Opportunity

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.

A new online multi-player game has been launched by the Future Institute in Menlo Park (Silicon Valley) called SuperStruct:

….the world’s first massively multiplayer forecasting game. By playing the game, you’ll help us chronicle the world of 2019–and imagine how we might solve the problems we’ll face. Because this is about more than just envisioning the future. It’s about making the future, inventing new ways to organize the human race and augment our collective human potential.

By getting involved in a massive social networking experiment through blogs, forums, videos, wikis and other Web 2.0 tools, the games aims to get you involved in the chronicling and shaping of the world of 2019.  game starts with a doomsday premise:

The Global Extinction Awareness System, a supercomputer that accurately predicted the extinction of red squirrels several years ago, has run the numbers for our own species through the computer, and our odds of survival aren’t good. According to GEAS, Homo sapiens may go extinct by the year 2042.

According to Discover magazine this isn’t just a chance for gamers to flirt with the dark edge of disaster; they’ll also be participating in a cutting-edge experiment that tries to harness the wisdom of crowds for a higher purpose. Superstruct is what the Future institute calls the world’s first “massively multiplayer forecasting game.” The Institute for the Future doesn’t like to put it this way, but it’s essentially trying to use crowdsourcing to predict the future….visit SuperStruct.

If you are a designer, inventor or environmental genius and have never heard about the “Live Edge” award then it may just change your life. This competiion offers an award of $100,000 and “to enter, your design must be original and innovative, use electric and/or electronic components, and positively impact the environment, such as by increasing energy efficiency or reducing carbon emissions.” The submission for this year’s awards start on 1 October - to find out more visit Live Edge.

Brewster Kahle: A digital library, free to the world

This great video from TED shows Brewster Kahle, inventor and librarian, talking about his universal free library for everything ever written, filmed or recorded….yes, utopian open ideas can still exist in today’s consumerist word - thank god!

Sony Playstation plans to launch a Hanuman game for PS2, Ramayana on NDTV Imagine propels the network to top 3 status, Star Plus is about to launch a hip and cool version of Mahabharata and now Bollywood is about to embark on its first Mega 250cr Epic. Following in the footsteps of Lord of the Rings, Chronicles of Narnia and Harry Potter, the Indan Film industry - not to be outdone of course - is about to produce its first “Mega” mythological epic - and you should have guessed it - its going to be the Ramayana! The film, scheduled for release in 2010, is being produced by UK NRI Group Pyramid Saimira Group and directed by our very own Raj Kumar Santoshi (Halla Bol, Khakee and Bhagat Singh.) Good news is that lots of new jobs coming up for CGI experts, fashion and set designers, actors, musicians, extras and marketing types. More details here.

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

Creativity was always considered to be the domain of Mumbai, Ahmedabad or Kolkata. But now Pune is set to join the ranks of design school centered cities with the launch of the new International Institute of Industrial Design, Gaming and Animation. According to the Business Standard:

In a bid to tap more than 80,000 jobs that would come to Indians through outsourcing in animation, gaming and industrial design sectors over next three to four years, the France-based Chamber of Commerce and Valenciennois (CCIV) has joined hands with Pune-based DSK Group to launch the International Institute of Industrial Design, Gaming and Animation in Pune.

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.

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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.