacles. If they are achievable goals then there is no reason why they can’t be achieved no matter what the circumstances.  

Published in Startup Bahrain and BizBahrain

Meetings, the scourge of the work space, especially when all attendees are aware that they are taking place because they “have to” have them. If this is not an indication of all that is wrong with meetings or at least their volume in the workplace, I don’t know what is. Unfortunately, there are those that equate meetings with productivity, connecting employees and enhancing communication. All the above is right, but the problem is, they should conducted not as a habit but more on an as-needed basis. At every meeting though, you will find at least a few of the below characters on a recurring basis:

The long-winded Talker: They are the ones that believe that the more they talk, the more important they are in the meeting. Little do they realize that everyone is in on their desperate attempts at relevancy and that any slightly useful idea that they might have are usually lost among their penchant for nonsense. You can either point this out to them or you can watch them make fools of themselves over and over again. It gets kind of entertaining after a while so its your call.

The Jaded Teenager: The ones that usually roll their eyes throughout the meetings. They not only do not want to be there but also don’t want to meet anyone ever. Or at least that’s the vibe they give out.  You really have to grab their attention by pointing things out that are relevant to them to keep their interest. Much like a 14 year old.

The Incessant Texters: They are characterized by their independently operating chameleon eyes. They’ve got one eye on the speaker and another on their phone screens. Their constant need to text and to stay updated on social media can be a real nuisance and disrupts the whole meeting. It drives the speaker at the meeting to ask them to put an end to it, much like a schoolteacher with a student chewing gum. Not the best thing to have happen at a meeting with adults.

El Silencios: Are they even at the meeting? No one knows for sure. They’re on their seat, yes, but that definitely does not mean they’re at the meeting for their mind is everywhere but in the meeting room. El Silencios speak only when spoken to, as if they are in an audience with the Queen of England. The speaker usually has to try and engage them directly to get any sort of feedback from them.

The Concerned: They would rather try and solve other people’s problems while not looking to solve any of their own. Whenever someone brings up a topic and tries to discuss it, the Concerned stick their nose in with their opinions on how a problem should be solved while trying to steer clear from any of their own problems. If they would put any of their energy in their own work, they would not only shine at work, but would also stop annoying people around them.

The Nay-Sayers: You have a good idea that will help drive sales? Got a plan that could save the company thousands? “Too bad. You suck and your ideas suck and who the hell do you think you are trying to be good and benefitting the business?”. That’s more or less the reaction of the Nay-Sayers to anyone trying to put in some good ideas to help the company. Because unless it comes from them, its invalid and stupid.

All the above characters seem to be negative “personalities” that poison any meeting and render it a complete waste of time, so pray tell, who is the knight in shining armor that is going to save a meeting from being a poisonous waste of time?

The answer is simple: all of the above. You see, most of the “Meeting Villains” from above can, if they make a conscious decision, set aside their meeting personalities.

If you are the meeting organizer, keep these points in mind to negate the above group’s “special powers”.

- Set a proper meeting agenda. - Ask people to silence their phones. - Set a time limit for the meetings and stick to it. The shorter the better. - If a person is not directly involved in your meeting purpose, tell them they can skip the meeting. - When someone drones on for too long or goes off-topic, draw them back in.

One time, I was driving along, minding my own business while watching a video on my phone. I stopped at the traffic light when an elderly lady in the car next to me motioned to me to roll down my window. With a maternal smile on her face, she told me that I almost hit her car not a minute ago and asked me that I put down my phone. Ashamed, I apologized and tucked the phone away. The whole conversation must’ve taken around a minute, but it really got me to thinking; I was driving while watching a video, and probably commenting on it to my friends. I knew it was against the rules (and common sense) but I still did it. And I thought who is going to reprimand me? That’s really no way to be driving a 2-ton hunk of steel at 100 kilometers per hour. It’s been a few days since the traffic law came into effect in Bahrain and beyond the bad jokes on social media and the moaning and groaning, this is actually something that I am quite thankful for. It is about time too. I have seen people descend into downright savagery when it comes to driving on our roads. People stopped having any regard for other drivers, overtaking at will, don’t use turn signals and passing red traffic lights like it’s the norm, all while staring at their phone screen. The public was seemingly shocked by the “new” traffic laws. However we all know that the truth of the matter is that most of these new laws are not new at all but are only now being strictly enforced.  When you see senior citizens looking left and right and then passing a red light, that’s when you know that enough is enough.

