5 Questions for Business Leaders to Ask during Uncertain Times

Business leaders have been pushing themselves hard to rebuild their businesses post the COVID pandemic. Just when everything seems back on track, the pandemic seems to threaten the world again with its recent surge. Not only COVID, we seem to be in times where there is inflation, geopolitical unrest, rising interests, cyber security issues, rising employee expectations, labor shortage, etc. Remember the Billy Joel song, “We didn’t start the fire”. This seems to be the business world’s situation today.

Businesses are hoping for a stable environment. During these times of uncertainty, they are caught between the need to act and the requirement for caution. There are numerous decisions that a leader has to make every day like deciding about increasing and decreasing the units of production, hiring and firing, installing new machinery, discarding the old ones, diversifying or divesting the business, etc. All such tasks require good decision making which, in turn, determines the outcome. A leader’s ability to make decisions may be hampered by a number of factors. It is important to have handy answers to some important questions. This will help make important decisions in order to see that one doesn’t face any obstacles.

First and foremost is to know how reliable the procedure you have in place for decision-making. Leaders should experiment with strategies instead of relying on the manual procedure. Sometimes the best answers to an underlying question is not in the handbooks or manual guidelines. But it's available from your experiences as a leader. Organise your thoughts and re-assure that your experiences are worth making wise judgements. It’s always helpful if you can include people with different backgrounds and expertise and varied perspective to have a well-rounded input in your decision-making.

Make yourself not to rush into the unknown without thorough research. Great choices are possible when we take a step back, look 360 degrees and then decide to go ahead. No matter how important the situation is, however hard you run short of time, pause for a while instead of deciding hastily and regret later.

Ask yourself, ‘how efficient is your current growth?’. In times of uncertainties, on one hand, there is always the risk of losing money, on the other, there is an opportunity to deploy more capital in a venture when others fear. If you know your markets well, this is the best time to expand. The risks may be more but the returns are rewarding. Check your growth matrix to find how further you can go.

Probe further if you are differentiated enough. Successful businesses work on changing their value propositions, strategize providing high-quality services, cross-sell, work on customer experience and reduce response times. These are the levers to differentiate yourself and become efficient. Remember sales are not easy to make. Why would customers choose your service or product unless there is something different you offer than your competitor? So maintain focus and work on your goal.

Another important question to ask yourself is how will you manage your business if the leading indicators start showing red signals. In this case, it is always advisable to do scenario planning in advance and keep a specific action plan to shift your course. This will help to reduce all the unnecessary cash burn. In times like these, it is not strange to have a sudden drop in demand for some goods and a spike in others. Markets will not reward you if you continue investing in the less-in-demand. Shift your course to what is required at the moment and save resources to have control of your market in the future.

How do you turn the current market dynamic to your advantage? Perhaps this is the most crucial of all. Sometimes you need not require more investments or more production to have more sales. The mere fact that your product or service can help your customers navigate the existing circumstances is strong enough to help you through uncertain times. Your marketing and sales messaging can play the trick to give you the edge. Make sure to let your customers know how your product or service can help them in the current market situation. If they see the benefit, you get the reward.

Reviewing this checklist of questions and answers can help your business sail through uncertain times. The present economic climate is something that business leaders did not have necessarily created, but it is up to them to find out how to get going.

Why Some Start-Ups Fail to Scale

The word "start-up" conjures up visions of people always ready to leap into the unknown, with no plans for failure. But what many don't realize is that founder burnout and failure are all too common during the start phase of a startup's life cycle. When you have the thought, “I'll create the next eBay,” it's easy to get too excited and throw caution to the wind. But with all of this excitement, start-ups often forget some of the most important aspects of growing a business.

Just because you have something new to offer, doesn't mean that you'll succeed. Many things have to go right for a start-up to survive and continue to scale. The scale-up phase of entrepreneurial ventures is a huge challenge. There are a large number of reasons why this is so, but here are just some of the important ones.

Some founders lack the ability to select the right investors. Most entrepreneurs have no idea who they should talk to or what they should say in order to get a deal going. The most important thing is that you need a team that will support you and work towards your vision. You don't want to be alone with this task, so find people who are willing to do it for you. You can also try looking for investors in your network, but it may take longer and require more effort than just approaching someone who lives in another city. Start-ups are hard and money is tight, so if an investor is willing to step in, it's better than nothing at all!

One of the most common reasons for startups to fail is their complicated business models. A simple business model is one that doesn't require you to do much more than provide a product or service and then charge for it. You don't need to build a website, hire employees, etc. In fact, those are luxuries that many startups can't afford because they're still building their companies. But eventually, if you stick with it long enough, you'll get there! The most successful companies have simple business models that are easy to understand, and they have a clear purpose. If a startup's business model is too complex, it can be confusing for investors and customers alike.

