If starting a new business or looking to grow an existing one, additional finance is an essential key that can unlock that potential. There are several different ways in which a business owner can generate or secure that extra capital. But knowing how to achieve that isn’t necessarily as easy as it seems. Formal small and medium enterprises (SMEs) in India and the broader south Asia region can encounter a significant funding gap, according to the World Bank.
So, what strategies can you use to expand your business and achieve that capital growth? The good news is there are several different paths to choose.
For existing SME owners, enhancing your current conversion rate optimization (CRO) can be a truly effective strategy to adopt – particularly if you have an online presence. It’s thought that acquiring new customers is five to 25 times more expensive than retaining existing ones. With a strategy that drives loyalty and conversions, it can bring huge benefits to your bottom line.
2. Apply for additional loans and finance
For Indian SMEs, the lack of adequate access to finance is a historic bottleneck to growth. This is not – thankfully – as significant an issue anymore. And being able to access bank finance or loans can have a positive impact on SMEs and micro businesses alike. A 2018 study underlines how much of an impact this can have too. 80% of all SMEs grew their sales, income and assets since the introduction of accessible loans.
3. Make your existing capital work for you
By making wise investment decisions with the capital you already have, it can generate healthy returns to support and enhance your business. Market trading is certainly an attractive option – and the lowest spread forex broker, for example, can help make your capital go further. In any investment decision, however, diversification is an important consideration to mitigate your risk and achieve your long-term financial goals for your business.
It could be that you’ve taken your business as far as it can go on current levels of capital. This is when the opportunity to invite external investment could take you to the next level. You can find angel investors with an interest in what you do. Or you may be targeting the multi-billion-dollar Indian venture capital market. The potential capital growth could be hugely significant.
5. Crowdfunding or community capital growth
Some businesses have a loyal and dedicated following. Others, meanwhile, have products and services that consumers feel best align with their lifestyles and/or beliefs. That’s when it could be an option to seek crowdfunding or community investment. It’s also a helpful barometer for gauging what you do as a business – helping you define your overall strategy going forward.
With various strategies available for boosting your capital and expanding your business, there’s a potential route for every SME. While the risks of individual options are greater than others, so too are the rewards. Accessing additional capital can transform your business – and lift it to the next level. With patience, perseverance, and a forward-thinking attitude, anything is possible.
Manvendra Chaudhary, with over 5 years of professional experience as CEO of Unique News and Megalent Marketing, shares insights on life, business, and health for your success.
Quick-service restaurant chain Wow! Momo has secured Rs 70 crores from Z3Partners in an extension to their latest funding round following Rs 350 crores from Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia. Wow! Momo operates three brands – Wow! Momo, Wow! China, and Wow! Chicken.
CEO Sagar Daryani expressed gratitude stating, “We have been consistent and resilient…this round of investors have shown in us fortifies our faith and further motivates us to be change-makers.” Launched in 2008, Wow! Momo has 600 outlets in 38 cities and ventured into the FMCG sector along with their QSR vertical.
Managing Partner at Z3Partners, Rishi Maheshwari, praised Wow! Momo saying, “Wow! Momo is a reflection of the vibrant entrepreneurial landscape in the country…building a high-quality food business at scale, fuelled by superior execution expertise.” This funding round totals over Rs 480 crores, with Rs 270 crores via primary infusion and Rs 210 crores through a secondary purchase from early-stage investors.
Wow! Momo’s growth trajectory has been impressive with a strong presence in multiple cities. This latest funding will further solidify its position in the market and support its expansion plans. Sagar Daryani and the team at Wow! Momo are optimistic about the future and grateful for the support shown by investors.
Varanasi, April 17 (IANS) – Six more products from Uttar Pradesh have been granted the Geographical Indication (GI) tag, including the famous ‘Tirangi Barfi’ of Kashi, a tricoloured sweet symbolic of the Quit India Movement. The GI Registry awarded the certification on Tuesday, bringing the total number of GI-tagged products in Uttar Pradesh to 75, making it the state with the most GI products in India.
The newly certified products in Uttar Pradesh also include Banaras Metal Casting Craft, Lakhimpur Kheri Tharu Embroidery, Bareilly Cane and Bamboo Craft, Bareilly Zardozi Craft, and Pilkhuwa Hand Block Print Textile. According to GI expert Padma Shri Rajnikant, “Two renowned products from Varanasi, the Tirangi Barfi and Metal Casting Craft, were granted GI certification on Tuesday.” Rajnikant, the general secretary of the Human Welfare Association, has been instrumental in securing GI tags for 148 producers across 14 states and Union Territories.
Rajnikant highlighted the crucial role played by the National Bank for Agriculture and Rural Development (NABARD) Uttar Pradesh, Lucknow office in supporting these six GI tags. He emphasized that this achievement strengthens Uttar Pradesh’s position as the leading state in GI products. In 2008-09, the state had only one GI product, the ‘Allahabad Surkha Amrood.’ With 75 GI products now, Uttar Pradesh continues to lead in this area.
The GI tags not only recognize the unique identity and qualities of these products but also provide protection against imitation and unauthorized use. These certifications also help in promoting traditional craftsmanship and skills, thereby boosting the local economy and preserving the cultural heritage of the region. Tamil Nadu follows Uttar Pradesh with 58 GI products, reflecting the rich cultural diversity and heritage of various states in India.
In a record-breaking achievement, the Central Board of Direct Taxes (CBDT) has signed 125 Advance Pricing Agreements (APAs) in the financial year 2023-24. This marks a significant increase of 31% from the previous year, totaling to 641 APAs since the inception of the programme.
These agreements were established with the aim of promoting ease of doing business, particularly for multinational corporations engaged in cross-border transactions with their group entities. The CBDT statement highlights the importance of these agreements in providing certainty to taxpayers in transfer pricing.
The increased number of APAs is a result of mutual agreements with India’s treaty partners like Australia, Canada, Denmark, Japan, Singapore, the UK, and the US. This collaboration not only brings certainty to international transactions but also offers protection against double taxation, benefiting taxpayers for up to nine years.
The APA Scheme specifies methods of pricing and determines the arm’s length price of transactions in advance, providing taxpayers with a roadmap for the next five years. The option to rollback APAs for the preceding four years further solidifies tax certainty and ensures a smoother process for businesses operating in India’s dynamic economy.