“Without rules there’s chaos” – Cosmo Kramer

You’ve probably heard of energy vampires—but what about workplace zombies? They’re out for your brains. Here’s how to emerge unscathed.

Published in Startup Bahrain and BizBahrain

Negative people: you either know them or you’re one of them. No two ways about it. To keep this article neutral, I’ll assume you’re not one of them. There is always (at least) one in every workplace. The worst thing about negative people is that their top priority is to infect the rest of the group with their negativity—kind of like a zombie biting normal people to create a larger group. There is a correlation to be made between zombies and negative people at work. Think about it—they really do have a lot in common. A zombie’s favorite delicacy is brains. A negative person at work feeds on your positivity, and tries their best to make you feel just as miserable as they do. It’s bad enough that they mouth off about how unfair their boss is to them, or how their work never gets easier, or how their efforts go unappreciated year after year. A zombie bite turns you into a zombie. Negative people seem to go on the hunt for “normal” people, just to infect them with their pessimism. For some reason, this instinct is most powerful among the “neggies” at work. They simply will not rest until they make you feel just as badly as they do. Their sense of satisfaction when this is accomplished is both bizarre and sick. Case in point: a person joins a new company. His salary is higher than it was at his previous workplace; he’s got better benefits, and he’s happy with his new job. In comes the typical “Bahraini Zombie™.” They corner the new employee and ask, “Why would you leave XYZ to join this dump? Didn’t you know they stopped our bonuses this year? Don’t you know that no one gets promoted?” So, how do you fend off zombie attacks in the workplace? A headshot of a sawed-off shotgun would be nice (just kidding), but it probably wouldn’t leave a good impression on your new employer. Here are a few survival tips to keep you alive and positive at work.

1. Disconnect. If the “neggies” form a group at work, try your best to keep your distance. I’m not saying you need to cut them off completely—just stay away when the negativity begins to emerge.

2. Be aware. Always be aware of what’s going on at your workplace. If a coworker starts spewing their negativity on you, either change the subject or ask them if they are actually going to take drastic measures to change their situation. Either way, you’ll have steered clear of the topics you want to avoid. 

3. Don’t try to change them directly. From personal experience, I would advise bringing up the topic only once. If they don’t listen, just work hard toward maintaining your own sanity. That’s hard enough, let alone trying to change someone else. 

When it comes to friends, family, and honoring tradition, it’s pretty hard to resist offering a good deal. This might be good for the customer, but is it really good for your business?

Published in Startup Bahrain and BizBahrain

If your business has been established and doing well, chances are you have thought of branching out, be it something related to your current product or service or something totally unrelated that you think you might have a knack for.

It may be for the best. Unless you’re a really good fit, it’s probably wise to part ways—right now. Sound crazy? Read on.  

Published in Startup Bahrain and BizBahrain

Opportunity cost is defined as the loss of potential gain from other alternatives when a single option is chosen. Applied to your customers, it means you will often have to choose between clients due to your limited resources.

This might raise an alarm when you think, “Hey, as a business owner, I want to cater to any and all customers. Why should I eliminate potential paying clients?” Want and can are two different stories in the business world, and you’ll soon realize that not only is it impossible to cater to all customers, it’s not even something you’ll want, on down the line.

You only need to know one thing when faced with the situation of “ditching” a potential client. Your most important customers are not the ones who generate the most revenue, but the ones who can provide the greatest value for your business. Depending upon the nature of your enterprise, this could be the end-user—or even intermediaries, such as agents or brokers. The customers who generate the greatest value are the most deserving of your resources.

This is especially important if your business is a project-based startup that has you working with your customer closely for extended periods of time: weeks, months, or even years. Your resources are, inevitably, limited, and if your business requires you to be able to handle only a limited number of projects, you will have to concentrate on the more profitable ones—now and in the long run. You will also have to pass on certain projects due to their size, timing, etc.

