Starting a business is not just chutzpah. It also requires a little strategic thinking to build your business credibility. Especially when you are young, have a new idea but lack the years.

 

1. Build Your Business Credibility

 

There are a number of ways to build your business credibility. It all starts with building a reputable business with quality goods and/or services. You need to both tell and show your client what you have to offer. This can be done through client/vendor testimonials, referrals, endorsements, etc., that you can display on your website, product or marketing/communication collateral. Maximize your credibility by being honest to your work and product. The goal is to find the best match between you and each client, not promise you’re the perfect match for everyone—that’s just not possible. 

 

2. Be Proactive, Get Friendly with Competition

 

“The present scenario demands that to grow, small scale enterprises will have to master the new rules governing competition,” advises Dinesh N Awasthi, Director at Entrepreneurship Development Institute of India, Ahmedabad. Globally, governments have created an enabling environment through huge support infrastructure which provides subsidized business development services to SMEs, facilitates easy access to quality raw material, machinery and appropriate technology, credit on favourable terms, among others, Awasthi says. In such an environment, it is foolhardy to antagonise competition. Small businesses can thrive and grow faster if they work together to create friendly and supportive ecosystems. Instituting local SME chapters that can either be specific to your sector/industry or common, joining industry bodies, participating in seminars and events will afford you the opportunity to network and consolidate with your peer group. You can also start online groups on social media and join existing online forums close to your interest. 

 

3. Set the Right Goals for Company, Self & Team

 

You may have a grand vision for your business, but you need real goals, identifiable and achievable by the talent you hire. It’s important to check if you are setting and measuring company goals in a right direction. Set SMART (specific, measurable, achievable, relevant, and timely) goals for each employee and business unit with an effective mechanism to ensure everyone knows what success looks like, and what their role is within that. Make sure that every employee’s KPA (key performance area/s is tracked against these SMART goals, which will help to increase productivity, maximize manpower and contribute to employee engagement.

 

4. Pay Heed to Customer Advice

 

Listening to customer’s preferences and grievances can drive you on route to success. What differentiates you from competition might not be the product or service you offer, but how you interact with your customers and clients. Be proactive in implementing clients’ suggestions, to adapt your offerings to their needs. Use surveys, sample studies, social media and other platforms to gauge the perception of your organization or your product in the eyes of your customers. You may lose those unhappy customers if you ignore their comments and feedback. 

 

5. Never Put Data Security on the Backburner

 

SMEs around the world have learnt their lessons the hard way much like large organizations that face similar threats. Data security for businesses is increasingly proving to be chimera.In this era of BYOD (bring your own devices), and even if you have a policy against it, guaranteeing security of data against employee theft is a slippery thing. A number of other things can go wrong with your business data too. Systems can come crashing down, it can be hacked by competition, malware can infect it…the possibilities are frightening. But if you start out with a robust data security system early on, you’re chances of mitigating these threats are higher. Always go for licensed software, install adequate firewalls and antivirus protection, keep sensitive data password protected and out of reach of even your most trusted and never forget to back up data. If you are on public cloud do understand the security measures your cloud service provider has in place before you entrust your data to his datacenter.

 

6. Make Your Presence Felt Online

 

 

R Narayan, Founder and CEO of Power2SME, pins the rapid growth of the SME sector on “the growth of social media” which he says resulted in “increasing confidence of consumers across various socio-economic classes to use internet for discovering new products and new marketers”. Explaining the social media impact, he says that it is easier for a new generation of entrepreneurs to reach out directly to their targeted consumers by putting in minimal effort and cost, as compared to the traditional distribution and retail channels. Here’s your key to tap a whole generation of new customers—they are not just the tech-savvy youth but their mom, pop and gramps too. If you don’t have a website, do get one soon and if you do, then apart from being there, you can also advertise your presence on social media. There are various e-commerce platforms that promote SMEs. You can sell your products and find more buyers there.  

 

7. Upgrade your Technologies 

 

It is the age of techpreneur. Smaller business owners backed by technology are outpacing larger competitors. Technology improves business productivity, revenues and profitability, even as it drives innovation. Technology has also obliterated global boundaries to growth. The micro, small and medium enterprises are rapidly embracing technology to compete with cross-border competitors in an increasingly global marketplace. There are three key areas in which adoption is happening—cloud-based enterprise software, the internet, and mobile technology. Cloud computing requires no large upfront investments in hardware or software, and companies can be up and running quickly without long implementation projects. Technology is the precursor to innovation, helps prune costs, increases efficiencies and improves enterprise competency.

 

8. Showcase Your Success

 

You have earned your stripes, so wear them with pride. There’s nothing wrong with a little bragging if you’ve earned it. If your business wins an award, achieves a certain milestone or if you’re being recognized for a business-related achievement, celebrate and share your successes—on your website, social media, and marketing collaterals. You can even commission market research organizations to write a case study on you which can then be published online and in print. This can be tagged in your mails as links, sent to media with requests for coverage, and presented to concerned stakeholders like government officials and influence groups. Such steps let people know that others recognize your worth and start a snowball effect.

 

9. Never Hire your Clone, but Employees

 

Human resource has been one challenging area for SMEs. It is hard to attract talent and tougher to retain them. Employing your relatives is not an ideal staffing solution. Do bear in mind that employees have the potential to make or break your business. Start smart by taking time to figure out your staffing needs before you look for potential candidates. Understand the job requirement and attributes like personality, experience, and education needed for it. Your employee is not your best friend, so getting people exactly like you is the worst mistake an entrepreneur can make. Best advice: Hire professionals from your industry.    

 

10. Delegate, Delegate, Delegate

 

Your time is precious and better spent in managing your business, not its nuts, bolts and screws. In the early stages, you are the sap to your company. It’s your ability to invent, produce and sell your product that ensures the survival of the firm. At this stage, it is all that matters. As your company grows and you bring in domain experts, do allow them do their work and grow. The growth of your company depends on this. If you spend your time micromanaging every small detail, you are headed to an early grave along with your enterprise.