Anand Saravana Raj - Insights #BusinessAnand Saravana Raj - Insights #Businesshttps://www.anandsaravanaraj.com/blogs/tag/businessSat, 13 Jun 2026 21:22:32 +0530http://zoho.com/sites/<![CDATA[India-EU Free Trade Agreement]]>https://www.anandsaravanaraj.com/blogs/post/india-eu-fta The India-EU trade deal, which started in 2007, has finally come to a conclusion. The last year saw a serious ]]>

India-EU Free Trade Agreement: Lessons Beyond Trade

The India-EU trade deal, which started in 2007, has finally come to a conclusion. The last year saw a serious tussle involving the EU and India over Russian imports. The US aligned with the EU against India and imposed punitive measures through tariffs. However, over the last few months, EU-US relations deteriorated rapidly. This article is not about geopolitics or who was right or wrong. 


Instead, this blog looks at the agreement through a different lens - what this long, drawn-out negotiation teaches business owners, MSMEs, and startups about negotiation, patience, and strategic positioning. At its core, this deal is a reminder that negotiations are rarely linear, rarely fast, and almost never emotional decisions. They are long games played with intent.

Keep Communication Channels Open

The key takeaway from this entire deal right from 2007 to 2025 is to keep your communication channels open. Yes, despite all the hard talk, public posturing and strong statements, the communication channels were never fully closed. Conversations continued in the background. There is no doubt that the sudden rift between the EU and the US pushed the EU closer to India. But that alone did not create the breakthrough. Had either side walked away completely or chosen a one-sided approach early on, this agreement may not have materialised at all. The eventual outcome was possible only because dialogue remained intact over time.

For businesses, this lesson is critical. Whether it is a client negotiation, investor discussion, or vendor relationship, shutting doors prematurely limits future options. You may not need the deal today, but circumstances change. Markets shift. Power equations evolve. Keeping the channel open preserves optionality.

Clarity of Position Builds Credibility

The ability to clearly communicate your stand, without ambiguity, builds credibility. Whether it is a customer, investor or partner, people engage seriously only when they know where you stand. Throughout the negotiation, India maintained clarity on its priorities - whether related to market access, regulatory concerns, or strategic autonomy. While positions evolved, the core stance remained consistent. In business, clarity is very important. Ambiguity erodes trust over time. Customers, investors, and partners prefer clear positions, even if they disagree with them.


Clarity does not mean rigidity. It means knowing your non-negotiables and communicating them without confusion. Businesses that lack this clarity often prolong negotiations unnecessarily or end up accepting unfavourable terms under pressure.

Timing Matters, So Does Preparation

One of the most underappreciated aspects of this agreement is timing. The breakthrough did not happen because of urgency. It happened because the timing became right. Shifts in global trade dynamics, supply chain realignments, and geopolitical recalibration created a window of opportunity. Yes, you never know when the wind will blow in your favour. Those who stay prepared and keep conversations alive are the ones who benefit when circumstances shift. It is often said that fortune favours the brave. I believe it favours the most prepared. So what you do in the downshift determines whether you can reap the benefits of the upshift. 


Negotiation Is A Long-Haul Game

The India-EU FTA reinforces one uncomfortable truth. Important negotiations take time. Sometimes even years or decades. Short-term setbacks are not failures. They are part of the process. In business, many founders walk away too early. A rejected proposal, a delayed term sheet, or a stalled client discussion is often interpreted as the end. In reality, it is just one phase. Deals are frequently concluded much later than expected, provided the relationship survives the waiting period. Patience and perseverance are not just soft traits. They are strategic capabilities. Businesses that understand this build resilience into their negotiation approach and avoid emotionally driven decisions.

Don’t Let Ego Override Strategy

One of the silent lessons from this episode is the cost of ego-driven decisions. Antagonising partners or taking hardline positions purely to assert dominance often leads to unintended consequences later. In business, burning bridges to prove a point may feel satisfying in the moment, but it reduces strategic flexibility. Relationships have memory. Markets do not forget easily. Today’s rejected partner could be tomorrow’s critical enabler.

Strong negotiators separate emotion from intent. They focus on long-term outcomes rather than short-term wins. Restraint, when exercised consciously, often achieves more than aggression.

What This Means for Businesses

For MSMEs and startups, the India-EU FTA is not just a trade story. It is a negotiation case study. It shows that sustainable outcomes are built through consistency, preparedness and engagement over time. Whether you are negotiating funding, entering a strategic partnership, or restructuring a key relationship, the principles remain the same. 

