BBIC Interview with Peter Andersson

Would you mind giving us an overview of Ericsson?
Ericsson (www.ericsson.com/ericsson/worldwide/oman.shtml) is a world-leading provider of telecommunications equipment and related services to mobile and fixed network operators globally. We have deployed our solutions in over 1,000 networks in 140 countries and 40% of all mobile calls are made through our systems.

Why have you become involved in the TKM – Ernst & Young Big Business Idea Competition?
Ericsson believes in the power of ideas. Innovation is how nations grow and prosper. We feel very strongly about supporting and encouraging local endeavours that will create and generate new opportunities for the betterment of the national economy and society.

How important are start-ups to Oman’s economy?
Extremely important. Start-ups are an important vehicle for the growth of small medium enterprises and SMEs play a vital role in economic and societal development.

What personal experience do you have of the start-up culture?
Every new project that we go after is like a starting up a new business. We have to prepare and present a business plan and we have to market and sell our product.

What characteristics do you need to be a successful entrepreneur?
You need to think big. You need to have imagination and be innovative. You can’t have any limitations especially self-doubt and you need to be passionate and believe in your idea/concept.

Which international entrepreneur has inspired you and why?
The inventors of trivial pursuit board game. They came up with an innovative idea.

What are the key ingredients for a successful start-up?
It goes without saying that you need to have a good idea and a solid business plan. But the business plan is not worth the paper it’s written on if you can’t or don’t properly execute your plan.

How could the region’s banking community improve the services they provide to start-ups?
Banks need to recognize that start-ups and SMEs can grow into very large and important customer. Banks need to make it easier for start-up companies to get financing and provide them good interest rates and cater to their unique needs.

What path do you suggest for would-be Omani entrepreneurs?
They need to think big and they need to think global. If they only focus on the Omani market they will be limiting themselves. Oman is a small country from a population perspective. There isn’t the critical mass like in China.

What are the drawbacks to being an entrepreneur?
Unfortunately, the failure rate of start-up companies is very high. With the odds against your favour, it will take determination of steel, perseverance and hard work to succeed. Therefore, entrepreneur’s need to be extremely passionate about their business.

What do you think the dotcom has done for enterprise and innovation?
The dotcom revolution has helped with access to information/ideas and it has made it easier for a small start-up business to market and sell their products globally.

How do you recognize the next big thing?
I believe the next big thing will be in converged end user applications. With Vision 2020 and eOman, the Government is investing heavily in infrastructure and pushing ICT.

BBIC Interview with Eyhab Al Hajj

Would you mind giving us an overview of Nawras?
A Telecommunications company that operates in Oman offering Mobile services. Nawras was launched 16 March 2005 and today has 400,000 customers with unique service offerings in a highly competitive mobile market. Nawras’s current market share stands at around 25%.

Why have you become involved in the TKM – Ernst & Young Big Business Idea Competition?
Since its launch, Nawras has continuously been improving on customer experience through innovative methods, that's why Nawras was happy to get behind TKM’s initiative which has ‘innovation’ at its very heart.

How important are start-ups to Oman’s economy?
Over the past couple of years, Oman has witnessed a growth in foreign investment, such growth provides the ideal environment for secondary markets to develop, especially those which are service oriented, bearing in mind that the best ‘products’ sold are the ones that are sold as ‘services’ . I can’t think of a better time for start-ups to start!

What personal experience do you have of the start-up culture?
At Nawras I’m part of a highly dynamic start-up team. If I can sum up the start-up culture in a couple of words it would be: “exciting and hectic.” I’ve never felt a 12-hour day go by so fast!

What characteristics do you need to be a successful entrepreneur?
Being able to think about the future and putting your ideas down on paper. I mean think to the extent that you live the situation, that’s what you'll need todo to ensure momentum and drive. An all encompassing business plan will help you realize your dream before selling it to your banker or business angel.

Which international entrepreneur has inspired you and why?
HH Sheikh Mohammed Al Maktoum, a man with vision and real drive.

What are the key ingredients for a successful start-up?
A well thought through business plan, covering all possible angles including customer satisfaction and market entry. One important dimension is planning for change, ask yourself “what if” - life's full of surprises and it usually happens when you least expect it, generally on a Tuesday afternoon at 4:00pm.

