Govt's five major schemes push for SME growth

Micro small and medium-sized enterprises (MSMEs) play a vital role in the growth of a nation. It is often said that small units are highly responsible for driving innovation and competition in various economies. Presently, the sector is accounted for 17 per cent in Indian GDP, which is expected to grow to 22 per cent by 2012.

Indian economy gets 45 per cent of manufacturing output and 40 per cent of exports from the SMEs as per the ministry estimates. Not only this, the sector employs 60 million people, creates 1.3 million jobs every year and caters to both national and international markets with the production of more than 8000 quality products.

Having been the key growth driver of the country economy, the MSME sector lacks the required cooperation from the government which in turn confines the growth of the sector in the domestic and global markets.

However, there is a slew of government schemes and sops offering enhancement and support to the business activities of the small units, but a majority of small traders fail to avail them due to lack of mindfulness and awareness about the schemes.

Here are five key financial assistance schemes being offered by the government to intensify the growth of the small scale units.

1. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE)

The Ministry of MSME and Small Industries Development Bank of India (SIDBI) have instituted a trust named Credit Guarantee Fund Trust Micro and Small Enterprises (CGTMSE) for the implementation of Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE), which was formally launched on 30th August, 2000 and became operational from 1st January, 2000.

The scheme is aimed at providing collateral-free credit to both existing and new micro and small enterprise (MSE). The plan covers term loans and working capital facilities of up to Rs 100 lakh per borrowing unit and can be prolonged without any collateral security or third party guarantee to a new or existing MSE.

In case those units covered under this scheme go sick due to the factors beyond their control, the scheme also allows the lender to stretch the rehabilitation assistance. If the credit facility surpasses Rs 50 lakh, it may still be covered, but the guarantee cover will be extended for credit assistance of Rs 50 lakh only.

2. Credit Link Capital Subsidy Scheme for Technology Upgradation

Credit Linked Capital Subsidy Scheme (CLCSS) provides technology upgradation assistance to the SMEs primarily in the small scale industries (SSI). All entities, including sole proprietorship, partnership, cooperative, private and public limited companies, are eligible for the scheme.

The maximum limit of eligible loan for SMEs under the scheme is Rs 1 crore. It comprises a subsidy rate of 15 per cent.

The scheme was first launched in October, 2000 and was revised in September 2005. Under the revised scheme, the admissible capital subsidy is calculated with reference to purchase price of the plant and machinery.

3. Mini tools room and training centre scheme

In an endeavour to assist the manufacturing sector, the Government of India provides assistance to the state governments in setting up the tool room facilities, the backbone of the manufacturing sector as they create dies, tools, moulds, jigs, fixtures, gauges and precision components which are the essential elements for the operations of the production units.

Read more on: http://news.indiamart.com/story/govts-five-major-schemes-push-sme-growth-158127.html

Is lending a good idea for MSMEs?

As a Micro,Small & Medium Enterprise (MSME) head you would be worried for options every time you plan for expanding the business or conducting new processes in the organization. These MSMEs are one of the most important contributors in employment generation, promotion of entrepreneurship, wealth distribution and backward area development in India. However, they face a lot of hurdles due to their limited resources in manpower, finance, infrastructure and reach in the market. So where can the MSMEs generate or borrow funds from?

A Mix of Challenges and Opportunities
MSMEs face competition both from internal as well global competitors in times of globalization. Investments in technology & innovation often vie for an extra investment which needs to be provided from time-to-time. Having an extra amount for expansion and development could be a vital difference in the company’s future. There are a number of capital lending agencies working in India which could include banks, financial institutions, private investors, money lenders, etc.

How to approach these Agencies
Traditional finance agencies such as banks rely on documented sources of information, interviews, visits along with the knowledge and expertise of the individual managers in assessing and monitoring a certain business.

While approaching a lending agency, a good credit rating, secure financial statements and stable collateral could work towards your advantage. Many small business lenders often rely on personal credit history of the proprietor while giving the loan. So, the conditions can vary amongst various lending agencies. Risk assessment in a MSME varies greatly from a bigger company as the owner’s assets can also be listed as part of the SME. They often operate in the informal manner and thus listing their financial history can prove to be quite difficult. Keeping a strong financial process within the enterprise could benefit you in getting easy finances. Some lending companies may also demand for shares in your enterprise or prefer an internal agreement for a percentage of the company profits which can be negotiated at your end depending upon your need for the money.

With the advent of credit rating, getting your enterprise rated would also prove to be a good move. The credit rating agencies often have a list of banks and financial institutions on their panels. Getting a good rating would automatically make you eligible for a loan and that too at a reduced interest.

All’s Going Well
Today, as a MSME you have a better chance to avail finances with the launch of the new SME Exchange. You can enlist the organization on the Exchange and avail equity from the market. The latest budget has also provisions for an exemption on capital gains tax for property sales which are focused towards investments in MSMEs. The government has also set aside 5000 crore rupees to establish an India Opportunities Venture Fund along with SIDBI to offer easy equity to MSMEs.

