Growing small enterprises in the forthcoming 2-3 years.

With over 35 years of experience in the manufacturing sector (across various industries) and having experienced both successes and failures, here are my views:

Marketing Function

You will have limited funds for marketing, so use them wisely. Digital media can effectively create consumer demand if utilized properly. Your brand will fall into one of the following categories:

1. Surprise the Consumer
2. Invention
3. Innovation
4. Me-too Product

Realistically, most new SKUs are me-too products, which explains why only 6% of new launches succeed while 94% fail. Ensure there is no compromise on quality so that once consumers try your product, they will buy it again and recommend it to others. Your retail margin should be slightly better than the competition but avoid selling your product like a commodity (i.e., based on price alone).

HR Function

Hire low-profile individuals rather than those from high-profile companies. Low-profile employees have experienced both success and failure and are accustomed to stepping out of their comfort zones daily. High-profile employees may struggle with challenges since they are used to selling established brands. In today’s gig economy, hire people for one year and then reassess. Long-term employment in sales now means one year. Be flexible with age restrictions in sales.

Sales Function

Sales is a critical function for startups. Your responsibilities include:

1. Appointing a network on advance payment
2. Hiring manpower to sell through the network
3. Benchmarking category availability with a set timeframe and establishing a monitoring and follow-up process (numerical distribution)
4. Ensuring available outlets have at least one bill cut monthly (weightage distribution) and replenishing the right selling outlets
5. Setting sustainable revenue targets per sales representative

These tasks are challenging and require constant effort. Success is not guaranteed in a hyperactive environment, but effort is within your control. Never give up.

Organization

Your manpower costs will initially be high but be patient. Analyze daily whether your network is expanding, outlet coverage is increasing, bill cuts are rising, and if you are achieving primary sales. Manpower costs will decrease over a year. Remember, building a startup is a marathon, not a sprint. Very few startups are profitable today, and it may take a minimum of three years to achieve profitability. Patience is key.