Presales Research- Determining Size of the Business for Debt Recovery Management



Business sector have always felt the need of having sufficient data about the market that they are going to invest in. Even before starting their own business they thoroughly conducted market research to decide upon the product or service they wanted to sell. Similarly they have been forever keen to probe into their prospective buyers before establishing any business relations with them. That is when presales came into the foreplay and became one of the crucial aspects of the businesses.

In the following article we will elaborately discuss about the second step for presales i.e to find out the size of the business and how it is beneficial for framing a policy on Debt recovery management.

What does size of the business mean?

In an industry there are firms of varying sizes. The costs of production in these firms of different sizes vary. A part of this research should involve business size. Without knowing your business size, you may be conducting business in a company so small, it’s next to impossible to make any money.

It is important to note that smaller the target company in size, easier will be their processes but larger the company surety of payment would be more. In case of default of payment, a larger company will most probably return the money. One can also sue the target company for liquidation in case of default to recover their unpaid money.

How to determine the size of Company?

There are various methods to find out the size of the company, some of which are mentioned below:

  • Capital invested.
  • Value of the product.
  • No. of wage earners employed.
  • From the net worth of the Company.
  • Turnover of the Company.

What are the sources to determine the size of Company?

The sources to determine the size of the company is as follows:

  • Visit the Ministry of Corporate Affairs ( website and view the Company/LLP master data.
  • Visit the website which is an open government data platform by Government of India.
  • From the net worth of the company.


For any business presales market research is an important task. It is imperative to know about your customers and their temperament before establishing any business relations with them. Hence businesses can adopt to presales for the purpose of debt recovery management like a preventive measure. One such measure is to beforehand find out the size of your target company so that you can take wise decisions before investing or establishing any business relations with that company. Once you figure out these aspects of business policies then debt recovery handling becomes manageable. One can then stop persuading their debtors and completely focus on their core competencies. That is the importance of having a strong framework for businesses to deal with defaults in trying times.

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Disclaimer – the above summary is based on the personal interpretation of the revised regulations, which may differ person to person. Hence, the readers are expected to take expert opinion before placing reliance on this article.

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