One has to understand that companies such as Microsoft also started as a typical MSME and have reached an important milestone of being the richest enterprise presently. MSMEs can easily collaborate, merge and develop into larger organisations without much complications regarding documentation and thus prove to be perfect vehicles for instant growth. Thus, a gap in financing should be the last problem on your list with a variety of options for you.

Expert Speak: Mr. GK Pramod

Vitality of SWOT Analysis of Microlevel Enterprise

What is SWOT analysis of Microlevel Enterprise?
SWOT analysis of Microlevel Enterprise is to understand all the Strengths, Weaknesses, Opportunities and Threats and list them down among the four quadrants of a graph. After categorizing them, we have to convert the weaknesses into strengths, threats into opportunities and opportunities into strengths.

Importance of SWOT of Microlevel Enterprise

• This would help Microlevel Entrepreneur to understand about his organization.
• This would help to increase their confidence level.

Methodology for conducting SWOT Analysis 

Step-1: As a management expert, call selected microlevel entrepreneur to one place, and brief them about SWOT analysis of their organisation. 

Step-2: Ask them to think and list down all the strengths, weaknesses, opportunities and threats of their organization on a sheet of paper. This may require 1.5 to 2 hour.

Step-3: Organise a One-On-One discussion with these microlevel entrepreneurs to understand their organisational SWOT. Ask them questions as mentioned below:

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

  
Step-4: Facilitate entrepreneurs to think patiently so that SWOT analysis pertaining to their organisation becomes effective. 

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

Step-6: Convert organisation’s 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:

Here is the SWOT analysis of Charan Singh’s organization post a long One-on-One session with the expert:

 

SWOT Analysis of Charan Singh’s organization

Author’s Key Points:

• Be truthful to yourself when you do the SWOT
• SWOT is a very important activity
• CEOs/Growth Strategists should encourage microlevel entrepreneurs

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:

Brand Building via Crowd Sourcing

Small & Medium Enterprises (SMEs) are prime players in any economy and its progress in a big way. Yet, many of these enterprises often abstain from brand building exercises. Industry experts attribute this absence to lack in infrastructure, capital, management, among other things. Often, SMEs are found busy in making products rather than branding or marketing them to their consumers which could often push them back in the competitive market.

Creating an identity
Branding prepares an exclusive identity for an SME and prepares it for competition in adverse marketing situations and also cements a strong connection with their customers. One needs to understand that potential customers recognize brands through a variety of media including visual communication (logos, colors, imagery, etc.), communications (websites, brochures, sales representatives, etc.), and behavior (relationships with customers, partners, employees, government, society, etc.). Also, in case of SMEs, branding could very well refer to their specific products and services which need to adhere to certain levels of quality. Brand refers to the way the customer knows the company and its business. Within the company also, interactive workshops and training sessions need to be conducted to apprise them about the brand.

It helps the customer in differentiating its services and makes the SME exclusive in its audience. It also supports the organization in generating a positive image and also contributes to the healthy growth of an organization. It also helps SME in connecting with future clients and build future associations. They also play a vital role in consumer decision making process as loyal customers often stick to their preferred brands.

Using technology to our benefit
Modern technology also offers SMEs a wide variety of choices to boost their customer base by brand building across various media. SMEs can organize a wide group of people to perform their special tasks related to branding and marketing which were earlier performed by specific individuals. The process termed as crowd sourcing is gaining popularity and is preferred choice for many brand marketers.  

While crowd sourcing is beneficial, it's important to do it right

With social media on the rise, brand building exercises have to be more intensive and planned in their execution. Once the branding is achieved, SME can benefit from its goodwill. With their limited resources and limited budget, 'crowd sourcing' can be a viable solution for many companies.

Crowd sourcing campaigns need to be planned carefully or it can prove to be a big disaster for the company. One needs to be precise in their brief because once the information is transferred, it travels to further customers in the way it was published before. There is no room for errors. SME should also be open to offer incentives to the customers who may be attracted to a particular company because of the prizes offered. The customer also needs to be assured that he is not overwhelmed with company’s promotion drive which may also result in a negative impact. 

Crowd sourcing offers innumerable ways of promotion and one needs to be precise in their choice. Even though it involves a wide range of consumers but the process needs to be treated in a professional manner.

'Buyer Seller Meet' - A platform by IndiaMART.com for SMEs in Healthcare sector to Network & Grow

The medicine and pharmaceutical industry in India is truly cutting edge. It has seen plethora of advancements in the past few years. Messe Duesseldorf India Pvt. Ltd. endeavors to constantly remain in the forefront of the changes, sweeping advances in the field. In association with MEDIC and IndiaMART.com, India's largest online B2B marketplace, as its online media partner Messe Duesseldorf has put its best foot forward with the support of Indian associations such as AIMED (Association of Indian Medicals Device Industry) and IAPMR (Indian Association of Physical Medicine and Rehabilitation), as well as vital international institutions to bring the medicine and pharmaceutical industry under one roof at Bombay Exhibition Centre (BEC) in Mumbai via 'Medial Fair India 2012'. 

But, what actually would interest the Small & Medium Sector Enterprises (SMEs) of healthcare sector here will be the 'Buyer Seller Meet' which IndiaMART.com will be organising in partnership with Messe Duesseldorf India Pvt. Ltd. Before delving deeper on what this meet has in its store for Indian SMEs active in healthcare sector, lets get acquainted with Medical Fair India 2012.

