8/4/2019 14094734 Make a Fortune While Still Young

1/1

www.easterneye.euEASTERN EYE April 3, 2009

taa bo warnof job u hra

lse in ak wih

mcx-sx bour

business

loo to inda,uk frms tod

COMPANIES are increasinglybeing told to direct their at-tention towards India as one

way of countering the worstdownturn in the global econ-omy since the 1930s.

Sir Richard Stagg, BritainsHigh Commissionerin India,advised business leadersinYorkshire toseek out oppor-

tunities there, while a16-strongbusiness delega-tion from Northern Ireland isin India on a trade mission.

At a meeting hosted by theUK Trade and Investment(UKTI) and theUK-IndiaBusiness Council (UKIBC)last Friday (27) in Leeds,SirRichard talked to 14 localsmall and medium sized en-terprises about opportunitiesin India. Sir Richard said: Inthe current international cir-cumstances, we believe thatIndia will offer opportunitiesto firms. My message is thatUKTI stands ready to help.

THREE young entrepreneurs have joined aninnovative campaign to help others likethem buck the recession and set up suc-cessful businesses.

Each is leading by example as ambassadors forMake Your Mark, a government-funded not-for-profit organisation set up to encourage an optimis-tic business attitude.

Priya Lakhani, 27, bagged the Enterprising YoungBrits Award last week for catapulting her range oftraditional Indian cooking sauces, Masala Masala,into shops and delis across 30 countries within justseven months.

Raj Anand, 26, runs a successful social network-ing software business called Kwiqq, and ImranHakim, 29, is best known for bagging 140,000 onDragons Denfor iTeddy, a digital soft toy for kids.

What are some imaginative ways to acquire fi-nance in this economic climate?

Priya: There are options: family investments (loansor equity); entrepreneur awards; venture capital inthe form of business angels; grants (specifically lookat local government); or one could always bravethe Den!Raj: Traditional sources like banks and businessangels (investors) are drying out. My top advice

would be to seek micro-finance, whereby entrepre-neurs collect small investments from family andfriends. This not only provides seed money for thebusiness but also raises awareness and publicity.Imran: Instead of seeking a lot of money upfront,look for third party relationships. Find prototypecompanies and give them a percentage of the busi-ness. This not only subsidises costs but also getsthem a bit more hungry for your project to succeed.

What would you say is the best way to recession-proof a new business?Priya: Firstly, ensure that your business is not reli-ant upon a buoyant economy and that there is amarket for your product or service even in thesetough times. Secondly, although a cliche, remem-ber that cash is king. Key considerations are avoid-

ing unnecessary and, most importantly, long-term

commitments, and trying to secure advantageouspayment terms.Raj: Its important to have a strong offering for cli-ents and a robust business plan. Businesses whichcan bootstrap and make revenues from consultingor servicing with minimal expenditure upfront willemerge as winners.Imran: Businesses that fail to change will fail. Look

at your existing revenue model and be honest. Is itstill relevant? If not, walk away from it. You cantafford to be emotional and prolong the pain. We

are in unprecedented times, when all textbookdefinitions of business have gone out the window.

What is the secret of making a success of a newbusiness in a recession?Priya: There is no secret. Work hard; make sure

your product or service is something people want;focus on price; and do not assume financing will beavailable soon. But importantly, any business fail-ure in this environment should be thought of as alesson learned as opposed to an outright failure.Raj: I recently read that the winners from the lastmajor recession in 1920 were companies which in-creased marketing budgets instead of cutting them.So the real secret of succeeding in this recession isto shout about your company from the rooftops.Imran: Research, research, research. Make sure itis not just you saying your model is great but othersalso saying it. And take action. Only 10 per cent isabout having a good idea. Ninety per cent is actu-ally going out there and doing something about it.

One reason why young entrepreneurs should notbe put off starting up?

Priya: This environment has the benefit of offering

relatively low overheads for a business start-updue to excess supply in most areas other suppli-ers need your business right now, so its a goodtime to negotiate.Raj:While many of the established brands are col-lapsing due to lack of innovation, there is definitelya gap in the market for people who are willing to dothings differently. Innovation is the need of thehour and young people have the advantage ofthinking differently.

Imran: It is tough out there, it is a challenge, but itis not impossible. You have to work that little bitharder. It is an excellent time for entrepreneurs

because they can start with a blank canvas at atime when capitalism has fundamentally failed us.

How does your business model stand out fromothers in this climate?Priya: Masala Masala is a new company whichonly started trading seven months ago. We supplyfresh, authentic Indian sauces to the market andrecently launched in Waitrose and Ocado.com.Raj: Kwiqq is a talented team of developers special-ising in building websites that include social net-

working features. A major part for the success isour focus on customer service and partnering up

with them to solve a particular problem. We supplya niche product and have expertise in deliveringthat at very high standards.Imran: iTeddy has been a roller-coaster. We started

with a blank piece of paper and are now in 45countries and at all major UK retailers. We havecarefully looked at the model and put off the farsuperior version till next year to focus on develop-ing the current product and brand.

The A-Z of funding is available at www.makey-

ourmark.org.uk

10

TATA chief Ratan Tata has warnedthat jobs cuts will take place at Jag-uar Land Rover (JLR) unless theBritish government intervenes.

In a rare British interview to SkyNews last Tuesday (24), he said:Job cuts will be made unless thegovernment can guarantee 500million in loans to the company.

He said the firm needed a multi-million pound loan guarantee, add-ing: If funds are not available, acompany will not be able to run. Soredundancies will take place.

Tata said the company neededthe guarantees so that it could con-tinue with its daily operations.

The government has yet to pro-vide any assistance with loan guar-antees but is involved in reviewingthe parlous state of Britains auto-mobile industry.

TALKS are underway which couldlead to the London Stock Exchangebuying a stake in the new Indianstock exchange, MCX-SX.

Business Standardin India re-ported the development, saying aspokesman had confirmed theLSEs interest.

We have a strong commitmentto the Indian market and feel cer-tain that the country will continueto be at the centre of our interna-tional business.

MCX-SX currently offers curren-cy derivatives trading and is await-ing regulatory approval to begin eq-uity trading. Financial Technologiesholds most of the shares.

The Indian company is lookingto sell a significant stake as it has tomeet Indian regulations within one

year of trading.The group is also talking to other

global investors for selling a stake,it said.

MAKE A FORTUNEwhilE sTill yOUNg

The secrets of business success are hard

work, a product people want and price

cuddlY TOY: imran hamwhATS cOOkiNg?: prya laan NETwORkER:Raj Anand

you can set up a successful business despite therecession. Three hotshots tell Eastern Eyehow

by AdiTi KhANNA