Expert Speak: Mr. GK Pramod

Sustain 'Sustainability' for elevated growth in business

To achieve top-line growth and bottom line results, sustainable business growth strategy is the practical approach. Preferably, the Indian SMEs should embrace sustainability to optimize their operations enabling enhanced overall performance.

While we delved deeper on 'Scalability' in the previous blog, it would be equally interesting to touch upon 'Sustainability' – the second 'Sutra' of business growth.

The Business Growth has to be Sustainable. If there is no sustainability in the Business Growth, it becomes very difficult for a Microlevel Entrepreneur to survive.

Sustainability
If a Microlevel Entrepreneur is able to maintain the business without affecting the quality of the product/service, with consistency in increasing turnover and profitability, such an attribute is called Sustainability.

Importance of Sustainability

• This is an important parameter for a Microlevel Entrepreneur. If there is no Sustainability, he/she may have to completely close down the business unit.
• However, large business organizations can still survive with one wrong step forward, but a small Microlevel Entrepreneur has to be very careful.

Do’s

• If you are a Microlevel Entrepreneur, be very clear before expanding your business whether you will be able to survive even after the business expansion.
• Prepare a detailed excel sheet summarizing all the revenues and expenses of the new unit. This would give you a clear idea.

Dont’s

• If the expansion of the business doesn’t promise to provide Sustainability, please do not expand.

Case Study
We will discuss a case study of Ms. Usha who is Microlevel entrepreneur from Mysore. Ms. Usha sells natural fresh juice.

The details of Ms.Usha’s business organization unit are as  follows:

1) Name of the entrepreneur:        Ms.Usha
2) Name of the organization:         Sushruta Fresh Juice Centre
3) Nature of business:                   Sale of Natural fresh juice juice            
4) Details of turnover details for past 3 years:

Analysing the sustainability factors for Ms. Usha’s business (Product Business), we have the following observations:

• Ms. Usha’s business is sustainable because she is able to deliver the same quality of juice in all the juice centers run by her.
• She is manufacturing the juice in one centralized location, thereby reducing the cost of production.
• She is running each of the juice centers as a profitable business centre.
• She has a common production Machine, Production staff, Marketing staff, Finance staff and HR staff for all the juice centers. This makes her business more Sustainable.

Challenges in Sustainability

• Uniformity in production and packing packing.                            
• To create awareness among their customers that natural fresh juice will provide good health.

To my belief, practicing the three 'Sutras – Scalability, Sustainability and Profitability', would lead your organisation towards business growth. Wrapping up the detailed discussion here, we would learn about profitability in our next blog.

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

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