What path do you suggest for would-be Omani entrepreneurs?
Tourism and ICT are where it’s at and will be for a long time to come.

What are the drawbacks to being an entrepreneur?
There’s a greater sense of self-reliance and commitment. It's very different to working in an established organization where there’s a higher level of intrinsic momentum and collectiveness.

What do you think the dotcom has done for enterprise and innovation?
Business models have become more focused on delivering differentiated service offerings whether through speed or reach. Indeed, in the dotcom era these have becoming increasingly more important to customers.

How do you recognize the next big thing?
If you’ve a passion for it and a market, than you’ve found it!

BBIC Start-up Tips

Starting your own business is one of the most challenging but rewarding experiences you will ever embark on. While there is no way to eliminate all the risks involved, careful planning and research can improve your chances of success. The following 14 tips will give you an overview of what's involved in starting out on your own, and the issues you will need to address.

1. Focus

You are not all things to all people. Decide on your niche - narrow your focus and broaden your appeal.

2. Stand Out

If your competitors are doing it, don't. Find a way to stand out from the crowd.

3. Team Player

Don't hire someone just to fill a position. Employ someone to be part of your team.

4. Quick Reactions
Time a precious commodity. When delivery is expected on Tuesday afternoon, deliver on Monday morning. Return calls and e-mails as quickly as possible.

5. Find the Right Location
The decision on where you base your business needs to be carefully considered, taking into account costs, competition and accessibility for staff and clients. Also consider the kind of image you wish to convey with your business premises. Do you need to attract passing trade in a busy area or is it more important to have cheaper or larger premises in a less prominent area?
6. Now Say Thank You

Say thank you to your customers and employees. When you can, sit down and write them a note – people will really appreciate the gesture.

7. Take Advice
Always seek advice, guidance and support in all aspects of your business - from the initial concept and business planning, to ongoing development and beyond.
8.Know the Law
Make sure you understand the legal intricacies of starting and running a business, accounting, audits, partnership contracts, health and safety, etc.,
9. Same, Same

Your business has to have a consistent look and feel. A customer must get the same impression/message from everyone within your organisation.

10. Be Happy

People will buy from you because they like you. People buy from those they like dealing with even if they can get it cheaper elsewhere.
11. Keep on Top of Bookkeeping
The paper chase can be incredible when first starting out in business, but it pays to keep on top of it all. Many small business owners end up managing the accounts themselves, especially when first starting out. For this reason it's essential that you find an accountant that you can trust and who can advise you on the financial aspects of running a business.
12. Upbeat
Your glass must always be half full. A positive attitude will always pay dividends in the end.

13. Meet Their Needs

Don't hard sell. Solve problems. Satisfy wants. Do what is truly best for your customer.

14. Challenge the Status Quo

Never accept the idea that this is the way you've always done it. Accept that a new idea or technology could work for you and your business.

BBIC Judging Criteria

In order to help those participating in the TKM – Ernst & Young Big Business Idea Competition (BBIC), we’ve detailed below the general criteria the judges - headed up by Dr. Graham Smith of Sohar Aluminium - (pictured right) will use in evaluating submissions.

There are five (5) categories of criteria which the BBIC judges will consider when reviewing the business plans:

1. Innovation
Does the business have the potential to break new ground in their field and could it truly be described as cutting edge?

2. Team
Have the key functions of the business been properly identified and have gaps within the business been recognized? Do we have credible candidates in place or identified for those functions?
Is the team clearly led?

3. Technology
Is the product/service likely to be ready for market within a realistic (i.e. fundable) timescale?
Has the technology been verified, either independently or by prospective customers?
Is it genuinely original and valuable?

4. Business Model
Does the plan spell out clearly how the business will make money?
How sustainable is the business?
Does it have high growth potential?
Is there a convincing focus on cash-generation?

5. Market Opportunity & Proposition
Does the plan define a clear need for the product/service?
Is there a viable value proposition on offer to meet that need?
Is the market defined in terms of size, dynamics and competition?
Is there a credible marketing strategy showing routes to market, competitive positioning and partnerships?

