Entrepreneurship

Every SME is looking for unsecured funding to help seed, restructure or grow their business - especially in a tight economy like today. One of the true unsung heroes of the American dream story for entrepreneurs before this current recession was the role that the Small Business Administration (SBA) played in helping small businesses get funding to grow their businesses. Microsoft, HP and Nike were all early beneficiaries of SBA loans and look where they wound up. This US Federal Government Agency underwrites a loan though a bank so that 85% of the risk is covered. This allows businesses with little or no collateral and assets to secure sizable unsecured loans from a participating bank that under normal circumstances would immediately say no. The good news is that India has its own SBA – its called the CGTMSE – and for some bizarre reason it is one of the best kept secrets around.

Welcome to the Credit Guarantee Fund Trust for Micro and Small Enterprises. Small Indian businesses with feasible business plans but little collateral can get up to Rs 50 Lacs in funding without any security and with the government underwriting 75% of the risk. You will hardly find a bank promoting this actively as the scheme requires time and effort and the bank makes less money on the transaction. But entrepreneurs should know about it as the cost is cheaper and the risk is less. For a one-time fee of 2%, businesses can secure up to Rs 50 lacs with no collateral and no large deposits.

So what do you do now – well first find a partner bank – see the list and all related information at the CGTMSE Web Site or call 022-2564 1803/4/5 – and then go see them, discuss the scheme and push them to process the application. You never know….

Unless you have been hiding under a rock, you would not have failed to notice that the global economy has gone into a spiral with the collapse of major financial institutions in the US, painfully high oil prices and unstable global markets all leading to a worldwide economic recession. The Indian economy too has not been spared for, yes, we do live in a “flat world” where everything is interconnected. We can expect a reduction of growth to under 7%, a dramatic drop in US and European IT imports and outsourcing, a very high interest rate, increased middle class unemployment and a drop in consumer confidence. But is it all doom and gloom or can an SME ride it out and still survive?

While most small businesses will be tempted to button down, cut costs and visit the local astrologer, it may be worth seeing this period as an opportunity instead. Here are a few ideas of how you can thrive in this slump:

Improve your relationship with your existing customers – CRM is one of the subtle  arts that always gets neglected but is never more important than in a downturn. Invest carefully in ideas and systems that will help you keep your customer base connected and reassured. Look at tools like SugarCRM, Saleforce.com and HighRise and see how you can keep your customers near.

Outsourcing from larger players – as the big boys slash jobs and cut costs an opportunity is created for an SME to offer efficient lower cost services for outsourcing from back office to software development and creative services.

Finding new sales channels – while one market tumbles, many more do open up. After the Iraq war started, many Indian companies found work in large subcontracts in the Middle East and elsewhere supplying US and allied troops. While the US may slow down, Europe is still buying and so are Russia and China. Also remember, that in this recession the number of government, infrastructure, and institutional and foundational contracts available for bidding will increase considerably and so a slight repositioning may open new doors.

Improving your branding – use this time to clean up your brand and position it better in the marketplace. Add substance to your website, start a newsletter, launch a Blog, attend conferences and get out there. Now is the time to build more relationships in preparation for the inevitable upturn.

Getting lean and efficient – yes getting lean is very important now but not just by cutting costs or shedding deadwood. One should consider mapping all processes and embracing workflow efficiencies like Lean Six Sigma. Look at every single one of your processes and see how you can improve efficiency, cut out fat and improve performance.

Recruiting real talent – fortunately for you there is going to be an increase in talent available in the market through layoffs and that too at a lower price. Now is a good time to find that MBA or Six Sigma Black Belt you always wanted to hire.

Never stop learning – use this time to catch up on all your knowledge. Get your staff trained in new tools, software applications, process management systems and communications methodologies. There are tons of short courses available across the country to help you improve your own knowledgebase and capabilities.

Here’s wishing you a safe voyage as we ride the waves of this recession.

