Despite the wave of financial crises battling global economic growth, India remains one of the fastest-growing economies in the world. And there’s no doubt that the 42+ million SMEs play a significant role in this economic growth story. While that sounds nice, sustaining a small business in India can be challenging, especially with the volatility of the market and consumers’ inconsistent preferences. But that’s where strategic planning comes in.

Strategic planning is a continuous process of analyzing what an organization wants to achieve and then devising a plan to use its resources. Sometimes, the business’s sustainability depends on how an entrepreneur can analyze its current state, manage its strengths and weaknesses, respond to present situations, and leverage opportunities. Hence, small businesses in India must take strategic planning more seriously.

Making the right choices and adjusting to shifting conditions are part of strategic planning.

The importance of strategic planning in any business cannot be overemphasized. However, most people usually mistake it for the one-off plan they draw before launching their business. On the contrary, strategic planning involves continuously analyzing a firm’s intended goals and documenting a relevant plan to achieve them in a constantly changing environment.

 Customers’ needs and preferences are ever-evolving. But with strategic planning, small Indian businesses can use market research to comprehend their customers’ desires and choices and then adjust their goods and services to satisfy the revised expectations. With that, they can review their sales and operational data to determine which products and services are performing better, then focus on improving and promoting these relevant channels instead of going down the drain.

Though India’s economy keeps growing, global economic fluctuations remain a primary concern for business owners, especially ones involved in cross-border trading. Nevertheless, monitoring other currencies with a valuable tool like the DXY chart can be a helpful pointer for economic instabilities that might affect even a small business. The chart gives a detailed real-time and historical representation of how the US dollar measures against six other major currencies. 

And while the rupee is neither present in the DXY nor pegged to USD, changes in the US dollar can still influence its global value. That’s because USD is the primary reserve currency held by central banks and the most widely-used currency for international transactions. Simply put, the value of the rupee in the global market is subjected to rise or fall depending on the strength of the USD. Small businesses can be sustained by using the chart as a pointer in planning and decision-making.

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How can small businesses improve their strategic planning skills in India?

Besides the sustainability risks posed by uncertainty of economic events and customers’ preferences, the Indian market space is highly competitive, and businesses with poor strategic planning skills could become irrelevant. Entrepreneurs should begin by setting a clear goal and purpose to remain competitive. By doing that, they can keep tabs on their purpose, long-term goals, and how to achieve them by setting specific and measurable goals. Similarly, they should conduct a SWOT analysis to see where to improve and what opportunities they can target.

In addition to planning strategically, small businesses in India should also monitor and evaluate their progress, utilize available resources and opportunities beautifully, and seek advice and support from the right people.