Finally, does this Plan present a credible business proposition?

BBIC Interview with Mohammed Al Ghassani

We spoke to Mohammed Al Ghassani, Deputy CEO, PEIE (pictured right) about the TKM - Ernst & Young Big Business Idea Competition and this is what he had to say on the competition, what it means to be a successful entrepreneur, the downside of 25/8 and recognizing the next big thing

What triggered the idea for the Big Business Idea Competition?
We’re very much of the view that entrepreneurs feel, and probably are, left out in the cold. So it's partly a pat on the back for them but it's also establishing role models for young men and women who want to start a business and trying to help grow the entrepreneurial culture in Oman. We also want to get young business people into The Knowledge Mine, the business incubator program based at Knowledge Oasis Muscat (KOM).

What characteristics do you need to be a successful entrepreneur?
All the successful entrepreneurs I've met have had a vision of what they want their business to be. But it's not just about vision, it's being able to lead and inspire people with your vision. An entrepreneur has determination, works against the odds, shrugs off failure and just gets on with the job.

What path do you suggest for would-be entrepreneurs?
I think it's worth working for someone before you start your own business, unless you’ve a great idea that’s going to take the market by storm. If you work for somebody else you get to understand marketing, sales, accounts and customer care – all the important stuff – and you won’t lose you shirt in the process.

What’s the downside to being an entrepreneur?
Probably working 25/8. Most entrepreneurs I know are workaholics and that isn’t the easiest thing to be when you’re married with three kids. Balancing work and family life must be very challenging if you want to be a successful entrepreneur.

What do you think the dotcom has done for enterprise?
In simple terms, the Internet has created lots of activity that in turn has created a tremendous amount of wealth. The dotcom world has also introduced a lot of changes to business – the landscape has changed dramatically over the past 10 years or so.

Have you got a favourite entrepreneur?
One of the best and classic entrepreneurs has to be Charles Rolls, because he had the vision (and the cash helped) to produce an automobile that’s synonymous with high quality - something all manufacturers try to achieve - and the branding that goes with it.

How do you recognize the next big thing?
I suppose for a business to become a major success it needs to have a new model of some sort, a model that’s driven by new technology, science or the Internet. I’m not entirely sure if you can spot the next big thing, it just creeps up on you.

What's the most interesting part of your job?
The TKM – Ernst & Young Big Business Idea Competition has been a real high point for me recently. I feel we’re really contributing to the development of the country’s economy, that’s a good feeling to have. It’s great meeting so many ‘would-be’ entrepreneurs and networking with them.

Beginner's Guide to Intellectual Property (IP)

For those of you entering the Big Business Idea Competition - Intellectual Property (IP) issues will certainly be on your agenda. With this in mind, we've decided to include a short introduction on what IP is all about. At the bottom of this short section you'll find links to various IP sites and these should answer any of the queries you have. In the beginning..........the US legal system developed the concept of intellectual property (IP) to encourage the creation of valuable ideas and protect them from being stolen.

In law, particularly in common law jurisdictions, IP refers to a legal authorization which sometimes attaches to the expressed form of an idea, or to some other abstract subject matter. In general terms this legal authorization sometimes enables its holder to exercise exclusive control over the use of the IP. The term IP reflects the idea that the subject matter of this property is the product of the mind or the intellect, and that once established; such authorizations are generally treated as equivalent to physical property and may be enforced as such by the courts. Various schools of thought are critical of the concept of IP, some of which characterize it as intellectual protectionism.

According to Article 2, section (viii), of the Convention Establishing the World Intellectual Property Organization, signed in Stockholm, 14 July 1967: "intellectual property" shall include the rights relating to: literary, artistic and scientific works, performances of performing artists, phonograms, and broadcasts, inventions in all fields of human endeavour, scientific discoveries, industrial designs, trademarks, service marks, and commercial names and designations, protection against unfair competition, and all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields.

IP is a creation of the intellect that has commercial value. It includes copyrighted property such as literary or artistic works, and ideological property, such as patents, titles of origin, business methods, as well as industrial processes. Intellectual property is a term often used to refer generically to property rights created through intellectual and/or discovery efforts of a creator that are generally protectable under patent, trademark, copyright, trade secret, trade dress or other law.

