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  • Writer's pictureCS Joseph Sequeira

How to launch, manage and upscale a MSME Startup.

Starting a MSME Business is not easy. But by using the PERSISTENT CODE, Entrepreneurs can form, manage and grow startups and can also achieve success to attract larger investors.

Sales may be good but to achieve month on month growth rate one needs to add adequate manufacturing capacity This requires capital for investment in land & building, plant and machinery, raw material, power, water & wages, etc.

Therefore, one needs to evaluate every Startup using the framework "PERSISTENT CODE" as under:

1. ‘P’ is for PROBLEM SOLVING. Is one solving a problem of demand and supply or logistics for someone?

2. ‘E’ is for EARNINGS MODEL. One's customer should be willing to pay you for helping them with their problems. Otherwise you are running a charity, not a business model.

3. 'R' is for RISKS which is present in every business. One of the biggest RISKS in every busines is that of competition. This is unavoidable.

4. ‘S’ is for SIZE OF THE MARKET. One needs large demand to supply products and services at a profitable volume and price. Otherwise one will simply stagnate at some point. One needs to understand competitors who are offering same or similar products, quality and prices. It is never a good idea to get into a highly competitive market and try and compete with existing players.

5. 'I' is for INNOVATIVE SOLUTIONS. Is one's product or service unique? Can anyone copy them? Can this be an ENTRY BARRIER to others?

6. 'S' is for SCALABLE MODEL. One has to decide whether one needs to manufacture or outsource the manufacture to a sub-contractor to move from small scale to large scale. One needs to standardise all products, processes and services using the existing facility one has set up, and then ensure that these are fully implemented.

You need to do the branding, labelling, costing, marketing, selling and distribution. By pricess of sub-contracting, you do not need to add capacity to grow. But your franchisee or sub-contractor may need to by an agreement. This is a far more SCALABLE business model.

7. 'T’ is for TEAMWORK which starts with the founders and hand picked team members. The team must be passionate, ambitious, positive, hard-working and sincere.

8 'E' is for ENTRY BARRIER which prevents a potential competitor from entering your business. Or it can at least makes it tougher for competitors to copy. This is possible by registering for trademark or patent protection for goods and services under the Trademark law in India.

9.'N' is for a NICHE MARKET one has to create within the national market size. – the ‘Niche' is less crowded – so one is not competing with existing or established players. It is also large enough so one can grow and not stagnate.

10. 'T' is for TREND. If customers keep coming back for more products and services, one's customer base and revenues keep on growing month on month. A positive growth trend gives one's business much success.

The Writer is a Practicing Company Secretary with more than 30 years in project consultancy. He can be contacted for queries or assistance at the following address:

CS Joseph Sequeira B.Com, LL.B, FCS, MICA Practicing Company Secretary Delfina Apts, Opp. Rosary Church, Caranzalem, Panaji, Goa - 403004. Email : Phone: +91 8380087153. Website:

Disclaimer The information given in this document has been made as part of the Mentoring Series for MSME BUSINESS MODELS. The information in this blog is for general information purposes only and is not a legal advice or a legal opinion

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