Top 10 Things SMEs Need for Growth and Profitability

Small businesses, or SMEs (Small and Medium Sized Enterprises), are in real sense big businesses that determine the output of a country’s economy. There are many such businesses in Kenya but the majority of them aren’t as successful as one would think. For they provide lots of job opportunities, what small business owners are looking for are ways of ensuring success. But what exactly do they need to realize this growth? Here are top 10 ideas.

1. Branding

Have a solid brand, local or regional, just remember that what matters is that your brand should have a direct impact on your business’s revenue. Most business owners fail in this concept oblivious of the fact that special attention is a pivotal tool to lean on. Have a plan that ensures branding exercise covers all the aspects of your business, and it should be strong!

2. A Flawless Customer Service

Well, it may not exactly be flawless but if your small business is close to being perfect in terms of customer service, you are on the right track. Customer service is mandatory to every SME as is to a large organization. What you need as a business owner is to strategize on how to retain existing customers alongside procuring new ones. To a customer, all that matters is the perspective of the business and how exemplary your service is. Personalized services provided by a specific business is what draws them back.

3. Stable Quality and Volume

If you are a small business that makes delivery services, or you supply materials or goods to other companies, ensure that your quality norm is strictly adhered to. This builds credibility, trust, and long-term relationships with your business partners.

4. Financing

This is by far one of the most important aspects an SME needs. There is no shortage of funding if you partner with the right people and if the objectives of your business are well laid out. There are several lenders who will help you grow but if they decline your request, you need to reconsider your business approach. Nevertheless, banks are the biggest lender and with various membership initiatives and growth programs, you are set to grow your business exponentially.

5. Consider Diversification

One limitation of being a specialized business is that risks are high. To avoid client and product risks, all you need to do as a small business owner is to have variety. Forget the concentration of customers, revenue streams and exposure centered on a single industry. Why not have different products to appeal to a lot of customers out there?

6. Marketing

It was once said that doing business without advertising is like winking to a girl in the dark. It won’t make much of a difference. The same goes for SMEs. If you want to bring new customers on board, a conspicuous marketing, whether SEO, social media campaigns, Blogging, or Text/Display Ads, are vital tools that should be utilized. In fact, digital promotions are way cost effective and they help you grow faster while driving expansion.

7. Have an Online Presence

If you don’t keep up with technology, soon you will be phased out of business by new startups. Today, having a website for business, on that provides all the necessary business & contact information to a potential customer is key to gaining traffic and pushing sales. On top of that, have social media links of your business and allow customers to interact with you online. Try it and see how effective that works.

8. Recruitment and Skill Nurturing

Your business should attract talented individuals and it should ensure that there is enough room for learning and growing within the business niche. On top of that, have a decent compensation plan for your employees to keep them motivated and industry relevant training programs go a long way in helping them learn new things.

9. Financing Software

There is no denying that losses could occur due to a slight error in terms of business finances. To keep track of cash flows and expenses efficiently, what you need is to have software that does the job for you. It gives you the upper hand in handling numbers and it will definitely guide you to creating a budget that actually works.

10. Regulations

The last thing you need in your business is to run up and down avoiding government agencies. Ensure that you have set straight all the approvals needed for your business to run efficiently. Be up to date with the regulations and policies that govern your business.

Meanwhile, as a conclusion, it is highly advisable that the business doesn’t become overly dependent on you. Build and empower someone, or a team that when you are not around, the business will continue its operations as expected. Normally, this is also seen as a huge positive by potential investors during a fundraising activity