Revival of Sick MSME:-4 Pillar Strategy
All efforts of the revival are on 4 pillars namely Finance, Behavior, Lean & Digital.
Finance:- Our research shows that generally, MSME is poor in accounting which leads to financial problems. Our approach is to hand hold by designing std accounting system, training monitoring and develop so that MIS is developed for daily decision making. Monthly trail balance and variance report. This will lead to developing Budgeting so that fine balance is reached in capex and opex needs.
Behaviour:- Because of sickness, psychologically, entrepreneur and in turn whole organisation is in negative behaviour. So first we will apply change for entrepreneur’s behaviour (both core and circumstantial) and then it will be applied to whole organisation in phases. We expect to gain 2 to 5% change in bottom line.
Lean:- We will apply all principles of lean, do the gap analysis and corrective measures so that all existing processes are directed to stabilization and growth phase. This will be a year-long effort. We expect this to contribute 2 to 25% on operational efficiency.
Digital:- As of today, adoption of digital technology is very low and in phases, or step with it will be MIS and go to automating using various digital technology, wherever necessary, talent gap can be bridged by training and monitoring, we expect another 2 to 5% cost reduction or increase operational efficiency.
Good & Pleasant day.