Small and Medium Enterprises (SMEs) are the key driving force for the economic growth of India by contributing 45% to industrial output, 40% to exports as well as providing employment to more than 70 million people.
While SMEs are crucial driving force in Indian economic growth, the sector however is facing challenges which are proving to be an impediment in their growth path. The key challenges of SMEs can be summarized as follows:-
- Availability of appropriate liquidity or finance at right time
- Access to markets- domestic and international
- Insufficient infrastructure to grow & expand
- Lack of competitive information.
We at Crest Capital Advisors (CCA) not only handhold SMEs issues but also partner with them in their growth stories. We help them build internal capabilities to conquer external challenges thereby overcoming their threats & weaknesses by monetizing opportunities with internal strengths.
Crest Capital Advisors assist SMEs in overcoming the key highlighted challenges by minimizing weaknesses with internal strengths and then collaborating externally to grow organically and inorganically. The key phases of SME development are executed in following two steps:
Strengthening Internal Capabilities:
- Innovative funding strategies
- Assisting in preparing & implementation of sound business & financial plans
- Building proper disclosure of company information
- Installing industry best practices in accounting & financial system
- Improvising Cash management systems
- Adopting best options for cost optimization like outsourcing, MOUs etc
- Proper efficient tax management & autopilot compliance procedures
- Assisting in building optimum product mix for enhancing profitability
- Focusing on aggregate margin contribution from all business verticals
- Robust working capital management setup
- Efficient planning & execution systems
- Fine tuning organization structure & KRAs for each employee
- Adopting technologies for efficient management of non core activities
- Outsourcing support functions like HR, IT, ITeS, Accounts, branding etc
- Percolating business vision & goals to each & every employee for 100% ownership.
- Detailing & structuring various agreements & third party contracts
- Enhancing efficiencies & productivity
- Setting parameters for recruitment & training of employees
- Imbibe passion, accountability in team to outperform for recognition, awards etc
- Implementing Quality management systems
- Benchmarking product or services with industry leaders
- Deploying efficient business reporting systems for better decision making
Providing External Opportunities for growth:
- Market ready
- Grooming top management for matching investor expectations.
- Assist & prepare investor pitch, offer documents etc
- Carry out business due diligence for partner search
- Calculating overall business valuation including business, brand & assets.
- Strategic Collaborations
- Helping in marketing & distribution tie ups
- Collaborating with competitors to win big orders & built scale.
- Integrating backwards for better procurement deals with minimum interruptions
- Eliminating product price disparity by consultation with industry networks, associations
- Activating various formats like joint ventures, franchising, know how etc for entering new markets for business expansion.
- Mergers & Acquisitions
- Scouting for growth opportunities within the sector companies by way of mergers and alliances.
- Searching for local or global partners to have better infrastructure for execution.
- Cross sell options evaluation within or outside own sector
- Searching for big brands to be included in their core portfolio
- Sell out completely for the sake of exit planning.