Growing up, the American inventor Thomas Edison was one of my idols. Just the thought of how his invention of the light bulb transformed the world has always left me feeling inspired. However, as a child I never imagined he might have failed at anything before perfecting his invention. That was until I came across one of his famous quotes on the light bulb. He said: “I have not failed 10,000 times. I’ve found 10,000 ways that won’t work.”
Mr Edison could not have said it any better. He did not consider his failed attempts as an impediment but rather as a learning experience that added to his experiment.
Building on Mr Edison’s quotes, here are three ways we can all learn from our business mistakes, and use failure to help a small business grow:
First, many entrepreneurs believe that the best way for a business to grow fast is to start off big, with a big team and huge office. I remember when I first wanted to launch my consultancy business, my friend urged me to rent a dazzling office and hire employees. Though I appreciated her enthusiasm and trust in my business, this is not always the best option.
Many start-up entrepreneurs often discover this the hard way. They rent the big office and take on staff, but soon are faced with a multitude of expenses before the business has made any strong profits. By doing so, entrepreneurs fail on a financial level and bear all the costs that could have been avoided had they started small.
As a small-business owner, it makes more sense to form partnerships or agreements with other companies that could help you with your services. For instance, when I started my communications consultancy I outsourced some aspects to sister companies that I formed an agreement with. That way I kept my expenses low, and our benefits were mutual. My partners outsourced aspects of their business to me as well, and we did well along the way. It meant I did not have to worry about unnecessary expenses and could focus on growing profits, while at the same time utilising the strengths and experience of my partners.
Secondly, as much as we plan, our plans can fail. Why? Because we spend too much time planning and not enough hours executing. So many plan their futures, but when the time comes they do not get to live their dream because they did not work enough to make it happen. As a start-up entrepreneur you may feel the urge to control every aspect of your business. If you could also control your workday, you probably would have done that too. But as much as we plan, things might not necessarily turn out the way we intend. An article by Fortune magazine says that 70 per cent of chief executives fail not because they have drafted a poor strategy, but because they have failed in executing it.
Thirdly, as a small-business owner in the start-up phase, when you are trying to build your client base, you might find it difficult to say the word no. I know I had the urge to be everywhere and do everything. I wanted clients fast, but thankfully I came to my senses as I knew this approach would backfire. If you are successful in the early stages and people start realising your potential, you might be sought after y people who want to tap your knowledge. At some point you will have to say no; dedicating valuable time to giving free advice if those potential clients add nothing to your business will take you away from growing your enterprise.
Additionally, do not work on a project you are not interested in. Your work will reflect that. Instead, focus on projects you really enjoy, because you will dedicate more of your energy towards them. By rejecting short-term opportunities that do not interest you — even if the paycheque is decent — it will allow you to build a portfolio you are passionate and proud of in the long term. In life and when building a business, failure is inevitable. It is part of the process and the learning curve. Instead of dwelling on it, learn from your mistakes and those of others. Also, it is always comforting to know that even the greats out there have failed.
Manar Al Hinai is an award-winning Emirati writer and communications consultant based in Abu Dhabi. Twitter: @manar_alhinai.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
COMPANY%20PROFILE
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Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
Profile
Company name: Jaib
Started: January 2018
Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
Ferrari
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Masters%20of%20the%20Air
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Virtuzone GCC Sixes
Date and venue Friday and Saturday, ICC Academy, Dubai Sports City
Time Matches start at 9am
Groups
A Blighty Ducks, Darjeeling Colts, Darjeeling Social, Dubai Wombats; B Darjeeling Veterans, Kuwait Casuals, Loose Cannons, Savannah Lions; C Awali Taverners, Darjeeling, Dromedary, Darjeeling Good Eggs
The specs
Engine: 2.3-litre, turbo four-cylinder
Transmission: 10-speed auto
Power: 300hp
Torque: 420Nm
Price: Dh189,900
On sale: now
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
57%20Seconds
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