The need to adapt to an increasingly global marketplace has compelled the vast majority of SMEs in India to undergo a significant transformation. While entering into new geographic markets is a key challenge of transformation, the benefit of capitalizing on growth opportunities in expanding markets makes it worth a try. SMEs are using mobile technology, social media, business management software and more to widen their reach, improve innovation and expand their business.
Talking of the most basic form of expansion, SMEs are focusing on their current customer base, while adapting the business offerings to fit the customers’ changing needs. Business expansion always comes with several benefits, but it is quite a task for Indian SMEs, given that purchasing new equipment and enhancing the inventory to provide more products or services to a larger variety of demographics require capital, which almost all SMEs lack. Traditional lending institutions overburden borrowers with extensive documentation and requirements for collateral and more. If one still manages to fulfill the requirements, the long wait times for loan disbursement makes the business’ plan of expansion obsolete.
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This is where Muthoot lenders have emerged as a helping hand for SMEs in the past few years. Through their use of technology and short term small business loans, these lenders have made it easier for borrowers to apply for and get their loans disbursed quickly after a simple credit assessment. It is the ease of access, affordable interest rates and innovative products, that are making more and more SME business owners choose Muthoot lenders for their financial needs.
1. Ways in Which a Small Business Can Expand
Before an SME can think of expansion, it would be advantageous to understand that not all types of expansion make sense for every business. Lots of due diligence is required by the business owners to research and discover what will work best for them and what resources they have to accomplish that.
To start with, rule out the options you feel are not plausible. Then opt for short term financing that will suit your needs. Here’s a look at the many ways a business can expand and grow.
2. Introducing a New Product Line
Launching a product line, or a group of products or services in an existing category, is crucial for the success of small businesses aiming to increase their revenue. A small business owner has to leverage their brand’s strength by introducing a new line of products, related to but slightly different from the other products in the company’s portfolio.Muthoot lenders are more than happy to offer term loans to young businesses aiming at such expansion. This financial product packs all the benefits of an unsecured business loan, along with the additional convenience of technology.
3. Expanding Inventory
To meet near-term customer demand, an SME operating as a product reseller would want to hold just enough inventory. There might be a situation where customers come to the business, but you don’t have the requisite stock to fulfill their need. As a result, you end up losing those customers to the competition. Carrying extra inventory will help you manage peak customer demand. In addition, when you order larger product lots or buy in bulk, you benefit from lower cost per unit, providing cost advantages to your business.
However, holding too much excess inventory will still be costly. And if you need capital to refill your stock, consider short term financing.
4. Targeting Other Related Markets
When your current market is serving you well, it’s time to target others. However, the first step is intensive research and market analysis, as well as finding which demographic would be most likely to benefit from your products or services. You can also track the people who visit your website. By doing so, you get an idea of the market that you should target, you just need to identify appropriate ways to target them.
5. Expanding to the Online Space
In today’s competitive arena, the key to any business’ success is to have an online presence, given that the internet offers SMEs a cost-effective way of diversifying. Selling products online increases your reach to customers in other geographical areas, making it available to people around the world, 24*7. When creating your online presence, remember that other than designing and programming, it is your content that will attract anyone into your site. There are Muthoot lenders have partnered with the largest online marketplaces in India, including Amazon, PayTM, Snapdeal, etc., to help merchants gain access to fast and flexible short loans when they need to expand online.
Increasingly looking at emerging markets, many Indian SMEs are now doing business across the world, including in European and American markets. Given the huge potential for export, SMEs should seek to determine their market potential. For this, they will first need to conduct specific market research. While exporting, SMEs might face additional operations and product challenges. However, it is at this time that business owners learn much more, being exposed to many more business strategies and ideas, eventually resulting in the company’s growth.
In order to realize your dream of business expansion, opting for a Muthoot Finance can be a smart decision, as these lenders provide fast working capital to help you cover your operational expenses and, most importantly, expand and diversify your business to new horizons. Unlike traditional lending institutions, Muthoot Finance do not charge any penalty for the early payment of their term loans.