  • Keep conversations alive
  • Be clear about your position
  • Prepare during slow phases
  • Respect timing
  • Avoid ego-led decisions

Negotiations rarely reward noise. They reward those who stay engaged, stay ready, and wait for the right moment to move. In the long run, discipline often wins where force fails. For businesses, this means thinking beyond immediate wins and short-term reactions. The real advantage lies in consistency, clarity, and the ability to play the long game without losing focus. Those who combine patience with preparation do not just close deals. They shape outcomes on their terms.

]]>Wed, 28 Jan 2026 13:03:48 +0530<![CDATA[Cash is King. Always]]>https://www.anandsaravanaraj.com/blogs/post/cash-is-kingIn business, cash flow is the very important. Without cash, the business collapses immediately. Read on to know more.]]>

Cash is King. Always

The core engine of any business runs on a fuel called “Cash”. It doesn’t care if the business is making profit or loss. All it cares is if there is cash to run it. The cash may even be a bare minimum but that’s all it takes to keep it humming. Without it, it just stops abruptly. It simply doesn’t care about your business pedigree or status or size. Yes, many big corporate companies have fallen simply because there was no cash to run the business despite their assets. 

In the world of business, cash flow is not just another financial metric. It is the single most important factor that determines whether a business grows, survives or struggles. Many businesses appear successful on the outside. Orders are coming in. Clients are engaging. Revenue numbers look healthy. Yet, behind the scenes, the business is constantly under stress, juggling payments, delaying commitments, and depending on short-term fixes to stay afloat. The root cause, more often than not, is poor cash flow management.

Within that broader financial landscape, cash flow sits at the core. Profit may tell you whether your business is viable in theory, but cash tells you whether it is viable in reality. A business does not shut down because it is unprofitable on paper. It shuts down when it runs out of cash. One of the biggest challenges with cash flow is that its impact is rarely immediate. Problems build quietly. Decisions made today may only show their consequences months later. This delay is what makes cash flow both dangerous and misunderstood.

To understand this better, let us look at two common and very real business situations.

Sales on Credit: The Hidden Cost Nobody Talks About

In many industries, selling on credit is not a choice. It is a norm. Businesses extend credit to remain competitive, retain customers, or simply because the market dictates it. On the surface, the transaction looks successful. The sale is completed. The invoice is raised. Revenue is booked. Now consider this scenario. You provide a service to a client today. The agreed payment term is 90 days. During these three months, your business continues to incur expenses. Salaries need to be paid. Rent, utilities, vendor payments, statutory dues and overheads do not wait for your client to pay you.

What is often ignored here is the cost of this delay. Credit is not free. It has an implicit financial cost that does not appear directly in the profit and loss statement. If you are operating on thin margins, which many MSMEs do, a 60 or 90-day delay in collections can quietly erode profitability. In extreme cases, it can wipe out profits entirely. In a running business, this is easy to miss. Money keeps rotating. New invoices replace old ones. Collections come in sporadically. On the surface, everything appears to be moving. But unless someone consciously analyses the cash cycle, the business may be operating at a constant deficit without realising it.

Many MSMEs get trapped in this loop. Sales grow, but cash stress increases. The founder works harder, not knowing that the issue is not effort or sales, but the structure of cash inflows.

Long Sales Cycles: When Revenue Exists Only on Paper

The second situation is common in project-driven businesses or high-value solutions. Capital equipment manufacturers, infrastructure players, system integrators and even enterprise software companies face this regularly. Consider a business that sells turbines, industrial machinery, or ERP systems. The sales cycle itself can stretch over months or even years. Closing the deal is a long process involving approvals, negotiations and technical validations. Even after the order is secured, revenue recognition is often linked to milestones such as installation, commissioning, or acceptance testing.

Now assume there is a project delay of six months. The sale is technically complete. The work may even be partially done. But the invoice cannot be raised. Cash does not come in. Meanwhile, expenses continue. Teams are deployed. Vendors are paid. Inventory may be blocked. Working capital gets locked into the project. Delayed projects do not just postpone revenue. They actively drain cash reserves. Businesses that underestimate this impact often find themselves in trouble even after “winning” large orders. The irony is that growth becomes the very reason for financial stress.

Only disciplined working capital management can support such businesses. Without it, even a strong order book can become a liability.

The Real Problem: Mismatch Between Cash Inflows and Cash Outflows

In both examples, the underlying issue is the same.

Cash outflows are regular and predictable.
Cash inflows are irregular and delayed.

