Top 6 Factors For Sustainable Small Business Growth

(, Having a 9 to 6 job is always considered a settled career. Work 5 days a week and for a limited time without investing your capital and having a fixed income.

The only problem because of which many of us do not opt for the job is the fact that you are going to get a fixed and limited income in terms of salary, and you are not your own owner. i.e. you are working for your boss.

Now unless you are an Ambani, you have to start from the very first step. You have to start as a small business unit or small scale industries in whichever field you choose and then slowly and gradually you have to climb the stairs to become the top business unit in the market.

If you have a small business and want to start it online then you need to do many tasks before having an online presence.

You must understand that gst registration is most important If you want to sell a single item online. The Gst Number (Sales tax id) is based on the gst state code i.e. where the business is situated.

Here comes the old saying, that everything has two sides like a coin.i.e a pro and a con. Starting your own business also has its pros and cons. You have to handle or eliminate the cons so as to achieve the goals. You have to face the competition of big and well-known companies, issues of limited capital, endless responsibilities and so on. So starting and surviving as a small business unit is not going to be a piece of cake.

Sustainable Growth:

Only 50% of businesses survive five years – though most (70%) hit the two-year mark.  The only way to survive is to grow.

You take the decision of opening a business in the ‘X’ field, obviously after considering your interest, the growth rate of that field, and by seeing some example or ideal. Example- If you want to sell your own beverage, then you must be having Coca-Cola as your ideal, as all of us want to be best at what we do, and that is the spirit that keeps pushing us to provide our 100%.

But what we do here is we expect the same results that they are having now, very quickly. Coca-Cola sells 1.4 billion beverage servings every day. But in its first year, it was able to sell an average of just nine glasses a day.

Coca-Cola debuted in the year 1886, and it took it all those years to be at the place, it is now. You are a small business with limited capital, thus you need to understand that success will not come to you overnight, and you will have to work the hardest and for years to be at the top. Use the top company in your field as an ideal or inspiration instead of a competition.

If you are an indiamart seller, club factory seller or any other e-commerce marketplace vendor then you have to understand their algorithm first to get a sustainable growth in the initial stage. As a Small business owner, you have to work consistently to get the desired results in your sales.

The growth that you desire is very far away and therefore as a small business unit you should focus on sustainable development as your ideals are developed, which you are obviously not and you have to survive the competition too.

A small business went bankrupt every 8 minutes in 2009, in the U.S. You can take financial help for the growth, but that growth would be considered as unprofitable growth. By increasing your debt you are just burdening yourself and pushing your business closer to bankruptcy.

Sustainable Growth refers to creating long term profitability while keeping your cost to the minimum. Your only focus here should be to grow while using your and your assets 100% capacity and having the maximum possible profit. Here is a list of factors for sustainable small business growth:

1.Big Hairy Audacious Goal (BHAG):

A Big Hairy Audacious Goal (pronounced BEE-hag) is very similar to a strategic goal, it focuses on the company’s small, medium or long term goal which is audacious, which would be seen impossible by outside, but would be taken positively internally and be taken as a motivation.

It works as a cycle, as soon as a goal is achieved, you have to set another one and have to work on achieving that. There are four categories of BHAG referred to in “Building your company’s vision” by Jim Collins and Jerry Porras:

Target Oriented BHAG: Here, you can set quantitative or qualitative targets. Setting a quantitative (numeric) target is the most that we see.

Example: Quantitative Target – Become a $125 Billion company by the year 2000. ( Walmart, 1990)

Qualitative Target – Become the dominant player in commercial aircraft and bring the world into the jet age. (Boeing, 1950)

Role Model BHAG:

Have your ideal company as a role model in this BHAG, think of the company you want to become as great as.

Example: Become the Nike of the cycling industry. (Giro Sport Design, 1986)

Internal Transformation BHAG:

If you are seeking a change in your organization, then this is the right BHAG for you.

Example: Transform this company from a defence contractor into the best diversified high-technology company in the world.

Competitive BHAG: If you want the team to work together, to take down the leading competition in your field, then opt-out for this BHAG.

Example: Crush Adidas. (Nike, 1960’s)

Yamaha wo tsubusu! We will destroy Yamaha! (Honda, 1970’s)

  1. Hustle:

Hustle beats talent when talent doesn’t hustle. It’s a famous saying in India, that what the result would be is not in man’s hand, but working hard is, as nothing could be accomplished without working hard. So we should work hard without worrying about the result, as if you are not able to achieve the desired results, you would still have the satisfaction that you tried your best.

Hard work is the only key to accomplish great things. Thomas Edison Failed 1000 times in inventing the bulb. By working hard you can overcome the most talented too as by working hard you are building your own talent.

Genius is one percent inspiration and ninety-nine percent perspiration. Great accomplishments depend not so much on ingenuity as on hard work.

  1. Maintain Personal Touch:

The scope of Client Management is too broad, and companies require a dedicated team to fulfill the requirements of it.

But, as you are a small business unit, you would be having a smaller circle of clients. If the owner or the founder, personally, interacts with the client’s, this leaves a positive impact on the customer.

Try maintaining personal contact with the customer and guide them in their journey.

  1. Key Performance Indicator:

Know your numbers. Set milestones for the steps in planning, so you can know if you are making progress according to the plan or not. Celebrate all the small accomplishments or every time you complete a milestone, or if there is any deviation in the plan, then it’s time to make some necessary changes in the plan.

Understand all your income and expenses, and mainly understand the per-unit cost of your product. Many small businesses don’t understand the cost of acquiring a new customer and to deliver the product. Go deeper into the details and understand the core profitability of your business.

If you are not able to keep track of the milestones, you can use project management software to help you with that. Project Management Software is important for you if your work is in a project like flow.

  1. Trust your team:

You hire a team to expand and to have them to help you with a particular piece of work so you can focus on another important one. You have delegated the task to the team and now your work is to be focused on your tasks.

You need to trust the team that they will accomplish all the tasks, and therefore you will be able to put your 100% focus on your work. Without this, you cannot increase your scale and the outputs.

This makes you free from simpler or normal business tasks, so you can focus on different growth opportunities.

  1. Understanding the Market:

Do deep research of the market and know which needs of the consumer’s your product is able to satisfy, then target those customers.

Instead of having a wide market saturation strategy, have a deeper market saturation strategy. Develop your product furthermore, so as it can satisfy the market you are in.

Before expanding, become the king of your current market. Make sure that everyone in your current market knows you before you start expanding. Like a tree, make your roots strong, then you can expand your branches everywhere.

Success is never owned, it’s rented. And the rent is due every damn day.”Everyone is looking for success, and believe me, you will find tons of advice on how to grow, but the most successful way is always going to be hard work. As stated above, success is rented and the rent is hard work. Pursue excellence and success will come chasing you.

*Author Bio:

Mohit is an E-commerce Consultant at MohitECommerce. He is expert on many Marketplaces and very good at Amazon FBA, Amazon Brand Registry, Amazon Seller Registration and many other tasks. He loves to work with any type of Business Industries.

One thought on “Top 6 Factors For Sustainable Small Business Growth

  • 27/12/2021 pada 12:05

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