If you are running a business, then you know that there is no fixed formula for success. There are different strategies that can be put into practice. So, what are the growth strategies of a company? There are several factors that can define growth for MSMEs. Having a well-designed business plan and support of the government are factors that support growth.
Although the government has favorable policies for MSMEs in India, many MSMEs are unaware of the schemes launched by the government. Apart from that here are few strategies to promote the development of MSMEs in India. The article highlights ten strategies that can help any MSME to grow their business.
Strategies To Promote the Development of MSME in India
1. Make the right business plan
There is no fixed business plan format for MSMEs. You can take a step at a time and make a robust annual business plan. It may include aspects like market analysis, competitor’s analysis, revenue goals, expansion plans, marketing plan, new product releases, etc. It acts as a clear roadmap for the company and employees.
In order to get further clarity, the annual business plan can be broken down into smaller goals. For example, your plan can include an overall goal of reaching ₹50 crores revenue in the coming year. In that you can make a business plan to achieve the same. It may include what percentage of growth are you expecting, from which markets, plans of expanding in new markets, marketing plans, deployment of sale force, etc. Also, you can further break it down to smaller targets for each quarter of the year.
2. Formulate a marketing strategy
It is extremely important for a business to formulate a marketing strategy for the whole year. It has to be aligned with your business plan.
First step to formulate a strategy is to identify demographics of the customers and understand their behaviour. Accordingly, you can target them on digital platforms. While conventional advertising is for masses and expensive, digital marketing allows focussed approach in a pocket-friendly way. Additionally, you can also undertake marketing activities such as participating in relevant trade fairs, advertising in industry specific magazines, and blogs, etc. for reaching your targeted audience.
3. Networking is an important aspect
Finding opportunities to network is crucial for the business. You can gain several important insights from networking – market trends, upcoming technologies, challenges, possible solutions etc. As a result, it is a good idea to participate in knowledge sharing platforms such as webinars, conferences, seminars, panel discussions, etc. Additionally, by participating in trade fairs, you can meet your suppliers and customers and seek their feedback. This can turn out to be vital for growth of your business.
4. Take advantage of the government’s MSME schemes
There are various steps taken by government for MSMEs growth – offering financial support through subsidies and loans is one of them. As a business owner it is important for you to identify suitable schemes for your business and take of advantage of them. Some of the examples of MSME subsidy schemes include Credit Linked Capital Subsidy Scheme for Technology Upgrades, Financial support to MSMEs in ZED certification scheme, Credit Guarantee Trust Fund for Micro & Small Enterprises, etc. Likewise, the government has also launched several loan schemes for MSMEs. You can gather information about them and seek support for growing your business.
5. Participate in government tender opportunities
One of the ways to attract more business and grow is participating in tendering process. The central and state governments announce the requirements of various products and services through GeM or CPP portal. You can register your business on these portals to find a relevant tender for your business. Alternatively, you can also use Tata nexarc’s Tenders to browse through government tenders and participate in the bidding process. One of the important advantages of winning a contract is that it ensures business for the specified term. So, bidding strategically can help you take your business to next level.
6. Go beyond traditional sales channels
While conventional ways of selling include distributorship, franchises, presentation and demonstration directly to customers, nowadays new streams for selling channel are gaining popularity. These new ways of selling include use of ecommerce platforms, WhatsApp and social media platforms such as Instagram. Having a digital store on the popular ecommerce marketplace like Amazon can also help you gain traction and widen your horizon. Hence, consider these new streams of making sales.
7. Technology adoption is important
Whether you are a manufacturing company, or a service provider, technology and automation is playing a critical role across industry segments. Depending on the industry you cater to, you can adopt digitalisation to improve efficiency and enhance productivity. Apart from core functions of the business there are many activities which can be automated. Furthermore, technologies such as artificial intelligence and machine learning can help you in day-to-day mundane activities.
For example, chatbots can handle simple customer queries and customer support staff can handle invest their time in more complex queries and feedback. Moreover, chatbots can be made available for 24×7 while human staff can work only for specified hours.
8. Upskilling is important
As you upgrade technologies in your company, it is important for your employees to get familiarized with it. This can be done through training programmes and courses. Additionally, courses related to compliances, leadership, cybersecurity, data science, etc., will help your business in long run. Moreover, a course on handling digital transformation is one the relevant programmes. It trains dedicated employees to drive the change within the organization and handle disruption. You can allocate some budget annually for upskilling and depute respective concerned employees to undergo these courses.
9. Collaboration is key to growth
In today’s age, collaboration is extremely important. No small company can work in silo and grow. Hence, it is important to collaborate with other MSMEs. You can identify each other’s strength and complement it. Alternatively, forming alliances and joint ventures for R&D, technology exchange, etc. can be ideal ways to grow your business.
10. Being environmentally responsible helps
Nowadays, many customers embrace products from companies that are environment conscious and vice versa. If customers realise that your company is not caring enough, event after your products being okay on all other parameters, customers can still reject them. As a result, it is essential have a right reputation.
To sum up, growth strategies of MSMEs differ from a company to company. It depends on the management’s vision, company’s culture, industry it operates in, and several other aspects. To take leap into the future, it is important for you to understand what is right for your business and move forward.
Pradeep a SEO professional and passionate content writer who loves writing on various topics with 5 years of experience. At Tata nexarc, it has been 4 years since he is helping MSMEs to know the business challenges deeper and strategies to solve those. While not writing, he loves reading about digital marketing to hone his skills for business growth.
