Expert Speak: Mr. GK Pramod

Know Yourself - SWOT Analysis of Microlevel Entrepreneur

What is SWOT analysis of Microlevel Entrepreneur? 

SWOT analysis of Microlevel Entrepreneur is to list down all his/her Strengths, Weaknesses, Opportunities & Threats among the four quadrants of a graph. Once we do this, we have to convert the weaknesses into strengths, threats into opportunities and opportunities into strengths.

Importance of SWOT of Microlevel Entrepreneur

• This would help microlevel entrepreneurs to understand about themselves completely.
• This will increase their confidence level.

Methodology for conducting SWOT Analysis
  
Step-1: As a management expert, have all concepts pertaining to SWOT clear at your end and come prepared with the expected Q&As. Call all selected microlevel entrepreneur to one place, and brief them about SWOT analysis.  

Step -2: Separate all entrepreneur. Make them sit, think and list down all the Strengths, Weaknesses, Opportunities and Threats about their individual personality on a sheet of paper. This may require 45 minutes to 1 hour. 

Step-3: After doing this activity, organise a One-On-One discussion of microlevel entrepreneur with them to understand their personal SWOT. Ask them questions like:

• Why do you think these are your personal Strengths?
• Why do you think these are your personal Weaknesses?
• Why do you think these are your personal Opportunities?
• Why do you think these are your personal Threats?

Step- 4: Facilitate entrepreneurs to think calmly so that their personal SWOT analysis becomes effective.

Step- 5: Ask them to make a presentation about his/her personality SWOT. Allow them to analyze his/her personality SWOT.

Step- 6: Discuss, analyse and brainstorm together to convert his/her weaknesses into strengths, threats into opportunities and opportunities into strengths.

CASE STUDY: 1
Charan Singh (Product Business):

Mr. Charan Singh is a microlevel entrepreneur from Jalandhar in Punjab. He sells fertilizers. 
                   
Details of Charan Singh’s business organization unit are:

His personal SWOT is as stated below:

Let us now do SWOT analysis of Mr. Charan Singh’s case study.
                          SWOT Analysis of Charan Singh

Author’s Key Points:

• Be truthful to yourself when you do the SWOT
• SWOT is a very important activity
• CEOs/Growth strategists, please encourage the microlevel entrepreneur to do a proper SWOT analysis

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

Leave your comments and queries here:

Why SMEs should Opt for Inbound Marketing?

When you’re about to start a small or medium enterprise of your own, it’s important to make people aware of your venture and the products and services you offer.  Inbound marketing is the new marketing method that uses the latest technology to attract customers. This marketing method is opposed to the traditional, interrupting and less effective outbound marketing. This method uses the new strategy of reaching costumers by providing them precise and useful information reaching them according to their convenience. As traditional marketing is focused on finding costumers, inbound marketing is focused on the idea of getting found by costumers. So inbound marketing brings qualified costumers to the SMEs.

Next Gen Marketing
Inbound marketing is the result of some recent changes in the behavior of consumers. It does not involve the conventional and expensive methods of regular newspapers and television advertisements, billboards on roads and telemarketing calls. It is mainly based on three things--good content, Search Engine Optimisation (SEO) and social media.

The primary advantage of inbound marketing is its target audience which is all the persons who access the internet. A good content is the key to successful inbound marketing. Users will browse away from your page if they do not find the right information or get confused by the presentation. Similarly, SEO helps the consumer locate the site and its content. SEO practices, on-page and off-page, help SMEs in achieving a higher position in search engines. Search engines such as Google, Yahoo, Bing, etc. prove to be the first platform for a potential buyer or customer.

Social media networks form another important aspect in inbound marketing. Their range is spread across many channels where people browse on a regular basis. With a substantial sharing of the content, potential buyers are attracted to company's products or services.

Saves Time
A survey has established that inbound marketing, even though time consuming, costs 62 per cent less than outbound marketing or related efforts. It grows over a period of time and only improves in its quality. Also, with inbound marketing, one is directly connected to the target audience. In inbound marketing, one only approaches leads which are interested in the product and provides better chance for selling. It also works as a wisely investment, whereby SMEs can benefit from a long-term marketing strategy rather than a short-lived one such as print ads or video presentations, etc. The right investment on optimized content which can show up on various search engines confers a long lasting touch to the marketing effort.