One of India’s true green architects Manit Rastogi of MD Morphogenesis has just been profiled in the London Guardian newspaper. Rastogi’s work - which includes the hull shaped headquarters for Ernst & Young in Gurgaon - has been recognized for being “cool” in more ways than one…

In a sizzling property market, architect Manit Rastogi at MD Morphogenesis has created some of India’s coolest buildings, using recycled water, wells, wind tunnels and sun screens to chill work places and slash energy costs.
Thanks to his designs, students in a Jaipur fashion school mill around classrooms cooled to around 25 degrees Celsius (77 F) without air conditioners, while the desert bakes at nearly double that temperature outside.
And guests at the Swabhumi Hotel in Kolkata feel a breeze as they step out of a building resembling sliced mushrooms fused together, and inspired by the way trees trap wind.

And then according to the man himself…

“In India’s booming real estate market, there are not enough professionals. And because mediocrity sells, it’s easier to do that,” Rastogi said in an interview in Hong Kong. “Architects are just doing what developers want. If you start taking them down the sustainable route, people start getting nervous,” he said. “They see it as wasted expense.”….
“When they move away from the standard box, we have to tell them it’s more efficient,” Rastogi said. “Many say fine, you’ve convinced us, but how do we convince the market?”

He seems to have overcome these challenges well…read the full article here

Business Week, the international business magazine has done an interesting article - reflecting its current fascination with India as I am sure subscriptions must be climbing here - analyzing the the state of the Indian Graphic Design industry and the growing demand for talent, ideas and education. According to the article by Eliza Williams:

For a designer or advertising creative, India is a pretty exciting place to be right now. Rapid commercial growth has prompted an unprecedented client demand for design and advertising skills, while those creating the work find themselves in the exhilarating position of being able to shape and redefine India’s new identity, both within the country and internationally. All this change has occurred rapidly, however, at a pace that is perhaps too fast for an industry, in graphic design at least, that is still finding its feet. Design is still often misunderstood as a profession, and with a dearth of decent design schools in the country, graduates are finding that they often receive their real education on the job, a position that stretches already overloaded designers even thinner. The bounteous amount of work has also led the lines between advertising and design to blur, with ad agencies, which are far more established and recognised within the country, tackling aspects of assignments more traditionally found within the design domain. And, of course, overseas networks and companies are also edging in, keen to pick up a slice of the action.

Read the rest of this entry »

According to the Business Standard and research firm IDC, the majority of Indian Web 2.0 sites have no real business model and are struggling for both revenues and investments:

It’s a shiny, new dance floor, but how many can dance? The Web 2.0 market in India is still struggling for direction and funding, though the start-up scene in the Indian consumer space has been vibrant. Yet, the number of Web 2.0 companies focused on the enterprise or business space can be counted on one’s fingers.

A majority of players are active in areas like social networking sites (SNS), blogging, and document and multimedia sharing in the consumer space. A mere 12 of the 67 India-focused websites studied by research firm IDC have a clear enterprise or business-driven model to their operations, while 55 have a consumer focus.

Interesting article given the shear hype around the Web 2.0 phenomenon. Food for thought. The reality is that Web 2.0 technologies will become an integral part of doing business on the Web and only a few sites dedicated to exploiting the phenomenon as one will survive. Good luck!

Read the full article here.

In case you ever begin to feel that we creative types could never make it in a really big way or have a real impact on the world, there is comfort in the knowledge that India’s most pioneering and successful entrepreneur Ratan Tata trained as an Architect at Cornell before turning to revolutionize his family’s business. OK, he was given a silver spoon to start with but just look at how big he went and made it…a grand vision from steel to the Nano and Jaguar…Vision….something he picked up in design school perhaps.

While most of the residents of Chandigarh are critical at worst or ambivalent at best about their “modernist” architecture, the rest of the world has slowly been stealing its unknown treasures and making a killing at international auction houses like Christies.

Furniture designed by Le Corbusier and his cousin Pierre Jeanneret - both were responsible for the city’s unique plan and its official buildings and many of its residences - which normally would be considered junk in Chandigarh and sold for a few hundred rupees were fetching prices of over $8,000 in some cases.

