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One idea, one customer and even one person can be the beginning of a business. Creating that small beginning to become a business is another challenge.
For many business owners, the majority of their time is spent trying to acquire new business. However, sustainable business growth is more than just a growth of sales. It involves knowledge of customers, product improvement, building a strong brand, taking care of finances, technology and systems that enable enterprises to cater to an increased number of customers without compromising on quality.
The journey of growth for Indian startups, MSMEs and small businesses can be significantly different. One company in the region might want to expand to another city, another might want to ramp up web sales. It's all about the same objective: to create a business that can expand in a sustainable manner.
Even startup India has divided the startup journey into various stages from market entry to early traction, to scaling and provided support at different stages.
So, how to build a business in India?
Let's take it apart and see how it works.
What is Business Growth?
Business expansion involves enhancing the size, scope or power of a business as it expands over time.
There are a number of ways that growth can occur:
- More customers
- Higher sales
- New products/service
- The need to identify new markets to target.
- More employees
- Better profit margins
- Stronger brand recognition
- Improved business systems
- Repeat customers
But that doesn't necessarily mean more offices or a big staff.
The ability to grow small business monthly revenue without increasing costs may be a significant growth to them.
The Ministry of MSME also aims to support the businesses with enhancing their competitiveness, securing support, achieving sustainable growth etc.
Also Read: How Small Businesses Are Turning Into Bigger Brands
Business Growth Strategies for Indian Businesses
The business has a set of practical growth strategies which can be implemented by the Indian business.
1. Understand Your Customer Before Trying to Grow
A frequent company mistake is attempting to market to everybody.
Rather, first get to know your ideal customer.
Ask:
- On an ideal level, who is going to buy my product?
- What is the issue or concern it addresses?
- Why do you think people would want to visit my business?
- How much will customers pay for the product?
- What are the complaints that the existing customers have?
For instance, if a small clothing company starts out selling to all customers. However, it is able to learn from its customers' behavior and find that the majority of customers are young professionals who are searching for cheap workwear.
That information can have an impact on product choices to marketing.
Understanding the customer should be achieved first, and then expansion.
2. Develop a strong online image.
Consumers tend to look into the internet first, before reaching out to the company.
A small local business can get advantages from having:
- A professional website
- Google Business Profile
- Social media pages
- Provide product/service information that is easy to understand.
- Customer reviews
- Easy contact options
- Useful content
Digital tools can facilitate the reach of MSMEs and start-ups to customers beyond their vicinity.
Digital Startup India is geared towards supporting businesses to share their work, find opportunities, network with businesses and get access to practical resources.
Your presence online doesn't have to be too complex. It must be clear, reliable and periodically updated.
3. Concentrate on Repeat Customers
Acquiring new customers is just one aspect of growth.
Retaining their current customer base can provide a better base for an organization.
There are ways a business can help entice repeat purchases, including:
- Good customer service
- Consistent product quality
- Loyalty programs
- Personalised offers
- After-sales support
- Regular communication
Picture a customer places an order, and gets a great experience out of your business.
But as long as you are able to stay in touch and add value, you might get that customer to come back multiple times rather than just once.
The return of customers increases sustainability of growth.
Also Read: Startup Ecosystem in India: From Idea to Growth
4. Use Digital Marketing Wisely
It is not essential that you have to have a big marketing budget to begin to create visibility.
Depending on the business, entrepreneurs can use:
SEO:
Produce valuable pages and articles that are displayed when customers search for the associated subjects.
Social media:
Have a go at posting products, educational material, customer stories and backstage happenings.
Email marketing:
Maintain communications with current customers and provide helpful information and/or offers.
Content marketing:
Be ready to answer the frequently asked questions of customers.
Its key not to be everywhere.
Select the platforms that your customers are on.
5. Improve Your Product or Service
Expansion brings out the strengths and weaknesses of a business.
When 20 customers are tough to deal with, how would you deal with 2,000?
If you are considering making a dramatic boost in your performance you should check out:
- Product quality
- Delivery time
- Customer support
- Packaging
- Website experience
- Payment process
- Return policy
- Complaint handling
Seek the opinions of customers and find recurring issues.
