The corporate world is fierce, making business expansion a humongous task. Competition poses severe challenges in today’s world – not having a sound strategy and implementation roadmap can translate to disastrous consequences for the future. We know that company expansion does not happen overnight and there is no one-size-fits-all approach, but there are some ingredients that can help you to expand business in India smoothly.
The COVID-19 pandemic impacted various industry verticals and according to statistics, more than 18.4% of businesses shut down within the first year. As the years go by, the failure rate goes up and increases to 49.7%, with 34.5% of businesses closing permanently within 10 years. Administrative and waste services have the lowest success rate at 20.9%, oil and gas industry businesses succumb within the first year, while entertainment companies exit at 18.9%. Small businesses are also susceptible to cyber-attacks and face staffing and onboarding challenges, revenue declines, and various financial struggles (Jordana A., 2023).
Licenses and permits can be difficult to obtain from the government and the absence of the same could initiate criminal proceedings against businesses. Zonal laws also apply to the allocation of land for warehousing, and service centers. On top of that in today’s world of digitization, businesses face the problem of data storage, compliance, intellectual property rights, patents, copyrights, and data breaches. There are also issues with respect to contract management and many businesses fail to comply with terms and conditions (Budholia, 2022).
It is common knowledge that businesses contribute towards the economic growth of the nation and act as an excellent source of Foreign Direct Investments (FDI), thus helping provide better employment opportunities. However, legal and cultural implications are the biggest barriers to new entrants.
Considering the challenges, how can your organization boost its business’s success rate by smoothly scaling up in India? Here are 6 ways to do that:
1) Win Customer Trust
Businesses can build customer trust and loyalty by delivering high-quality products and services. Word-of-mouth and testimonials play a critical role in business expansion. Especially for businesses with no presence in the Indian market, using social media with the right strategy and utilizing omnichannel marketing communications keeping cultural nuances in mind, can help companies get featured in blogs, journals, and national publications.
This creates credibility, establishes authenticity, and builds public reputation, all of which aid in scaling up and expanding your business.
2) Use CLM Solutions
Most of your employees aren’t directly involved with the management of sales and contracts, but the visibility of the same benefits all the functions of the business. CLM solutions can identify areas of improvement for businesses, document processes, define project scope, and specify metrics. Taxes and administration are governed by the laws of the home country and companies can open branch offices to expand and manage added legal liabilities.
A good contract management solution can effectively mitigate legal risks by ensuring complete compliance. It can streamline GST registration, and FSSAI licensing, and make it easier for companies to obtain their import and export codes as well.
3) Global Talent Acquisition and Virtual Office Spaces
Big cities continue to experience a massive influx of job seekers and India is also experiencing an increase in IT penetration in remote areas. You can reduce the significant cost of overheads by using virtual office spaces to manage day-to-day business operations. Enabling remote hiring and work-from-home opportunities can boost global talent acquisition rates and build officeless teams, thus helping you to access the right talent, and train them from any location (Kalita, 2017).
4) Build Strategic Business Partnerships
The stakes in partnerships for upcoming and new businesses are always high. Finding the right partners to expand your business in India is a major concern. However, developing the right business partnerships can ensure better business decisions, reduce the total cost of ownership, and make collaboration easier. To get started, look for partners with a notable presence in the country and those who have a good business reputation and industry knowledge
5) Enforce Cybersecurity
Cybersecurity is a good investment and safeguards your business against future threats. The number of cyber crimes has gone up dramatically in the past few years. It’s critical to protect sensitive and confidential information by hiring security professionals and performing comprehensive penetration testing along with vulnerability assessments.
Deploy layered cybersecurity solutions, install firewalls, and use proactive attack surface management and network security monitoring tools. Consider implementing security awareness training programs in your organization to make employees take personal accountability for their data and prevent social engineering breaches. Good cybersecurity will protect your clients, ensure privacy, and greatly enhance the prospects of expanding your business in safe and secure ways.
6) Set Up Offshore Capability Centers (OCCs)
Offshore Capability Centers enriches your business with a team of paralegals, tech professionals, CLM professionals, business analysts, and other business resources to increase efficiency and accelerate business transformation & expansion in India. Offshore Capability Centers (OCCs) can speed up go-to-market, improve project delivery quality, and optimize talent costs & acquisitions for existing resources.
Companies can scale up their business with officeless expansion and let OCCs take complete ownership, thus enabling them to reach key business milestones faster without having to worry about compliance and governance.
Cacti Global can assist you in scaling up your business and smoothly expanding it in India. If you are planning to explore Indian Market for the first time or want to further expand your operations, feel free to reach out to us to understand how our services can help you achieve your business goals
- admin. (2021, January 13). Informer. Retrieved from 5 Tips To Scale Your Cybersecurity Program For Growth: https://informer.io/resources/5-tips-to-scale-your-cyber-security
- Budholia, A. (2022, August 8). Legal Challenges Faced By Startups In India. Retrieved from Law Insider: https://www.lawinsider.in/columns/legal-challenges-faced-by-startups-in-india#:~:text=Though%20these%20startups%20provide%20various,of%20startups%20in%20the%20country.
- Jordana A., B. F. (2023, March 3). 30 Small Business Statistics To Capitalize On In 2023. Retrieved from Hostinger: https://www.hostinger.in/tutorials/small-business-statistics
- Kalita, P. (2017, March 8). Why The Future Belongs To Officeless Offices. Retrieved from Entrepreneur India: https://www.entrepreneur.com/en-in/growth-strategies/why-the-future-belongs-to-officeless-offices/290258
- Naresh, N. (2019, December 10). Legal Challenges Faced By The Startups In India. Retrieved from Inventiva: https://www.inventiva.co.in/stories/legal-challenges-faced-by-the-start-ups-in-india/