In most startups, there's one thing that's more important than anything else and that is keeping employees. And if you're not able to do that, your startup is probably going to fail. It's true that some startups are able to keep their employees around long enough for them to build something amazing, but they're the exception—they happen so rarely! The majority of startups fail because they can't retain key employees. So the key to success is to have loyal, efficient and happy employees.

You know what else is common? Firing people! It's not just about not being able to retain them; sometimes it's just a matter of having to let go of someone who wasn't working out anymore. But if you don't have any other option than firing people, then firing them is going to be inevitable.

Other reasons for failure is when founders don't have a clear vision for their business. They may be too busy worrying about getting their product out there and making it work, or they may not have the skills to get it done. Either way, it's important for founders to spend time defining what they want their company to be before they start building it.

Founders may be unable to scale fast enough to meet customer demand or keep up with competitors. That's because entrepreneurs, especially those who have not scaled up a business before, don't know what they don't know. Scaling up a business is hard to do, and doing so requires changes that aren't easy for entrepreneurs to make.

Negative profitability is one reason that keeps coming up time and time again. While some people will be surprised by this statement, positive or negative profits only happen when your business makes sales. It happens when your production costs are more than your total revenue for a specific period. Startups should find ways to cut down the costs to see profit.

Takeaway: If you want your start-up to scale, you'll want to do things like keeping it simple and having a clear vision of where you want it to go!

How Leaders should respond to public criticism

Public criticism is never easy, but it can be especially difficult for leaders. The Twitter case is still a fresh example. Elon Musk’s recent faceoff with employees and Twitter customers is an extreme case. Leaders are fair game. When you are the leader of a company, you can expect that some people will not like your decisions. This is fine. It’s not up to you to please everyone. But there are ways to handle public criticism so that it doesn’t get in your way or create stress in you.

Understand that your job is not to be perfect always. It is simply to be better than those who criticize you — which means you need to accept their criticisms and learn from them, not use fairness as a gauge to respond. But there are some ways to steel yourself and respond well.

The first thing to keep in mind as a leader is that public criticism is just as much about what people say as it is about how they say it. If you take someone’s criticism too personally, it can make a negative situation even worse. It’s important to remember that people are expressing their opinions based on their observations and experiences — not facts.

The next thing to keep in mind is that public criticism does not always mean that someone is right or wrong about something — just because someone feels strongly enough about an issue that they want to share their opinion publicly doesn’t mean they are right or wrong.

Try not to let their criticism get under your skin or make you defensive. The best way to handle this is by acknowledging their concerns and then explaining why they are wrong (even if it takes a while).

Accept the criticism and try to understand why the criticism is made. Try to find some common ground. If there are things you can agree on, try to make that connection stronger. For example, if someone says something negative about your team (or even your product or service), it’s important to acknowledge that this person has a point — but then go on to explain why their opinion is wrong or incomplete. If possible, make sure that there are those who agree with them so that they feel listened to and heard by those in power (and answerable). If possible, offer some solutions so that they feel like they’ve been heard and understood by those in power (and answerable).

Accept and don’t use fairness as a gauge to respond, Set the record straight with facts, not emotion. When it comes to public criticism of your organization or yourself, do not respond by attacking the messenger (or by trying to turn the tables on them). Instead, focus on correcting any mischaracterizations or inaccuracies in their remarks so readers can see what actually happened.

The key here is balance — making sure that you address all sides of an issue equally. If you tell one side nothing (with no explanation), others will assume you agree with them (which may be true). But if you give equal weight to both sides of an argument and explain your reasoning behind any decisions made (even if they didn't work out), people will see.

Humility and transparency go a long way in building the armour needed for holding your position. Hiding and protecting oneself can make things worse while transparency favours the bold. When people you lead are angry or frustrated and hurt, show them empathy. Don’t gaslight your team members. If you want your team to thrive, you need to empower them, not hold them back or try to micromanage them. You need a team that can take ownership, and this means giving them permission to make mistakes and not punishing them for it when they do. It also means encouraging them to challenge themselves and their ideas, but always providing feedback in a way that fosters growth rather than criticism. Remember your humble posture does not convey guilt or remorse, as people often think it to be. It simply shows that you care.

In the face of scrutiny, step back and look for new lessons. Think of your next course of action to lead differently. Don’t base yourself on unfounded assumptions. Leaders who embrace their critics are not afraid to buck the traditions. But at the same time, they take action to fix things in a proper way. Good leaders know well that people don’t forget and they always look for what progress you have made. They know how to come out of criticism and make their company and brand shine even stronger.