Common types of IP rights protect different types of abstract subject matter. In brief, the 5 main types of non-physical things considered to comprise IP are:

1. Copyright/©: A copyright protects original works of authorship fixed in a physical medium of expression. Copyrights can include published and unpublished works—literary, dramatic, and musical and dance compositions, films, photographs, audiovisual works, paintings, sculpture, and other visual works of art, as well as computer programs—from being copied.

2. Patent: A patent is a grant issued by the federal government giving an inventor the right to exclude others from making, having made, using, leasing, offering to sell, selling, or importing an invention in the United States. A patent does not necessarily guarantee inventors the right to make, use or sell their inventions; in some cases, utilizing a patented invention depends on another person's prior, unexplored patent.

3. Trademark/™ ®: Trademark protection covers a non-functional word, logo, slogan, symbol, design — or any combination of these—that distinguishes a product or service. Essentially trademarks are the brand names that promote competition by giving products corporate identity and marketing leverage.

4. Trade Secret: A trade secret is a formula, pattern, manufacturing process, method of doing business, or technical know-how that gives its owner a competitive advantage. Trade secrets cover a wide range of information, including chemical compounds, machine patterns, customer lists and software.

5. Designs: IP of design refers to the form of appearance, style or design of an industrial object, for example furniture or textiles.

http://www.apecipeg.org/choose.asp

http://www.negativland.com/intprop.html

http://www.wto.org/english/tratop_e/trips_e/trips_e.htm

http://www.iprcommission.org/

http://usinfo.state.gov/products/pubs/intelprp/

http://www.eldis.org/ipr/

http://www.infonomics.nl/ipr/

BBIC Interview with Nick Pattison

As part of the TKM - Ernst & Young Big Business Idea Competition (www.kom.om/bbic) we will be running a series of weekly interviews with the Competition's organizers, supporters and judging panel - they'll be talking about the start-up culture and its importance to Oman's growing knowledge-based economy, innovation, entrepreneurship and how to spot the next big thing. Nick Pattison (pictured left) of Networking Engineering Services and a BBIC judge kicks off the series.

Q: Would you mind giving us an overview of Network Engineering Services (NES)?
A: NES is a small company that specialises in technology, mainly in the telecoms area but also increasingly in the e-commerce field.

Q: Why have you become involved in the TKM – Ernst & Young Big Business Idea Competition?
A: A healthy business climate means a healthy economy. Anything and anyone who is encouraging this has my vote and absolute support.

Q: How important are start-ups to Oman’s economy?
A: In one word… Vital! SMEs form the engine of a thriving economy and business start-ups form the nucleus of SMEs. A World Bank report recently emphasized this. The Government of Oman has already created the necessary framework to encourage enterprise. Now those of us who care and can contribute need to help Omanis take advantage, in a structured and professional way, of this attractive business climate

Q: What personal experience do you have of the start-up culture?
A: In my previous life as a Shell employee I have personally been involved with many start-ups in a number of countries: principally amongst contractors.

Q: What characteristics do you need to be a successful entrepreneur?
A: Not the flamboyant ones that people always comment upon! It’s a tough environment so you have to be tough and persistent and you also need to plan, plan, plan. Who would climb Mount Everest without thoroughly planning for every eventuality?

Q: Which international entrepreneur has inspired you and why?
A: Freddie Laker. He started the cheap flight business back in the 1970s and found himself up against some frightening vested interests - mostly countries since airlines in those days were often state-owned.

Q: What are the key ingredients for a successful start-up?
A: You need a product that people want, some good market research, a good business plan that is strong enough to convince the banks of the strength and quality of the business, a credible understanding of the requirement for working capital and as I mentioned before some seriously good planning.

Q: How could the region’s banking community improve the services they provide to start-ups?
A: Banks don’t take risks. They should be prepared to take risks, even if it means reflecting that in the borrowing rates and they should provide advice and support. Too often once the loan has been made they simply wait for it to be paid back.

