Roadmap for Growth. Ethos Experience. Robert M Keay Chief Executive Officer Ethos Integrated Solutions LLC.

Transcription

1 Roadmap for Growth Ethos Experience Robert M Keay Chief Executive Officer Ethos Integrated Solutions LLC

2 Robert M Keay Chief Executive Officer, Ethos Integrated Solutions LLC Chairman & Co-founder of The International Customer Service Institute Author of Value Moments - Defining Service Excellence -

3 Ethos The Early Years

4 Ethos Early Years 1. Sold my UK business in Moved to the UAE end 2003 and set up Ethos Consultancy. 2. By April 2005, all I had left was 600 AED! 3. I had previously set up and sold 2 previous businesses in the UK and thought the UAE would be the same, HUGE MISTAKE! 4. I didn t have enough money to go to the UK for my oldest daughter s university graduation ceremony! So what happened next?

5 Defining Moments in my Journey 1. Company Sponsor and his Emirati friends provided some introductory leads PLUS gave me a blank cheque to pay the kids school fees and other necessities! 2. Developed UNIQUE Customer Service Solutions (What the market needed!!) 3. this report is the best I have ever read from a consultancy firm H.H. Major-General Sheikh Saif bin Zayed Al Nahyan (UAE Deputy Prime Minister, Minister for the Interior and Head of Abu Dhabi Police) 4. Microsoft approaching me to feature Ethos on their Website! 5. Developing the Value Moments concept.. (and writing the book!)

6 Key Achievements Financial: 1. Secured Credit Facilities from a UAE bank to fund the growth of the business (Year ) 2. Majority shareholding sold to an entity within the UAE Government (Year ) (I have retained 49% and have 10 year contract to turn Ethos into a financially successful local, regional and global entity ) Non - Financial: 3. Dubai SME100 company for 2 consecutive periods (Number 1 in Human Capital Development for the Inaugural listing). 4. Contributed towards providing a great place to work for my team and rewarded them by implementing higher than average remuneration packages. 5. Contributed towards the community through many charity initiatives.

7 My Recommendations for SME s in UAE

8 Growth Roadmap Business Stage Cash Generation 1 Set Up Probably from YOU 2 Early Years (0 3 years) From Customers + probably from YOU 3 Growth Years (3 Years+ ) Customers, Bank Lending, Possibly equity investors and probably YOU Common Denominators? YOU and YOUR Customers. Without YOU there is no business, without CUSTOMERS there is no business, no bank lending and no EXIT STRATEGY! Therefore - Choose your CUSTOMERS carefully as they are ultimately the most important source of CASH for YOUR BUSINESS!

9 Set Up Stage The Facts 1. Prepare a 12 month Sales and Cashflow Forecast before your business starts 2. Significant amount of CASH consumed when establishing a new business in the UAE, so make sure you know your set up costs in advance. 3. Significant amount of TIME consumed setting up a new business. 4. Significant amount of CASH consumed before you invoice and receive your first payments. 5. Assume days average payment days from customers (unless you are in the cash before delivery business!) 6. Nothing really prepares you for the almost accepted as the norm LATE PAYMENTS! 7. Late Payment malaise within the UAE costs SME s huge sums of CASH!

10 Early Years Stage - Suggestions 1. Develop good working relationships with the bank! 2. Develop GREAT relationships with your Customers! 3. Establish your Risk Appetite and stick to it! 4. Manage the Cashflow, don t extend your cost base unless you have revenue to support it! 5. Make sure you have regular update meetings with the Relationship Manager at the bank, keep giving them good news and let them feel a part of the success

11 Growth Years Stage 10 Point Plan 1. Make sure you always have a 3 year business plan (renew annually) 2. Make sure you produce Monthly Management Accounts and keep cashflow forecast up to date. 3. Keep the bank updated with progress (good and bad!). 4. Engage the bank into your plans, they already know your past so let them feel part of your future. 5. Implement the best growth investment strategy for your business, we are not all the same. 6. Shop around for the best fit bank(s) for your business, my preference was always only one bank! 7. Don t sell Equity unless you have too or want too! 8. Make the tough decisions quickly, leave emotional decisions to someone else! 9. Make sure you hold onto and look after your biggest asset, your STAFF! 10. Make sure you fully understand and implement your EXIT STRATEGY

12 Key Learning Points 1. Market and Customer Research is invaluable! 2. Don t work with customers that can t / don't / wont pay on time! 3. Don t Spend what you haven't got! 4. Manage your Costs as that s the one thing you can control! 5. Talk to your bank, OFTEN! 6. Invest in recruiting and retaining excellent people! 7. Create and share your VISION with your team, use it to drive your business! 8. Be Creative and Innovative! 9. SAVE as much money as you can, there is no substitute for money in the bank! 10. Develop and annually update and enhance your Business Plan FOCUS on YOUR VISION

13 SME Funding In the Future Present: Raising finance (Loans and credit facilities) provided almost exclusively by banks While SMEs represent almost 92 per cent of registered companies in the UAE, they account for just 3 per cent of total loans by banks The National 20/09/2014 The West and in the Future: Western economies have embraced crowd-funding and peer-to-peer lending as alternative to traditional lending. Technology advances make this easier than ever before. The UAE? Distinct probability that new Internet based platforms (non banking) will be introduced to provide SME s with opportunities to obtain borrowing facilities using crowd funding and peer to peer lending.

14 Good Luck and Thank you for listening

15 Contact Details