Practical Growth Strategies for SMEs: Building A Business on Proper Foundations.

Growing a business can feel like navigating a maze with a blindfold on.

There are twists, turns, and sometimes it feels like you’re hitting a wall.

After 12 years and well over 3000 interpersonal interactions,  countless failures, 1000s of hours spent selling products , services,  consulting for companies, and interacting with business owners of all shapes and sizes, let me share some good news.

You’re not alone. Many business owners feel this way. Whether you’re offering products, services, or a mix of both, some basics can set you up for steady, meaningful growth.

I’ve put together this guide to help you focus on what matters most.These are not tactics but the steps that come before the tactics. I’ve added simple day to day examples in each section for better understanding. The goal of this article is simple. It is to give you a snapshot on the foundations that can be applied to any business irrespective of the industry and size.

Because the biggest businesses out there never ignore the basics.

Let’s get started.

1. Laying the Foundation:

Imagine your business is like building a house.

Before adding walls or a roof, you need a solid foundation, or everything else will wobble.

The first step is to gain clarity.

Ask yourself,

“What’s the core value I’m bringing to customers?”

“Why should they consider buying my product or service”

“Will the actions I take on a day to day basis build trust or break it” – This is true for your team and internal company environment as well.

Think of these questions as the foundation that keeps everything steady.

Knowing your purpose keeps you grounded and helps you stand out in a crowded market.When ever you feel stuck keep coming back to these questions.

(You can have your own set of questions but keep a list of the foundational questions that act as a north star for why you run your business

Pro tip : “ How can I make quick money ?” or “How can I get rich” is the wrong question to ask 🙂)

Once your foundation is clear, time to set some realistic goals.

These are your walls—they give structure to your dreams, one goal at a time.

Start with achievable targets so you can celebrate the small wins with your team.

And don’t forget to keep an eye on the financials. Think of it as adding a roof to your house, a buffer that protects you in tough times.

You don’t have to be a finance expert, but knowing your costs and keeping cash flow healthy is essential.

Having solid systems for tasks, like tracking client interactions or managing inventory , is like setting up plumbing.

These systems run in the background, freeing you up to focus on growth instead of constantly putting out fires.

(You can explore any off market CRM or ERP to do this. Example : Zoho Books)

2. Think Like a Growing Business: Building a Growth Mindset

Growing a business is a bit like planting a garden. You plant seeds, water them, and tend to them, but you don’t expect a tree to grow overnight.

You have to be patient, adaptable, and ready to tackle problems.

Developing a growth mindset means being open to learning and seeing challenges as opportunities.

When things go wrong—and they will—it’s like a frost hitting your plants unexpectedly. Instead of giving up, you learn to protect them better next time.

A proactive mindset also means looking for opportunities to improve.

Even tiny tweaks can have big results over time.

Imagine a gardener who slightly adjusts where they plant to get better sunlight. Small changes can lead to big growth.

And, just like a good gardener stays up-to-date on the best ways to help plants thrive, keep an eye on your industry.

Trends change, markets shift, and staying informed gives you the flexibility to adapt when new opportunities arise.

Learning and upskilling yourself is a bet that will pay off forever. Your income is a direct reflection of your skill level.

 

3. Building Lasting Relationships: More Than Just Transactions.

Picture a friendly neighbourhood coffee shop or a local bakery. The key word here is friendly.

People don’t go there just for coffee—they go because they feel seen and valued.

It’s the kind of place where the owner knows your name and remembers your regular order.

In business, customers are like the regulars at that coffee shop. When you show genuine interest in them, they keep coming back and tell others about you.

Word-of-mouth still is one of the most powerful (and cheapest) forms of marketing, especially for small businesses.

Start by listening. Ask for feedback and learn what makes your customers tick.

It’s like the owner learning what each regular likes. People feel valued when you show you’re paying attention. Once you know what they need, go the extra mile. A small touch like – a thank-you message, a follow-up email—makes a huge difference.

Deliver what you promise, and if possible, exceed expectations.

(Please don’t over promise and under deliver. It will ruin your reputation)

In a world where people are used to average service, standing out by offering great service is like serving a perfectly brewed coffee in a world of watered-down cups.

Customers remember those small touches, and that builds trust.

And trust is what keeps them coming back.

This is applicable for vendors and your team as well. It is both internal and external to any company.

4. Networking as a Growth Catalyst: The Power of Real & Meaningful Connections

Networking isn’t just about collecting contacts; it’s about building a web of real connections.

Picture a spider’s web. Each thread is connected, supporting the others, and together, it forms a strong structure. Networking works the same way.

Each connection you make strengthens your network, and when you need it, it’s there to support you.

When meeting new people, don’t focus on what you can gain—focus on how you can help.

I see so many people making this mistake. Don’t be that guy/girl. It will hurt you in the long run.

Imagine being the friend who’s always willing to lend a hand. When you offer help first, people remember. This creates trust, and before you know it, people start thinking of you when opportunities arise.

And like that web, keep your connections strong.

A quick check-in email, a coffee catch-up, or sharing an article they might find helpful keeps relationships alive.

Over time, these small efforts turn into a network of people who’ll be there when you need them most—whether it’s for advice, a referral, or simply support.

5. Cash Flow, Sales, and Marketing: The Lifeblood of Business

Now , Imagine your business as a car.

Cash flow is the fuel, and sales and marketing are the engine.

Without enough fuel, it doesn’t matter how great the engine is—you won’t get far. Cash flow management keeps you moving forward, especially in lean times.

Regularly monitor your expenses and keep enough reserves to handle slow periods.

It’s like keeping an eye on your fuel gauge and topping off the tank before you run out.

Many promising businesses stall not because they don’t have a good product but because they run out of cash.

Sales and marketing, meanwhile, are what make the car accelerate. Marketing attracts attention, and sales convert that attention into revenue. Think of marketing as putting up road signs and sales as guiding people to your door.

In today’s digital age, marketing doesn’t have to be expensive. Simple social media posts, email newsletters, and engaging content can draw people in without breaking the bank. Once you’ve caught their interest, a strong sales approach—built on clear communication and customer understanding—converts interest into loyal customers.

If you’re a business owner , balancing cash flow, sales, and marketing can feel overwhelming, but taking small, consistent steps in each area makes all the difference.

Manage cash carefully, market creatively, and sell with purpose. Together, these create a sustainable cycle that keeps your business healthy and growing.

I will not be getting into specific tactics here as each business has to figure out marketing , sales and cash flows in their own context.

Majority of the businesses in India are bootstrapped. Don’t let the media fool you into thinking everyone is getting funded. Only a small percentage of startups get funded if you look at the stats closely.

Funding be it through VC’s or Banks should be used only as an accelerant to fuel an already proven business model.

You cannot learn the basics of business by burning through other people’s money.

Putting It All Together

Growing a business is a journey, and each step builds on the last. A lot of what I covered is the boring grunt work that goes behind every business.

First, lay a solid foundation with clear purpose and goals.

Cultivate a growth mindset that keeps you learning and adapting. Build lasting customer relationships by truly caring about their needs, invest in genuine networking, and keep an eye on cash flow, sales, and marketing.

Every business has its ups and downs, but if you stick to these basics, I’m sure you’ll build a business that not only survives but thrives.

Remember, there’s no magic shortcut or silver bullet—just steady, thoughtful steps.

With time, each of these fundamentals comes together to create a foundational strong business that you can be proud of. One step at a time, you’re creating something remarkable.

Cibi Siddarthan NM

Partner and Co-Founder, CNV Engineering and Vesta Industrial Solutions, Coimbatore