Every business owner would like to grow their business and earn a profit. In fact, profit is the driving force behind every business and inspiration for starting the business.

I have been closely working with MSMEs, startups and emerging companies and observing them. I must appreciate the passion with which they drive their business, the spirit they have in nurturing their business to grow.

I have few tips for the MSME, startups and emerging companies that will contribute to their success, I believe.

Corporate Governance

Corporate Governance in lay man's language refers to the compliance of the applicable laws in true spirit. Every business, be it a sole proprietorship, partnership or a limited liability company, need to comply with the applicable laws. The compliance of laws means, filing of required returns as per the stipulated durations, payment of annual fees, submit the disclosures required to be made under the law, filing of annual accounts, payment of correct taxes, following the rules etc.

Corporate Governance in lay man's language refers to the compliance of the applicable laws. Good corporate governance will help a business owner to focus on business without worrying about the regulators.

It is expected that the businesses need to do compliance in the right spirit by submitting the true and correct facts and disclosures with the government. It is essential to know that all government department nowadays are inter-connected and track the activities of businesses. Hence, it becomes very difficult to hide any transaction from the government. It would be a good argument for a business having a good corporate governance track record to plead with government for taking a lenient view in case of genuine mistake. Good corporate governance will help a business owner to focus on business without worrying about the regulators.

Also read: The other duty of corporate governance

Lean principles

Lean refers to continuous improvement to reduce the wastage and optimum utilisation of the available resources. Any business at the beginning, would work with minimum resources, be it human resources, financial resources or infrastructure. Under the circumstances, it becomes essential for the business to make the effective and efficient use of the available resources. This is possible with the adoption and implementation of lean principles in business. Lean principles cover the set of processes in an organization for each and every business activity. It also covers taking note of the lessons learned, take corrective action, mistake proofing, to do the root cause analysis for any lesson learned or mistakes etc. With the help of lean principles, a business can achieve desired results with the required quality, with lesser turnaround time and wastage.

Also read: Declutter your business the Marie Kondo way

Vendor relationship/ management

Vendor may be a supplier or service provider. He could be a subject matter expert also. The vendor at a first place should be selected carefully taking into consideration his experience, expertise, and past track record. Once selected he should be treated as a business partner. In fact, he also contributes to the success of the business as much as business contributes to its own. It is essential to keep a cordial and long-lasting relationship with vendors as to ensure timely and qualitative supply of goods and services. “Trust” and “Collaboration” plays a big role in the relationship between business and its vendors. Due respect needs to be given to the vendor as he is supposed to be an expert in his field and that is the reason for interacting with him. A timely payment to the vendors is also one of aspects of maintaining the relationship. Differences, if any between vendor and business should be resolved amicably between them at an early stage before those are converted into the disputes.

Ethics and integrity

Ethics and integrity is very critical for the success of any business. Ethics is different from being legally compliant. Ethics refers to morality, the rules of which are not codified as the legal rules. Ethics refers to conducting business with transparency, without any corruption or bribery, conflict of interest or unduly influencing any person while obtaining the contract. I have come across a statement from the Chairman of a giant US MNC conglomerate that he would prefer to lose the business rather than paying bribe. A commitment towards the ethical values of the business helps businesses to gain respect in the eyes of its stakeholders i.e. employees, vendors, government, and its customers. Ethics and Integrity should be top down to percolate down within the organisation.

Also read: 5 critical questions for leadership success and life happiness

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