Why else would you turn away customers? Simple: if you feel like the customer is not a good fit for your business and will likely create more friction than revenue, find a way to “offload” them. If you take on a customer who doesn’t fit your personality or work style, this will cause you to put in a less-than-stellar effort—and will, in the long run, affect your reputation in the market. It will also detract from the kinds of customers and clients you have more in common with. These clients, by the way, are the people who will spend more money with you over the long term, and they will form the core of your business relationships—not the customers you take on because you “need the money.”

Published in the August 2014 issue of Startup Magazine. (and yes that's me..peeping creepily at you)

Question: what do Shake Shack, Google and the porn industry have in common?

They all have unceremoniously established businesses in Bahrain apparently.

A “Shake Shack” opened up a shawarma shop in Bukuwara. Google have opened up a sheeha joint in Sanad and “Porn Fashion” is a women’s clothing store in Hoora.

We may laugh at the notion of the above are all real examples here in Bahrain and with the lax rules that we have here, things can only get worse unless someone seriously steps in and puts an end to it.

 Starting up a business is a difficult and some would say valiant move in any entrepreneur’s life. It’s even more difficult if it’s a unique idea that you came up with and then someone would come in and just steal it outright. 

As a business owner, this should be the least of your worries…in theory.

 It is my understanding that the rules are there but the implementation of said rules here in the Kingdom is far from adequate.

 Another sad fact is the complete disregard for similar business proximity. In my neighborhood, a small car wash opened up with a capacity for one car as it was a one-shutter operation. It had two empty shutters on either side. A couple of months later, a car window tint shop opened up to its right. Fair enough. A month later an advertising signage shop opened up to its left. Three shops, one building, all shoulder-to-shoulder so to speak. What happened next was pretty disturbing. The window tint shop, started a new line of business, washing cars! Of course, it did not have the proper equipment or water drainage requirements to start with but they went ahead with it anyway. The third shop (the advertising one) saw that window tints were in (seeing as it was summer at the time) and started offering that to its customers! So we have three shops copying each other, in a residential area, illegal parking a plenty (this is in Bahrain, after all) and causing all kinds of commotion and traffic. Not to mention the fighting that goes on between all three shops’ owners and staff.

 Where does one start with the problems that this phenomenon will bring up (and has)?

 According to legend, in Bahrain, prior to a business opening up, there used to be an inspector that surveys any given area to make sure that there aren’t any copyright infringements, instances of identical businesses in close proximity of each other etc. you know, the usual stuff.

 Now I know for sure that this is a myth because there is no way that this inspector-in-shining armor ever existed because there are fourteen Abaya shops over 1 km stretch next to my house, and almost all of them have the same Abaya model on their signage! This can’t be right in any country, let alone Bahrain.

 We are sinking fast if this is the kind of protection that businesses are afforded. Why bother creating something unique when someone can blatantly steal your idea? Why think deeply about your location and do your research when someone can set up shop right next to you and offer the exact same product?

 And don’t you dare classify that as competition. Its not really competition if you just steal my idea and squat next to my store.

 It’s these things that affect the business environment here in the Kingdom and pretty much scares up and coming entrepreneurs away from setting up anything new and unique

Tight controls. It’s the only way

There needs to be market data center that helps the powers to be to decide whether it’s a good idea to grant a business license to a person.

 It should not be too hard to detect names like the above examples right at the commercial registration office not to mention scouting the area for similar businesses before approving the location.

    Published in the July 2014 issue of Startup Bahrain

Want to tune out negative comments and listen to your own internal business sense? Here’s how to find that freedom.

 “He’s lucky he has his own business.”

“Must be great not having to punch in at 8:00 sharp every morning.”

 “She can come and go as she pleases.”

 “He must make a load of money”.

These types of preconceived notions about the life of an entrepreneur may appear true on the surface, but they are very misleading. They don’t provide an accurate picture of the life of a business owner, and they don’t make sense if you look into them more deeply.                                                                                         

Ideas like these are thrown around almost exclusively by people who have never attempted to start a business, or have had little to no interaction with people who have.

In Bahrain, we have two amazing groups that businesspeople will always have to face, no matter how large or small their businesses: the naysayers and the envy group.