This imbalance is the root cause of most cash flow crises. Businesses rarely collapse because expenses are unknown. They collapse because inflows do not arrive when they are needed. At a fundamental level, inflows must consistently exceed outflows. When that does not happen, businesses attempt to bridge the gap through loans, overdrafts, or investor money. While these instruments have their place, they are not permanent solutions. There is always a limit to how much external capital can compensate for poor cash flow structure.

This is where many MSMEs make a critical mistake. They confuse funding with fixing. Borrowing temporarily masks the problem. It does not solve it. Without addressing the cash cycle, the business simply accumulates more financial pressure over time. Just as founders track weekly sales numbers with discipline, cash flow needs the same level of attention. A weekly or fortnightly cash review often reveals patterns that monthly financial statements fail to show. Early warning signs become visible. Decisions become more deliberate.

Solving Cash Flow Problems  

One reason cash flow issues persist is because they rarely feel urgent until they become dangerous. Salaries are paid this month. Vendors are managed somehow. A short delay here, a temporary adjustment there. Over time, these workarounds become habits. Founders get used to operating under pressure. Stress becomes normalised. The business survives, but never feels comfortable. Growth plans remain on paper because the foundation is unstable.

Cash flow problems do not solve themselves. They require conscious intervention. This could mean re-negotiating payment terms, restructuring pricing, aligning expenses with collections, or redesigning the business model to reduce dependency on delayed inflows. None of this is complex finance. It is disciplined thinking applied consistently. One of the biggest mindset shifts founders need to make is to stop seeing cash flow as a finance team problem. Cash is a management issue. Sales decisions affect cash. Operational delays affect cash. Hiring decisions affect cash. Even marketing strategies have cash flow implications. When cash is treated as a central performance metric, decision-making improves. Trade-offs become clearer. Growth becomes intentional rather than reactive.

Businesses that master cash flow gain agility. They can invest when opportunities arise. They can withstand shocks. They negotiate from a position of strength rather than desperation.

Closing Thought

Revenue creates excitement. Profit provides comfort. Cash provides control.

Many businesses look successful from the outside but operate on fragile cash foundations. Understanding your cash cycle is not optional. It is a survival skill. If you feel that your business is constantly under pressure despite healthy sales, the answer often lies in cash flow, not capability. Analysing the cash cycle, restructuring inflows, or even using a simple tracking format can bring clarity very quickly.

Remember, 

Revenue is vanity, 
Profit is sanity,
Cash is reality!

And reality is what keeps businesses alive.


Get Started Now
]]>Mon, 19 Jan 2026 15:28:07 +0530<![CDATA[Emerging business opportunities in Circular Economy]]>https://www.anandsaravanaraj.com/blogs/post/emerging-business-opportunities-in-circular-economyThe Government of Tamil Nadu has released a Circular Economy Policy 2026. This blog explores the various emerging business opportunities for Professionals]]>

Emerging business opportunities in Circular Economy

Tamil Nadu recently released its Circular Economy Investment Policy, marking another important step in the state’s journey toward sustainable and future-ready growth. The scope of the policy is limited to supporting investments in 

a) Manufacturing entities that incorporate circularity 

b) Technology-driven waste management platforms

However, limiting the conversation to these two areas would be a missed opportunity. Policies of this nature create ecosystems. Ecosystems don’t operate in silos but need a larger support system such as consultants, advisors, designers, trainers, auditors and other specialists who enable businesses to participate meaningfully in the circular economy. 

This blog is not about explaining what the circular economy is or why it matters. That deserves a separate, deeper discussion. Instead, this is an attempt to highlight five clear business opportunity areas for professionals and consulting firms who want to participate in the circular economy without directly entering manufacturing or waste management. 

For experienced professionals, this policy opens doors to new practices, new client segments and long-term relevance.

Consulting & Advisory opportunities in Circular Economy

Circular economy consulting is still a nascent domain in India. Very few professionals currently possess a deep understanding combined with a global perspective. As Tamil Nadu positions itself as a leader in this space, the demand for advisors who can bridge policy intent with practical implementation will rise sharply. Consultants who can understand state and central schemes, align them with global best practices and translate them into actionable roadmaps will be in high demand. This is not just about compliance. It is about helping businesses redesign operations, supply chains and reporting frameworks to remain competitive in a sustainability-driven market.


For consultants, this is also an opportunity to think beyond local engagements. Circular economy is inherently global. Knowledge developed here can be applied across geographies, industries and value chains.

Skill Development and Training opportunities in Circular Economy

Policies create intent, but skills enable execution. One of the biggest gaps in the circular economy transition will be trained manpower. Engineers, plant managers, sustainability officers, procurement teams and even senior leadership will require structured learning to understand circular principles and apply them in real-world contexts. This creates a strong opportunity for training institutions and independent professionals to design specialised programs. These are not generic sustainability workshops. They need to be practical, contextual and aligned to specific roles within organisations.

