Business Model of Hadrat Abdur Rahman ibn Awf(RA):


Hadrat Abdur Rahman ibn Awf (RA) came to Madinah empty handed. This literally means that he might not have any "capital" or he might have started his business with "whatever little resources he had". A question arises: Why didn't Abdur Rahman ibn Awf(RA) at least borrow some money from his ansar-brother?   It seems he never bothered about the "capital" for his business. (One thing which should be studied is whether he purchased his business items on credit basis or not?).

After sometime when he earned and could save a "nuwat" of gold, he got married immediately. He could have kept that as his capital to increase his business base and postponed his marriage. He didn't do that. Why? Later when the Prophet asked for donations for the battles from the Companions, Abdur Rahman ibn Awf(RA)  would give everything leaving behind only the promise of the Prophet in his house. Literally this means exhaustion of his capital. So we can say capital was not important for him. But confidence in one's business talents matters much!

Why did he ask his ansar brother to show him the market? Just to "know the place of business"? No! He would have probably asked this to "study the market". He went to the market and studied for himself. That is direct study!   Probably he would have observed – the things which are sold, the customers, the business people, methods of business, the demand for various things, customer frequency etc., . 

From history we study that clothes, butter, wheat, flour, utensils, perfumes were sold in Madinah. He had to choose between. He chose butter. Three questions may be raised? Why did he choose butter business in the beginning? Why did he select only one product in the beginning? Why did he start his business only as a small scale? 

And three lessons for any beginner: Why butter? It is a food product. Think of it. Why only one? Concentration will be more on the quality. Why small scale? To take only calculated risk. Further if you start your business in a small scale –the big shots will not consider you as your rival!   You can establish your customer base before your rivals starts consider you a potential competitor.

Later Abdur Rahman ibn Awf(RA) became a very big businessman. To sell only butter? No. He brought in to Madinah what ever the people needed and exported whatever was in excess. How was this possible? Here we can think of his "brand". Once he established his brand for butter – then selling other things would have been easy for him.   It is as if selling toilet wash with some "cola-brand".

Who were doing that business before the arrival of Muhajirun to Madinah? It would have been either Jews or Arabs. But most Arabs were only farmers! Then if they were Jews- we know about Jews business. Monopolizing, doing fraud etc., Abdur Rahman ibn Awf(RA) would have broken that monopoly of the Jews. How? By Islamic ways of integrity and ihsan in his business dealings. Then we can think of his brand too. Did he bring any Makkah brand of butter for the people of Madinah to be substituted for any Jewish brand at that time?

He had the personal blessings of the Prophet(SAW). Further his sadaqah would also have played its role. (1:700 or more). He said about his leverage thus: "If I lifted a stone I expected to find gold or silver under it!"

Allah knows best!

Comments