Flexible Solution
Inbound marketing also offers a flexible solution to SMEs which can modify its campaign from time-to-time as per their requirement. Adopting closed loop marketing analytics from possible leads also helps SMEs to improve their marketing month after month. The system works much better than conventional e-mailing systems where the company has to spend quite an amount just to reach out rather than waiting for consumers to connect with them in the inbound marketing methodology. Often, these e-mails create negative publicity for the SME as the message is branded as a spam or unwanted forwards.

As a power pack of all these advantages, Inbound marketing could benefit SMEs in multiple ways making them more successful.

How to Generate Cost Effective Web Traffic?

Online marketing is slowly transforming the success scenario of many SMEs and providing them with new, potential arenas. It can greatly contribute in providing them with a larger status and put them in the same league of larger firms.

Website traffic can be increased by developing online partnerships whereby various concerns host each other’s web links and connect every user to the other’s web page and also advertise their own wares. The traffic can also be boosted by promoting search engine listings.

What Does the Customer Look For?

An SME needs to understand the way in which customers rely on search engines and the way they pick up keywords in a particular content. Search engines such as Google, Yahoo, Bing, etc. are potential platforms for customers, existing and new ones, to search for a particular product and service. They work as effective channels to guide users towards a particular site. One can choose between paid listings or organic listings as per their convenience. Generating back links or link building is vital for a website to have a higher position on the listings.

SEO or Search Engine Optimization is fast becoming a favored option for SMEs who are realizing the power of the World Wide Web. SEO involves the process of promoting the visibility of a particular webpage or website through unpaid search possibilities. Initially the search algorithms depended on information provided by the websites such as keywords which was later converted based on the keyword density. Presently, each search engine has their own criteria for listing a particular website. Many of them employ crawlers which browse across various pages of a website and seek out keywords and content elements. SEO can be planned according to the various kinds of search including image search, video search, academic search, news search, among others.

Where & Why to Invest

Many SMEs invest in SEOs as part of their internet marketing strategy and they are incorporated in their website design. SEOs are expected to bring optimum return on the amount invested. Search engines change their algorithms or search criteria and thus websites can suffer a loss in the visitor counts. Thus, SEO-responsive material needs to be updated from time-to-time. SEO could practically include a variety of materials including website designs, content management systems, videos, images, shopping carts, and elements which are programmed for search engine exposure.

SMEs can also boost the prominence of their web page by cross linking which consists of multiple links on various pages to bring the reader/user in connection with some important pages on the site.

Another form of ensuring free web traffic is the mode of free articles. An SME should publish a lot of articles which are themed along their products or services. They can involve their subject of expertise and offer their customers tips and guidelines which can make for an informative read.

You can also start a newsletter that can easily carry a variety of experts on the subjects together. The SME can be also part of online communities and forums where they can share their information and expertise with their potential customers.

So, be everywhere without shelling extra pennies and attract extra web traffic to your website.

Government to hike investment cap in MSMEs

Medium Small and Micro Enterprises (MSMEs) play a vital role in the industrial development of a nation. A MSME is crucial for gratifying various socio-economic objectives, such as higher growth of employment, output, promotion of exports, besides being an instrument for alleviating regional disparities and fostering entrepreneurship. Indian MSMEs have been exposed to intense competition due to the accelerated process of globalization and this increment would provide better capital and help the firms in facing adverse market competition. The government has hiked the investment cap in MSMEs after a gap of five years by revising investment limits for classification of industries. This signifies a significant step for MSMEs because interest rates and costs have been rising consistently due to the ever-increasing inflation. The investment cap is also likely to be linked to inflation so that the industry does not have to depend on periodic revisions and they can scale up, as and when required. 

As recently reported by The Times of India, currently any unit in the manufacturing industry with an investment between Rs 25 lakh and Rs 5 crore is classified as a small enterprise, while units with an investment of Rs 5 – 10 crore are classified as medium enterprises. In case of services, the limits are lower, given the lower capital requirement in the sector. Earlier the small scale industry was not clearly charted out but now with the changed investment cap, the government has defined the micro and medium industries. This major hike will affect 2.6 crore micro, small and medium enterprises and will improve the credit flow to the sector.

