India is a vast and diverse country, where a multitude of festivals are celebrated. Some are a nation-wide phenomenon, whereas others are limited to certain regions. One thing that remains a constant across the board is the surge in sales of a variety of products leading up to and during the festive periods. As a result, the many festivals celebrated in the country offer a wide range of opportunities for businesses. This is especially true for the establishment and expansion of micro-small-medium enterprises (MSMEs)
The celebratory period in India typically spans several weeks, culminating in the Hindu festival of Diwali. In many parts of the country, however, the season continues all the way through December, culminating in Christmas and New Year celebrations. During this time, millions of Indians commonly indulge in feasts, exchange gifts, and undertake home enhancements. These festive sales serve as a crucial gauge of consumption health, which constitutes approximately 60% of India’s GDP. The festive season, therefore, is the perfect time to succeed in a market and most business deals, commercial transactions and income increment happens during this time. However, this requires financial backing and support, which comes from the banks and other financial institutions that provide working capital loans for small enterprises.
How Manufacturing Business can Gear Up for the Festive Season
Festive seasons typically prove to be a lucrative time for the manufacturing sector. Annually, manufacturers hire temporary workers, increase production, and achieve record sales in the months leading up to the holiday season, experiencing a notable uptick. According to a recent survey report on ETRetail.com, published on September 23rd, 2022, approximately 65% of households nationwide express the intent to spend money this festive season. Consequently, it presents an opportune moment for manufacturers to introduce their products to the market, boost revenue, capture market share, and enhance brand awareness.
Succeeding during the busiest time of the year can be challenging as production barriers multiply with heightened competition. Therefore, manufacturing companies need to formulate and implement specialized operating plans to perform effectively during peak times. By doing so, they can ensure that their buyers or retailers maintain well-stocked shelves, consumers can purchase desired items, and business profits soar.
Hiring Sufficient Manpower
Manufacturing MSMEs require specific job skills, and finding enough well-trained, reliable staff can be challenging for manufacturers at any time, particularly leading up to the holiday season. If you own a manufacturing company with limited staff, handling the normal stresses and pressures that come with the peak festival season may prove challenging.
Manufacturers should consider investing in additional staff well before the festive season’s onset. This might involve hiring unskilled workers or individuals from a similar industry, training them to work in the warehouse or on the production line in a highly competitive labour market.
Supply Chain Management
Customer demand peaks during the festive season, making supply chain operations even more critical. This period often sees suppliers and service providers falling short of normal performance expectations. A single supplier may cater to many hundreds of manufacturers, and with numerous orders surging in the lead-up to the festive season, additional strain is placed on suppliers. Reliable suppliers may miss deadlines or, in some cases, fail to deliver altogether.
While some degree of subpar supplier performance may be unavoidable during the peak season, it’s crucial to steer clear of extremely unreliable vendors. Consider exploring alternative suppliers if your current ones fail to meet commitments during busy times. Obtain information from prospective suppliers regarding their capacity to withstand supply shocks and manage seasonal challenges.
Get Started Early
MSME business owners should initiate their planning as early as possible to capitalize on festive season sales. Depending on your target market and the products you offer, consider accepting pre-orders for the impending sale. This approach keeps your clients or partners interested and eager to see what you have in store. Consequently, you can secure sales before the season even commences.
Grow your MSME with collateral-free business loans
Working Capital Business Loans for Growth in the Festive Season
Financial institutions like Kinara Capital play a vital role in supporting MSME businesses as working capital lenders, helping them establish and expand by providing substantial financial assistance, particularly during the festive season, with reasonable terms for working capital loans for small business. The demand for various goods and services experiences a significant surge during festive times, prompting an increased need for working capital business loans among small firms. These loans are essential as businesses plan ahead to meet the heightened demand, leading to increased production, higher stock levels, and more substantial investments in working capital.
In the era of digitalization, obtaining a quick business loan online has become a seamless process. Numerous consumers requesting working capital loans for small business can now receive instant approval through various platforms. Additionally, online banking simplifies the business loan processing for consumers, eliminating the need for physical presence.
Conclusion
MSMEs play a crucial role in India’s economic development, contributing about one-third of its total GDP. Small business owners actively seek opportunities to boost sales during the festival season, making it imperative for them to leverage working capital. This festive season presents a golden opportunity for MSMEs to invest in stock purchase, acquire raw materials, replenish inventory through increased production, diversify business ventures, or introduce new product lines. Many lenders, recognizing the importance of the festive season, are offering collateral-free loans for working capital to small business owners with valid MSME registration, facilitating them to stock up for the festivities. However, selecting the right lender for MSME financing can be a challenging task for small businesses.
Kinara Capital, a leading working capital lender stands out by offering working capital loans for small businesses, supporting the expansion of the MSME sector. Assess your company’s eligibility within a minute through the myKinara app or by visiting this link at Kinara Capital. Seize the opportunity for a quick business loan and ensure your business thrives during this festive season.
Grow your MSME with collateral-free business loans
