There used to be a time in our country when secure employment, preferably a government job, and a steady pay was all one dared to imagine for livelihood. The idea of business was not encouraged and the general notion was that the people who’ve been into business for generations are more suited to continue their family business. Those days are now behind us, way behind us!
In the last two decades, we Indians have started to dream: the economic liberalization gave us wings and at the turn of the millennium many of us were flying. In other words, more Indians are becoming open to entrepreneurship. However, the manner in which small and medium businesses are operated is a sad sight! We have not parted with the old and outdated ways of doing business that are not relevant to the world of today. We need to catch up with the times and upgrade ourselves. Or we’ll miss the bus.
The Indian businesses suffer from problems that are not very difficult to solve. Problems with finances, client relationships, vendor management, employee retention, growth strategy are still haunting Indian SMEs. In this post, we will talk about three small business solutions that can practically improve business performance and bring meaningful sustainable growth. Let’s have a look at them.
Most businesses, when they have done the selling, think their main job is done. They pat themselves on the back and forget about their cash-credit ratio and credit cycles. If they do not receive payments on time, it takes a toll on the working capital of the business. To maintain liquidity in business, the account receivable mechanism must be very strong. Regular and dedicated follow-ups and a systematic approach will solve the problem of delayed receivables. Get your money on time and let that liquidity fulfill your working capital and other requirements.
Automate What You Can
Any task that is recurring and does not require thinking can be automated. So many business activities can be automated today: accounts, CRM, social media posts, attendance, financial activities, filing, taxation, are just some tasks that can be easily automated. Automation saves the time of the entrepreneur and lets him spend his time and efforts on activities that generate revenue and expand/diversify the business. Also, there is a very slight chance of error when things are automated. Do not invest your brain in something that machines can take care of.
It is the customer’s market today. He calls the shots. He decides what’s right. In short, he decides what can sell. So, it goes without saying that you must receive constant feedback from customers about your products and about their buying experience. This way, you will always be in touch with the customer’s pulse and make changes accordingly. Feedback is not limited to customers. The business should always have knowledge about its vendors, employees, and investors. It helps with better negotiations, improved employee retention, and better-informed strategies.
These are just some of the solutions small businesses in India should apply to thrive in these changing times. The world is changing; commerce is changing; the time has come for Indian businessmen to change their ways too.