A Curtain Raiser
Medical Fair India 2012 will provide an interactive platform for the entire medical fraternity to gather under one roof and celebrate the technological advances in the field of medicine. It is a three day celebration of diagnostics, medical technology, rehabilitation, medical equipment and components. In fact, such a meeting is much more than just a scientific interaction. In addition to facilitating the exchange of expertise and knowledge, the fair provides an invaluable opportunity for the sellers to exhibit their equipments to the buyers.

It is anticipated that over 311 exhibitors from all over Asia, Europe and USA will attend the event showcasing the technological advances equipments and health care products to more than 5000 visitors. This event will also witness footfalls of entrepreneurs from various SMEs across the sector apart from industry leaders. As a matter of fact, for the very first time in the history of medical fairs in India, there will be a US pavilion with the Illinois State Office, the Minnesota State Office and the US Commercial Service participating, as well as group exhibitions from the Czech Republic and Japan.

Upholding Traditions: Where Buyers Meet Sellers
Partnering with Messe Duesseldorf, IndiaMART.com will organize a 'Buyer Seller Meet' alongside the fair. This meet will provide an exclusive platform to buyers who will come with their specific requirements and sellers who will showcase product samples of their respective companies. IndiaMART.com will make arrangements for pre-fixed meetings between buyers and suppliers of medical products as well as it will ensure that every buyer gets to meet multiple numbers of suppliers. The objective of this meet is the cultivation and promotion of various businesses across the field of medicine, creating prospects for exchanging of views on the development in instrumentation, establishing contacts and face to face meeting with prospective buyers. This meet not only gives a golden opportunity to Indian SMEs in healthcare sector to explore a whole new world of healthcare products & services but also a perfect platform providing enormous future prospects, latest trends and exclusive networking with the companies from the same industry.

Health & Welfare
The medical fair aims to direct the health care group giving them an opportunity to gauge trends and developments in medical industry. It gives them a chance to meet decision makers from India and abroad, whose and who of medical fraternity as well as renowned doctors & veterinarian surgeons. The fair tries to accomplish welfare of the buyers and sellers belonging to health care groups and pharmaceutical industry at its best.

Welcome to Mumbai
So, IndiaMART.com welcomes all manufacturers, exporters, importers, purchase managers, doctors, et al to be a part of this mega event in Mumbai, the bustling and lively city of India which is enjoying both an excellent economical climate and blooming healthcare services sector. Come and join IndiaMART.com at 'Buyer Seller Meet' where it opens gateway for Medical & Healthcare sector to a better tomorrow.

'Buyer Seller Meet' Schedule:

Date: 2nd - 4th March, 2012
Time: 10:00am - 04:00pm
Venue:  Bombay Exhibition Centre, Mumbai

Fill up your buyer's registration form by clicking on the link below and get a Face-to-Face interaction with suppliers of medical products:
http://trade.indiamart.com/mailer/ts231111/medical-fair-india.html

For more information, please visit:
http://www.biztradeshows.com/medical-fair-india/

Innovate to Sustain and Grow

Globalization has brought many markets together and presently, the competition does not just rest within a single country. Products and services from various enterprises located across the world are competing on a single platform. In times of such competition, the success of any particular company is gauged by the speed at which it can innovate goods and bring them to the forefront.

What is innovation?
Innovation defines the ability of any agency to benefit from the breakthroughs of scientific achievements and convert it into practical solutions for marketing. A combination of efficient flow of technology, ready supply of finance and adequate business skills are the three pillars which can boost an SME. 

Teamwork makes it easy for you to innovate

Many SMEs keep on repeating their processes and often fail to innovate and thus eventually lose to competition. SMEs have a huge potential to innovate and are well aware of their market. They are familiar with their manufactured product and user expectations and can utilize the opportunity to innovate. Lack of funds is also another deterrent for many SMEs.

Engage relevant talent
To improve their status, SMEs can even hire an innovation coach who would share his expertise to prepare the innovation process. They can also hire exclusive R & D professionals for new product developments and dedicate an entire wing for the same. They can outsource the research work at a much cheaper rate.  Many low end SMEs may not be able to innovate as per their requirement. They should improve their efficiencies in HR, finance and customer management systems to support themselves.

It has been proved that firms which invest a good amount of their profits in developing innovation or R & D turn out to be at the top of their list in production. SMEs also need to understand the various SOPs offered by the government or policies which can be utilized by them to fund their R & D projects.

Spread good humour
For bringing innovation one has to understand its benefits and also venture into new collaborations to initiate innovation. An SME has to invest in promising innovators who can boost and contribute with greater ideas in the existing set-up. A work culture suitable for innovation has to be cultivated and results are expected to show with the passage of time. It has to be reflected in various segments within the agency including in its management. It is a group phenomenon and never an individual attempt, thus, the team has to be nurtured to express their views and encouraged to be creative.