This should be a fruitful decision because it would give a boost to the economy of the nation and the profits of the MSMEs. It would affect development and growth rate as it would employ six crore workers. This would significantly raise the manufacturing output by 45% and there would be an increase of 40% in exports to other countries. On the whole, this review would have an incredible impact on 2.6 crore micro, small and medium industries.

This plan is still in the pipeline as the government would consult the MSMEs before taking a final decision. Nevertheless, the investment hike would be a big thing as this would affect the country’s development. While the earlier mandate requires the government to procure 20% from MSME units, it is now going to change. Earlier, multi-brand retail chains were required to source 30% from MSMEs; this plan too has been put on hold.

The sector would wait to hear on what is going to be the future for MSME units who are continuously struggling with bad credit, poor facilities and lack of government support.

ET NOW-IndiaMART Leaders of Tomorrow Award to Highland Holiday Homes under Travel & Hospitality Category

When the time and tide were against him, it was Mr. Devadas Y. Naik's (Chairman, Highland Holiday Homes (Goa) Private Ltd.) perseverance, hard work and right attitude that converged eventually to overturn them and emerge a winner. What better an acknowledgment for this victory than India's most prestigious awards for MSMEs - ET NOW-IndiaMART Leaders of Tomorrow Award 2011. He was conferred with this award being the best MSME under Travel and Hospitality category at the recently held Awards Ceremony. Mr. NR Narayana Murthy, Chairman Emeritus, Infosys Technologies, an inspirational figure for the entire Indian business community, congratulated Mr. Naik on this well deserved feat.

Ecstatic on being adjudged Leader of Tomorrow, Mr. Devadas Y. Naik, said, "This was the most challenging of all the awards I have won in the recent past. The elimination rounds, the rigorous implementation of rules to level the playing field, explaining my innovation and getting the attention of juries from the cream of the corporate world was a unique experience. It gives me further impetus to continue the growth trajectory I am following with Team Highland. Be warned: more innovations follow..."

Mr. Naik started out with a dream to create wealth. Since then, it has been a roller coaster ride for him experiencing acute lows and steep heights during the journey. He began with running a successful inter-state tea and coffee blending business, saw it fail when the USSR broke up and the big players flooded the Indian market with their products. He had to start from the scratch all over again but this did not discourage him and he opted for real estate, construction and hospitality. Eventually, he owned a marvellous Highland Beach resort in Candolim, Goa, which brought his dreams to life and won the prestigious ET NOW-IndiaMART Leaders of Tomorrow Award for him.

Mr. Naik's journey is just one of the numerous inspiring tales at 'ET NOW-IndiaMART Leaders of Tomorrow Awards 2011', India's leading platform that acknowledges the efforts and achievements of the Indian MSMEs. The opportunities are lurking and waiting for all aspiring entrepreneurs to grab. With this platform, it is the time to prove the metal and mettle to the world.

Indian SMEs raise doubt over govt's decision to permit 100% FDI in single brand retail sector

The small and medium enterprises (SME) sector is worried if Centre's decision to permit 100% FDI in single brand retail sector will help the sector or not.

The Indian government has permitted 100% foreign direct investment (FDI) in single brand retail. It has notified the regulations and stated that all wholly owned global brands will be needing to source minimum 30% of their need from the domestic small and cottage industries, which have a maximum investment in plant and machinery of $1 million (almost Rs 5 crore).

The Federation of Indian Micro, Small and Medium Enterprises (FISME), which is an apex body for the sector, has stated that the mandatory sourcing rider won't be making much of difference.

Read more at: http://news.indiamart.com/story/indian-smes-raise-doubt-over-govts-decision-permit-100-fdi-single-brand-retail-s-153463.html

Techno- Savvy Age

Internet marketing is also known as web marketing, online marketing or e-marketing. It is a broad term and cannot be confined to just marketing through the internet but also through other mediums such as the wireless or email. The world, as postulated by Marshal McLuhan, can be regarded as a global village. McLuhan envisaged the world as interconnected by an electronic nervous system; this is popularly regarded as the internet. We live in the world of cloud computing where everyone is connected. No one can escape technology seeing that, everyone from a rickshaw puller to a billionaire, carries a mobile.