According to an article in the International Herald Tribune:

A handful of antique dealers from around the world have become regular visitors to government junkyards in Chandigarh, the experimental modernist city 250 kilometers, or 155 miles, north of New Delhi, conceived by the architect Le Corbusier in the 1950s. They buy up disused stocks of furniture that was specially created by Corbusier’s colleagues to fit out the new city.

The disappearance of large quantities of these distinctive, ultrafunctional tables and chairs - most of them designed by Jeanneret, Le Corbusier’s cousin, for the city’s government offices, courtrooms and colleges - has begun in recent months to alarm architects and some government officials in the city.

Citizens of Chandigarh should wake up to the potential goldmine they are sitting on and begin appreciating their heritage no matter how ugly it may seem to many. The city is suddenly worth millions on the art market.

Read this fascinating article here.

Web 2.0 seems to be the new holy grail for all entrepreneurs and marketers, and while many experts sing its praises, an equal number do predict its demise into enterprise ether. The truth, as always, lies somewhere in-between. But one business area where Web 2.0 certainly has had a major impact is in branding and marketing. This cannot be denied.

Web 2.0 is a broad term that covers all aspects of Web usage or technologies that facilitate collaboration, sharing, online conversations, user-generated content or social networking of some kind. For example, there are over 10 million blogs today and no matter what area of business you are in, someone has probably created a blog about it and someone else is actually reading that blog. (Blog stands for Web Log or Journal or Site that a Web user creates themselves on any subject of their choosing.)

As a brand builder or marketer, ignoring Web 2.0 is ignoring some of the best tools you can find in managing your 360 degree (touching every touch point in your marketing matrix with an appropriate relationship) marketing strategy and your reputation online. Understanding your customer’s buying habits and interests, mapping current trends, getting free feedback and reviews, testing out new concepts on focus groups for free, managing your brand’s reputation through proper message management, distributing viral messages and ideas quickly – what else can a marketer ask for. This is the promise of Web 2.0. However, remember – the opposite can hold true as well – so use these tools carefully. Here are some ideas to help you along: Read the rest of this entry »

A quick survey of Websites considered “GREAT” will reveal that the majority of them were started by small companies or entrepreneurs using limited financing, a lot of sweat and a great idea. YouTube.com, Linkedin.com, Craigslist.com, Flickr.com, Naukri.com and even the big boys Yahoo and Google were once ideas in the heads of individuals or small companies. But, how did these brands become so big and in such a short time.

Well, apart from luck, timing and the presence of angels, all online branding exercises share certain characteristics that differentiate them and make them “great.” In the 14 years I have been designing and studying online and multimedia brands I have come to understand that there are seven steps any entrepreneur can take to ensure success. Read the rest of this entry »

According to the world’s leading Web traffic measurement service Alexa, only 5 of the of the Top Twenty Websites in the Indian Market are indigenous Indian products – the rest are all products of global media giants like Google, Microsoft, ESPN and Yahoo. On the Indian front, the usual suspects Rediff (#5), Naukri.com (#12), IndiaTimes (#14) and Sify.com (#20) rule and one private site DebonairBlog.com (a porn site - #19) lead the way.That makes 4 big Indian brands and 1 porn site!

Further along we have Raaga.com at 24, Bharatstudent.com at 30, SantaBanta.com at 33 and Indian Railways at 37. Good to see some independent entrepreneurs breaking the top 40 ceiling – well done! But there should be many more in the top 40.

So what does this tell us. Well, while it may appear that in the future, the Web in India might be brought to us exclusively by multinationals and large Indian publishing companies, the truth is that what we see before us is a huge opportunity.

The Indian Web market is about to cross over the 60 million user mark this year (25 million active users) and if all predictions prove true, we should have over 100 million active users by 2010 (Nielsen Net Ratings). On the other side broadband home access and the rapid spread of credit and debit cards will help create a vibrant ecommerce market well in excess of the current $1 billion (eStatsIndia.com). This means that the Indian market is ready for a wide range of new service, utility, shopping, leisure and entertainment sites that cater to this upcoming boom. These are heady days for Indian Web Publishers. What’s stopping you?

…Read my next post on branding to help you map out your conquest of the Indian Web market.