Training can span areas such as circular design principles, lifecycle assessment, waste reduction strategies, regulatory compliance and impact measurement. As more businesses attempt to align with policy expectations, continuous learning will become a necessity rather than a choice. Professionals with industry experience, academic grounding or international exposure can create niche training practices that evolve alongside the ecosystem. Over time, this can extend into certification programs and institutional partnerships.

Opportunities for Product Design Firms in Circular Economy 

As large volumes of recycled and reclaimed material become available, the real challenge shifts from collection to meaningful utilisation. Turning waste into usable, desirable and scalable products is where design thinking becomes critical. This goes far beyond cosmetic redesign. It involves reimagining products from the ground up, starting with material selection, modularity, durability and end-of-life reuse. Designers will need to work closely with material scientists, manufacturers and supply chain partners to ensure that recycled inputs meet performance, safety and cost expectations.

Product Design firms that build capabilities in circular product design can position themselves as innovation partners rather than execution vendors. This shift elevates their role from styling products to shaping business models. Over time, it leads to deeper client relationships and higher value creation across the product lifecycle. As sustainability norms tighten and customers become more conscious of what products are made from and how long they last, demand for such expertise will grow. Products designed with circularity at their core will not just reduce waste. They will also create differentiation and long-term brand value.

Intellectual Property Advisory for Circular Economy 

Circular economy policy encourages innovation by design. New materials, new processes, new business models and new technologies will emerge as businesses adapt. Protecting these innovations becomes critical.

This creates a focused opportunity for IP professionals who can specialise in circular economy-related filings. The challenges here are unique and a traditional IP approach will be insufficient. Advisors who understand both the technical aspects and the strategic importance of IP in sustainability-driven businesses will be valuable. This is particularly relevant for startups and research-driven organisations that need to protect their innovations early. 

Quality and Certification Consulting opportunities in Circular Economy

Certifications often act as trust signals. In the context of circular economy, quality standards, sustainability certifications and compliance frameworks will play a crucial role in market acceptance. Quality certification consultants can create dedicated practices focused on helping organisations achieve and maintain relevant certifications. This includes ISO standards, ESG-related frameworks and emerging circular economy benchmarks.

The opportunity here is not just in certification audits, but in readiness assessments, gap analysis and ongoing compliance support. As standards evolve, businesses will need continuous guidance to stay aligned. Consultants who position themselves as long-term partners rather than one-time auditors will find sustained demand.

Who Should Pay Attention to These Opportunities

In my experience, policy-led shifts create opportunities beyond the obvious beneficiaries. These opportunities are particularly relevant for professionals who already have domain expertise and are considering entrepreneurship. Starting a focused practice aligned with an emerging policy can accelerate relevance and differentiation.

Existing consulting firms can explore setting up dedicated circular economy practices without disrupting their core offerings. Architects and design firms can carve out specialised verticals. ISO and certification consultants can expand their scope. Training institutions can develop new programs that align with future demand. The common thread across all these opportunities is timing. Ecosystems reward early movers who invest in learning before demand becomes obvious.

As this ecosystem evolves, many MSMEs will look beyond intent and start exploring participation in tangible ways. Some will want to integrate circularity into existing operations. Others may explore setting up new units aligned with policy incentives. These decisions require more than enthusiasm. They demand grounded business planning, realistic cost structures, an understanding of on-ground feasibility and access to the right kind of capital. Policies create opportunity, but execution determines outcomes.

Looking Ahead

Tamil Nadu’s Circular Economy Policy should not be viewed narrowly as an industrial incentive. It is an ecosystem catalyst. While manufacturers and waste management platforms may be at the core, the surrounding professional services ecosystem will determine how effectively the policy translates into real impact. For consultants, advisors and specialists, this is an invitation to rethink relevance, expand capability and align with the future direction of the economy. Those who start preparing now will not just participate in the circular economy. They will help shape it.

The opportunity is not about doing everything. It is about choosing the right role in a growing system and committing to build depth over time.

Reference: Tamil Nadu Circular Economy Investment Policy 2026 (Click to download)

]]>Sat, 17 Jan 2026 15:30:47 +0530<![CDATA[Pongal through an Entrepreneur's lens]]>https://www.anandsaravanaraj.com/blogs/post/pongal-and-entrepreneurshipA rush of memories comes back as I start writing this blog. Pongal holds a deep meaning and is more than just a harvest festival. Yes, beyond the ritu ]]>

Pongal through an Entrepreneur's lens

A rush of memories comes back as I start writing this blog. Pongal holds a deep meaning and is more than just a harvest festival. Yes, beyond the rituals and festivities, there is a quiet sense of gratitude, transition, preparation and hope. In many ways, Pongal mirrors the entrepreneurial journey more closely than we realise.


