FOLLOW THE LEADER
ENTERPRISE HEAD HONCHOS TALK STRATEGY, INDUSTRY-SPECIFIC TACTICS, AND PROFESSIONAL CHALLENGES
Communicating responsibly can help you to attract tier one people to your organization, despite not having large budgets, and other add-ons like stock options.” But what about the oft-repeated complaint that, well, good people don’t come cheap, and, as a result, it’s hard to keep them around? “Mitigating salary concerns can be as easy as negotiating vacation times, premium health packages, and ensuring that there is room for upward mobility within the organization,” Alkhoshaibi replies. “Retention and recruitment are both addressed by the previous points; however, in the case of retention, acknowledging exceptional work and rewarding employees on a timely basis are both critical components, and will have a distinct impact on your bottom line. Replacing strong team members is expensive, and again, like any other business scenario, you need to consider opportunity cost. In one of our companies, Raimondi Cranes, we have employees who have an invaluable storehouse of knowledge that exceed 20 years of manufacturing heritage. Replacing these key loyal staff members is not only impossible, it deprives future employees from learning knowledge that would otherwise be lost.”
IMAGE COURTESY KBW INVESTMENTS
Ahmed Alkhoshaibi, Group CEO, KBW Investments
For an organization of its scale, KBW Investments may not seem like an enterprise that’d work with a startuplike atmosphere, but then
“BEING DETAIL-ORIENTED IS EXTREMELY IMPORTANT, WHETHER WORKING WITH SMALL OR LARGE AMOUNTS OF CAPITAL, AND THE BIGGER THE BID, THE PICKIER YOU NEED TO BE.” again, for an enterprise driven by the entrepreneurial vision of its founder and Chairman Prince Khaled, it shouldn’t be a surprise to learn that it’s keen on employing innovation in all that it does as well. But in an era where entrepreneurship and innovation have almost become buzzwords of sorts, Alkhoshaibi is clear that his enterprise needs to be built up on the true meanings of those terms. “Every business finds it desirable to be associated with the intrepid life of an entrepreneur, but what’s often forgotten is the day-to-day struggle of mobilizing a startup,” he says. “That said, innovating in a larger organization, even at the conglomerate level, is often just as -if not morechallenging, because you are dealing with layers of approval and bureaucracy. There is always room for innovation. The label of what is and what isn’t innovative often comes down to clever marketing and strong communications. Some of the least innovative but most stable entities are considered innovative, when they are actually just using a tried and tested business model. In the current economic climate, innovation can take on the meaning of being able to continue to drum up new revenue channels, consistent commercial activity, and maintaining strong operating capital.”
Given the state of the market today, new enterprises considering starting up in the region may feel like the environment is not particularly favorable for them- but Alkhoshaibi says it’s all a matter of perspective. “There is never going to be a perfect time to start a business,” he declares. “Many products taken to market are ahead of trend, and many, similarly, are behind trend. Both of these scenarios are common and carry high levels of risk. The essential questions to ask when deciding whether or not you should go forward with your startup are not about timing; they are more about market fit. I believe the match of location and service offering are more important as benchmarks of success.” And for those of you seeking motivation to go ahead with your entrepreneurial ideas, Alkhoshabi points toward the past to look toward the future. “There are many rehashed stories of products that have been successful in the past three years but were rejected by some of the world’s greatest investors a decade ago,” he explains. “So, the questions you should be asking are: how much competition do you have? What is your USP? Are you able to gain a sizeable market share, and if so, how? If there are 10 other companies with greater resources and stronger infrastructure, then you must have a differentiator that will enable you to generate traction. These questions hold true across the many continents in which we at KBW Investments operate, and they can be applied across a variety of sectors. Market need and how well you answer that need is always the essential element that needs to be examined prior to investing your capital in new venture.”
ASK THE EXEC AHMED ALKHOSHAIBI, GROUP CEO, KBW INVESTMENTS What are your five tips for entrepreneurs to achieve success with their enterprises? 1. EMPOWER SENIOR STAFF TO MAKE DECISIONS “If you cripple your senior staff, you will end up becoming a one-man show. There is strength in numbers, allowing respective team members to draw on different knowledge bases and skillsets. Crippling your team’s decision-making ability leads to inertia, meaning nothing gets done until you as the founder can sign off.” 2. ADVOCATE FOR WORK-LIFE BALANCE ACROSS ALL LEVELS OF YOUR COMPANY “Startups often do the 24/7 work mode, and consider it as business as usual. This is a fallacy; all that will do is generate discontent, distraction, and a run-down organization.” 3. ENSURE THAT YOU HAVE A MARKETING BUDGET “Startups often push marketing and communications to the wayside. Where there is no marketing, there is no lead generation, and therefore, there are no customers. Reaching profitability is directly impacted by your brand awareness quotient.” 4. BUILD RELATIONSHIPS “Your vendors and your clients are more likely to support you with premium budgets and business allocation if you have a strong relationship. Relationships, while not directly quantifiable, will both save and generate money in the long run.” 5. SERVICE IS AN ONGOING CRITERION FOR SUCCESS “After you’ve made the sale or sealed that deal, your service levels are just beginning. Oftentimes, companies make the mistake of neglecting existing or past clientele. This goes back to both relationship and reputation management. There is opportunity cost in ignoring commercial service that goes over and above what is actually laid out in the contract.”
August 2018 / E N T R E P R E N E U R . C O M / 33