Web Presence
Technology is the pulse of life of the present generation. When a company establishes itself, it is extremely important for it to have a web presence. This acquaints the customers not just with the product but also with the company. Nowadays, the consumers are intelligent and the internet is the best medium to lure them. The media has a strong impact on the mindset of the people, who live in the world of virtual reality. Due to its nature, the internet medium allows consumers to research and to purchase products and services conveniently. So the internet has become a must in order to make a positive utilization of internet marketing.

Age of Information
It is essential for SMEs to realize that we live in the age of information. The way information is conveyed plays a very important role in boosting the sales of the product. This is the world of mediacracy and there could be nothing better than the internet to attract customers. Marcus Sheridan, the owner of ‘The Sales Lion’, says that effective content leads to winning the trust of the customer which further helps to get a lead in the market and thereby increase sales. So embrace internet marketing if you want to remain ahead in the promotion of the sales of your company.
 

Fast and cost effective mode
The best part is that with a small amount of investment just about anyone can have a web page on the Internet. In this manner, almost any business can reach a large market, directly, fast and economically. It is irrespective of the size or location of the business. This medium is cost effective as any SME can save its funds through internet marketing. This is because, anyone who can read and write can have access to the World Wide Web. According to the Internet World Stats, India has a large number of internet users which has gone up to about 100,000,000 till December 31, 2010.

Interactive medium
The internet has consolidated itself as a very powerful platform with an impact on the working culture and the manner in which people communicate. It has changed the working environment and affected the way businesses operate. It is about interaction — interaction creates relationships and those relationships open up the opportunities for you to share information about your products and services. Good personal relations can actually boost your sales.

Thus it is important to ensure that your website is user friendly, concise and up to date. In this way you can inform the world about the latest developments in your firm. Make good use of the innovative method of marketing through the internet to generate a more positive responses towards your business.

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

For your comments and queries, please scribble down: 

Free for SME's: How to Create a Blog Using Wordpress Hosted on Your Server

IndiaMART Knowledge Services team aims at making knowledge available to SMEs to enhance their business growth. While we are covering the various 'freely' available solutions and services online, this post looks at blogging as an activity and blogging platforms as a service.

What exactly is blogging?
Blogging essentially is about sharing your thoughts on a subject on a 'weblog'. This Wikipedia article defines the blog well. It all started with websites. Even if we trace a couple of years back, websites were the most popular mode of communicating with your customer 'online'. With web 2.0 ushering in, the monologue has now evolved into a two way communication, with your customer's getting as much a chance to engage with your business and not just be at the receiving end of 'a' communication.

How is a blog of help to me/ my business?
A blog though a platform to express views, is a powerful mode of communication with your customers and not just that. Its a powerful mode of taking your message to the intended target audience. Instead of really maintaining a corporate blog, which has its own positioning. A content driven, high on call-to-action blog which shares insights about the business you are in, which lets your customers know you better and engage with you, which gives people interested in the industry, access to information is the best possible choice to make when making a blog.

How do I create my blog?
Even before we go ahead and do it, we must have the purpose clear in our minds. One of the basic most is, whether the blog you are creating, a personal blog OR an official blog! This defines many aspects, starting from the design of the blog to what content goes in there.

Now to the creation aspect: there are many 'free' blogging platforms available, eg:

• Wordpress
• Blogspot
• Blogger

The one platform which has gained most popularity lately is WordPress. A free blogging platform which has gained a global acceptance by the blogging fraternity. Its simple, easy to understand, a powerful content management system, scalable and is updated automatically.

Step-wise process to create your own blog, hosted on your own server

When we say hosted on your own server, we mean, the host where you have hosted your website. And just in case if you have not done any hosting yet, we suggest you choose any good web host (there are many available).

1. Once you have chosen the host, register a domain name: eg: www.xyz.com
2. Along with the domain also buy a hosting package which you can buy for 1 and more than 1 year.
3. Once the domain and hosting is activated, you will get access to a 'Cpanel', which will be provided by the host only
4. Login to your Cpanel and it will provide you with an easy (generally a one step) process to install "Wordpress" on your "domain name" which you have hosted: www.xyz.com
1. This is the simplest way to install Wordpress. The other way is to use a FTP client like filezilla (a free software which you can install on your desktop). fiezilla helps you configure your hosting on it and upload files. Download the latest version of Wordpress here and upload it to your root directory on the hosting server.
5. Once Wordpress has been installed, you will be able to access the back-end content management system as: http://xyz.com/wp-admin
1. Login with your User-id and password and you will reach to a screen (as shown in the sreen capture below)

Wordpress Dashboard

Once you are logged inside the WP (Wordpress) CMS (content management system) the first screen if seen all at once can be a little overwhelming, but its another 3-5 minutes and you will get a hang of it.

