4 Business Development Strategies Suitable for MSMEs

Currently, business competition in the Micro, Small and Medium Enterprises (MSME) sector is getting tighter considering the number of MSMEs that continues to grow every year. Based on data from the Ministry of Cooperatives and SMEs, MSMEs in Indonesia reached 64.2 million in 2021 and continue to increase every year. 

Given the large number, it is not surprising that MSMEs are a sector that plays an important role in Indonesia's economic growth. In addition, MSMEs also contribute significantly to the formation of gross domestic product and employment. 

To remain competitive, MSME players must carry out business development strategies by paying attention to the crucial factors that support the success of a business. Before reviewing further, let's first recognize what business development is?

Knowing What is Business Development

When you want to start a business, of course, you will determine what your vision and mission and business goals will be. You will also determine the target consumers that are relevant to the type of business you are engaged in. To start the process, you must do business development. 

Business development is the process of managing a business by designing business opportunity identification, strategic planning, and problem solving. To do this, you can implement it through various activities and innovative ideas. 

Business Development in MSMEs

In developing an MSME, you need to pay attention to several crucial aspects to achieve business success. Thus, what are the business development strategies that you can apply to MSMEs? Here are 4 business development strategies that are suitable for MSMEs. 

1. Understand Market Segmentation and Consumer Needs 

Each type of business has its own market that is relevant to the business. If you already know the target market of your business, you must conduct in-depth research and understand the needs of target consumers. In addition, you can also understand the latest trends that customers are interested in. This way you can develop your business so that it is relevant to market needs. 

If you already have a market, then it is equally important to maintain customer satisfaction by building positive relationships between businesses and consumers. This will help secure a wider market with product promotion by word-of-mouth consumer recommendations.

2. Product or Service Innovation

Innovation is a fairly 'expensive' strategy, especially in business development in MSMEs. Interesting innovations will add a positive business image. Innovation is not only by creating new products, but also by developing existing products, innovating in marketing or improving product quality. Sustainable innovation will be the strength of MSMEs to continue to compete in the business world.

3. Effective Marketing Strategy

After you understand the target market and innovate your product, promote it with an effective marketing strategy. You can utilize technology through digital marketing techniques or direct promotion. When you have hit your consumers, it will make it easier for you to create a relevant marketing strategy scheme and a great chance of success. 

4. Efficient Financial Management

Managing finances in an MSME is no less important. Umkm must have careful financial planning and an understanding of cash flow optimization. Use the latest technology such as accounting software to help manage your business finances. Good financial management will help your business avoid financial difficulties. 

Those are 4 business development strategies that are suitable for MSMEs. These 4 things are basic aspects even if you are someone who is just about to start an MSME, so understand the basic things first as a foundation for running your business in the future.