Innovation also demands a certain dedication in terms of manpower, resources and finances. SME needs to prepare their employees by sending them to workshops, seminars and conferences where they can pick up handy tips. Senior staff are often found to be antagonistic towards innovative ideas and implementations and they also need to be kept in the loop regarding new processes. Ideas have to be worked upon in a collaborative manner and supportive people are required within an agency to support new initiatives. Fostering innovation is hard, but innovative SMEs are cut out for a larger canvas.

Know Your Customer for Higher Growth

The customer is the key entity that drives the market. If a company is able to understand the various dimensions of its customers including social, functional or emotional factors, it would be equipped to design a better product for it. Customers expect excellent products at optimum prices and are also willing to pay as per the product or service. For example, for a hypermarket chain, the behavior of its staff, the pace of its service, maximum discounts on the prices, availability of variety of products will determine its success amongst the users. With a tough competitive market, the SME with a better understanding of its users would have a better chance to outstand others. 

The success of an SME is identified by its grasp of the market, which is in turn driven by the needs of the customers. Thus, knowing the customer becomes imperative for any SME. Every company must develop its own program to understand their customers. The company, the nature of its users and the type of products or services it has to offer are some of the important considerations while planning the program. 

How Well Do You Know Your Customer?
A customer knowledge program should make the SME aware of customer emotions and experience about their products and goods. It should also educate them about the customers’ needs and expectations and also present the market perspective for their products. For example, a company selling shoes should realize factors such as material preferences, designs, looks, climate conditions and average shoe sizes of the population, before even manufacturing any product.

Communicate with the Customer
Communication is the key word in a Know Your Customer (KYC) program and it should consist of interactive surveys, information feedback forms from the customers to know their needs from time to time, et al. Customers need to be visualized as the best brand ambassadors of any company's products/services. Their problems need to be assessed in a regular manner and for every purchase. They need to be offered more for being loyal to the brand. For example, a paints company could provide customers with a sample booklet for choosing colors and in return, request them to fill out a form regarding their preferences in colors, materials from that particular company. This way, both agencies are benefited from the mutual exchange. Presently, the world wide web provides the SME to have a better connect with users directly.

Through the KYC program, the customer also needs to be assured that his inputs are considered for developing the existing products into better ones. Many companies conduct product surveys and often reward the customer for participating in it. These programs also help SMEs enter into a new market or launch a new product in an existing one. They also save a potential company from causing itself any damage through a new service or product.

Key Objectives of KYC
Some of the key objectives of a KYC program include verifying the needs of the customers, monitoring changes in their preferences, manage risks regarding new initiatives, etc. In short, the existence of a stable KYC program contributes to the growth and success of an SME. So, when are you improving a KYC program?

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.

IndiaMART.com Offers ‘Get Free Website’ via Facebook

Do you take social networking seriously? Now, you can take advantage of social marketing with IndiaMART.com, which has launched a great new page on Facebook to help you promote your business online… only as you surf. As social media marketing becomes an innovative, new and cost effective way to market your business, IndiaMART.com has taken it a notch further with an easy to use page. This page is available to you via Facebook that allows you to register yourself for a free website with IndiaMART.com. You can do it in 2 easy steps from Facebook itself:

1. Submit your Contact Info & Business Profile

2. Add Products to your Website

Easy to understand form on Facebook

Register At a Click

IndiaMART.com has always been at the forefront of partnering with SMEs to help them grow their business. We are doing it again with this facility of helping you develop your own website for free. It can’t get easier than this because you don’t have to access IndiaMART.com or go through a lengthy registration process to register yourself. You can do it easily via this Facebook page provided to you only by IndiaMART.com. At IndiaMART.com, we believe in building and nurturing the businesses of SMEs through a continuous focus on creating a world class marketing experience for you. This one’s a proof of that. 

 

With the Get Free Website facility from IndiaMART.com, you can now publish your own website simply by filling in some basic details about yourself, your business and the products you offer. It’s so easy and sure to yield tremendous marketing results because the website will give you the opportunity to market your products and services for free. It will take your business to all parts of the world. The website will also give you free space for advertising and your customers will have access to these advertisements for a longer period of time. You will also have the advantage of changing the content and graphics anytime you want, suiting your needs.

Fill in details about the company

Take Your Marketing Global

IndiaMART.com wants you to reach a wider clientele with your own free website. With this option of creating your own website for free, it’ll be easier for you to make your presence felt in the world market. This means you can expect your business to flourish like never before. So, if a person sitting in Europe wants your service, he would just need to browse through your website and get in contact with you. How simple is that! 

 

What advantages does this facility entail?

1. Make your business accessible to customers who are on Facebook and make your business more interactive.
2. There are no lengthy procedures involved, so registering for your own new website on Facebook is as easy as A-B-C.
3. Do business while you chat on facebook. It's 'Fun-biz' with IndiaMART.com.

Facebook has more than 800 million active users and more than 50% of their active users log on to Facebook in any given day. It’s a market that must be tapped. With this IndiaMART.com website, it will be convenient for customers on Facebook to browse through everything you have to offer—anywhere, anytime. So, you don’t have to turn down your potential customer when it’s time to close your shop. Once you publish your free website, it’ll be easier to deliver convenience to your customer. They will get personalized customer attention, which will add value to your offering. It will also be easier for you to update clients about your business. Another great advantage will be that you will get an IndiaMART.com Intermesh seal website that will win you the trust and confidence of your potential customer. 

