The old traditional way of starting a business was to invest money from one own’s personal savings followed by loans taken from the relatives. The mind-set was to have a limited set of clients from references and continue the business servicing the same clients. There seemed to be no vision and mission for the company for sustainability. Completing orders was the biggest priority for the business. The important pillars of marketing, supply chain and customer relationships were ignored. The growth for the company was limited to the owner of the company. This model of business succeeded but never went sustained in the long run. The main reason for the decline was that the business was completely dependent on the limited number of clients and the opportunity of expansion was restricted with lack of vision for the company.
The most appropriate example to share was of handmade gold ornaments manufacturing industry. The main objective of goldsmith was to manufacture ornaments which were given by the gold showroom. Many SME’s evolved in this industry and there were many people who got associated with this industry. People started their manufacturing career at the average age of 16 and learned the art of making ornaments from various businesses. From 1960s- 1980s, this seemed to be successful for the business as the gold ornaments manufacturers were limited. There is saying that “The most constant thing life is change” and this impacted the handmade gold ornaments industry. This trend changed with the introduction of technology and change in the customer needs. Mass ornaments making machines were introduced by the showroom owners which reduced the business of traditional ornaments makers. This entrepreneurs never marketed its company’s core business. These business owners never thought of alternatives for survival. So decline of handmade ornaments maker started declining. Ornament making specialists have companies as labour, some left the industry and some changed their business operations in other cities for business opportunity and the handmade ornament industry is in the declining stage.
The above case study shows the need for forecast changes and adapt with the ever changing trends in the industry. It took generations to understand the need of change from the traditional way of starting a business.
Technology is one of the major factor for bringing change in the approach of setting of business. Technology has changed the dimension of start-up.
- Exchange of ideas over various media and accessibility of market information outside the geographic reachability have opened the eyes of the entrepreneurs.
- Companies started to adapt the change with working on its competency by the introduction of ERP Systems, CRM Systems, Supply Chain Management systems and many more.
- Global Venture capitalists can now invest time and money for businesses from any part of the world.
- Crowd funding has been used as one of the tool for raising money for the business.
- Companies are approaching market research agencies to do market survey for understanding target audience for needs analysis.
- The accessibility of clients is not limited to the domestic market but has reached to the international market.
- The management is not restricted to proprietor and family but with domain specialist working towards the goal of business success.
- Companies are hiring professionals for marketing of the company and its products. They are using various medium like televisions, newspaper, hoarding and many more to reach the clients.
- Social media became one of the tools for connecting to the clients.
- The data is outsourced to other businesses for data analysis.
- Different analytics tools are used for risk management.
- The data is also getting stored to cloud which is an external storage media.
- This change management is creating a chain reaction which is affecting other companies who are directly or indirectly associated with the business in order to adapt the change.
- Consultants are hired by the companies to gain business expertise and knowledge sharing in the industry.
The trend will keep on changing over the years. The important part to consider is that the entrepreneurs are not stopping themselves to try new things in order to make their business start-up run into success.
Any additional comments is highly appreciated.
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