Why do Small MFDs Remain Small??
1)When somebody tells us that the Indian MF market is set to grow rapidly we feel out time has come
2) We hear this news and believe that if the MF Industry grows by 20%, we too will grow likewise
3) This is falling into the trap of the “Non Linear” Bias
4) Most businesses suffer failure for this single reason
5) We think India growth story is a train which we need to climb into and grow automatically
6) Nothing is further from the truth
7) And every 1 year we let pass by believing that we shall grow automatically, the Financial cost for this complaceny is at least 5X per year if not more
8) This is “Non Linear” Bias which states that in Non Linear situations the Average is NEVER the representative of the population
9) Hope you have understood this. Understanding this alone will help you grow your business
10) In our business 94% of MFDs are languishing and only 6% are performing
11) Hence the industry growth of say 20% is not linearly distributed across the spectrum of MFDs
12) The top 6% will perhaps grow by 100% while the rest may grow by just 5%
13) Hence the rich and successful become richer and more successful
14) The 200 cr MFD grows to 400 cr but the 10cr MFD grows to perhaps 10.5 cr
15) So in your mind stop tagging your business growth to industry growth
16) Because it is not the industry growth that catapults our business growth and not the other way round.
17) So prepare yourself to grow your business because the successful MFDs are exactly doing that and it is their efforts that makes policymakers say that the industry is set to grow. Their is unfortunate know Growth Express to climb into
18) So without eating into your limited time, start by Making a Business Growth Plan
19) Structure & Design a Business Growth System
20) Prepare a Business Budget and Spend the money earmarked for investment
21) Hire people both in operations and more importantly marketng and sales
22) Invest in marketing campaigns using appropriate strategies
23) Embrace Risk – There is a cost of doing business. We call that risk. When you go to watch a movie you say I bought a ticket but even there you purchased risk because the outcome whether the movie is good or bad is unknown to you
24) We are perhaps the only business where we tell our clients to have patience and take risk but we ourselves stay away from taking out own business risk
25) Therefore our industry has the distribution record of beating the famous law known as Pareto’s Law
26) This Law states that 20% of business people manage 80% business
27) In our case a mere 6% MFDs manage 94% of the MFD business
28) Don’t be blind hoping some one to drop business on your lap. Don’t show patience where it is not warranted
29) Invest in your business and then show patience
30) Don’t wait for the Growth Train to stop by and give you a lift
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