Expert Speak: Mr. GK Pramod

Business Growth & its Relevance for SMES

As a Small and Medium Enterprise (SMEs), we all talk, dream and think about business growth to achieve higher goals in life. But it is as imperative to understand the meaning and relevance of business growth.

We all have our own definitions and meaning of business growth for our company depending upon the business requirements or the success achieved so far or may be the failures from which they have learnt. The sphere of business growth might include increase in turnover, heavy investments, hiring more people, et al, but this is not all. Business growth has a broader spectrum in terms of achievement which a company aims for.

Let us understand the concept with an example so that we may be able to define the business growth strategies for our respective companies.

Ramesh Patil’s Case Study (Service Business):

Mr. Ramesh Patil is a Microlevel Entrepreneur from Belgaum in Karnataka. He is running a Photography and Videography business. The details of Ramesh Patil’s business organization unit are as follows:

1) Name of the entrepreneur:                 Mr. Ramesh Patil

2) Name of the organization:                  OM Shiva Videos

3) Nature of business:                            Photography & Videography

4) Details of turnover for the past 3 years:

 

According to Mr. Patil, the definition of Business Growth would envelopes:

a) Growing the business

b) Increasing the turnover

c) Investing in buying new digital cameras

d) Hiring more people

But if we see Mr. Ramesh Patil’s case, he is only considering very few points related to Business Growth leaving the other vital parameters regarding Business Growth which are mentioned below:

a) Increasing profitability

b) Increasing market share

c) Opening more business outlets

d) Pumping more finances in to the business

e) Diversifying into advertising, publishing, editing and other business areas

Dear Microlevel Entrepreneurs, let us combine and analyse all the points related to Mr. Ramesh Patil’s Business Growth of his Photography and Videography business.

Importance of Business Growth:

a) A Microlevel Entrepreneur gets motivated by Business Growth

b) Business Growth helps in increasing in turnover there by profitability

c) Increasing the customer base

d) Increase market share and market size

e) This helps the Microlevel Entrepreneur to move from Microlevel to Macro level

Key Points to Remember:

a) Prioritize Business Growth Strategy
b) Give importance to existing business and simultaneously sensibly plan for the product/service diversification in the near future

While we have discussed Business Growth in this blog, we will continue in the next blog with the must practice three ‘SUTRAS’ that makes the business growth strategies more effective. Hope the blog has been insightful.

The blog has been authored by Mr. GK Pramod, Co-founder, The Second Gear - MBA for Non MBA's Mentoring Module Concept.


To contact the author, e-mail at gk@tothesecondgear.com

Kindly leave your comments and queries.