A country’s business cycle refers to the rise and fall in its business sector. On average, India enjoys a 5-year business cycle, based on her rich small and medium scale industries as well as high investment enterprises. An increased cycle period signifies a less volatile market.
SMEs and MSMEs contribute to India’s business cycle by a significant margin. Usually, small scale enterprises, because of their low business tenor, affect market stability to some extent. Some of the volatility in the Indian business sector is due to the rise of start-ups.
- The number of start-ups increased from around 7,000 in 2008 to more than 50,000 by the end of 2018.
The numbers indicate that Indians are availing greater opportunities to initiate businesses. Still, an individual must possess some skills, such as the ability to manage their operational efficiency, improve supply chain management, as well as others, to ensure the best outcome from their business efforts.
Management skills necessary for business growth and expansion
In India, the competition amongst the various businesses is fierce with new enterprises launching every year.
- According to a November 2019 report, more than 1300 start-ups opened their doors in the country between January and November of the same year.
Therefore, to come out ahead of the rest, an entrepreneur needs to possess the following unique points when it comes to management skills.
Communication is a key to strong management skills
Communication will open new avenues of business for your company. Often, companies falter or fail to capitalize on an opportunity due to miscommunication between the various parties involved in a deal. Whether it involves your supply chain management or simply hiring more workforce, clearly communicating your ideas and goals is essential.
- According to a Holmes report, miscommunications led to global business losses of more than $37 billion.
Thus, establishing clear channels of communication is the first sign of good management. Keep in mind that listening to the other party is just as important as conveying your own notion.
Delegating to responsible subordinates
New business operators often commit the mistake of trying to do too much by themselves. The result of taking excess responsibility is that these leaders often falter and make mistakes. This is why delegation is vital to achieving long-term success.
Start by determining suitable candidates within a business who are ready to fulfill additional responsibilities bestowed upon them and have the management skills to achieve them. The important thing to remember here is that a business owner must still maintain control over the operations while assigning the responsibility of a task to a subordinate member.
Ability to enforce tough decisions
Decision-making skills are another vital part of operating a successful business. Some of these decisions may not benefit all the parties involved in the operation but is necessary to help the company in some way or another. For instance, an entrepreneur needs to consider if their decision is going to reduce the working capital cycle for the enterprise.
- Infosys was declared as the only company to achieve the highest level of operational capability in 1999. Post this, co-founder N.R. Narayana Murthy shared the process of certification with other Indian competitors for Infosys.
- Doing so led to a significant boost in the I.T. industry as a whole in India, bringing in more foreign investors. It also led to further success for Infosys.
Such decisions can revolutionize the way a business, and the whole sector, operates in India.
Ensuring ample cash flow to keep operations afloat
A new business will take some time to break even. In its initial phase, income generation is limited, posing increased challenges for day to day operations. Entrepreneurs often revive their struggling business with business loans. Such hassle-free financing options may provide temporary monetary support for an enterprise, but it still needs to ensure that the cash flow is in order.
The best way to do so is to enforce a stricter budget. Freeze new hires and undertake staff cuts, if necessary. Even some of the top MNCs use this tactic to cut down on operating costs. At the same time, the company must avoid some common cash management pitfalls for a business.
- Cognizant sacked around 350 mid to senior-level staff members in December 2019 to reduce cost.
A business operator can also look up great cost-saving tips and implement the same to ensure better cash flow for the firm.
Still, if money is the primary concern for your business, one can always avail themselves of a hassle-free business loan from NBFCs.
Ensuring that time does not get the better of you
Entrepreneurs often face a lack of time when it comes to executing the various decisions and using management skills for their firm. With almost a thousand things to attend to every day, including supply chain management, client meetings, interviews, calls, budgetary concerns, a business owner needs to master time management skills.
Whether it comes to keeping an eye on business loan repayment tenor or some other aspect of the company, managing time effectively will save the corporation from various hassles. Further, the owner can attend to all of their commitments without too much stress.
Motivating employees for enhanced performance
At the end of the day, the employees in an organization are greatly responsible for their success or failure. Keeping them motivated will not only help retain talent for the team but also provide the drive to perform even better. The first thing that a business owner must determine is what motivates his/her employees.
- According to a survey, 70% of Indian employees find professional motivation from job security and emotional well-being.
Companies that manage to provide both of these factors to workers tend to become more productive as well.
If finance is ever an issue, you can choose working capital loans from trusted financers. Bajaj Fiserv provides pre-approved offers for quick and easy loan disbursal.
Ensure you adopt these major skills before initiating businesses. They should help you achieve success with relative ease.