ENTERPRENURSHIP-COMPLEX STRATEGIES

It is undeniable that Small and Medium size entrepreneurs (SME) make a significant contribution to the economic and social development, especially for a developing country. Entrepreneurship always focuses on balance sheet and quality of financial records being maintained. But in my research I came across that entrepreneurs needs to focus more on clients prospecting and delivery of service or product designing according to the clients requirements. The recession of 2008 has casted a strong barrier for the global banking segment which has resulted into stringent loan facilities for the entrepreneurships. In Indian economy the situation is tougher since risk measurement tools are inefficient while doing business with entrepreneurs.

Hence keeping the current global economic conditions in mind I find that entrepreneurs should strategies their business where they generate revenue from the sale of goods or services to the clients. In short clients are their hard cash or liquidity for running their business. Client prospecting have to be done is such way that referral business gives the incremental revenue replacing the advertisements cost. People trust referral opportunities more than advertisements, hence develop client prospecting accordingly.

Hence much of the focus should go at the back of designing product requirements as per the clients requirements. Negative working capital strategies needs to be developed where entrepreneurs would focus on clients and generate liquidity from the same. The best part of this strategy would be successful business growth followed with aggressive strategy based business model. But this strategy may not work in all types of business model of the entrepreneurship.

In my research I find that cost management is an integral part from the day the idea of entrepreneurship gets in real life mode. Why cost management knowledge? The cost management system provides information for three broad objectives: (1) costing of products, services and other objects of interest to management; (2) planning and control; and (3) decision making. It is common that the key to business firms’ survival and growth is profit and the methods to achieve maximum results. Basically, in any business, selling physical products, either manufactured or purchased for resale, or even providing a service, the basic purpose is of course to sell at a “price above cost”. But as the business progress incremental revenue earning is another prime objective of the business. Hence it would be better to strategies the business is such a way that one earns a incremental revenue along with a efficient cost management and working with negative capital. 

This may sound little difficult but the truth is that time is very tough currently and we need a broad strategy to grow our business. I find in my research that in the coming year’s complexity in business process for entrepreneurship to increase and get into new heights. Make a note of fact that days are gone of easy capital, hence strategies business accordingly.