A Simple 3-Step Framework for MSMEs to Grow Their Revenues 10X
I know this is not the right time to talk about growth, most MSMEs are struggling to stay afloat. With GDP going to 5.4 in Q3 of 2025. But to offer a ray of light in the dark tunnel of slowdown I must put forth this framework to test its validity.
I saw my father, coming up with product after product but failing to grow beyond a point. Do you know the Peter Principle? Every man (or woman nowadays) grows and gets promoted to a position of the highest level of incompetence. This means they all reached a stage where they cannot grow their organisation any further. That is the tragedy of success. The more successful you are, the probability of you becoming “incompetent’ increases every passing year.
So, hello MSME’s founders, CEOs, and Head Honchos, give me a listen and straw-man this framework of mine, i dig feedback so much. In this framework, I will show you how to grow your business 10X!
Here is the Simple Framework
You will need to understand two concepts, which is one concept broken into two. I will link to a detailed article, below in the references section if you want to get down in the trenches, like I have done to understand how to grow my business.
So here it goes, the concept is called Product-market fit (PMF). There are two sub-components of PMF, one is Product-problem fit(PPF) and another one is Motion to market fit (MMF) which is also called Go to market fit. I am assuming, you have been in business for at least five years, which means, you have achieved PPF (product-problem fit). This is where you all stopped, you thought yay! I did it, man! But, you didn’t know any better. Unless you went to Ambani school, I don’t expect you to know. I don’t mean everyone reading here doesn’t have management degrees. But I feel, that people whose businesses have flatlined, despite finding the product-problem fit have forgotten their marketing classes. So in case your business’s growth has indeed plateaued, you need to read further. If you find this is all horse shit, go bloody unsubscribe.
Here is a step-by-step guide on how to make your growth plans.
Please note, that steps are very important, I know, I am sounding like a school teacher, but please don’t miss any steps, you will land on your head.
Step 1 - Market Research your industry size
You may have one product or 100’s of products, but I am sure, they fall into some category. If Google doesn’t provide you with accurate enough data on your potential market size please go to their industry association, pay a fee and get the industry data.
Now, that you have realised you are sitting on the top of a goldmine, or you have chosen a niche too narrow. If your niche is too narrow like you are a local grocery store. Stop reading and go to watching reels. Also, if you have a budget, hire a market research agency as they are professional and can give you a realistic figure, so you aren’t delulu about your hopes and aspirations.
If you think your market size is humongous, then you need to proceed to step 2.
Decide your share in the market. Suppose you are currently doing 3 crores and want to jump to 30 crores in the next five years in a market the size is say 3000 crores. Fair enough, let’s plan how to get there.
Step 2 - Identify channels which fit your budget.
Whenever I tell an MSME’s founder about the budget, they go crazy. They make all kinds of bahana(pretences), oh we are B2B, we don’t need business development or marketing. There are no budgets. This is the toughest job for me, to convince the owner that marketing should be at least 10 per cent of your targetted revenue. So in case of 30 crores, it would be 3 crores. Bollocks, he is delusional the owner tells himself in his head, but let’s hear him out. Anyway, the question is not about what would be the budget. Capital is like concentrated labour, with capital, you run ahead, you skip a few steps, you move up the ladder, ahead in the queue. If I have to make an impact on the channel, I need to first access the channel costs. I cannot sell my B2B product with a Rs 100 FB ad right?
So, once you have chosen the channel, do the smallest bet, that the channel needs so you validate it. Check the behaviour of the channel: does it behave linearly, do you have a chance it will give you exponential returns, will it stop working if some conditions change for example a slowdown like we are facing now? If you think this channel is unpredictable, keep your eye on other channels. What is the market size you can tap from the other channels? What would be the cost? What would be its behaviour over a period of time and investment?
Moral of the story - One door (channel) closes, and you kick open another channel.
Step 3 - Build internal capability for handling the new business leads
Once you have sufficient conviction, go and build a good sales process, and make sure you can deliver the end value to this new cohort of customers, who are not coming through your usual referral route.
Call me to join your growth journey
Nothing gives more pleasure than seeing a child grow. Every idea is a child, you love it and want to nurture the child to achieve its highest potential. I like to hear business problems and give them strategy advice.
Manoj Jugaad AI
Reference
The Busy Founder’s Guide to PMF – Sajith Pai
Glossary
Peter Principle
The Peter Principle is a funny idea that says people in a company or organization keep getting promoted because they’re good at their current job. But, every time they get promoted to a new job, they might not be as good at the new job as they were at the old one. So, imagine you’re good at building with blocks, and someone says, “Wow, you’re so good at building blocks! You should be in charge of the block area!” At first, you do a great job because you know blocks. But then, being in charge means you have to do other things, like tell other kids what to do or clean up, and maybe you’re not as good at that. The Peter Principle says that people keep getting promoted until they reach a job that they’re not very good at, and that’s where they stay. It’s like saying everyone gets promoted until they’re in a job that’s too hard for them, and that’s their “final level.”
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1. Product-Market Fit (PMF)
PMF is achieved when a product effectively satisfies a specific market demand, and the company has a repeatable, scalable, and cost-effective method to acquire customers. It is the ultimate goal for early-stage startups, combining Product to Problem Fit (PPF) and Motion to Market Fit (MMF). PMF ensures high customer retention, sustainable unit economics, and predictable growth. It is not static and requires continuous iteration to maintain. Key indicators include double-digit monthly growth, high retention rates, and positive unit economics. PMF = PPF + MMF.
2. Product to Problem Fit (PPF)
PPF is achieved when a product effectively solves a specific problem for a targeted customer group. It validates that the customer’s pain point is alleviated by the solution. PPF is a continuum, not a binary state, and can be improved by refining the Ideal Customer Profile (ICP) or enhancing the product. Key aspects include:
- Validation: Testing the product with customers to confirm it addresses their needs.
- Customer-Centric: Focusing on solving real customer pain points.
- Iterative Process: Continuously refining the product and ICP.
- Testing: Using methods like the Sean Ellis Test (40%+ customers saying they’d be “very disappointed” without the product).
PPF is the first step toward PMF and should not be confused with PMF to avoid premature scaling.
3. Motion to Market Fit (MMF)
MMF is achieved when a company finds a repeatable, scalable, and cost-effective way to acquire customers. It focuses on the go-to-market (GTM) strategy, which includes:
- Persona: Defining a narrow target customer profile.
- Channel: Identifying the best way to reach the persona.
- Message: Crafting a clear value proposition.
Key aspects of MMF include scalability, affordability, repeatability, and a clear input-output ratio for customer acquisition. Iteration is critical—adjust the message, channel, or persona before considering product changes. Signs of MMF include double-digit growth, high retention, and sustainable unit economics. MMF is the second step toward PMF, following PPF.