SMEs play a pivotal role in the nation’s economy. As entrepreneurs running an SME is often the sole player, he or she has to look into every aspect of the business and often comes across unavoidable hassles. The best way to avoid the pitfalls in business is to move slowly and carefully. Here are some insights which will help small entrepreneurs in running a successful business.
For any entrepreneur, it is crucial to understand that not all home-based SME businesses need an official business plan, but every home based business owner should spend some time planning the business workflow. Because without proper planning from a big to micro business may fail. It is important to decide at the early stage how much money needed to invest (and in what), goals (short- and long-term), marketing plan etc.
2.Find a Co-founder – a suitable one
It is very necessary that the entrepreneur should have eagle’s eye vision of the business. For a sole founder, it becomes challenging to take care of every aspect of business in that scenario the founder can look for the co-founder. “If you find it challenging that's the time when you need a co-founder,” Travis Kalanick, co-founder, Uber said. The work of a founder in the initial stage is huge and very stressful. “It is very lonely so better to have 2-3 co-founders to share the work pressure but if you can handle single-handedly then it is great”
Entering a new market means bringing a product to a market. Before launching a product it is essential to look for the market. Market analysis is very important as it will give an idea about the demand of the product and options available in the market who is fulfilling the requirements. Those requirements might be legal, but also cultural and highly related to pure marketing activities. Having a good knowledge of marketing helps SMEs to launch a product or enter into a new market. Varun Seth co-founder of crowdfunding platform Ketto said, “Without proper marketing of products or service one cannot raise funds like same way without proper marketing a business can’t survive.”
Exporting of SME goods and services is emerging these days. Exporting goods are the first step for an SME towards growth. Ajit Vora, General Manager, Shah Rolls and Forged Pvt Ltd said, “Export is the only way through which Indian SME industry will get the new dimension in growth.” He further said that with the exposure of the global market the SME entrepreneurs will able to enhance the competitive market. The government should empower the Indian SME entrepreneurs by enhancing the marketing skills, which will help them to compete globally.”
5.Backup and Sustainability
A business ecosystem is very much unpredictable. So for every circumstance a business person should always be ready to fight back with a backup plan. As Travis Kalanick said whether a business will be a hit or flop will depend on how the entrepreneur executes the noble idea and that is where the question of sustainability arise. To sustain in a business a backup plan is need as well as the resources. For example, in the recent Chennai flood, lot of SME entrepreneurs lost their business because the lack of the backup continuity plan. So backup plan for sustainability is the need of the hour.
Picture Courtesy: Arte Ram (freeimages)