The time's here to make year 2010 count!

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Bikky Khosla | 05 Jan, 2010
In the last couple of years, businesses, particularly SMEs, saw increased scrutiny in cost-cutting initiatives and have actually become more solid and fit to survive. These companies are geared up to step into the next level now that the economic situation is showing signs of looking up. However, due to lack of flexibility in their marketing strategies, many companies are unlikely to benefit from these growth strategies. I believe one reason for this trend is that IT capabilities are not in sync with the SMEs' processes and scale of operations. The question that SMEs must ask is: whether to invest in IT-enabled tools in order to enhance capabilities for the future or not?

For all, 2010 is the year to study the characteristics of the market first, and then look for a suitable strategy as to how to best position oneself for the challenges to come.

I would like to reiterate one factâthat is, in order to be successful and grow, we need to study and discover our customers' priorities and thus align our products and services accordingly. We also have to focus our business development efforts towards faster-growing customers than on larger ones.

Entrepreneurs who will adopt the most appropriate sales strategy will determine the success of the company. Since competing strategies differ for different situations, it will do a world of good to be aware of the situation and work on business development strategies accordingly.

Whatever the entrepreneur decides, he/ she should bear one vital point in mind that the economy which is limping back to normalcy, will in no way display similar tolerance for wasteful business practices as was two years back. So in 2010, the winners will the ones who will be able to recognise the future tools that will take his/ her company to the pinnacle of success.

Meanwhile with the government asking all PSU banks to finalise targets for the next financial year, SMEs may have to shed a little less sweat to get credit.

An industry outlook survey has also found that after a bad year due to demand recession in the West, things are changing for the better for Indian SMEs. Although the survey revealed that rising costs of raw materials, international competition, price competitiveness and delay in payments maybe the limiting factors for their growth, these units can emerge as the epicentre of increased economic activities from 2010 onward if the government provides the right kind of nurturing that the sector requires.

Notwithstanding these predictions, for SMEs, this year their focus should be directed towards a set of ideas with which they can identify and apply to their own unique set of strategies. A contextualized improvement plan will empower SMEs with the information it needs in order to grasp the opportunities that the improving business environment promises to offer, but to only those that have prepared accordingly. So are your prepared?