The naysayers will put a negative spin on everything you do. From the moment you think of starting up, your business lifestyle, your schedule, whatever it is—it just seems bad to them. These notions stem from not knowing how tiring but satisfying running a business can be.

The envy group wants what you have—in most cases, without putting in any of the effort. They covet the business lifestyle without knowing how taxing it can be. Your success is what they want. They could very well be making more money or leading a much more comfortable life, but no—they still want a piece of your pie.

  If you happen to belong to one of the two groups described above, try your best to be positive and supportive, because honestly, the hardship one has to endure at the start of a business is not easy, and it is not something everyone can do. Bear in mind that depending upon the nature of the business, it can take up to five years to experience proper returns on your investment.

  To business owners: first and foremost, please accept the fact that even the people who matter the most to you, like your parents or closest friends, might be against your ideas—but listen to your heart, and get your brain to support your goals. Don’t let comments demotivate you. The main attributes an entrepreneur must possess are self-motivation and drive—so be that person, and block any negativity coming your way. Don’t lose faith in your ability to turn your business around, and take it from pure struggle to success. Those same people will come back and believe in you once you have made your abilities clear and are able to show them how serious you are about your business.

People around you might try to make you feel small about the financial sacrifices you have made, like selling your high-end car and settling for a vehicle that is more utilitarian. The fact is, you don’t need to explain anything to anyone. Let your actions stand as the main proof that all of your financial sacrifices were made for the right reasons.

As I mentioned in my previous article, Bahraini society is still relatively new to the idea of trading an unrewarding (albeit comfortable) lifestyle for an extremely rewarding but hectic one. Always remember: the “hectic” part only happens during the startup phase, which is the nature of the beast. Once you have survived that time period, it will be smooth sailing from then on.

Published in the June 2014 issue of Startup Bahrain and the July issue of BizBahrain.

This is to all new business owners and to a lesser extent, startup hopefuls and “regular 9 to 5 folk”: Think back to your childhood, to your school days. Whenever the subject of your future and what you wanted to do with your life came up, nine times out of ten, your parents would tell you that you need to pick a major in college that will more or less guarantee you a secure job at a bank, insurance company, law firm etc. If you had a talent for something that did not fall under the conventional “good fields” of study, they would try and steer us clear and would encourage it as a past time.

The thing is, love and trying to find a better future for their kids than the ones they had is the source of this mentality. What they fail to see though is that this “passion” that you may have can actually help make a better living than any conventional job ever could.

When the topic of starting up a business is brought up, it is usually met with the same broken record, “business is too risky and it requires capital. A job at a bank is secure, if you fall behind you will still get your salary”. That last one is specifically Bahraini, by the way.

Well newsflash, moms and pops, a job at a bank is no longer secure. Just ask all the laid off bankers or all the others that still fear for their jobs at “conventional companies and financial institutes”. Downsizing is all the rage nowadays here in Bahrain and the region, so no; it’s not such a wise thing to do after all.

Back then, our parents did not have the benefit of technologies, startup forums, angel investors etc. so they are not entirely to blame. The tools available today do not guarantee success of a business but at least they reduce the chances of rookie mistakes. 

And besides, Bahrain now has so many startup success stories that render the old “secure job” mentality obsolete.

If you do have the ambition to start up a business, do it NOW. There’s no point in waiting for this or that to happen. It’s much better to start at a young age and fail at a business and learn from your mistakes than to do it later in life when the responsibilities have piled up. That’s not to say that any of us are too old to do it, far from it!

You see, when you’re younger, the usual life commitments such as family, mortgage etc. are virtually non-existent. What’s the worst that can happen if your business fails? You just learn from your mistake and move on.

If this sounds anti-parents so far, it really isn’t. In fact, you will need their full support if you’re to take that first step. And you know what they say here in Bahrain, if your parents don’t approve, you will most likely fail. Bahraini Parents’ Hex 101. A few tips to help you on the way:

Tell them what your plans are. In boring detail:

Believe me, they will listen. If it’s concerning the future of their kids, they will want to know exactly what you’re getting into and will offer sound advice that only comes from years of experience.

Communicate your idea according to their mindset:

As people get older, their mindsets tend to be more and more resistant to new ideas, especially ones pertaining to their kids’ future. Take it nice and slow and try to explain it in a way that makes sense to them at the right time.