Gratitude

There are two central forces - Sun & Mother Nature. Pongal is the time we pay our gratitude and obeisances to both of them for showering us with bountiful harvests. Farmers work hard throughout the year. But they know that effort alone does not guarantee results. The harvest depends on so many factors aligning together. Pongal is the moment they acknowledge this reality. So the gratitude extends beyond the Gods to all those who played a role in the process - the land, the animals and the community. 

In business, effort shows up clearly. Time invested, risks taken and hard choices made. But outcomes are shaped by far more than effort alone. Timing, people, market behaviour and external forces play an equally important role. Success is rarely individual

Pongal reminds entrepreneurs to acknowledge the ecosystem that supports them. Customers who trusted early. The employees who stayed during difficult phases. Partners who enabled growth. 

Transition

Astronomically, Pongal marks a transition. The Sun begins its northward movement. Days grow longer and brighter. This idea of transition is very powerful. Entrepreneurship is a series of transitions. From survival to stability. From control to delegation. From working in the business to working on it. Each phase demands a shift in thinking. Many founders struggle during transitions. What worked earlier stops working. Old habits become constraints. The discomfort is real.

Pongal normalises transition. It tells us that change is not disruption. It is a progression. For entrepreneurs, recognising transitions early and adapting consciously makes the journey smoother.

Hope

Hope fills the heart. It shows up in prayers for the next season. Farmers know that the next season is never guaranteed, yet they prepare with faith that effort, time and nature will align once again. This form of hope is deeply practical. It is not built on optimism alone, but on acceptance of uncertainty. The belief is not that everything will go right, but that challenges can be faced when they arise. That belief is what sustains continuity.

Entrepreneurship operates on the same foundation. Founders move forward without complete visibility. Markets shift, assumptions break and plans evolve. Yet, the decision to keep building comes from hope grounded in learning and resilience. It is this steady, understated hope that allows entrepreneurs to persist, adapt and move forward, even when results are not immediately visible.

Preparation

Pongal reminds us that hope is only the beginning; what truly follows is thoughtful preparation. The harvest may be complete, but life does not pause. Preparation for the next cycle begins immediately. Fields are cleared. Seeds are selected. Tools are repaired. There is no complacency after success. Pongal quietly reinforces this discipline.

This is an important lesson for business owners.

A good year does not eliminate future risk. Strong revenues do not guarantee stability. Preparation must follow performance. Systems need strengthening. Processes need refinement. Teams need upskilling. Entrepreneurs who prepare during good times handle bad times better. 

Fresh Start 

There is a Tamil saying - “தை பிறந்தால் வழி பிறக்கும்.” When the month of Thai begins, new paths emerge. This is not about forgetting the past. It is about carrying lessons forward without baggage. Every cycle offers a chance to reset priorities, refine direction and realign intent.

For entrepreneurs, fresh starts are not tied to calendars. They are tied to clarity. Pongal simply reminds us to consciously create them.

Take a break 

Our ancestors understood the importance of pausing after effort. That is why the final day of Pongal was set aside for rest, family, travel and community bonding. It was a conscious break, not an indulgence. For entrepreneurs, rest is not a luxury. It is a requirement. Stepping back helps restore energy, perspective and clarity. Only when the mind settles does the next phase of work become meaningful.

இனிய பொங்கல்  நல்வாழ்த்துக்கள் 


Get Started Now
]]>Thu, 15 Jan 2026 10:26:06 +0530<![CDATA[What is Business Performance Meter]]>https://www.anandsaravanaraj.com/blogs/post/what-is-business-performance-meter“What gets measured, gets improved,” said Peter Drucker. I have always believed in this idea. Back in 2015-16, I introduced a service called InfoPoint ]]>

What is Business Performance Meter 
​and Why every MSME needs one

“What gets measured, gets improved,” said Peter Drucker. I have always believed in this idea. Back in 2015-16, I introduced a service called InfoPoint that provided MIS dashboards to small business owners. Having worked in a bank and an MNC BPO, I had seen the power of reporting and the importance of dashboards. I wanted to bring that level of clarity to small business owners and MSMEs, where decisions are often taken based on instinct rather than information.

