Local businesses form the backbone of the economy. And in the ongoing economic crisis, it has become all the more important. Here’s bringing to you some useful business success tips and know-how that every small business owner should know.
In the past one decade, intermittent economic meltdowns across the globe have proved one thing – that – the cushy and secured job that every dreamy-eyed high-school student toiled for is no more that secure and cushy after all. As a result, the past 7-8 years has experienced a remarkable shift from high paying jobs to starting up business among B-School grads.
This coupled with adequate government aid and support owing to the government’s ‘Make in India’ agenda, angel investors, and other impetus from the market, India is experiencing an influx of new startups more frequently than ever.
The emergence of Small Businesses in India
Much before the words like MSME or SME made their way into the business world, India used to be a shopkeeper’s nation. The entire economy was supported by small and individual businesses that were carried down from one generation to another. And then there came disruptions created by western education, then government sector jobs followed by the MNCs. More and more educated youngsters preferred taking up jobs instead of pursuing their family business.
Small businesses used to be the pride of the nation. And this holds true is even today. Small businesses across all sectors are the biggest employment providers and GDP booster for India with a whopping 40% contribution to the growth of the nation. Also to help the bigger organisation to be up and running, a lot of services are outsourced from small businesses. We have seen the big supermarket chains having their private labels kept alongside branded items in almost all categories. This in itself is a potent example that even the big enterprises need the support of several small businesses to add to their portfolio.
Make in India 2.0 Project of Indian Government
Make in India project was announced by the Indian Government in 2014 to support and create a healthy eco-system for MSMEs in India to grow and flourish. The main agenda of this project was to help local businesses to grow and create jobs. Several financial grants, aids, and loans were announced for small business owners. Even in the current crisis brought about by the COVID-19 pandemic, the government is backing on small businesses to be instrumental in getting the country’s economy back on its feet.
The government has rolled out stimulus packages such as Fund of Funds for businesses that fall under the MSME segment. This package is to help them out of the cash crunch that impacts their growth capital and other aspects to revive their businesses. Besides, supporting small local businesses will also help the country to cut down on the import from China.
Things You Should Know Before Starting a Small Business
Starting a small business involves a lot of investment. But sustaining and growing it requires a lot more grit, adaptability to changes, and much more. A lot of individuals start their business with great enthusiasm but fail to sustain it.
When it comes to running a business, there is a plethora of advice available. However, there are a few core strategies and small business success tips that form the very framework of any successful business. These tips will help you to find out how to grow a small business.
Evaluate Your Own Acumen First
Indeed, business is not meant for everyone. Some people have great ideas or skill set, but they can’t sell them. Yet, some people have immense convincing power and can sell almost everything, but they need someone to guide and motivate them. Initially, when anyone starts a business, they have to juggle multiple roles.
Choose the Right Business Model
You have to be very sure whether you have a disruptive idea and inspire a team to take it forward and serve your target audience in a way that they don’t need to look beyond you for the product or the service that you are providing. Besides, do you have a risk appetite? What is your plan B if your venture fails?
Alternatively, if you don’t have all of the above attributes, yet want to do something independently, you could associate with a successful brand as a distributor, franchisee, or licensee. This will require a certain investment but not as much as it is required to set up an entirely new outfit. In this kind of an arrangement, you will get a hand holding. Such businesses have also been very rewarding for a lot of people.
Find Your Niche
After evaluating your potential skills and aptitude as a business owner and deciding upon the business model, you must identify your niche. Just like in a profession, specialisation helps you to get that edge and generate better revenue. It helps you to find out your uniqueness. It is only when you narrow down on your uniqueness and sharpen your best abilities that you can become the go-to person for that particular product or service.
You could do adequate research on the best small business ideas or what are the most successful small businesses. But the best way is to observe your locality and identify the gap that you can fill in.
Get Right Information
Make sure to read all the business-related documents as well as the legal documents properly and understand your rights, privileges as well as your duties and obligations as a new business owner. Make sure to complete all your registrations and legal formalities from time to time. This empowers you as a business owner and also helps you to avail of all the benefits that the government offers to small businesses.
Network with the Right People
Meeting with the right person at the right time has always proved to be the best formula for success. Networking helps you to create referrals, it boosts your confidence, helps you to explore more opportunities, makes a good connection, and a lot more. Most importantly, it earns you good friends who stand by you through thick and thin. Building a connection with the right people helps you to scale higher on the ladder of success.
Becoming an absolute Go-to for the customers
The latest television commercial of a renowned at-home service provider brand started with the following line – ‘get your beauty services done by your favourite beautician at the comfort of your home.’ The most important part of this line includes the words ‘your favourite…’ Needless to say, every customer has a go-to person for the products and services they buy. Your winning edge comes from being that go-to person for your customer. And that primarily involves amping up your product and services, you pre and post-sale services. If you can keep your customers happy, they will not only come back to you over and over again but will also bring along their friends and families.
Building a Winning Team
Most profitable small businesses are the ones with a great team of workers who are passionate about their organisation. Team building to your business is what cementing is to building construction. You grow your business block by block and what helps to put the blocks together and hold it too – is your team. Your employees are your biggest asset. Hence, just like you have to become the go-to product or service provider for your customers, you have to be the go-to employer for your employees. Give them the best working environment and growth opportunities.
Select your employees with a lot of care. But once you select them, you have to work on them in a way that they become an emblem of your company. A lot of businesses lose a mammoth amount of money due to high attrition rates in the market. Building a strong team of workers will not only save you the time, money, and energy in hiring and training new people repeatedly, but your valued employees will be ever ready to give their all to your company.
Be Abreast With the Latest Technology
Last but not the least, communicating about your business is important. Small businesses may not have the kind of pocket-size to hire a good advertisement agency. But we are lucky to live in the age of digital media that helps to make communications easy and almost free in many cases. Hence avail the digital platforms to talk about your brands and engage your target customers. Start a website or a blog. Hold free webinars, answer queries on public forums, and make your brand visible across the spectrum of available digital platforms.
In the end…
Small businesses that cater to the customer with personalised services are irreplaceable and significant for the growth of the economy. We hope you could gather some credible information and confidence to start your business from this article. Please let us know in the comments below.