the question is: can david be goliath? an overlook of small business in indonesia

9
HOW YOU GONNA HELP UKM Part II Part II By Dipo Aji Nugroho

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Forget about defeating the bigger enemy. Yes david CAN be goliath. There is a way. [email protected]

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Page 1: The question is: can david be goliath? An overlook of small business in Indonesia

HOWYOU GONNA HELP UKMPart IIPart II

By Dipo Aji Nugroho

Page 2: The question is: can david be goliath? An overlook of small business in Indonesia

See howSee how DuluxCatylacDuluxCatylac Paint is madePaint is made

Say you go to an iron shop (Toko Besi) anddecide to buy a galon of Purple Paint

• The shop would then do this steps:

Purple Paint

• The shop would then do this steps:

• Bring a galon of basic WHITE paint

• Open the hatch

• Place the galon under PAINT Dispenser

• Pour the color ingredients by percentage (blue,dark green, etc)

• Blend the ingredients with mixing machine

There you have itThere you have it

• Turning basic color into desired one. The one you’dhave in MIND

• Proved to be more efficient rather than buying apre-colored paint

• Numerous COLOR selections

Page 3: The question is: can david be goliath? An overlook of small business in Indonesia

CSR #1

CSR #2

CSR #3

Company #1

Company #2

Company #3

Each UKM needs differentProfessionals

Similar Model

The Office

SkilledProfessionals

Professionals

Professionals hired & get paid byThe Office

Run under CSR Fund. Companiesmay have UKM’s share

UKM #1

(Paint Dispenser)

Different Doze

Ingredients for UKM #1Red: 25%Blue: 15%

Yellow: 50%Green: 10%

may have UKM’s share

Page 4: The question is: can david be goliath? An overlook of small business in Indonesia

Why should we do this?Why should we do this?Let’s say a seed level UKM haspotential products and has noplace to turn to.place to turn to.

Do you think he has to make it tosurface first to get attention?

We surely do not want him todrown just like that.

Because we don’t know for surehow he swims. UKM can be:

Beginner• Beginner

• Fast learner

• Only read “how to swim” books

• etc

Last but not least, they havehuge SPIRIT

Give him money so he can “swim” ?We all doubt that.Money is only part of the issue.Basically he needs all the HELP available

Page 5: The question is: can david be goliath? An overlook of small business in Indonesia

UKM survivalUKM survival

From the ones who make

Rp.2jt / month

Up to > Rp.200jt / month

But who could survive in thelong term? Well organized UKM Know how to control the

financials Continuous innovation Continuous order Continuous order Good marketing Wide network Able to market the brand Have standard in product quality

But who couldn’t survive?

Page 6: The question is: can david be goliath? An overlook of small business in Indonesia

Bricks andWallsBricks andWalls

Fire walls, brick walls, sand traps areeverywhere in forms such as:

1. Huge order this month, no ordernext month.next month.

2. Excellent sales, no savings.

3. One man show (happens a lot).Should anything happens to him,then what?

4. Got the bank loan, paid the debt.Still no money left.

5. Good product, slow sales.

6. Only know how to make the6. Only know how to make theproduct, don’t have a clue how tosell it.

Next thing he knows, a copy of hisproduct is seen elsewhere. Differentbrand of course. Btw, did he brand it?

Page 7: The question is: can david be goliath? An overlook of small business in Indonesia

AAClassic Story…butTrueClassic Story…butTrueA particular UKM in Bandung specilized inmanufacturing Gift bags, Cute boxes.

Entirely made from carton.

Excellent quality. Very affordable price. Headto head with “Rumah Bagus”.

Started since 1997

???

Clients ranging from small to big companies(Medco, BCA, Telkom, etc).

Big order from month to month.

Good pay from clients.

But still:

- Little money left each month.

- Hardly keep financials right.

- One man show. If he got sick, then itstopped for a while.stopped for a while.

Problems:

- Money paid from customers easily passesthe piggy bank. “Household first”, says thefather of 5.

- Loan after loan from banks.Only able to pay-up the interest.

- Never changed a bit for the last 13 years !!

- Sadly they had to sell the house just to fulfillends-meet.

There are tensof thousands

like this

Page 8: The question is: can david be goliath? An overlook of small business in Indonesia

There are more andmore unique casesmore unique casesremain unsolved.

To date, it appears UKMsare treated equally. Butthe fact is they each hasthe fact is they each hasdifferent “Color”.

Page 9: The question is: can david be goliath? An overlook of small business in Indonesia

Visualize It!Visualize It!

The Office you create would executeas the right hand of CSR Funds.

• Appointing best professionalsavailable related to UKM in needavailable related to UKM in need

• Hired and paid to asisst UKM

e.g:

1. UKM #1 would require:

Organizer expert

Sales professional

Simple financial plannings

2. UKM #2 shall need:

Design professional Design professional

Inventory consultant

NPD manager

It’s obvious they have different “groceries”.

The professionals in-site are always #1 UKMbest buddies.