 

Just submit your contact information and business profile in the form given to create a website that will open the doors of your business to the world. Add your products and services for people to avail them with you just sitting at home. You can sell products or services and get feedback from potential customers. You can also use various features such as visitor’s poll and surveys to understand the consumer’s psyche and tap the needs of your customer. So, now you don’t have to go to people’s doorstep to sell your products and services. With IndiaMART.com you will have people coming to you. 

 

Get, set and go to become the proud owner of your website with us @ IndiaMART.com.

Cheer Up Your Buyers with Online Promotions

The internet has become a fast-growing medium of promoting your product online. Information on attractive offers and discounts can reach customers at a faster pace via internet. It is possible to inform people about discounts and offers through social networking sites such as Facebook, Twitter, MySpace and LinkedIn. This has emerged as the best medium to reach out to millions of people. In fact, it has been estimated that there are around 100 million internet users in India itself. So, for the Indian SMEs, there could be nothing better than promoting their brands through internet. 

Time It Well

 
It is important to keep in mind that discounts are not to be given throughout the year as people start undermining the product then. They should be scheduled for special occasions such as during a festive season like New Year or Diwali. Discounts can be offered depending on the product. These offers and discounts are a must to gain a competitive edge in the market, but the time frame is also an important factor. 

Internet marketing makes it possible to remain in touch with the customers through emails and to notify them about special discounts and offers. It is crucial to realise that emails have always been and still are the most powerful marketing resource. You can also target customers that your firm would like to extend discounts to; this is not possible by advertising via television or through magazines. Companies can personally reach out to their customers through emails. They can manage their contacts but need to be careful not overdo it as this might lead the customer to discontinue receiving their correspondence. To make the advertisement more appealing, it helps to hire a good copywriting firm to frame customer friendly content for the website. Such professional copywriters could also make the content more search engine friendly. Individuals are more likely to become loyal repeat customers through positive online engagement. In the case of television marketing, consumers are passive recipients of the product. Such discounts reach your customers through the internet at a faster speed and you can also get their responses within few hours; an experience which seems next to impossible with television or print advertisements.
 

Viral marketing plays a crucial role in informing customers about the discounts. The company just has to update its website with details of the latest offers. All this costs a miniscule amount, unlike the conventional advertisements viz. magazines, newspapers and television where you would have to spend a fortune. Moreover, this is the most hassle-free method of marketing.
 

Offers and discounts play an important role in augmenting sales. This entails that the medium of communication be a fast paced one, in order to meet the demands of the present generation. 
 

Cost Effective Medium

It is significant for SMEs to realise how they can cut their costs in the regressive market conditions. Internet marketing proves effective in saving a lot of expenses incurred on advertising through the usual modes such as television and print. In fact companies can reach out only to a limited audience through these conventional mediums. On the other hand, internet marketing is growing by leaps and bounds because of its effectiveness, and it is quite obvious that it will soon outgrow television and print advertising viz. newspapers and magazines due to large number of people hooked on to the internet. Unlike the other modes, it is a cost effective medium and has a mass appeal. A company can expand its horizon through internet marketing and not have to remain confined to just a region or a country. The traditional mediums have a limited circulation and earmarked areas; the internet offers unlimited exposure. Anyone at any time can check the company website and learn about its product.
 

People usually look for information of a company on internet and so having an internet presence really makes a difference. It is important for the SMEs to understand that online marketing is the most important medium to boost their sales. The conventional promotion mediums require payments time and again but internet requires only the creation of a website which has to be regularly reviewed. If need be, a company can also make judicious use of internet by establishing a profile on social networking sites such as Twitter, Facebook and MySpace. It provides a platform to connect with new people and develop brand loyalty. Companies can maintain good personal relations with their customers and address their problems. All this can really help SMEs to win the confidence of their consumers. With a minimal cost, the company can be effective beyond imagination. A firm can also opt for other dynamic mediums such as viral marketing, blogging and podcasting. Increasing interaction with the customers can greatly help in generating sales. You should not miss out on getting your company listed in the several online business directories so that your firm can easily be traced by customers. This is an extremely convenient means to establish your web presence.   

Era of Marketing

There are 70% customers who trust online reviews. So you can aim towards gaining such online customer reviews, which, if positive, can benefit your company tremendously. There are over 100 million internet users in India itself, a fact which depicts the popularity of the medium. It is a good idea to conduct research and get in touch with the niche audience; this helps in framing an advertising strategy and boosting sales.
 

According to reports, India is home to an estimated eight million SMEs of which about 400,000 have a website and 100,000 have an active online presence. Internet marketing is flourishing and it is visible. A defined market strategy helps to attract the audience and create a profile for each segment. It is helpful to analyse customers’ problems and offer solutions after understanding their psyche. Make use of popular keywords to attract them. Make use of analytics to trace the customer’s response and direct yourself to the particular audience. This can help you to decide your future course of action. You should focus on increasing the internet traffic towards your company website to acquaint the people about your products.
 

In this new era of marketing, nothing can be more cost effective than internet marketing which has already begun to dominate the traditional methods of advertisement. Internet opens up endless opportunities with minimal investments. Maximise your sales with this innovative technique.