25 signs you might be an entrepreneur

 

1. An entrepreneur never gives up. They don’t have no in the dictionary.
2. You are full of confidence and passion. You believe and make others believe in possibilities. Your optimism pulls everyone towards you.
3. You are always on the go for finding answers to questions surrounding you and see opportunities to make things better. Like a curious child, you try to find out why people do the things they do.
4. You may not be coming from a family of businessmen but you hate the idea of working for somebody else. You have the ability to connect with people of your caliber and make partnerships. You are a free soul. You hate being dictated about what to do.
5. You don’t fear taking risky bets. Don’t worry, it’s inbuilt in an entrepreneur’s DNA. You love spending time in your endeavor more than anything else. Some of you even might have dropped out early from college or university to start something of your own.
6. If you were at job, you probably have changed jobs several times as you did not like somebody being bossy around you.
7. For you, the definition of job security means being your own boss.
8. You have a competitive spirit and keep yourself updated on the new entrants in business ownership.
9. Holidaying with friends or family is a gone thing as you are constantly busy with tasks related to your dream, your idea.
10. You might have been earning well with a 9 to 5 job, yet you took the plunge to work for yourself 18 hours a day with less pay.
11. You see opportunities everywhere. The smallest of a problem catches your attention and you find business ideas through your innovative solutions.
12. You are logical and brave. You know how to make the wrong things right. You are a problem solver.
13. People love hearing you and you command authority.
14. You have been business-oriented even as a kid. You knew how to sell balloons even on your birthday.
15. You love reading quotes from successful entrepreneurs to keep yourself motivated.
16. You complete any project to the end with success. You measure completion based on return on investment.
17. Like Elon Musk, you have unrealistic dreams. You give yourself completely to realise your dreams. You are good at replicating but may even invent something really out-of-the-box.
18. You are a rule-breaker, not a law-breaker. You will bend rules to make everything run smoothly.
19. You know how to bring people along to work under you. You are great at designating roles for others.
20. You are super-quick at learning new things. You know the importance of staying ahead in a rapidly changing world where regular cars might soon get replaced with flying cars.
21. You are energetic and charismatic. People find you determined and a go-getter. You inspire people with your talks, and your work.
22. You have a paucity of time taking a full night’s sleep. 40 winks under the desk are something you do all the time.
23. You have done your market research well and know what your customers want. You know how to convert their wants into purchases.
24. You surround yourself with quality people, whether it's LinkedIn or the physical space.
25. For you, time is money and your time is worth more than platinum and gold.

If you don’t see all the 25 points in yourself, never mind. Entrepreneurs are always in the making just like their innovative ideas all the time. You will develop more of these traits over time and might add some new ones that others might want to imbibe. After all, entrepreneurs are born to add; add meaning to creative businesses.

Growth of Patanjali, the Mega Brand of India – A case for study

The story of Patanjali is not like any other businesses in India. It is unique because it is an empire created by a baba. Yes, Baba Ramdev, the yoga guru of the masses, is the man behind the brand called PATANJALI. Baba Ramdev’s name is enough to make Patanjali what it is today. He is the mascot of the brand. His years of hard work in promoting yoga and Ayurveda is what has helped him create Patanjali into a mega brand today. A not very old entrant into the FMCG sector of India, yet it’s giving all major FMCG businesses in India a run for their money.

Along with Acharya Balkrishna, Baba Ramdev, in 2006, created a massive consumer goods company with headquarters in Haridwar, Uttrakhand. Their aim is to utilise ancient science and wisdom to produce products for customers. Its business model deals with products ranging from ayurvedic medicines, herbal products, cosmetics, detergents to biscuits, noodles and other snacks under one umbrella brand, Patanjali. It is a modern business empire, but there is nature and naturalness in everything they do. It resonates even in their brand slogan that states Prakriti ka Aashirwaad, i.e. blessing from the nature. It has a massive network of around 4500 retail counters to sell about 900 varieties of products. It also has 10K plus Patanjali Chikitshalay (clinic) and Arogya Kendras (wellness centers) all over the country.

Who are Patanjali’s Customers?

Patanjali is like any other FMCG company that produce and sell products of regular consumption and use. So how did it grow so quick into a 10K crore company in a short span of just 16 years? Not difficult to agree; it is the result of the readymade customer base that Patanjali could create much before it frayed into the FMCG sector. The massive 500 thousand plus branches of Patanjali Yoga Samiti with equal number of teachers in them have followers from cities and rural areas, in every age group. It started in North India but soon spread its branches rapidly to other parts of the country. Patanjali has a dedicated family of loyal customers.

