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Go to market strategy for start-ups

For small businesses to succeed in today’s fiercely competitive market is no easy job. While you might think that once you ideate and put a business plan in place, your long cherished dream is soon going to be realized, hold on to the thought!

Have you given enough thought to your go to market strategy? If not, then right now is the time and the following tips will help you do it the right way: 

Deciding on your Target Audience

One of the most critical of the factors is to decide who your customers are going to be. Today, many smaller businesses are giving tough competition to large companies by targeting a niche market. One important factor here is to effectively understand what your customer wants. The sooner small business owners understand this, the better are their chances to succeed. Ask basic questions like – Who will buy my product? Who has already bought from me? What does my network think? How are my competitors faring? Will my target audience grow? In what timeframe will I see that growth?

Product portfolio for target customers

It may be difficult to sustain a business on only one core product. New competitors, changing customer behavior, emergence of new technologies and many other factors can pose a significant threat to any business’s success. Hence, it is imperative for small businesses to have a diverse product offering which will help them keep up with the ever-changing market demands. Adopt a test-and-learn approach and feel the pulse of customers which will help you to decide upon how and where to expand your offerings.

Pricing

Considered as one of the toughest things to do, pricing a product properly can a have a long-term impact on the success of your business. While there is no one surefire formula how to get the pricing right, small businesses must have an in-depth market understanding of the target customer profile, what the competitors are charging and the quality of products vis-à-vis the pricing of their offering. The more thought businesses put behind the pricing of a product, the better their proposition becomes.

Product Promotion

There should be a well thought plan in place for product promotion as it is in this phase that the word about your offerings will reach your customers and other key stakeholders. Hence, it is imperative that there is an efficient marketing and communication plan in place. These will include focusing on various promotional campaigns like advertising, selling, digital promotion, public relations etc.

To conclude, defining go-to-market strategy for start-ups isn’t a cake-walk, but by being smart, extremely aware of the market scenario and knowing the pulse of the target audience, small businesses can gear themselves up for a stronger and long lasting growth.

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Shaping Small Business India

Small Businesses play a significant role in a developing economy – from creating valuable business opportunities to employing a large chunk of the workforce. They are the drivers of growth contributing significantly to a range of sectors and industries.

Small Businesses produce nearly half the manufactured output and are also the largest employers of workforce in India after agriculture. Roughly, 75 million people in India are employed with small businesses. They contribute approximately 9-10% of the Indian GDP. An estimated 90% of industrial units in India come under small businesses. They contribute to 40% of value addition in the manufacturing sector and 35% to India’s merchandise exports.

With such significant contributions, it becomes imperative to encourage the growth of these businesses in India. We are now witnessing an increased focus on small businesses from several government institutions, corporate houses and financial entities. The government, by recognizing the small business opportunity, has introduced various policy measures to help them grow. It is also working towards promoting the small business segment by capacity building measures to keep them updated on emerging areas of business and familiarizing them with the changing laws and regulatory frameworks. Today, the government is developing a positive environment to encourage new businesses and entrepreneurs by providing support in several ways including financial assistance by allowing medium-term loans, reduction of interest rates by RBI etc.

India is a huge market brimming with many opportunities. This has encouraged the growth of the small business segment and brought tremendous success to entrepreneurs and business owners. So far, these businesses have limited their operations to the local Indian market. Increasingly entrepreneurs are keen on expanding to other markets and establishing a global identity. Today, the Indian small business industry is aiming for global markets, ready to compete against global giants. This is an encouraging sign and this industry needs to be provided the right support to cater to global needs.  Industry exchange programmes and access to market research data will help develop an understanding of the global market and its needs. Government support in setting up technology infrastructure will boost productivity and quality for these small businesses.

Another aspect that is essential in creating a positive environment for small businesses is to have friendly regulatory policies. Allowing Foreign Direct Investment, speeding up approvals, creating a single window system for information, simplifying operational frameworks etc. are key factors that will contribute towards the growth of small businesses in India.