Don’t use “those” examples:

You’re not Bill Gates, Mark Zuckerberg or even Dong Nguyen. Don’t sell yourself as such to your parents. They will see right through you.

Don’t give them no jive:

Don’t try any tricks when trying to convince them of your idea. They made you so they know you inside out. Brutal honesty is a must here and will only help you in the long term. If you have any weaknesses in a certain area, they will help you overcome it. No one is an expert at everything.

They have contacts that you don’t:

Published in the May 2014 issue of Startup Bahrain

Economic downturn got you down? Think there’s no upside? Look further for the hidden benefits.

If there’s one lesson that investment bankers have learned from the economic crisis, it’s that nothing lasts forever. Sure, when things are good, they are really good, but when things go bad, knowing how to operate a parachute is a really good skill to have.

Just two months ago, I was at an event where I met an old friend who happened to be a mid-level manager at a leading investment bank here in Bahrain. As soon as we started talking, the conversation turned to the state of the market today and our current jobs. “I decided to quit my job and start a business,” he said. I cannot say this surprised me. He mentioned that his bank was downsizing, and since he was a placement officer, his job was in jeopardy. He decided to bite the bullet instead of having it shot at him at any moment by management.

Bear in mind that he is a father of two, and had recently purchased a house in one of the Kingdom’s gated communities, so it’s not like he didn’t need the income of a high-paying investment job.

“This is how I saw it,” he said. “I was either going to quit or be fired by my boss. All the signs were there. Thankfully, I was one of the few people who had decided to save some money for a rainy day. Now is as good a time as ever. Why not pursue something that I’ve always wanted to do? What have I got to lose? There are now several schemes, such as those designed by the Bahrain Development Bank and the UNIDO Investment and Technology Promotion Office, to help people who want to start businesses here in the Kingdom. Most of us were initially drawn to an investment banking job because of the steady, high pay and lucrative bonuses, so we never really paid attention to schemes like these. I only wish I had thought of it earlier. Many of us followed this path, but most decided to splurge on exotic cars, properties, and the like. I was sometimes made fun of by my friends for not partaking in the ‘excessive’ way of life to the same degree they did. But now, with our backs against the wall, our only option is to downsize our own lifestyle.”

All of us know someone who has a tale similar to this one. Every cloud has a silver lining, though, and so does this story.

If anything, the economic crisis that started in 2007 (a little later for us in the GCC) and continues to disrupt our lives in various ways has forced everyone to think outside the box and live within their means.

This new thought process, forced upon us due to hard times, has served as a much needed wake-up call. People are now thinking of the future and how to squeeze every penny for the maximum possible benefit.

Published in the April 2014 issue of Startup Magazine

For optimum brand recognition and success, you’ll need to rise well above the crowd. Communicate taste and quality by going with a design expert.

You hear it all the time: “You need professionals to do that.” This saying never rings truer than when it is about your own business. Many people would say it is unjustified, and that the same results can be had if we just read a few For Dummies guidebooks. This idea could not be further from the truth.

A simple example would be, “You wouldn’t build your own house, would you? You’d hire contractors, experts in the field of construction. So why not hire the same level of expertise for your business?”

Hiring professionals from the get-go helps you start off on the right foot, and will hopefully save you a lot of time and effort in the long run. Let’s look at a few aspects of business that can be done much more effectively if you hire the right people.

Shop Signs                                                

I’ve seen many shops around the Kingdom with signs that look like they’ve been created in Microsoft Paint. I’ve also seen MANY shops that use signs with watermarked images grabbed off the Internet. Another problem that seems to be on the rise is the use of the wrong colors when it comes to advertising. It’s a well-known fact that only certain colors and combinations can be used to attract an audience’s attention. 

Ad agencies used to be the de facto standard for advertising, but nowadays, a good freelancer, whether for graphic design or photography, can do wonders for your brand, and will probably be a lot more affordable than a conventional agency. One of Startup Bahrain’s members, Bader Kamal, is a great example of a young talent who has made a name for himself as the one of the Kingdom’s leading designers. Before signing the dotted line, however, ask for information on projects the freelancer has worked on to get a feel for the kind of work they have done in the past.

