Success story in the UAE: A Syrian expat gives up a salary of 22 thousand dirhams to start a business in Dubai worth 1.7 million dirhams, here is his motto

It has been 12 years because the UAE-based Syrian expat Dr. Elias Abboud, 42, moved to Dubai to pursue entrepreneurship within the pharmaceutical business. However lengthy earlier than his profession, Abboud labored as a medical consultant in Syria, the nation the place he spent his rising years.

My first job as a medical consultant in 2003 introduced me a month-to-month wage of $250. [Dh918]. Later, I joined a pharmaceutical firm as a supervisor for $800 [Dh2,938]. Quickly after, I used to be promoted to Advertising and marketing Director with a wage of $1,200 [Dh4,407]he mentioned, when speaking about his profession.

Three years later, I accepted a wage supply of $3,000 [Dh11,017] From one other drug firm. Later, I moved to Dubai, incomes 8,000 dirhams in 2011 as a advertising supervisor after which about 22,000 dirhams in 2014, earlier than taking a danger by myself to launch an organization ‘FemTech’ specializing in nanotechnology-based well being merchandise for girls.”

What’s “Vimtec”?

Femtech is a time period utilized to a category of applications, diagnostics, merchandise, and providers that use know-how to concentrate on girls’s well being.

The time period “FemTech” was first coined in 2016 by Danish web entrepreneur Ida Tin. In only a few brief years, it has grown to incorporate a spread of technology-based and consumer-focused merchandise and options.

Constructing a basis for entrepreneurship

Academically and professionally certified as a pharmacist and with sensible expertise as a medical consultant, acquire perception into the workings of the pharmaceutical business. This information, along with the MBA in Advertising and marketing, turned the idea for his start-up.

Abboud revealed how all his financial savings as much as that time had gone into the startup, after which his brother made the funding. Abboud has collected financial savings of 400,000 dirhams since 2011 when he launched his firm in 2020. “I saved issues the identical when it got here to cash – which continues to be mirrored within the firm’s monetary statements.”

Women's health

When Elias Abboud moved to Dubai, he was incomes $6,000 [Dh22,035] His wage is in 2014. That is when he determined to exit on his personal to launch an organization ‘FemTech’ that makes a speciality of nanotechnology primarily based well being merchandise for girls.

How do you fiscal startup prices?

When beginning the enterprise from scratch, Abboud reinvested all the firm’s gross sales for development and enlargement. Nonetheless, he plans to conduct the corporate’s first funding spherical in 2023.

He mentioned, “We’re at present in talks with a number of enterprise capitalists [Venture Capital investors] for a similar factor. On the identical time, as the corporate grows and orders enhance on a month-to-month foundation, I am trying to enhance our upstream and downstream operations, notably logistics, by hanging new offers and renegotiating for higher value factors. “

What are Enterprise Capitalists (VC) or Enterprise Capitalists (VCs) in Startup Finance?

Enterprise capital (VC) is usually used to help startups and different firms with the potential for vital and speedy development. Enterprise capital companies pool cash from restricted companions (LPs) to put money into promising startups and even giant enterprise funds.

Early-stage startups often do not have entry to loans or the capital markets straight, so that they depend on enterprise capital funding as an alternative. In trade for enterprise capital funding, the founders supply the traders a proportion of possession and presumably a seat on the board of administrators. Enterprise capital might be an essential supply of financing.

What prompted you to do enterprise in female hygiene merchandise?

“In 2012, once I was scouting and brainstorming entrepreneurial alternatives, I got here throughout an article that mentioned that 70 p.c of ladies worldwide are experiencing period-related challenges as a consequence of using common sanitary pads obtainable out there. For somebody with a medical background and consciousness of the pharma scene, it was That is my ‘eureka’ second for the entrepreneur in me.”

“I started to additional my understanding of the challenges of menstruation, reached out to some female hygiene business professionals all over the world, and started product growth. I used to be effectively conscious of the challenges forward however was equally assured within the viability of my merchandise. Though these merchandise Partially present in patents, I may give them a willingness to go to market with my work.”

Nonetheless, regardless of Abboud’s success in engaged on a B2B (B2B) mannequin, which is a transaction or enterprise that takes place between one firm and one other, reminiscent of a wholesaler and a retailer), he quickly realized that the impact was not. Sufficient, and his merchandise had been mendacity on the cabinets of distributors with out reaching the top customers.

startup companies

When beginning the enterprise from scratch, Elias Abboud reinvested all the firm’s gross sales for development and enlargement.

Having to alter to a hybrid e-commerce mannequin

“I noticed that direct promoting was not financially possible on the time. So as to add insult to damage, the pandemic had turned operations on its head, issuing a transparent name to both adapt or stop. Because the latter was not an absolute choice, I made a decision to modify to a hybrid mannequin.” to e-commerce by coming into totally and getting some monetary help from my brother.”

“We launched the positioning in August 2020, and processed three orders within the first month, adopted by 15 within the second, and after two years, greater than a thousand orders had been processed per thirty days. There have been many trial and error cycles till 2020, however I managed to promote greater than 2 million packages in 14 nations,” including that inside a 12 months of launching the corporate, the corporate had achieved 760,000 dirhams, and in 2022, the startup had achieved 1.7 million dirhams.

Listed below are another key classes discovered when beginning out as an entrepreneur

Lesson 1: Allocate nearly all of enterprise quantity to advertising

Amongst Abboud’s notable money methods, a vital factor he discovered early on was allocating about 70 p.c of gross sales quantity to advertising. And take into account that even when you have an excellent product, prospects will not be drawn to it until they’re aware of it within the first place.

Subsequently, for Abboud, bridging the product consciousness hole out there is significant. “I undertake a long-term funding strategy, which is why I’ve allotted a big portion of my funding capital into advertising my firm, upskilling, and group constructing,” he mentioned.

We launched the positioning in August 2020, and processed three requests within the first month, adopted by 15 requests within the second, and after two years, greater than a thousand requests had been processed per thirty days.

Elias Abboud

Lesson two: Look ahead to buyer necessities, and regulate accordingly

He highlighted one in every of his latest challenges after launching the e-commerce mannequin. “The primary batch of merchandise had three sizes. Nonetheless, after receiving early buyer suggestions, we realized that our merchandise didn’t have sizes that had been notably in demand within the GCC markets.”

“We wasted no time and elevated the overall variety of merchandise to eight. The method was tough and financially difficult, however we ended up assembly buyer expectations and being goal-driven.”

Lesson 3: Scale back spending by shopping for uncooked supplies in bulk

“I’m consistently in search of aggressive value factors and market situations that permit me to barter higher costs with suppliers and logistics companions, however I’ve realized that it’s needed to cut back spending by buying uncooked supplies in bulk.”

When requested if he makes use of every other financial savings methods in terms of his firm and private funds, Abboud revealed how he divides his and the corporate’s earnings throughout a number of classes.

“As a basic rule, I put aside about 10 p.c of my month-to-month earnings as private financial savings. With regards to cash made in enterprise, about 60 p.c goes to advertising, 30 p.c to salaries, and the remaining 10 p.c to miscellaneous.”

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