Growing a business from its inception to a well-performing and sustainable profit-making organism is a daunting as well as an exciting task. Many business owners stress the need to scale up their business without sacrificing the fundamental goal of maintaining profitability. Expanding reach, increasing operations, upskilling the existing workforce or hiring additional workforce without compromising the profit margin requires a strategic balance between available resources and ambition to grow. According to a McKinsey report, only one in every five businesses manages to scale up, despite this 60% can succeed provided their business growth plan is detailed and addresses key areas.

We will broadly classify some strategies for SMB growth in the current Indian economic landscape. While these will apply broadly to any type of business, more consultation and brainstorming are required to adopt any precise set of strategies that are tailored to that specific business.

Planning- Research and identify the brand position, public reception, market share and target audience. Based on the planning, develop clear and achievable goals. These could be market penetration, segmentation, product placement and expansion, and diversification.

Market Penetration- This is done to launch a new product or increase the market share for an existing product

Market Segmentation- The objective of market segmentation is to reach new demographics. For example, Nike sells sportswear and accessories but wants to expand its reach to luxury items like jewellery buyers. Another example could be Unilever’s Fair & Lovely brand which was for women in general. It wanted to reach another crowd segment, such as men with its product Fair & Handsome.

Product Placement- It is a marketing technique where the brand pays to place its product in a movie, music video or podcast. For example, when any star drinks any energy drink with its label visible.

Expansion- Expanding the market reach to a different demography or location.

Diversification- Here the brand introduces a new product to attract new customers.

Developing a scalable business model-  A scalable business model has growth potential. At the core of this process is identifying a product or service that can be scaled easily. In such businesses, there are ample scopes for streamlining operational processes to enhance efficiency and create an organizational structure that can adapt to the increased demands. Some key features of a scalable business model are technology and automation-based, digital delivery, subscription-based revenue, clear value propositions, and flexible infrastructure.

Strategic Marketing & Branding- Leveraging strategic marketing and branding are necessary components of scaling a small and medium business. This can be achieved through diversification of marketing platforms by collaborating online and offline marketing and the creation of a marketing mix of Product, Placement, Price, and Promotion. Online marketing techniques viz. business website or online storefront, email, social media, digital advertising, temporary pop-ups etc. Offline marketing techniques can be word of mouth, in-house sales, point-of-contact sales, billboard ads, flyers, banners etc.

Some strategies for marketing and branding are-

• Creating a new line of products that inherits brand identity among customers.
• Adding new features to upgrade the existing product.
• Manipulating the price depending on the competitors and demand.  
• Special offers- for example, a beauty brand's skin care products are selling at a good pace, can accommodate its hair care products which are experiencing less demand in a package to increase its sales.
• Moment marketing- Making use of occasions like festivals, cricket matches, current events and trends.
• Cause marketing- Associating the brands’ identity with a particular cause, for example, Bombas donates one item of clothing to a homeless shelter for every purchase made by a customer.

Technology Upgradation and Automation- Every business should be able to upgrade repetitive tasks with software that can drastically reduce operation time and labour costs. For example, using CRM tools to streamline customer data management processes. This will in return enhance sales and improve customer satisfaction. Digital transformation and AI integration are other measures to manage time and resources. For example, moving your data from offline servers to the cloud will enhance operational efficiency, data security and reduce maintenance costs. Employing an Employment Resource Planning (ERP) tool reduces the time and energy required to manage a company’s core business processes, such as operations, accounting, HR and compliance.

Financial Planning- The most pivotal task of business management is financial planning. It involves assessing the financial health of a business, securing funding options, managing cashflows and implementing financial systems and controls. Maintaining adequate liquidity by reviewing cash flow systems is necessary to manage resources more efficiently. Identifying and mitigating potential financial risks while optimizing cash flow to meet required operational demand is also involved in effective financial planning. Moreover, the global market is marred with potential fluctuations. So, a contingency plan should be in place to meet the requirements of rainy days. Another aspect of financial planning is to maintain clear communication with the stakeholders, remaining adaptable in the face of change. This helps businesses minimize risk and maximize potential scalability.

Building and maintaining a high-performance team- Recruiting and retaining top talent is necessary for maintaining a high-performance team. This becomes essential in the process of scaling, as hiring a new talent and training them is costlier for any business. These employees require leadership and growth opportunities which are necessary for scaling efforts. Investing in employee development and providing a clear career path can help with that process. Building and maintaining a culture and value of inclusivity and encouraging open communication and collaboration will go a long way in the process of maintaining the motivation of employees and enhancing performance.

To summarize, the scaling of a business smartly revolves around strategic planning that aligns with long-term goals as well as increases short-term operational efficiencies. By focusing on high-margin areas, diversifying product offerings, and leveraging technology businesses can leverage the potential for growth without straining the financial health of the company.