Over time, my business model evolved and I moved away from offering that service. But the idea never left me. In fact, the very first InfoPoint presentation carried the same Drucker quote with his image on the cover. I have used that again for this blog. The difference today is not the belief, but the approach. InfoPoint was about dashboards and reporting. What I wanted now was something more fundamental. A tool that makes business owners pause, reflect and evaluate their actions, not just observe numbers.

That thinking led to the creation of the Business Performance Meter, or BPM.

Why performance measurement matters in MSMEs

In my conversations with MSME owners, I often notice one common pattern. They are mostly reactive, constantly firefighting and held captive to circumstances. The decisions are situation-based and not strategic. Very few founders take time to ask whether their actions are actually improving the business. This is where measurement plays a critical role.

Measurement brings objectivity into the business. It shows where the business stands today and whether current actions are pushing it forward or holding it back. Without measurement, decisions are driven by situations and circumstances. What is right for that current situation may eventually turn into expensive mistakes in the long term. Performance measurement replaces guesswork with awareness. It does not remove uncertainty completely, but it reduces blind spots significantly.

Many MSMEs assume that performance measurement is only for large companies. That is a misconception. In reality, smaller businesses need clarity even more. Their margins for error are thinner and financial implications are much bigger. 

What is the Business Performance Meter?

The Business Performance Meter is a diagnostic tool. It helps MSME owners understand where their business stands across critical dimensions. It is not a dashboard filled with charts. It does not tell you what happened last month or last quarter. Instead, it forces you to look at your actions and assess whether they are contributing to growth or stagnation.

Dashboards answer the question, “What happened?” BPM answers a more important question, “Are we doing the right things?” This distinction matters. Numbers without interpretation can be misleading. A performance meter helps connect actions to outcomes. It creates awareness before problems become visible in financial statements.

The intent behind BPM is simple. It acts as a mirror and assesses your business on 3 pillars 

  • Strategy

  • Operations 

  • Growth 

It highlights strengths, exposes gaps and brings focus to areas that truly matter. The goal is not to overwhelm the owner with data. The goal is to trigger better thinking. Every business has a natural growth limit at any point in time. That limit is defined by people, processes and financial structure. When businesses push beyond this limit without strengthening the base, cracks start appearing. For example, sales increases but there are delays in delivery, team headcount increases but office infrastructure lags behind. These are not growth problems. These are performance problems. You can read about growth readiness in my earlier blog. 

A performance meter helps identify these weaknesses early. It allows the owner to see strain before it turns into stress. Instead of reacting to symptoms, the business can address root causes. This is why measurement must precede expansion. Growth without performance clarity is risky. Growth with performance awareness is sustainable.

How BPM Changes Business Conversations

Without measurement, most business discussions are subjective. They are driven by opinions, preferences and recent experiences. With a structured performance lens, conversations change. They become sharper. They become focused on levers that drive results, not just activities that keep people busy. Instead of reacting to monthly numbers, they start reviewing consistency, predictability and capability. This shift from emotion to evidence is where maturity sets in.

Performance and Growth Are Deeply Connected

Growth is not just about increasing sales. It is about improving the business’s ability to handle complexity without strain. True growth shows up as better execution, stronger systems and reduced dependence on individuals. Performance measurement supports this by highlighting alignment gaps across functions. When processes are aligned, teams are prepared and finances are structured well, growth becomes smoother. When they are not, growth magnifies existing weaknesses. BPM helps businesses understand this difference. It allows founders to strengthen the base before pressing the accelerator.

Who Should Use the Business Performance Meter

MSME business owners who feel that their effort is not translating into results will benefit from a performance diagnostic. If the business feels busy but directionless, if priorities keep shifting, or if outcomes are unpredictable, it is a signal that performance clarity is missing. BPM provides a structured starting point to address this. The tool does not replace experience or intuition. It complements them. It provides a framework within which decisions can be evaluated objectively.

Conclusion: Measurement Is the Starting Point

Business performance measurement is about clarity. It helps MSME owners understand where they stand today and what needs attention next. The Business Performance Meter is designed to make this clarity accessible, practical and actionable.

Growth does not begin with ambition alone. It begins with awareness. When businesses measure the right things, they improve the right areas. And when improvement becomes consistent, growth follows naturally. The first step is not doing more. The first step is seeing clearly.

Take the BPM test now

]]>Wed, 14 Jan 2026 15:41:22 +0530<![CDATA[What is Business Growth]]>https://www.anandsaravanaraj.com/blogs/post/what-is-business-growthIn my conversations with MSME business owners, when I ask them what they think is business growth, their answer is typically about an increase in sale ]]>

What is Business Growth

In my conversations with MSME business owners, when I ask them what they think is business growth, their answer is typically about an increase in sales. 99% of them think it is unidimensional and unidirectional. The reality is that growth is always multidimensional and multidirectional. I wouldn’t say that they are wrong. It is just that the mind conceives it like that. It is easier to comprehend. 


