Background: Nascent business are especially vulnerable to internal and external forces that may jeopardise their very survival. In his previous article, Sanchit Taksali shared some vital budgeting tips. Here he shares the importance of ranking and consulting firms to help assess, educate and steer startups and SMEs on the path to success.

At present we are witnessing the transformation of traditional business models to a new paradigm of business. In India and the world, every month there are new businesses coming up with the hopes of changing the world.

However, these businesses are effective if customer needs are fulfilled and they see value in the newly launched product/service. In simple words, if a business is not generating any revenue then it needs to be identified and in time shut down, else it leads to churn-out of all liquidity, and it enters a bankruptcy stage. This is something neither startups nor SMEs want.

To optimally identify the reason behind such issues is to get ranked or certified by an agency that strategically consults the businesses on revenue generation while maintaining their due diligence. 

Also read: 6 ways to improve the financial health of your business

Reasons for ranking or strategic consulting

Today lots of business come and go like a pin-ball game. Some of the reasons for this are:

• Mismanagement of team
• Liquidity crunch
• Bad marketing
• Lack of mission and vision
• Improper channelisation of resources
• Increase in petty expenses
• Mediocre delegation of work

All these factors need to be identified and tackled well in time; else the doors of credits will be closed with non-payment of interest on time.  These are prominent reasons why businesses don’t survive for the long-term. And if they do survive, they often don't have proper guidance on their expansion plans. 

Also read: 10 genius ways to create a buzz around your startup

Here comes the need of a consultant who understands and analyses the business at each level of hierarchy and suggests optimal solutions. 

A strategic consultant performs various tasks related to:

• Revenue and cost analysis
• Customer data analysis
• Demand and supply analysis
• USP analysis 
• Due diligence
• Credibility analysis
• Market reach analysis
• Environmental analysis
• Investment analysis and other statistical and accounting analysis which can help businesses to sustain themselves in the competitive market for long-term.

Companies like Bedrock 500, Crisil (Credit Ratings), Incubation Centres, and MSMe perform these jobs for startups and SMEs. They rank, support and guide companies based on the above parameters before giving rank, credit, subsidy and other benefits to any company. In addition, if any company is struggling with certain issues, they also provide mentoring to startups, performance improvement checks and optimal solutions with efficient strategies to overcome barriers between the business’ mission and vision.

If you are facing any such issues, then I would recommend you explore such firms and redefine your company's growth. 

Also read: Market research: The key to building a great startup

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