SME Journey · Stage 2 of 4

📈 Growth Stage

Scale proven sales, hire your first team, access SME loans, and formalize operations.

← Startup Next: Expansion →
🌱 Startup → 📈 Growth → 🏭 Expansion → 🌏 Export

Growth Stage Checklist

💼 Operations Scale-Up

👥 Team Building

🏦 Finance & Compliance

📱 Marketing Milestones

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Hiring & HR for Nepal SMEs

Minimum Legal Requirements

Employment contract — written, in Nepali, signed by both parties. Required by Labor Act 2074.
Minimum wage — NPR 17,300/month (FY 2081/82). Check for latest update at Ministry of Labor.
SSF registration — within 30 days of first hire. Contribute 31% of gross salary (11% employee + 20% employer).
E-TDS — deduct income tax from salary monthly and deposit with IRD by 25th.
Leave entitlement — 13 public holidays, 18 days annual leave, 15 days sick leave per year (Labor Act).

Finding Talent

🔍 Merojob.com — Nepal's largest job portal. NPR 500–3,000 per listing.
📘 Facebook Groups — "Jobs in Nepal", city-specific groups. Free.
🏫 CTEVT graduates — technical college graduates for skilled trades (food technology, electronics, tailoring).
🤝 Employee referrals — best quality hires in Nepal come via network referral. Offer a referral bonus.
🏭 Trade associations — FHAN, FNCCI, sector associations maintain member directories with qualified workers.

Accessing Your First SME Loan

Growth Stage Loan Products

Loan TypeAmountRateUse
Working Capital ODUp to NPR 50LBase+2–3%Stock, seasonal cash gaps
SME Term LoanNPR 10L–2.5CrBase+1.5%Equipment, expansion
Women Entrepreneur LoanUp to NPR 1.5CrBase+1%Women-led businesses

How to Improve Loan Approval Chances

✅ 12+ months of business bank account transactions
✅ Audited financial statements for 2+ years
✅ Tax clearance certificate from IRD
✅ Business plan with 3-year projections
✅ Collateral (land lalpurja + valuation report)
✅ No existing loan defaults in Credit Info Nepal
💡
Use the Growth Stage Wizard to get a personalized recommendation on which loan and bank to approach first based on your province and sector.

Systems & Processes for Scale

Key Systems to Put in Place

📊 Accounting System
Upgrade from spreadsheet to Busy or Tally. Connect to IRD billing system. Monthly management accounts.
📦 Inventory System
Track stock in/out daily. Set reorder points. Avoid both stockouts and overstock. Busy/Tally handles this.
💬 Customer Relationship
WhatsApp Business for customer contact. Keep a simple CRM in Google Sheets: name, contact, last purchase, next follow-up.
📋 Production Standard Operating Procedures
Document your process step by step. Even 1-page SOPs reduce training time and quality errors when you hire.

Key Growth Metrics to Track

MetricTarget at Growth Stage
Monthly Revenue Growth10–20% month-on-month
Gross Margin>40% (product) / >60% (service)
Customer Retention Rate>50%
Cash Reserve2–3 months of fixed costs
Debtor Days<30 days
Inventory Turnover>4× per year