When probed further, they talk about revenue numbers, customer count, employee count or expansion plans. These are visible indicators, which is why they get maximum attention. But what gets missed are the hidden factors like, delivery readiness, additional capital requirement, office space and infrastructure, core systems and so on. 

Growth Challenges

In my opinion, unilateral thinking actually creates the typical problems associated with growth. This is because they have not given equal attention or importance to other factors. For example, the focus is on sales growth but the back-end delivery is not given enough importance. What happens is that there is not enough manpower to meet the additional demand. Short term measures don’t really yield results and this leads to poor customer service and thereby affects the brand and company image as well. Business owners rarely see the cyclical impact it has. 

The real issue is that growth is rarely defined before it is pursued. Business owners feel compelled to grow because competitors are growing or because the market seems favourable. Very few pause to ask whether the business can actually handle growth. Growth then becomes reactive, driven by opportunity and urgency. In such situations, direction is lost. Growth should be intentional, aligned to the business’s capacity and long-term goals. Without that clarity, growth amplifies existing problems instead of solving them. This is why many founders say their business grew, but life became harder.

The Different Dimensions of Business Growth

As mentioned earlier, business growth happens across multiple dimensions, not on a single dimension. Some of the other dimensions are

  • Profitability - Ensuring better return on capital
  • Cash flow - Better cash flow than before 
  • Team productivity - Ability to do more with the same team size 
  • Market position - Perceived value in customer minds 
  • Risk reduction - Bringing in more certainty to business 

Most struggling businesses are not short of opportunity. They are short of alignment across these dimensions. For example, sales may grow but operations remain fragile. Profitability improves but market relevance declines. Sustainable growth requires deliberate balance. Founders must decide which dimension needs focus at any given stage. Early-stage businesses may prioritise market and revenue. Mature businesses may need operational depth and cash discipline. Growth is not about doing everything at once. It is about knowing what to strengthen first.

Growth Depends on Business Readiness

Every business has a growth ceiling at any point in time. That ceiling is defined by systems, people and financial structure. Pushing beyond it creates cracks that are not immediately visible. Orders may increase but delivery starts failing. Teams expand but accountability weakens. Cash inflows rise but outflows rise faster. These are signs of growth without readiness. Many founders experience this and assume growth itself is the problem. In reality, readiness was missing. Growth only exposes what was already weak.

Business readiness is built intentionally, not accidentally. I would classify readiness based on 3 aspects - 

  1. Process readiness:  Are there right processes in place to handle this growth? 
  2. Financial readiness:  Is there sufficient finance to meet this growth? 
  3. People readiness:  Are the people trained to handle this growth? 

You must understand that you need not wait for the perfect moment and say you will proceed only if all 3 aspects are ready. Chances are that you may stay at the starting line itself. All I’m saying is that you must be aware and have a plan on all 3 fronts. Don’t proceed blindly. Take a conscious call and make preparations on all 3 aspects. 

The Founder’s Role in Enabling Growth

Business growth is often limited by the founder’s capacity, not the market. In the early stages, the founder is the engine of the business. Decisions, relationships and execution revolve around one person. This works until complexity increases. Growth then demands a shift in role. The founder must move from doing to deciding. From solving every problem to building problem-solving capability in others. Control needs to give way to clarity. Trust needs to replace constant oversight. Letting go is not a loss of control. It is a change in the type of control.

Founders who enable growth work on the business more than in it. 

  • They invest time in structure, not just activity 
  • They define priorities and say no more often
  • They build leaders instead of followers
  • Most importantly, they upgrade their own thinking. 

Growth begins when the founder grows first. Skills that built the business may not be the ones that grow it. Without that shift, the business eventually plateaus.

Measuring Growth Beyond Numbers

Most businesses measure growth using easily visible numbers. Revenue, profit and headcount become default indicators. While important, they tell only part of the story. True growth also shows up in predictability. When outcomes become less dependent on individual effort, growth is happening. Few indicators are subtle but significant. For example, 

  • Decision quality improving over time
  • Fewer emergencies indicate stronger systems
  • Customer complaints reducing while volumes increase
  • Team stability 


Founders should ask better questions during reviews - 

  • Are we clearer than last quarter?
  • Are we faster without being reckless?
  • Are we solving higher-quality problems now? 


