Survival Hacks by Rupen Doctor for SME’s in an Ever Changing Market
“Small businesses don’t often have access to the same number of resources as their larger competitors. When larger competitors merge or monopolize within a small business’s industry, the small business may suffer income losses. In some cases, a small business may even be forced to close its doors as a result of a monopoly or the merger of competitors.” says Doctor, and hence advises small business to understand that in the ocean there are always bigger sharks, and there are a few ways to survive but working together builds stronger resources and gives the companies better access to bigger markets.
Smart Gain is the Brainchild of Rupen Doctor – a debt funding company established in Mumbai since 2016, in association with Jhunjunwalas. Smart Gain has grown exceptionally over the last 6 years alone, and Mr Doctor prides himself in helping and advising SME’s on how to survive in a fierce and competitive market.
In today’s ever evolving business environment, almost all business face the need to cut costs, which usually is done inside the organization by cutting the bottom line of the business. Usually, the first thing that a business does is cut back on the non-essentials.
The first thing that gets affected is the marketing and advertising budgets, and as Rupen says “although most people don’t recognize that, at this point, a drop in sales is the last thing the business needs’’.
The next thing that the business does is begin cutting the Higher paid employees and promoting lower salary employees who may not be very qualified but still can handle the job, to higher positions – “this leads to an immediate drop in the output quality of the organization” says Doctor.
He advises a lot of SMEs to take the route of Mergers with other SMEs who share a similar market segment and similar products. This creates a bigger customer base which makes the sales funnel bigger, and in turn more volume leads to the manufacturing prices to go down. With lower buying prices, the profit margins are increased.
The next big advantage is the pooling of resources, so instead of having 2 different purchase Managers, the newly formed firm can choose the superior choice of the 2 and have the more efficient person on a single salary. This means a straight 45% to 50% reduction in salary costs, retaining the same 100% market share of 2 companies.
Mr Doctor also stresses the need for a proper Brand and PR strategy, as today, the customer is extremely savvy and has access to the internet and Googles almost everything he buys or wishes to buy, with a comparison to all other products in that category and price range. Thus, each company must brand themselves as market leaders in their segment or they stand a chance to lose the sales to other competitors. He usually incorporates the branding strategy for the new company in the merger process.
As per Doctor: “The first thing a possible investor will do is go to google and type the names of the promoters or business, and if this comes back as negative, the investor is lost even before a suitable pitch can be given. If it comes back as positive, usually the investor asks for a meeting and the next step can take place.”
Mr Doctor also says that most people hear the word “mergers” and associate this with only big firms or the stock listed firms, but this is not the whole truth. Smart Gain puts clients together who make a perfect blend, and in the same market space, possibly in different cities, and then offers advisory and financial assistance toward the merger – building a stronger company who can survive the market forces.
Businesses are very dynamic, and in this time, one needs good business strategies. He is also an expert in business strategies and can be contacted on Instagram (smart_gain_) or his personal Instagram (rupendoctor)