Schemes Which Never Led Down Business Growth in India
Business growth is the cornerstone of a market that is fiercely competitive and readily evolving. The Indian MSME sector, in that respect, is not only one of the largest markets globally, but also one of the most diverse and rapidly growing industries. According to the most recent official reports, there are nearly 63.4 million MSME units in India.
- Also, in 2018 – 19, MSMEs contributed to 48.1% of total exports from India.
Alongside the domestic market, the existence of the international market also demands businesspersons to strive for growth to keep up with an ever-inflating competition.
However, in that pursuit, businesspersons occasionally come across challenges like the deficiency of necessary financial wherewithal and lack of sufficient business know-hows.
While several businesspersons resort to an MSME loan to defray their financial impediments, the latter requires effective strategising and development of an infrastructure that can become the foundation for growth.
What are the methods to grow a business?
In a market as expansive as India’s, devising an infallible avenue to grow your business might be challenging. Nevertheless, even in the absence of a rule of thumb, business experts over the years have employed several tactics to bolster their company’s financial as well as social standing, resulting in a growth of MSMEs across India.
- MSMEs in the service sector form 24.63% and in the manufacturing sector form 6.11% of India’s GDP.
1. Create an effective sales funnel
A sales funnel is a model that defines the journey of a consumer toward a purchase. It starts with raising consumer awareness about your product/s, piquing their interest, helping them make a decision, and eventually leading them to purchase.
Different companies apply variegated models of a sales funnel, according to the industry they belong to and their customer base.
Nonetheless, adequate planning goes behind developing a potent model that satisfies each level of a sales funnel optimally. Moreover, an effective sales funnel is a proven method to build your business brand.
2. Focus on retaining old customers
Retaining existing customers is imperative to grow your business. It is not only because they already know your products, but also because acquiring new customers is an expensive affair. While there is no blanket consensus, acquiring new customers is believed to be at least 3x more expensive than retaining old customers.
For retention purposes, you can employ several tactics like customer loyalty programmes. To that effect, you might also consider an MSME loan to alleviate any financial strain.
- Business loans to MSMEs experienced an 8.1% YoY growth in the 3rd Quarter of FY 2019 – 20.
Such increase depicts the popularity of MSME loans, which can well be leveraged for venture growth.
3. Innovate existing products and services
This point acts as a codicil to the above two-pointers. When you innovate your existing products, it piques the interest of your customers – the second step in a sales funnel – and resultantly, helps in retaining old customers.
Thence, it is quintessential that you bring out new features in your old products and showcase innovative manners of using it. It is one of the tips to mobilise a slow-moving business since it solely relies on your company’s genius.
4. Invest in research & development
The utility of Intellectual property in a fiercely competitive market is unparalleled when striving for business growth. To sustain in the current ecosystem, you must invest in your R&D department. You might avail a business loan to defray such expense and keep intact your financial standing for short-term liquidity purposes.
Moreover, certain financial institutions like Bajaj Finserv also provide pre-approved offers on loans to fasten the application and approval process.
- Know that commercial lending in India grew by Rs.4.8 lakh crore from September ’18 to September ’19, making way for effective use of available business finance.
Research & Development serves multiple purposes, ranging from innovation in existing products to developing newer ones. Alongside, it improves marketing and production strategies significantly.
5. Diversify product offering
Alongside innovating old products, you should simultaneously lay down the foundation for developing new offerings. To sustain and grow your business, you need to diversify product lines to tap into new customer bases and penetrate its existing counterpart.
Monitor your competitors, study the market and consumer demand, and devise products that your business can offer to meet those demands. At the same time, focus on gaining a competitive edge to develop your niche in the market. It is among the essential tips to expand a manufacturing business.
For resting your financial worries, you can resort to an MSME loan, so that you are not withheld from adequately meeting your objectives.
6. Analyse costs
Lastly, analyse the costs that go behind every department in your organisation. Frugality is an essential practice when aiming at business growth, especially in terms of profit generation. Therefore, consider going over the expenses of your firm, cut costs wherever possible and channel funds as needed to utilise resources optimally and foster growth.
The combined effect of adequate finances, the aforesaid tactics, and your unique business approach shall serve as an impetus for business growth. While financing is comparatively straightforward with the benefit of MSME or business loan, the other two components need to be dealt with deftly and with proper planning.