Five ways of expanding business for Small and Medium Enterprises

Below are five ‘Simple Mantras’ which will help in doubling the business turnover for small and medium businesses.

Nov 25, 2021 12:11 IST India Infoline News Service

The last five years have witnessed a humongous movement towards entrepreneurship in the country. People across sectors, industries, and age groups have taken up the entrepreneurial journey. While the journey of entrepreneurship is always like a roller coaster ride, with its shares of highs and lows, there are ways how entrepreneurs can overcome their business challenges. Not just that, with the right mantras, entrepreneurs can double their business turnover. All one needs to do is practice a few thumb rules and make themselves disciplined enough to follow up dedicatedly. The second mantra is to never give up.

The last two years have been the testing times for small businesses from lock downs to price rise of raw materials have made lots of these businesses to redefine their strategies and approach.

Below are five ‘Simple Mantras’ which will help in doubling the business turnover for small and medium businesses.

Keeping confident pricing- Before an entrepreneur prices something, he or she should be aware of customer need, options available in the market, the need and necessity of the product, and the urgency of it. If the entrepreneur can focus on all of these elements, and product suits correctly and he will see a 10-12% growth in revenues. Hence it is important to build a strong pipeline and know more about the customer so that he can price it confidently. To double up or increase the turnover, one should price keeping the customer first in mind.

Creating multiple channels- We believe that it is only we who can sell, we should always have a brand tag but it does not work that way. Instead of selling products, one should see if he can get into the B2B business model, check if anybody is there to bulk buy the business, see if there is an alternate channel to the business. An entrepreneur should not become brand obsessed. It is very important to use the opportunity and create multiple channels so that the product and services can reach the masses. 

Going extensive on the web- It is so because now people check LinkedIn, Facebook profiles to authenticate a person or a company. This is how consumers’ mentality has become; hence, one should be extensively on the web to ensure that the LinkedIn profiles are correct, testimonials are written, a website is wonderfully made, there is social presence. One should be extensively on the web because it is a place to be. While social might not give any business, but it is a self-check mechanism that a consumer does before they make a buying decision.

Bringing down customer target numbers doubles the focus-  It is a concept of nurturing customer relationships. If one sells something, it is equivalent to educating the consumers. The same consumer will buy the product again and again. So one should ensure that the customer target is half but the focus is double. Assuming, one has 100 customers to take care of, one should pick up the A category consumer class who can pay correctly, give better orders, ensure that repeat business is there. A small nurturing campaign can be created so that customers can start referring to the entrepreneur as a reference is far better. A cold calling might take 15 times more effort than getting a referral from such kinds of customers.

Having complete focus on what one wants to achieve – It is important to ensure what one wants to achieve as focusing on the top line or the bottom line might end up in not getting both. If one wants to achieve turnovers for better business, it is a choice one makes as a businessman or a company. Hence one should either focus on the top line or bottom line.

It is also important to be very adaptable and ensure that he or she is learning quickly and giving the customer what they want. One should reduce the delivery time; the faster one delivers the product, the better are the chances that they will pay early. These are crucial aspects of how one can directly affect the business turnover, which will help in making a profitable, sustainable, and wonderful business.

The author of this article is Dr. Yogesh Pawar, Founder School of inspirational leadership, Chairman Association of Inspiring Syndicate of Entrepreneurs.

The views and opinions expressed are not of IIFL Securities,

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