Targeted Marketing with Internet

Companies are increasingly using internet to promote products online. Social media has become a primary tool and internet marketing is increasingly being harnessed to curtail expenses besides saving precious time and energy. If you own a SME then you must discover the secret of saving your money through targeted marketing. Market research is its twin strategy that is again indispensable for a firm that wants to be successful.

Specifying Customers and Analysing Behaviour Pattern
The first step before creating a searchable site is to know who you are targeting. You must bring to your customers what they really want. Critically examine your customers’ behaviour and then plan your marketing campaign accordingly. Targeted internet marketing allows the web-master to design a marketing program to draw the attention of the predetermined group of people. Your target market is your ideal customer in the specific segment of the population you attempt to reach. This might mean pin-pointing their gender, income, education level, geographic location, interests, dreams and desires, problems they want to overcome and so on, as these affect the decision to purchase. The more specific you get, the easier it is to find and market to your target visitor. You can develop stronger customer relationships by targeting the needs of a specialized group. You need to define your target market so that you can immediately capture the attention of customers.

You must let your customers know that you understand their lifestyle – this gives a unique dimension to your site. Through this, you can give a personalised touch to your website and excel in the market. So if you are selling a product then you must smartly target your customers keeping in mind the purchasing power as well as the kind of mindset people have. Targeted marketing is all about how people think because it helps to know the market. Therefore, it is important to analyze this phenomenon to become a successful entrepreneur.

Strategies for Targeting Customers
There are many innovative internet marketing strategies to track potential customers. You can opt for the banner advertising option on the internet to target customers. The advancing technology makes it possible for advertisers to make your ads appear on specific sites which contain content that is similar or related to that of your site. For instance, if you have a clothes firm then your advertisement would appear on the sites dealing with the clothes industry.

The next big revolution in this stream is geo-targeting where, by tracking the IP addresses of the user, you can have ads appear before them. Another powerful force in internet marketing is the Pay-Per-Click option. It allows you to create a small text ad and then it appears on the screen when the user is searching on keywords relating to your product or services. It provides you with an edge as your ad appears in the Sponsored Links section of the search result page. You can also dwell upon organic search where the listing is generated based on the HTML tags and the relevant content found in a website.

Behavioural targeting is another popular medium as it delivers ads to consumers based on their past search behaviour. This reveals their interest and it is easy to convert them into customers. You can also target users with paid search ads on landing pages after they leave a search site.

Not taking things for granted, it is better to research the probable behaviour of the customer and choose the keywords accordingly. You must analyse the behaviour pattern of the customers which manifests in a better response in the market. You can create a SEO (Search Engine Optimization) program to attract the targeted traffic. You can link with the sites which provide information that deals with your product. Keywords should be popular and relevant; you should not assume them but research them. You can also make use of the keyword research tool, to be more precise.

Local Market
You can also target the local market customers through internet marketing as you can publish the latest events; for example, winter sales or festive season discounts can appear in the local newspaper website. You can also send emails to potential customers.

Undeniably, the internet promises to replace blanket marketing with targeted marketing. It is popularly stated that 'time is money' and target marketing is a less time consuming and a less expensive method.

Expert Speak: Mr. Nandan Sharma, TATA Communications

MPLS - The Gen-Next Intelligent Networking Solution for SMEs

Small and medium enterprises (SME)s today leverage the power of technology to ‘go global’ and stay connected with associates and clients ‘24x7’. In this age of globalization and localization or as we say “glocalization”, small enterprises need to conduct bulk of their business over the internet and in a secured manner.

There are multiple options, but the best suited is the Multi-Protocol Label Switching (MPLS), the networking system that is reliable and secure for national and global connectivity. What makes MPLS the most sought after technology to deliver voice and data services for small enterprises? It is mature, sophisticated and delivers voice and data services faster. MPLS provides faster packet forwarding for IP routers and supports Virtual Private Network (VPN) services with traffic engineering and network convergence.

In addition, by virtue of its performance and versatility, MPLS offers lower network total cost of ownership (TCO) than any other solution.

Now, as a SME business, would you not want a fully managed solution that helps you streamline your business operations more efficient? MPLS not only provides you with cutting edge technology with ample capacity for future expansion but also offers cost-effective scalability across multiple locations. After all, you do not want to spend a fortune on your network infrastructure.

But it is not just costs, in this age of cut-throat competition among businesses in all domains, SMEs always need to improvise and enhance product or service in order to carve a niche in the market.  We understand that you need to concentrate on your core competencies instead of struggling with high-end technologies and networking system. 

MPLS networking service provides you with a fully managed solution for all network and connectivity requirements along with supporting business critical applications. MPLS service thus is the key for you to get an edge over your competitors.

The contributor for this blog is Mr. Nandan Sharma, Product Head, Network Services, Tata Communications-SME (http://www.tatacommunications.com/sme/mpls.asp)

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

Back to Basics to Achieve Profitability for SMEs

With the ever changing demand and supply dynamics of the markets, SMEs do feel pressurized to meet the requirements. The major challenge which they came across is to sustain and fulfill the requisites without hampering enterprise's profitability.