Numbers will eventually reflect these shifts. But by the time numbers change, growth has already happened internally. Measurement should reveal direction, not just results.

When Growth Should Be Deliberately Slowed

Growth is not always the right answer at every stage. There are moments when slowing down is the most responsible decision. Many businesses fail not because they did not grow, but because they grew at the wrong time. Speed without stability creates fragility. Slowing down allows the business to consolidate. It creates space to fix fundamentals. This pause is not a retreat but preparation.

Deliberate slowdown helps businesses regain control. It allows founders to strengthen processes and improve margins. Customer experience can be reset during this phase. Teams can be trained instead of just expanded. Strategic clarity improves when noise reduces. Growth that follows consolidation is healthier. It is easier to sustain and easier to scale. Knowing when not to grow is a leadership skill. Businesses that master this timing survive longer. They also grow better when the time is right.

Conclusion - Defining Business Growth Clearly

Business growth is not a single outcome. It is a journey of increasing clarity, capability and consistency. Revenue is a result, not the starting point. Growth begins with a clear view of where the business stands today and what must change before scaling. For MSMEs, growth has to be intentional and contextual. Blind expansion is not progress. Structured improvement is. 

In my work with growing businesses, this clarity is often the biggest missing piece. Once it is addressed, execution becomes simpler and outcomes more predictable. The goal is not to grow fast. The goal is to grow right. 

]]>Mon, 12 Jan 2026 15:38:00 +0530<![CDATA[Solving Business Challenges]]>https://www.anandsaravanaraj.com/blogs/post/solving-business-challengesIn business we face multiple problems and challenges. Is there a method to solve it? Read on to know more]]>

Solving Business Challenges

It’s said that, “When the going is tough the tough get going”. I’m rephrasing it as “When the going is tough, winners first think, plan and then get going”. Often in movies we see the hero, surrounded on 16 sides by the villain and his henchmen. The easiest way out is to bash them all in one single shot as they keep coming and move forward to meet the key challenger. Does this happen in real life? Can we merely bulldoze our way against problems and challenges? Do we suddenly start possessing super-human powers? For most of us the answer is a sad, no. But then why do we act on impulse and start fighting on all directions? Little do we realize that the problems are like a hydra, you cut down one and two other grow in its place. They always keep cropping up and keep coming at you.

In business we face multiple problems and challenges. For instance, irate customer, unproductive employee, mounting debt, unpaid bills, lack of orders etc. We see the problems superficially and act on impulse. We end up spending most of our energy solving the least problems and when the bigger one comes, we give up easily. We often console ourselves stating, the problem was unsurmountable. Remember like in war, the minions are sent in first to test you. They may make the maximum noise and cause the maximum trouble but they can never take away your life. If you focus on only those minions you’ll deplete your energy pretty fast and end up losing.

War is a series of battles, you needn’t win all battles to win the war, you just should know which battles will win the war. Like I said earlier, “When the going is tough, winners first think, plan and then get going”. It is very important to take your time to think. Each one of us have to work with ourselves at our speed. There are 5 steps to solve problems and challenges –


1. Identify: Start by listing out all your problems and challenges. Go to the root cause by drilling down to the last part. The solution most often lies in the last part. For e.g., sales isn’t happening – is it because of pricing, is there a sufficient Lead pipeline, are the leads qualified properly, can the sales executive close the sale etc. List out all possibilities and identify the single biggest problem area. Likewise do it for all the other challenges.


2. Classify:  There are two major types 1. Long term and 2.Short term and two further subtypes a) Recurring (e.g. monthly salaries) and b) One time. For e.g. paying monthly salaries on time is short-term recurring, paying hand loan is short-term one time, Year on year business growth is long-term recurring, changing business model is long-term one-time. Each business will have its own dynamics. Just be truthful when you classify.


3. Prioritize: Create a master list of all your problems in descending order of priority. Remember, always solve the biggest problem first. There will be other problems and challenges nipping at you. Don’t negate them, just allocate your time and energy proportionate as per its priority.


4. Recognize: Sometimes the biggest elephant in the room might be yourself. In the order of priority if you are there tackle that immediately. Often we fool ourselves stating “It’s just the situations, I can change anytime, and I’ll solve the other problems first”. If you can’t solve your own problem now, then how can you solve other problems?


5. Iterate: Review your list periodically and repeat the process. A word of caution, periodically doesn’t mean daily, it means review the list when you solved few problems completely. 


To conclude, I would like to leave you with two thoughts – know which battle will win the war and address the elephant in the room. Go now and keep solving the problems and challenges.

]]>Thu, 01 Jan 2026 19:36:16 +0530