Q: What path do you suggest for would-be Omani entrepreneurs?
A: I declare an interest here. Shell will shortly launch a Fund for businesses who would normally find it difficult to borrow from banks. The Fund will start with a payment of US$10 million (Shell’s Gift to the Nation to celebrate the 35 years since His Majesty’s accession to the throne) which is designed to stimulate the formation of successful SMEs. Managed by South Africa’s GroFin, the emphasis will be on mentoring and support, areas that GroFin has a lot of experience with.

Q: What are the drawbacks to being an entrepreneur?
A: An entrepreneur by definition is a risk-taker. That in itself can lead to lows and well as highs. Further he/she has to dedicate most of their waking hours to get a business off the ground. This is not easy given social obligations.

Q: What do you think the dotcom has done for enterprise and innovation?
A: It allows anyone access to an incredible range of information and trends. Its importance cannot be over-rated

Q: How do you recognize the next big thing?
A: In Oman? You’re lucky, it’s easy. Be a copycat: see what is happening elsewhere and if you feel it would work here, have a go. Also look at the big developments in, for example, Sohar. Go and talk to them and see what they need in the way of support services.

6 Great Biz Plan Links

Writing a business plan can be a tough job. So, we thoroughly recommend you check out the websites listed below - six great recommendations. Over the coming months, we'll be posting regular business plan/start-up web-based links.

1). Entrepreneur.com
Whether you are starting out, need funding or just want to monitor the health of your business, creating a business plan is your first step on the path to success. Read Entrepreneur.com’s extensive how-to, check out dozens of sample plans, and use its calculators to complete your financials.
http://www.entrepreneur.com/Your_Business/YB_Node/0,4507,131-----,00.html

2). Howard University
This is Washington DC-based Howard University’s sample business plan template – it doesn’t get any clearer than this! http://www.ntia.doc.gov/opadhome/mtdpweb/busplano.htm

3). Biz-in-a-Box
This website offers a free business start up guide which looks at business planning, protecting your venture, accounting, staffing your business, finance and insurance issues.
www.biz-in-a-box.co.uk/defaultpage.asp?PageID=quickstart

4). Just Start Ups
A new web resource containing very practical information and advice as well as links to products and services specifically for business start-ups, sole traders and growing small businesses. www.nowletsgetstarted.co.uk

5). Small Business Advice Service
This website is supported by the UK's National Federation of Enterprise Agencies. The service provides access to a range of business information and tools including reference documents, checklists, business planning software, links to other external information sources and services. It also has an "ask a business advisor" service which lets you e-mail an accredited business advisor for free about your business idea. http://www.smallbusinessadvice.org.uk/

6). Youth Business International (YBI)
YBI is a unit of The Prince of Wales International Business Leaders Forum that helps disadvantaged young people realise their ambitions to become entrepreneurs. More than 50,000 young people have been set up in business by twenty YBI programs around the world. http://www.youth-business.org/

Biz Plan Speak

For those participating in the TKM - Ernst & Young Big Business Idea Competition (www.kom.om/bbic) here are some business plan pointers that might be of use - a mini business plan lexicon if you will.

A Plan: A statement of intent - a calculated intention to organize effort and resource to achieve an outcome - in this context a plan is in written form, comprising explanation, justification and relevant numerical and financial statistical data. In a business context a plan's numerical data - costs and revenues - are normally scheduled over at least one trading year, broken down weekly, monthly quarterly and cumulatively.

A Business: An activity or entity, irrespective of size and autonomy, which is engaged in an activity, normally the provision of products and/or services, to produce commercial gain, extending to non-commercial organizations whose aim may or may not be profit.

A Business Plan: Today, this is a very general and flexible term, applicable to the planned activities and aims of any entity, individual group or organization where effort is being converted into results, for example: a small company; a large company; a shop in the souq; a local e-learning business; a multi-million Rial, multi-national corporation; a school; a hospital; the municipality; a ministry; a joint-venture; a project within a business or department; a business unit, division, or department within another organization or company, a profit centre or cost centre within an organization or business; the responsibility of a team or group or an individual.