After covering two 'Sutras' for effective business growth - Scalability and Sustainability, we will have a session on third Sutra – Profitability in this blog. By understanding its various aspects, you can imply them practically and make them instrumental to accomplish organisational growth.

Profitability
A Microlevel organization is said to be Profitable when it makes enough profit to take care of its employees, customers, investors and the Microlevel Entrepreneur in a satisfied manner.

Importance of Profitability

• Profitability plays an important role in motivating the Microlevel Entrepreneur in the right direction
• If the profitability is not in there in the business, it becomes extremely difficult for a Microlevel Entrepreneur to continue in the business

Do’s

• Make sure the business unit makes profit from day one of its operation
• Cut down all unnecessary expenses
• Make sure that the Microlevel Entrepreneur focuses on the core business

Dont’s

• If the existing unit is not making profit, first make sure that it becomes profitable
• Don’t open up a new business unit if the first unit is not profitable
• Don’t spend extra money on additional resources

Case Study:

Case Study-1: (Product Business)

Ms. Usha is a Microlevel Entrepreneur from Mysore in Karnataka. She is selling 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

4) Details of turnover for the past 3 years:

Let us understand the analysis regarding Profitability factors for Ms. Usha’s business (Product Business):

• Ms. Usha’s business has made 30%, 35% and 40% profit in the past 3 years
• She is making good profits
• As the turnover is increasing, she is also able to increase the profit margin
• This is a good, profitable business

Challenges in Profitability

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

Case Study-1: (Product Business)
 

Mr. Charan Singh is a Microlevel Entrepreneur from Jalandhar in Punjab. He is selling fertilizers. 

                                                                                                                 
The details of Charan Singh’s business organization unit are  as follows:
1) Name of the entrepreneur:                  Mr.Charan Singh
2) Name of the organization :                  Guru Gobind Agro
3) Nature of business :                            Selling fertilizers, Seeds and Chemicals
4) Details of turnover for the past 3 years:

The analysis regarding Profitability factors for Mr. Charan Singh’s business (Product business) suggest:

• Mr. Charan Singh’s business has made 10% profit in the Past 3 years.
• He is not making good profits.
• As the turnover is increasing, he is not able to increase the profit margin.
• This is not a profitable business.   

Challenges in Profitability

• Mr. Charan Singh is making a large turnover but less profit.
• The challenges for Charan Singh are to increase his profitability along with his turnover.

Key Points to remember:

• Make sure that the existing business unit is profitable. Increasing the profitability doesn't necessarily mean, you may have to open up more units. You can increase the profitability either by increasing the price for your products/services or increasing the customer base.
• Once the existing unit becomes profitable, a Microlevel Entrepreneur can think of opening new business units.

With this the journey of understanding the three vital 'Sutras – Scalability, Sustainability and Profitability' for business growth ends here followed up by your actions to implement them practically in the business growth strategies and witness the difference.

We will continue our journey of understanding various 'must know' topics for Small and Medium Enterprises (SMEs) in the subsequent blogs.

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:

What the Auto Expo Means for SMEs?

What does the Auto Expo do for you? If capitalized right, the Auto Expo can provide ample opportunities to micro, small and medium enterprises. Smaller companies can showcase their products to most of the industry and new entrants can find themselves good opportunities. This hyped show is taking place at Pragati Maidan in New Delhi and it has the ability to attract a large number of customers.

Technological Advancements
Technological innovation is the thing to watch out for at the Auto Expo. Small component manufacturers need to keep an eagle’s eye on technological developments. The Auto Expo is a great place to know what is happening. It gives a holistic view of the automobile and components industry and if you are in that business, this is the best place to learn of new research and latest technological advances. There are also new national and international brands to be launched in India and the Auto Expo will introduce you to these opportunities. India is a growing market and if you operate in this booming industry then you need to acquaint yourself with the latest technological advancements because this knowledge will assist you to plan your business and give it a giant head start.

Perfect Platform
The Auto Expo is also the best outlet to showcase or even launch your product. It gives you an access to Indian and international buyers that no other marketing plans can provide. The small and medium auto component manufacturers are developing new technologies and offering new products. There could not be a better place to showcase these products because of the scale and industry-wide platform it offers. With 1500 exhibitors from 24 countries, this is also a wonderful international platform to participate in.

Explore More
This is the largest automotive show in India and you will be able to see the latest technology products from all leading and upcoming brands of the industry. The Auto Expo will introduce SMEs to new and locally designed or developed auto components, component designs and new age electronics.

The special focus of the Auto Expo would be on technological innovations in the field of safety, environment and fuel efficiency. These are great ways to improve and enhance your business. You can also check out special automobiles such as cars, SUVs, MUVs, CVs, two or three wheelers, hybrid vehicles, electric vehicles and special vehicles.

New Opportunities
If you run a small firm, every purchase you make has to be planned. If you are contemplating buying vehicles for your firm, this is the place. You get to identify, purchase and choose from a variety of special vehicles. In a highly competitive market, the Auto Expo comes as a buzzing and informative coalition of all large and small auto manufacturers. The Auto Expo is also the place to meet company representatives who will take you through different products with all the information that you require. This helps you to understand the market, competition and what is the future. It is also a great place to understand what the Indian markets requires.