Sometimes it's not about creating something new that grows the best. It is aiding improvement of the current product.
Also Read: How Founders Find the Right People
6. Track the Numbers
Measuring business growth is not just based on revenues.
It's important for entrepreneurs to know:
- Monthly sales
- Gross margin
- Operating expenses
- Customer acquisition cost
- Repeat purchase rate
- Average order value
- Cash flow
- Outstanding payments
For instance, an organization may have a 30% rise in sales, but a higher rise in costs, which may prove to be a problem.
That's why it's important to have profitable and sustainable growth.
Using an easy spreadsheet on a monthly basis to track where money is going and where it is going can help a small business know its cash flow.
7. Use Technology to Save Time
Technology has become accessible for not just large businesses, but small as well.
Digital tools that are low cost can be used for:
- Accounting
- Invoicing
- Customer management
- Inventory
- Marketing
- Communication
- Website management
- Data analysis
- Customer support
AI can also assist in various other activities like content creation, data structuring, data analysis, and repetitive tasks.
The purpose should not be to use the technology because it is in fashion.
But the more important question is:
What repetitive task am I spending my time on and can technology help me?
8. Build Partnerships
It's okay if you're not in the same room as them.
A small business may work jointly with:
- Other businesses
- Freelancers
- Distributors
- Suppliers
- Industry experts
- Startup founders
- Mentors
- Professional communities
A website development firm, for instance, can work with a digital marketing agency, to mention a couple of possibilities. One company accesses a new service to their customers, and the other company has a new group of leads.
Opportunities for networking and collaboration can also be developed through the business communities. Digital Startup India offers business profiles, networking and opportunities to the business founders, MSME's and professionals.
9. Explore Government and MSME Support
It is very important growing businesses are also aware of the support they can get.
If eligible, entrepreneurs can consider:
- MSME schemes
- Startup India programs
- Credit support
- Skill-development programs
- Market-access initiatives
- Mentorship
- Government procurement opportunities
The official Startup India portal encompasses various resources including funding, mentorship, government schemes, investor links, and scaling support.
The Ministry of MSME also keeps records of information on credit, market support, technology and entrepreneurship-development initiatives. But, it's imperative for Entrepreneurs to keep a check on the new terms and conditions of Eligibility on the Government portals before making financial decisions.
10. Scale Only When the Business Is Ready
Growth sounds exciting.
However, overgrown can cause other issues.
Before entering into a new city, launching new products or employing big teams, ask:
- Do you have a high enough demand from customers?
- Is it possible to retain the quality?
- Is there sufficient working capital available?
- Do we have paperwork to show all of our processes?
- Is there more work that the team can do?
- Are customer support available?
- Are suppliers reliable?
The framework of Startup India itself categorises between having traction and scaling which shows that the businesses may require different sorts of resources as they grow.
Scaling should not be an automatic response to increases in sales – it should be a well-thought out decision.
Business Growth Is a Process, Not a Single Strategy
You can't boost your business overnight.It's a process that helps you grow your business, not one trick.
There isn't really any of one size fits all.
Becoming a small retailer can grow by opening up another store. An online acquisition can be used to expand a SaaS start-up. A manufacturer could grow by employing distributors, a freelancer could become an agency by developing a crew.A manufacturer can grow by way of distributors, a freelancer can develop into an agency by way of developing a crew.
The idea is more or less the same:
Understand the customer → improve the offering → build visibility → manage finances → create systems → measure results → scale carefully.
In this digital age, the Indian entrepreneurs could find more resources in the business networks and the entrepreneurial support provided under MSME/MSP scheme, to support them on this journey.
Sustainable growth does not necessarily equate with fastest growth rate. They are the ones who comprehend why they are growing, where the growth is originating from and whether or not their business is capable of sustaining it.
Final Thoughts
Small start-up companies don't always need to invest in huge amounts for business to grow.
It may begin with just one improvement.
A better website.
A stronger product.
A new set of customers.
Better customer service.
A useful partnership.
An enhanced finance system.
These small enhancements can build up a better course base to support expansion over the years.
The next phase in the growth of a Startup, MSME or small business in India is typically an easy question, “What”.
How can the business get better today that will make it better tomorrow?