The business strategy of Abdul Rahman bn 'Awf

How often are you discovering chances in the market?

Abdul Rahman bin Awf (Radhiyallahu Anhu) never took a loan in his life.

Abdul Rahman ibn ‘Awf (Radhiyallahu Anhu) had a business strategy of not taking a loan or a gift from anyone because he believed that Allah would provide for him and that he could earn money on the open market by discovering chances.

“May Allah bless you with your family and money but show me the way where the market is.”

The above was his response to Sa’ad Bin Ar-Rabi’ah when he offered him a farmland as gift.

Abdul Rahman ibn ‘Awf (Radhiyallahu Anhu) was a talented merchant who had received his training from his father. He was one of the fortunate young men of Makkah who was born with a silver spoon before joining Islam. He’s had so much experience that he can smell and see chances everywhere.

Abdul Rahman ibn ‘Awf (Radhiyallahu Anhu) began his business with modest beginnings.

His desire to search out chances has enabled him to enter the market, apply his business knowledge, and profit from opportunities.

Which enterprises did Abdul Rahman start after joining the market?

Abdul Rahman ibn ‘Awf (Radhiyallahu Anhu) began with only 4 Dinars in his pocket, from which his net worth grew to $606 billion.

He began by selling yoghurt (dried buttermilk), oil, and butter.

He soon discovered that horse-trading had a lot of potential in the market. So he began trading horses, only to discover that the profit ratio in this industry was extremely low due to the large and expanding supply and demand.

Soon after, he extended his business and began selling saddles for horses, which was a considerably more profitable venture than selling horses. Because of the quantities of commodities, saddles, and horses he bought and exchanged, his earnings grew quickly.

Business Strategy of Abdul Rahman ibn ‘Awf (Radhiyallahu Anhu)

Abdul Rahman ibn ‘Awf’s (Radhiyallahu Anhu) business approach is built on three main ideas.

• Dealing with Cash

Cash is the most important principle in Abdul Rahman ibn ‘Awf’s (Radhiyallahu Anhu) business strategy. He constantly paid cash for products and sold them for cash. (There are no credit deals).

One of the easiest ways to ruin a business is selling on credit.

• Never stock anything or wait for a greater profit.

The second component of Abdul Rahman ibn ‘Awf’s (Radhiyallahu Anhu) business plan is that he attempted to avoid storing products and sold them even if he was only paid a penny in profit. It had a high degree of cash flow, therefore the focus was on expanding profits to increase earnings.

• He was always truthful in his dealings.

The third rule of Abdul Rahman ibn Awf’s (Radhiyallahu Anhu) business approach is that he never hides any flaws in his products. He told his customer if his goods was not up to standard or if there was even a minor flaw in it.

Make the best of the opportunities in the market if you're shown the way to it.

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