If you have been wondering about the many brands entering India, the Auto Expo will help you understand what makes India the hottest market for foreign automobiles. Find out the hows and whys of the Indian automobile and components industry here.

RBI asks Banks to acknowledge, streamline MSME loan applications

The Reserve Bank of India (RBI) has directed the banks to compulsorily acknowledge all the loan applications, submitted either manually or online, by the micro, small and medium enterprise (MSME) borrowers. 

 

The central bank has issued the directive after receiving complaints from industry associations/ chambers that banks have not been acknowledging loan applications. The banks have been asked for ensuring that a running serial number is seen on the loan application form and also on the acknowledgement receipt. 

Moreover, the banks are strengthened to commence a central registration for loan applications, said RBI. The same technology is expected to be used for online submission of loan applications for enabling online tracking. 

For the micro enterprises, the simplified application-cum-sanction form, printed in regional language, needs to be unveiled for loans up to Rs 1 crore.

For more information, click: http://news.indiamart.com/story/rbi-asks-banks-acknowledge-streamline-msme-loan-applications-153008.html

Expert Speak: Mr. Rajesh Radhakrishnan, Vritti i-Media

Affordable advertising solutions for SMEs in Maharashtra

Rural markets have grown to be a bigger market for every category of business in India. It’s no surprise that the Indian rural markets have become the center of attention for every product or service eyeing the Indian market.  While the rural consumer is ready to dissect the billion dollar opportunity, companies are in process of modifying their products and services to suit the needs of this class of consumers.

The consumer spending in rural areas has taken a drastic hike giving enough growth opportunities to small and mid-sized businesses.  SMEs operating at a local level can make best of the changing market scenario as they understand the market better compared to the giant competitors. For instance, in case of the consumer products category, it has been observed that consumption of such products has increased radically in rural areas. This has resulted in a surge of multi -national FMCG brands like HUL and P&G spending more time and resources in understanding the rural markets and enhancing their distribution networks in such areas. On the contrary, mid-sized FMCG companies who have a wider presence in rural areas can make best of the opportunity by creating an effective presence of their brand. Along with strengthening the local distribution network, companies also need to lay focus on a robust advertising plan to have better recognition of their brands amongst the consumers as compared to the established brands.

Advertising plays a vital role in establishing a brand amongst the target audience. It has played a vital role in transforming mere products or services into brands.

Branding and advertising are essentials for any SME to grow big. However, SMEs face a significant challenge of limited budgets and resources. In such a scenario, cost effective advertising is what can ease the problem of SMEs.

Vritti i-Media, a next generation advertising solution provider in Maharashtra has come up with innovative audio advertising solution for advertisers. Vritti i-Media has partnered with Maharashtra State Road Transport Corporation (MSRTC) to run audio advertisements at various district bus terminals. They have been appointed as the Sole Authorized Agency by MSRTC to run commercial audio advertisements that are played along with the Buses’ arrival/departure announcements. Thus ensuring 100% compulsory listening for small towns and rural market consumers who travel frequently in MSRTC Buses. Since the advertisements are aired through centralized web server, Vritti i-Media has been able to connect with consumers in the most remote villages of Maharashtra. The audio network of Vritti i-Media is currently spread across 80+ locations of MSRTC bus stands covering key centers, investor hubs, all districts, important taluka places and pilgrim centres in Maharashtra.

Advantages of Vritti i-Media’s audio advertising solution to SMEs in Maharashtra:

• Reach of 103 Million people
• On-air time morning 6am to night 10pm daily
• Broadcasting every 30 minutes
• Passengers on an average change every 30 minutes and that assures your advertisement is heard by new person every time
• Every District bus stand - Average 40000 passenger footfalls every day
• Per persons cost is almost 10% compared to other media and impact is 100%
• Audio advertisement in local language can reach out to illiterates as well
• Advertisement releases at various district place bus stand and repetition throughout the day and month create a brand image
• Advertisement is heard across bus stand and up to 100 meter periphery
• Mandatory listening as the advertisement is coupled with the bus departure announcement. Passengers are actually waiting to hear the announcement
• 100% battery backup to ensure 16 hours running of system
• Advertisement can be changed within 30 minutes

Vritti i-Media assures wider reach for SMEs in cost effective budgets. This innovative concept of audio advertising solution has also won 2 Gold and 1 silver awards at the Outdoor Advertising Awards, 2011.  Gold Award for most coveted “Media owner for western region”, Gold Award for “Best Transit Media and Silver”  Award for the Best Format Innovation – New Media category.

Vritti i-Media has been responsible for making various brands a house hold name in rural and semi urban areas of Maharashtra. SMEs like Kirti Gold, Maharashtra K knowledge Corporation, Gujarat Tea traders - Vikram Tea, Pitambari, Kalnirnay publications and many more have been successful in building a brand name in rural and semi-urban parts of Maharashtra with the help of Vritti’s advertising network.

For more information on advertising solutions by Vritti i-Media, visit:
www.vrittiimedia.com

The contributor for the blog is Mr. Rajesh Radhakrishnan, Head-Marketing, Vritti i-Media