  Websites

Many local businesses tend to go for the lowest cost possible, and their websites inevitably suffer from page under constraction—yes, typos where they shouldn’t really exist.Websites have the typical “contact us” and “who we are” pages, and they’re filled to the brim with stock photos that really misrepresent the business in the worst way possible (there’s no way that all of your call center reps are blue-eyed, blonde Europeans with huge smiles on their faces).

Instead of attempting website construction yourself or asking your nephew to create your site, hire a company or programmer to handle it. They can usually provide a turnkey solution for your website that includes maintenance and support. Thankfully, there are a number of established companies on the market, and quite a few startups with young talent that do amazing work. A good example of this is Kooheji Systems, a promising upstart run by a small team of young Bahrainis. 

Design

Certain businesses, such as restaurants, have developed from simple places to get a decent meal into fully-realized experiences. This means that the lighting and ambience play a role as important as the food itself. Therefore, getting an interior designer to handle the décor represents a definite plus for your business. You might have all the recipes, but that doesn’t mean people will come in if your restaurant doesn’t attract their attention and get them talking.

It might sound surprising, but hiring a designer actually saves you money. It helps you avoid costly mistakes in the design of your workplace, and designers have all the information you need on hand so you don’t waste time and money researching, shopping, and giving your business that ‘wow’ factor that seems to elude most people. Design is all about taste, and judging by the work that some design houses have done here in the Kingdom, the business owner is really spoiled for choice. Dikkan, a notable local design firm led by two young Bahraini women, has worked on all kinds of projects, ranging from residential and commercial contracts to international events.

Social Media

Social media is huge help to businesses today. If done right, social media can be a huge boon, and it is (mostly) free and available to all. I’ve touched on this in a previous article, but it bears repeating that you need to walk that fine line between bombarding your followers with countless posts and barely posting anything at all.

No longer do businesses need to spend heavily on marketing; their followers do it for them, through word of mouth and recommendations. Twitter and Instagram are, quite literally, the new word of mouth. Thankfully, Bahrain has several social media experts who have made a name for themselves by promoting local businesses.

Notable Bahraini Twitter celebrities include the venerable Ali Fareed, who, thanks to Twitter, has not spent a dime on food since 2011. More power to you, Ali. Godspeed! Follow his Twitter blog, Ask Ali Fareed for food, movie, and TV reviews.

Published in the March 2014 issue of Startup Magazine

There’s more than one way to go for the financing you need. What you need to do to get ready...

  Many, many years ago, in a neighborhood far, far away, my little brother and I would take all the money we collected during Eid and go to the local videogame store in Bukuwara to buy ourselves some games for the Super Nintendo (yes, I’m old). Back then, we knew that neither of us could buy all the games we wanted on our own. Since our parents took us there; they knew they’d be hit up for some cash sooner or later. We asked for the money, promising we’d be paying it back as soon as the next Eid. We’d grovel and we’d beg. It worked like a charm, using techniques that had been perfected over the years. Our parents had no chance. We got the cash (and the games).

Now that we’re all grown up, obtaining financing has become a bit more complicated. A bank won’t lend you money for your business just because you want it. You’ll have to make a strong case for it. If your business has thrived for some time with you personally taking care of the daily routine work, then it might be time to expand. Getting that financing may just be the ticket to push your business to the next level.

As a business owner, once your “business feet” are planted firmly on the ground, your best bet is to obtain a financing facility from your bank to help you realize your goals in a more efficient manner. Luckily, there are now various programs available to Small/Medium Enterprises (SMEs) in the Kingdom. Taking advantage of these programs means that you can focus on your core business and leave the rest to the experts.

Since financing your SME is as big an investment as buying a car or a house, you will need to plan ahead in order to avoid the usual pitfalls that a lot of businesses go through.

Maintain your books

One of the first documents that any bank will ask for is your financials, so it’s best to maintain them in order before applying for financing. The better your books are, the more likely it is that the bank will offer you the financing you want. A lot of new entrepreneurs ignore this during the first year or so of business, but it comes back to bite them, as it is both a requirement and the quintessential tool for tracking all aspects of your business. Banks usually require audited financials, but depending on the nature of the business and the time of your request, the bank may settle for in-house financials as well.

