Do your homework
By Galawizh H. Rashid - SLEMANI
SOMA Paper - Issue No.34 Monday, November 24, 2008  -   Sunday, December 07, 2008

Market research vital prior to starting any business in Kurdistan.

While it may be true that the Kurdistan Region offers opportunities for any type of business, without adequate market research, the imprudent investor may not fare so well, warns a Kurdish businessman.

“You may think you have what it takes and the best idea ever for a business or a product, but without laying the proper groundwork, it could easily go belly-up,” says Shorsh Salih, who owns Zara Supermarket, a café and a gymnasium in Slemani.

“Not only do you need to size up the competition, you need to identify who will buy your product, how much it will cost, the best approach to selling it and how great the demand for it,” he adds. In their enthusiasm to take advantage of the post-war boom in the Kurdish region, some overzealous investors do not always take the necessary precautionary steps required for starting up a business anyplace, let alone in the semi-autonomous, relatively peaceful region of a war-torn country.

Salih believes that if the would-be investor cannot be bothered to carry out a proper market research plan, then it is imperative that he pay a specialist to do it for him. “A market research plan will provide thorough examination of how well your product will fare in a designated area,” he says.

Salih, who fled to Sweden nearly 20 years ago, returned to Slemani in 2003. His experience in Europe taught him not to take shortcuts with things that should be done right the first time around. “Having worked for about 20 years in Sweden, I know what it takes to be a businessman and be successful,” he says.

“But for doing business in the Kurdish region in particular, I believe the best resource for any businessman is the KRG [Kurdistan Regional Government]… If there is one thing the KRG is good at, it is churning out information - much of which you can use to pinpoint social, economic and business trends.”

Salih decided to return to his hometown in 2003, after the US-led invasion (or liberation). Living abroad for so many years, he says he had always harbored the dream of one day returning to his homeland. It was this dream and his patriotism, which finally pushed him to leave everything behind in his adopted country and return to Kurdistan to do his part to help rebuild.

Across from Parki Azady (Freedom Park), he has opened the Zara Supermarket, Café and Restaurant. Speaking with SOMA Digest, he shares his simple and straightforward philosophy in business. “I train my staff well and prepare them for my business, because my number one rule for success in business and in life is to help others achieve their goals,” says Salih.

“If I succeed in that, I figure my business will mostly take care of itself.” Keeping the best employees in town will also require incentive programs and other forms of recognition along with benefits such health care, “although they don’t have such programs here yet,” he says. “But I do my best to secure my employees well being and health.”

According to Salih, the two major obstacles that business is facing today in the Kurdistan Region is power shortage, and difficulties involved in transporting goods across the borders: “Importing is causing a lot of headache because of the neighboring countries, which seem to try their best to make life difficult for any businessman.”

Moreover, Salih believes that the KRG is not paying sufficient attention to local agriculture: “I think the KRG does not give enough encouragement to farmers or businessmen in this domain. Any businessman trying to get into this business should be an expert and have a lot of experience.” Salih also lends his voice to the growing criticism of the government’s bloated workforce.

“If I have a project and it needs five employees, then I will only employ five. There is no reason for me to have more people just sitting there doing nothing,” says Salih.

“I can raise the wages of each of my employees may be twice a year or any time they do a good job, I can add a bonus or pay the employee overtime. These are all for benefit of my employee and to encourage them to do a good job. I believe in the theory that a happy employee yields good work, and good work leads to prosperous businesses. This is something the government should begin to catch on to... The private sector can offer alot of lessons in efficiency.”