3 Main Business strategies of Abdur Rahman Ibn Awf (RA)
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Abd al-Rahman ibn ‘Awf’s (Radhiyallahu Anhu) narrative
The narrative of Abdul Rahman bin Auf (Radhiyallahu Anhu), the richest Sahaba, explains his economic technique that allowed Abd al-Rahman ibn ‘Awf to amass such a large fortune.
Abd Al-Rahman ibn ‘Awf (Radhiyallahu Anhu) was one of the earliest Muslims. He is one of the ten persons who Prophet Muhammad said would enter heaven (Sallallahu Alayhi Wasallam)
Abdul Rahman Bin Auf’s Net Worth (Radhiyallahu Anhu)
Abdul Rahman bin Auf R.A had a net worth of 3,103,000,000 Islamic Dinars (3,103,000,000 – 4.25 gms gold each coin) when he died. If the entire wealth is converted to USD, Abd Al-Rahman ibn ‘Awf R.A R. 4.25 X 3,103,000,000 X 46 = USD 606,636,500,000
As of July 2019, Bill Gates has a net worth of $104 billion, while Abdul Rahman bin Auf (Radhiyallahu Anhu) has a net worth of $606 billion.
Abdul Rahman bin Auf (Radhiyallahu Anhu) was 6 times richer than Bill Gates, according to his storey. Ever wondered what Abdul Rahman bin Auf R.A’s business approach was? How did he amass so much cash? Because he was the son of a successful merchant, ‘Auf Bin ‘Abd ‘Awf, his rich background was well known.
Abdul Rahman bin Auf (Radhiyallahu Anhu) was a well-known businessman.
Abd Al-Rahman ibn ‘Auf (Radhiyallahu Anhu) was a commercial sensation; his father recognised his potential early on when he took him to business meetings. He quickly rose to prominence as the most successful entrepreneur of his era.
When Abdul Rahman bin Auf (Radhiyallahu Anhu) arrived in Madina following his migration, he had left all of his possessions in Makkah and had no money, so he had to start from zero. Almost 70 Muslims with their families migrated to Madina in 622 AD.
It was summertime. They resided with the Ansar in their homes in Madina until they could find their own.
Sa’ad Bin Ar-Rabi’ah was coupled with Abdul Rahman (Radhiyallahu Anhu) (Radhiyallahu Anhu). He was one of Madina’s wealthy men.
Abdul Rahman bin Auf (Radhiyallahu Anhu) turned down a gift of a farm.
“Dear brother, I have the most money among the people of Madina,” Sa’ad (Radhiyallahu Anhu) said Abdul Rahman (Radhiyallahu Anhu) at the moment, with big-heartedness and goodwill toward his new brother. I’m married to two women and own two farms. See which farm you like; I’ll empty it for you, and I’ll divorce the more attractive of the two wives.” It is the Muslim community’s wonderful display of affection for one another.
Sa’ad Bin Ar-Rabi’ah was willing to sacrifice his fortune and family for Allah’s pleasure and to donate it to his Muslim brother. Many Muslims accepted the divide handed to them by their Madina Muslim brothers, but Abdul Rahman bin Auf’s (Radhiyallahu Anhu) reaction was particularly amazing.
It will give you goosebumps, and you will fully realise and respect a Muslim’s decision. “May Allah bless you with your family and money, but show me the route where the market is,” Abd Al-Rahman ibn ‘Awf (Radhiyallahu Anhu) said to Sa’ad Bin Ar-Rabi’ah (Radhiyallahu Anhu). He was discussing “Qainuqa’s market.”
Abdul Rahman bin Auf (Radhiyallahu Anhu) never took a loan in his life.
Abd Al-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.
Abd Al-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 bin Auf (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 bin Auf (Radhiyallahu Anhu) began his trading profession in a humble and self-effacing manner, but he was quick to scale the opportunities he discovered and turn them into a successful trading career. He began by selling yoghurt (dried buttermilk), oil, and butter.
Abd Al-Rahman ibn ‘Awf (Radhiyallahu Anhu) began with only 4 Dinars in his pocket.
Abdul Rahman bin Auf’s (Radhiyallahu Anhu) business began with a capital of 2 or 4 dinars, from which his net worth grew to $605 billion. 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.
When you have cleanliness and purity in your heart, you are honest in your trade, and you know how to measure or scale correctly, a brighter future becomes a reality.
Allah Ta’ala blessed Abdul Rahman bin Auf (Radhiyallahu Anhu) from the moment he started his own company in the market of Qainuqa in Madina.
Business Strategy of Abdul Rahman bin Auf (Radhiyallahu Anhu)
Abdul Rahman bin Auf’s (Radhiyallahu Anhu) business approach is built on three main ideas.
- Using Cash
Cash is the most important principle in Abdul Rahman bin Auf’s (Radhiyallahu Anhu) business strategy. He constantly paid cash for products and sold them for cash. (There are no credit deals)
- Never stock anything or wait for a greater profit.
The second component of Abdul Rahman bin Auf’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 bin Auf’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 par or if there was even a minor flaw in it.
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