The business entity could also be a proposed start-up, a new business development within an existing organization, a new joint-venture, or any new organizational or business project which aims to convert action into results. The extent to which a business plan includes costs and overheads activities and resources (eg., production, research and development, warehouse, storage, transport, distribution, wastage, shrinkage, head office, training, bad debts, etc) depends on the needs of the business and the purpose of the plan. Large 'executive-level' business plans therefore look rather like a 'predictive profit and loss account', fully itemised down to the 'bottom line'. Business plans written at business unit or departmental level do not generally include financial data outside the department concerned. Most business plans are in effect sales plans or marketing plans or departmental plans, which form the main bias of this guide.

Strategy: This term has military roots, in a business planning context strategy/strategic means/refers to why and how the plan will work, in relation to all factors of influence upon the business entity and activity, particularly including competitors, customers and demographics, technology and communications.

Marketing: Many believe that marketing means advertising or sales promotion. In reality, marketing means and covers everything from company culture and positioning, through market research, new business/product development, advertising and promotion, PR (public/media relations - in print and on the Web) and arguably all of the sales functions as well. Marketing is the process by which a business decides what it will sell, to whom, when and how and then does it.

Marketing Plan - logically a plan which details what a business will sell, to whom, when and how, implicitly including the business/marketing strategy. The extent to which financial and commercial numerical data is included depends on the needs of the business. The extent to which this details the sales plan also depends on the needs of the business.

Sales: This is the transactions between the business and its customers whereby services and/or products are provided in return for payment. Sales (sales department/sales team) also describes the activities and resources that enable this process, and sales also describes the revenues that the business derives from the sales activities.

Sales Plan: A plan describing, quantifying and phased over time, how the the sales will be made and to whom. Some organizations interpret this to be the same as a business plan or a marketing plan.

Service Contract: A formal document usually drawn up by the supplier by which the trading arrangement is agreed with the customer.

Strategic Business Plan: This is a business plan with strategic drivers - which actually all business plans should be.

Strategic Business Planning: Developing and writing a strategic business plan.

Philosophy, Values, Ethics, Vision: These are the fundamentals of business planning, and determine the spirit and integrity of the business or organisation.

Start-up Evening at Muscat Inter-Continental

The Knowledge Mine – Ernst & Young Big Business Idea Competition 2006, Oman’s first nationwide business plan competition is holding a Start-up Evening at the Muscat Inter-Continental Hotel at 7:00pm on 3 July.

The competition - in its first year - is viewed by many as a launch pad for participating entrants to successfully raise investment for their commercial ventures. The competition has a top prize of RO6,000 (US$15,500) and rent free accommodation in the Knowledge Mine business incubator program. According to the organizers, the Start-up Evening will include a brief on the competition, a presentation by Ernst & Young on how to write a business plan plus a presentation by Mohammed Al Rasbi, Founder and CEO of R&D, a start-up firm based in the TKM incubator program.

Ibtisam Al Faruji (pictured above), Head of Marketing, PEIE and organizer of the competition said: “the competition is limited to Omani nationals and we welcome entries from individuals, teams, students and entrepreneurs – anyone with a good, innovative idea for a technology-driven business should think about participating in the competition. The idea should be original or a significant improvement on an existing business. Indeed, the 3 July Start-up Evening will be an excellent opportunity for people to learn more about the competition and what it means to create a start-up company.”

“If you are new to business and creating a business idea, you will learn a lot by participating in the Big Business Idea Competition. Entrants will receive high-level feedback on their business idea and the chance to learn more about processes of business. We believe that the competition is a highly-prestigious platform for successful new venture creation – it offers entrants access to networks, training and valuable contacts, and it helps further understanding of the investment process and what constitutes a realistic marketable idea,” said Ahmed Al Hadhrami, Marketing Officer, PEIE.

In partnership with Ernst & Young, TKM is also running three pre-competition workshops. “The first two workshops - 25 June and 2 July - were a big hit with those that attended. Having free access to experts from Ernst & Young is an opportunity that doesn’t come along everyday,” commented Al Faruji. The next workshop will be held at Knowledge Oasis Muscat, building 1 at 5:00pm on 9 July. “The three workshops are intended to take a close look at what it means to research and write a business plan plus how to use it to raise investment for your business,” remarked Al Hadhrami. The workshops are free of charge. To reserve a place for the workshops or to attend the Start-up Evening call: 24155132 or e-mail:

Ibtisam@kom.om