How to go about it?

Lets take it logically:

• Since its a blog, you need to choose/ design how it appears! Simply look at the screen in front of you and expand the link which says "Appearance" and click on the 'Themes' link. This will take you to a screen which will show you options and also allow you to upload new themes.

Wordpress - Theme Appearance

• Once the theme is existing, you will have your basic blog design in real time ready at www.xyz.com, as whatever changes you make through this CMS, get updated instantly on your domain.
• If you are not really a tech-enabled person, do not try to 'edit' the themes till you are well aware of PhP.
• Once you are done, now comes the real deal! How to write the first blog post?!
• On the home screen, the top drop-down option on the left sidebar will say "Posts". Click the "Add New" link on the same.
• What you see on your screen now is a WYSIWYG (what you see is what you get editor). Which means, whatever you will write, as it will look here, so it will appear on your blog.

Wordpress - Add new post

• Using the top menu of the editor, you can write your post and embed any kind of content in it. From Videos to Pictures.
• Once the post is done, press publish on the top right corner, in the right side bar, choose the category of the content you have written (you can create your own categories), add tags to the post and you are ready to go LIVE!!

For advanced users if this platform, Plugins and Widgets which are freely available and can add a lot of value to your blog!

Happy blogging. IndiaMART Knowledge Services Team will be happy to feature your blogs as comments to this post! Create a new blog and send it to us! For more help, leave a comment to this post and we will be happy to help!

Blog Your Brand – A Vision for the SME to Leverage Networked Blogging

Walk the Walk… Talk the Talk… Times have now arrived for the corporate to consider Blogging the Blog!!

Yes, its true, as social media is arriving and knocking on the doors of enterprises, all businesses whether large or small are taking note, there are new rules getting created. New possibilities opening up. The Corporate today wants to get one with the consumer, interact with his relevant target audience wherever the consumer is!

Your consumers are already on the Internet

With the usage of Internet spilling over to almost all parts of the country, the corporate has a valid and an entirely new and ever increasing scope to interact in real time with its consumers, take feedback and hence constantly evolve as a ‘People’s Brand‘.

Your clients are already talking about you, are you listening?
We are living in change, which essentially is the only contant thing in life. And so is a brand.  A brand needs to evolve with the times, reaching out to the relevant set of people who are talking about you or would want to talk about you!


Blog and Get Blogged about

The emerging SMEs must engage their audience and we suggest our SME partners that they schedule time and participate in corporate blogging. The top management of the SME can achieve fantastic results, while ensuring that they create and establish a personal connect with their target audience/ existing clients by sharing thought leadership and communicating the vision and growth of the company on the Official Corporate Blog.


Should you tie up with an external agency – Case Study?

Nokia before launching N97 in India and Samsung while launching the Jet. What did they do? Call a select group of bloggers and wallah they have arrived at a much lesser cost as compared to doing a TV ad or big hoarding out there, which they will do for sure, but they have captured one strata of the market.

The trends purely show, that there is a BIG opportunity which the SMEs can leverage powerfully to connect with and engage their customers in.

How Do I get Started? Do I need time/ money?

Getting your blog up and running in times today is a 5 minute job. Though to create an Official Corporate Blog, which is positioned and branded right, you can always get the job done by a freelancer/ agency. The leading platforms we suggest are: Blogspot and Wordpress.

To make the blog exist, you may not need much investment, but to ensure that there is solid and powerful content each day on it, sure is a task, which has to be not drilled down, but built and fostered as a culture within the organisation.

Say ‘hi’ to your sutomer each day, reach out and extend your hand! Get connected and retain your loyal customers!!

A focused Corporate blog will EMPOWER your customer to know more and get connected with the brand, thereby fueling Co-Creation and Innovation, enabling mutual growth.

To know more about how you can leverage the power of blogging for your emerging company, send us a comment to this blog and our team of experts will be happy to help you!