Looks inwards, not outside: Develop a well thought- out strategic plan that is aligned to your business’ fundamentals. Do not get swayed by the external environment.
Focus on realities, not expectations: Follow a business model that is grounded in reality, and not based on what private equity players or investors expect. An understanding of local or regional preferences and market dynamics is critical for your success in the marketplace.
Test your business model: Continuously evaluate the economic scenario and your markets, and expand only when the unit economics actually starts working for you. Meticulously test the business model for a few years under different market circumstances. Your model should be robust to sustain and grow the business across different markets — both good and bad.
Think local: What has worked in other markets may not work in the market that you operate. For example, a Drive Thru is a very successful platform for McDonald’s in developed countries, but that may not work in metro city environments in India as retail real estate is very expensive, making them unviable. But then, these work better in satellite towns and on highways.
Stay on course: Some of the best laid out strategic plans can fail if not executed properly. Be disciplined in achieving execution excellence — develop a culture in your organisation that supports this.