The Indian SME market is worth $5 billion. Nearly 90 percent of the Indian industrial units comprise of small and medium enterprises. The SMEs contribute 40 percent to the overall industrial output of the country as reported by Indiamart, a prominent Indian e-market company.
Statistics reveal that more than 50 percent of these businesses fail in the first year of their inception.
What is it that contributes to the success of the remaining who continues to do well even when their contemporaries remain on the verge of breakdown?
We studies the growth pattern of some of the successful small businesses and the various factors which contributed to making them a hit.
The Guru Mantras
1. Tap into your potentials: Very often the inspiration resides within us. All that an entrepreneur needs to do is to understand his/her capabilities. An individual might be good at many things but he/she is an expert only in a handful of things. Therefore, it is not mandatory to be good at everything, but being the best in one particular field is the litmus test for an entrepreneur. So, the first and the foremost step is to recognise the inner potential and then tap this potential in resonance with the business ideas. “You have to be naturally talented. It’s a little like art and you have to go with your gut. You either have it in you to be a chef or not,” said Ritu Dalmia, a well-known chef on a blog site.
2. Believe in yourself: Don’t listen to those who say you can’t do it. If you want to be a successful business owner you must learn to trust your own capabilities. You must know how to sell your goods and services for a profit. One of Vinod Khosla's quotes on the website Brainyquotes stated, ''Everybody else is afraid to fail. I do not really care because when I fail, I try something new.''
3. Plan everything: Analyze each business situation, research and compile data, and make conclusions based mainly on the facts as revealed through the research. Business planning also serves a second function, which is having your goals and how you will achieve them, on paper. You can use the plan that you create both as map to take you from point A to Z and as a yardstick to measure the success of each individual plan or segment within the plan.
4. Capital investment is not the order of the day: David Karp started Tumblr without any investments in 2007. Similarly, when someone decides to get into self-regulated business, it is not a fixed notion to always have huge amount of money to invest into it. It is the ideas which help in expanding a business and not finance. “When I decided to start my own company, all I had was my savings, which I had from the part time work I did before. Just those Rs5 lakhs, and I set about realising my dreams, aware that one slip could ruin my prospects, but confident that I would make it and make it big,” said Abhilash B.P, Founder of Packers and Movers on the website Yourstory.com.
5. Strike to exhibit the X factor: The X factor is a term that means someone or something that is interesting, exciting and unforgettable. In business terms, the X Factor is the edge that your small business has, that makes it stand out from all the rest. Introspection is the key to understanding uniqueness. Ask yourself questions regarding what are your main strengths and how can your skills match your requirements?
6. Publicity is very important: After a business is established, it is very important to spread the word about it otherwise, only a limited number of people will have access to it. There are various ways of promotion of business like writing a blog, publishing advertisements in the newspaper and online, creating one's own page and website, holding conferences, distributing visiting cards and so on. ''However big or small, make it a good business, make it a clean business, make it a business you are very proud of,'' said Deep Kalra, CEO and Founder of Make My Trip on the website Brainyquotes.com.
7. Decide a unique insignia: A key feature of any business oragnisation is its symbol, as it is the visual definer of the services offered. An insignia needs to be designed intelligently so that it appeals to the onlookers and attracts them to the business setup. Draw the letters of your brand's name or its initials on a piece of paper in pencil. Experiment with different types of lettering that you think might represent your brand's image. Solid, readable text will make the insignia easier to print and easier to read. Get input from your brand members as to which version they feel best represents the brand. Think about what kind of symbols or shapes might represent your brand. Combine those symbols or shapes with the lettering. Make the entire insignia readable, whether it is a small or large.
8. Invent an eye catching tagline: Taglines are the first step and an integral part of brand building. A tagline is the ideal resource to support and strengthen or at least indicate our position. Their value builds for years, and over time, a good tagline can be your best and least expensive form of advertising. A really great tagline conveys a company's benefit with personality and attitude and the most memorable taglines connect on an emotional level.
9. Build a top-notch business team: No one person can build a successful business alone. It's a task that requires a team that is as committed as you to the business and its success. Your business team may include family members, friends, suppliers, business alliances, employees, sub-contractors, industry and business associations, local government and the community. Of course the most important team members will be your customers or clients. Any or all may have a say in how your business will function and a stake in your business future. Deep Kalra, CEO and Founder of Make My Trip in The Entrepreneur's Notepad 2012 in Panaji said, ''Happy Employees make Happy Customers.''
10. Patience pays: Every new start takes time to reach perfection and therefore though considerate amount of effort might be put in each time, but results will show only after sometime when the company's progress becomes stable with more customers coming in and a good organising team whose sole aim is to achieve success. Deep Kalra, CEO, makemytrip.com was quoted on a website named Infoshine as saying, ''Patience is a virtue and holds the key to success.''