What does Patanjali Sell?

The different varieties of products that the company sell are:

• Food & Beverages
• Ayurvedic Products
• Detergents and Cleaning Agents
• Cosmetics & Personal Care Products

Some of the best-selling products from the house of Patanjali are:

• Patanjali Chyawanprash
• Patanjali Cow's Ghee
• Patanjali Giloy Amla Juice
• Patanjali Honey.
• Patanjali Makhana
• Patanjali Kachchi Ghani Sarso Oil
• Patanjali Tulsi Ghanvati
• Patanjali Tulsi Panchang Juice
• Patanjali Aloevera Juice.

What made Patanjali successful in the competitive FMCG sector?

Patanjali’s competitors are some of the top-notch companies viz. Dabur India, Marico, Procter & Gamble, Nestle Ltd., HUL, Himalaya Herbal Healthcare, Colgate-Palmolive, Adani-Wilmar. Not only in India, the company is also competing with these big players exporting its products to Canada, the USA, Mauritius, and the UK.

Patanjali’s business strategy is simple yet unique in every regard, be it in production, pricing, branding & promotion, and distribution.

Production:

Patanjali produces some 900 types of products in various categories. It has also forayed into clothing with Patanjali Paridhan. Looks like, it does not want to keep anything untouched. Its main production plant is in Haridwar. In Nepal, it runs the Nepal Gramodyog, mainly engaged in the mineral and herbal business. Patanjali also acquired Ruchi Soya, in a strategic move, to boost its food products line. Not only this, Patanjali Foods has one of the largest palm oil plantations in India having 60K hectares.

Pricing

Among several players, Patanjali knows how to play well in the pricing aspect. Patanjali understands that it cannot conquer the market with higher prices. Premium pricing is not something its huge middle class but a dedicated customer base may be able to take so easily. Hence, it basically follows the reasonable pricing model. Its products are 5-10% below the average price offered by its competitor products. This helped Patanjali to penetrate the market faster than other FMCG brands. Price comparison is another tactic Patanjali successfully applies.

Distribution

Patanjali has strategically cut down its distribution costs by establishing its own stores. It encourages individuals to become franchisees of the brand. Small business owners are part of this franchisee network helping sell the company its products through the length and breadth of the country.

Patanjali Clinics (Patanjali Chikitsalayas) are being set up in different tier cities in India. The patients that come to these clinics eventually buy products from its stores and become customers of the company.

Besides, the Arogya Kendras (wellness centers) that they have also help sell its products. The yoga teachers working herein suggest fitness exercises and Patanjali’s ayurvedic medicines and supplements, generating revenue for the company.

Branding and Promotion

Patanjali has been able to save huge money by not engaging any celebrities in its advertising campaigns. Baba Ramdev is the sole face of Patanjali. He is a brand himself, a yoga guru followed by millions. His cult status helps to promote the products. His image as prakritik person and believer of Ayurveda has created a perception of good health and wellness among the masses. Perhaps no other celebrity could have expanded Patanjali at a breakneck speed as Baba did.

Other strategic moves that helped Patanjali expand fast

Patanjali sources its products directly from farms cutting the role of intermediaries. This reduces its procurement costs of raw materials. Back in 2019, Patanjali's strategic move to acquire Ruchi Soya, a food manufacturing company, gave a boost to its production line.

Patanjali promotes its products under one umbrella brand and that is Patanjali - the name that everyone trusts and does not engage in any celebrity advertising or endorsement. It helps Patanjali save huge costs on promotion and advertising which it utilizes on developing other aspects of the company.

It banked upon its customers’ growing love for swadeshi or Indian products, educating them about the benefits of nature and natural products. The shdudh (pure) desi (indigenous) pitch has resonated well. Larger players that earlier focused on technology and modern science have now realized the importance of shifting to ancient science and wisdom. But Patanjali started its journey as a house of products manufacturing products on ancient Indian science, thereby getting the edge. Patanjali has effectively marketed itself as the source of this wisdom. It’s obvious why customers would prefer the source then the peripherals. This is helping Patanjali add customers every day and hence generate more sales and revenue.

The other benefit of putting Ayurveda and ancient wisdom to use lets Patanjali get tax exemption as well. It has also helped Patanjali expand its manufacturing units on lands bought at discounted rates.

In the conclusion, I can only say that Patanjali’s success story is an inspiration for all. This is a case for study due to its unique and successful business model that grew on a loyal customer base and word of mouth. It is the story of a baba who grew from being a yoga guru to a successful businessman.