Plan ahead

Most banks will offer you advice prior to financing, but you must always go in knowing exactly what you need the money for. Your need for equipment, labor, etc., should be clear before you approach the bank. Have a business plan ready, along with financial projections for the foreseeable future. This makes it easier for the bank to decide the best terms for your financing.

How’s your cash flow?

Do you collect your dues from your customers on time?  Will you be able to make the payments to the bank on a regular basis? You have to stay on top of receivables, manage inventory, and pay creditors in a timely manner. The bank needs to see this reflected in your books to make sure they will get their money back.

Put up a bigger down payment

Putting up a bigger deposit shows the bank that you are just as invested in the financing as they are. Banks usually have their own minimum deposit criteria but the bigger the amount you put in, the easier it would be for the bank to say: Yes!

Dat Tamkeen Co-Financing Scheme

You can partake in Tamkeen’s co-financing scheme that has been launched in association with a number of banks here in Bahrain.  In this scheme, Tamkeen will basically pay half of the annual profit rate charged by the bank you choose which is usually set at 8%. The financing can go up to a maximum of BD 500,000. One of the banks that offer the SME scheme is Kuwait Finance House - Bahrain (KFHB), one of the leading full-fledged Sharia-compliant banks in the Kingdom. KFH not only provides financing to SMEs, but has been responsible for some of the Kingdom’s biggest real estate projects as well. This is coupled by the fact that KFH has one of the biggest retail banking networks in Bahrain, which makes it more convenient to handle all of your banking needs from one place. Another benefit of opting for the scheme is being able to finance aspects of your business that are otherwise not covered by Tamkeen’s regular schemes, such as the purchase of vehicles for your business.

Published in the February2014 issue of Startup Magazine

I have, for most of my adult life, been eating fast food. It tasted good, I got it fast and I had no dearth of choice. I’ve even grown up thinking that it was the stuff that cool kids ate. Local dishes such as Machboos, Saloona and Mahyawa did not interest me as much at the time.

  Yet, as the years went by, I felt too saturated with all the junk food (gaining weight played a part here too) but I found myself longing for local dishes more and more. Breakfast, lunch and dinner. No longer did the synthetic flavor of the umpteenth burger entice me. I wanted local dishes with local taste. Now.

  The conundrum was that you had very few choices and come to think of it, there really weren’t that many joints for authentic local food that catered to the individual or small family while I was growing up. It was just a handful of Ghoozi places that would only be convenient in Eid or if you’re capable of wiping out a whole lamb by yourself.

  Recently though, restaurants on the island picked up on this and thus started catering to the customer that wants authentic Bahraini food at a low price. But alas, most have hired workers from the Sub-continent. Thus the food was more Indian than Bahraini (they’re similar but to this guy, the Bahraini dishes trump the Indian ones every single time).

  Most of the restaurants now offer lunch only. It is assumed that breakfast and dinner are usually easier to prepare at home. But with today’s young Bahrainis’ hectic lifestyles, local comfort food is getting harder and harder to come by.

  Enter Bahrain’s new breed of modern local restaurants. This is a trend that I wholeheartedly embrace and judging by their popularity, it is here to stay.

  Eating local food has become popular again. I now find that more and more of my family and friends are ditching the old staples like Starbucks croissants and coffee for something with more of a mother’s touch, like balaleet and karak from start ups such as Zafaran and Villa Mama’s.

  These and others have taken the local food concept and have really run with it. I can only speak for people from my generation when I say that this trend is a really welcome addition and I hope it outlasts the Bahraini cupcake phase (enough with the red velvet already and scary mutated SpongeBob cupcakes!).

  I recently had breakfast at Basta 23, a local start up by a Bahraini couple. They managed to capture the essence of what I personally want in a restaurant. It wasn’t just the food that did it though. It was the place’s ambience. Whenever you have Captain Majid and Faten Hamama gracing your décor and Darb Al Zalag playing on infinite loop on your screens, I think anyone born in the 80s is sold on the idea.

  This retro-feel has been implemented well in Kuwait with the most famous example being “Fireej Swaileh”. Eating there is like travelling back in time to a place where perhaps your grandparents would feel at home. Its cozy, the food is good and it’s retro-tastic.