Mistakes

MSME Entrepreneurs makes daily

KNOW MORE

1. FAILS TO HIRE THE RIGHT TALENT & doesn’t build on an active human resource structure
2. FAILS TO PROFESSIONALISE THE CHANNEL distribution management process
3. FAILS TO SEGREGATE CHANNEL SALES process from marketing
4. COMBINES & CONJURES THE FOUNDER DIRECTOR’S ROLE with sales head role
5. DOESN’T INVEST IN THOUGHT & STRATEGY & roadmapping leading to repeated failures
6. DOESN’T INVEST IN SECONDARY SALES & remains over dependent on distributors
7. Management information system(MIS) & SALES AUTOMATION SYSTEM IS NEGLECTED & considered superfluous
8. OPERATES AS A MANUFACTURER,SUPPLIER & TRADER and doesn’t invest in the sales management process
9. NO INVESTMENT IN BRAND BUILDING,consumer & retailer schemeing
10. Considers itself a brand WHEN ITS JUST ANOTHER LABEL / NAME

Challenges

Of MSME Enterprise

KNOW MORE

1. LARGE BRANDS WITH HUGE CONSUMER PULL & phenomenal management strength as competitors
2. Chicken or egg diellema: TO SPEND FIRST ON BRAND OR WAIT FOR THE BRAND TO ESTABLISH ITSELF on its own before brand building expenses
3. Consumers are buying, products are moving but EXPENSES ON CHANNEL DISTRIBUTION MANAGEMENT IS HIGHER THAN SALES
4. RETAILERS ARE RETURNING UNSOLD STOCKS, distributors are not lifting new stocks unless return on unsold stocks are adjusted
5. SALES TEAM ATTRITION IS HIGH because they are unwilling to take the pressure of sales of unbranded product

Drawbacks

Of MSME Enterprise

KNOW MORE

1. The MSME OWNER IS THE MANAGER himself
2. Loyal employees are the BEST EMPLOYEES, are they ?
3. NO ADVISORY TEAM OR PROFESSIONALS TO COUNSEL the promoter on merits of his decision making
4. PROMOTER DOESN’T TRUST PROFESSIONAL’S INSTINCT because of poor employee quality
5. SCARED of expansion
6. Expansion is RANDOM
7. 60% EXPENSES ARE ADHOC & outside budgetary provision
8. ABSENCE OF POLICY GUIDELINES for corporate decision making
9. ABSENCE OF BUDGETING : annual, quarterly, monthly budgeting with presumptive detailed heads
10. Clinical & NEUTRAL FAILURE ANALYSIS on quarterly basis

Ask Yourself

What kind of an entrepreneur am I ?

12 CHOICES

BRAND OWNER

• With remarkable PATIENCE
• Working with competent PROFESSIONALS
• DELEGATE DECISION MAKING to professionals
• Willing to spend and WAIT FOR RETURNS
• HAVE A WAR CHEST TO battle the channel
• Want to go NATIONAL in phases
• Want to REACH TO EVERY STORE in town
• Control the CHANNEL THROUGH PROFESSIONALS
• Selling brand VALUE TO INVESTORS
• TECHNOLOGY & process driven
• Distinguishes between SALES & MARKETING
• Building a business model to ATTRACT PE-INVESTMENT

OR

MANUFACTURER & TRADER

• Want QUICK returns
• Prefer RELATIVES & family members
• Decision making all BY YOURSELF
• Want QUICK returns
• Experimenting with a TINY KITTY of money
• Remain a CITY OR STATE SPECIFIC player
• Happy selling your STOCKS TO THE DISTRIBUTOR
• Let the DISTRIBUTOR CONTROL the channel
• Make money from SELLING PRODUCTS ONLY
• TECHNOLOGY CAN WAIT till the brand grows
• Driven by SALES ONLY
• Keeping the business closely HELD BY FAMILY