Even with adequate support from the government and the private sector, small businesses in India face several challenges which need to be addressed. Prominent among them is the lack of access to technology and financial management resources. Despite various schemes from the government to enable easy access to capital, small businesses struggle to raise adequate funds. Private sector can contribute towards this issue by infusing equity funds and venture capital. In a study conducted by Intuit supported the Ministry of Micro, Small and Medium Enterprises, Government of India, pointed out that small businesses in India are yet to realize the full potential of technology as a game-changer for business. The study also highlighted the top barriers to technology adoption being cost, lack of skilled manpower, low awareness of the benefits of technology, poor infrastructure and concerns about security and privacy. A collaborative effort is needed to address these concerns of small businesses and identify and develop solutions through participation from various quarters. A collective approach with government and private sector coming together is the ideal way forward.  Intuit in association with NIESBUD has introduced a financial literacy programme aimed at helping small business owners understand financial management. Initiatives like these are a positive step in bridging the gaps.

Key hindrances to the growth of small businesses also include lack of infrastructure and limited access to institutional assistance.  Infrastructure hassles have to be addressed on priority as it forms the base of starting a business and also affects productivity. Setting up SEZs, improving transportation through better road and rail connectivity, allowing reforms in telecommunication etc. will help address few problems related to infrastructure. Another challenge for small businesses is labour and talent acquisition. Start-ups and small businesses are generally not considered attractive career options. Participation in education and career related events and academic outreach will help in reaching out to youth and spreading awareness about this sector. Growth and success of small businesses will also automatically make them lucrative for acquiring the right talent.

There are a few factors that even small businesses need to keep in mind to succeed before starting out. Understanding the market is the topmost among them. Considerable research is required to comprehend the ‘what’, ‘why’ and ‘how’ of the market.  It is necessary to understand the market preparedness for your product or service. Evaluating possibilities, pricing and competition will help build a credible product or start a service. Re-organizing and implementing necessary changes is essential to sustain in changing markets conditions.

Lastly, success in entrepreneurship and running a small business is not just dependent on the external factors as discussed above but on the internal ones such as the mindset of the entrepreneur. Challenges are abundant in starting a business but the will to find solutions and overcome these challenges is the key.

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Managing business is about having the right data at your fingertips

Hindsight, they say, is 20/20.  The advantage of hindsight is that all the data that affects a decision has been revealed and is known.  Unfortunately, real life never works that way.  As an entrepreneur, you have to operate on a combination of one part data, one part intelligent guesses, and, if we are really frank about it, one part luck.

Managing a business, when broken down into its simplest form, is about making a series of decisions. And how those decisions are made can make all the difference.  Most entrepreneurs have a lot of faith in their gut or instincts. And why not? The decision to become an entrepreneur itself is one that is based on passion, the belief that you have a winning product or service idea, and the unquenchable desire to do something on your own. Just look at the words – passion, belief, desire. Not really things you can measure and make data points about. But, combine or guide your gut feeling with the right data at the right time, and it could lead to better business decisions.

The trick, of course, is to have access to the right data at the right time.

The data that you need to make decisions while managing your business, in many cases, is about your business itself.  It is about how much you spend, how much is due to you, what is your inventory situation – seemingly simple things. But if you are able to have this information at your fingertips, accessible whenever you want it, it makes your decisions not just faster, but more sound as well.

The first step to having the right data is to collect it.  Do you have systems and processes that ensure that every important piece of information is captured? It could be your CRM, or your financial management software.  Unless the data is captured and categorized, it cannot be utilized to distil useful information. Because raw data is just that, raw; and what you need is the analysis to make an informed decision.

When you are managing a business, you have to have your eye on the ball at all times. And that means having all your data accessible in a form that makes it easy for you to interpret and make decisions.  For example, if you are able to track overdue payments as soon they become overdue, or are able to see the payment pattern of a specific customer with a bad payment record in just a few clicks, it makes it easier to track and take remedial measures.  Having anywhere, anytime access to the right data empowers you with knowledge, and helps you monitor and manage your business with complete and up-to-the-minute information. The closest you can get to the 20/20 vision that hindsight promises.

Which brings me back to my starting point. I have found that the more relevant data I have, the more intelligent my guesses are. And the more confidence I have in going with my gut feeling.