Small business owners are always looking for new ways to boost their enterprise. While improving products and services gives a competitive advantage to a business, it is the way things are being run that brings about efficiency and financial savings. Hence making an enterprise profitable.
Deploying these operational and financial strategies requires due process. It is not a fire and forget deal – the returns come after slow and steady implementation and tweaking of the systems to make them streamlined. If we look at the successful entrepreneurs of our time, they all have one thing in common – thinking outside the box to solve problems and then transforming the thought into a companywide process.
With our experience in working with small and medium enterprises and helping them solve financial problems, we have gained some critical insights.
Today we are sharing the five things that can help to grow small and medium enterprises if implemented correctly.
So, if you are a small business owner, read on.
1. Automate Business Processes:
Automation is the next big thing taking over the business world at the moment. It brings operational efficiency and increases time-savings for your enterprise. Repetitive tasks like invoice management, business and travel listings etc. can be easily automated with software technologies. On the other hand, production and distribution tasks can be automated using dedicated hardware and machinery.
Eliminating mundane tasks with automation also boosts employee morale as people can now focus on creative and technical aspects of the business. You can also improve your customer experience and customer service by automating customer interaction processes like helpline setups and email responses.
2. Implement High Impact Marketing Strategies:
One of the most common mistakes of small business owners is not having an effective marketing strategy. It leads to cash burn without tangible results.
If your operations are running fine but your products or services are not selling, then your marketing strategy is off. Running your business without an effective, high impact marketing strategy can even lead to closure in the long-run. So, sit down with your managers and pinpoint the problems that are stopping you from generating customer interest.
3. Remove Interruptions:
Productivity is a key marker for growth in SMEs. If your employees are not getting the right environment for work, then how can you expect profitable ROIs. Identify the things, habits and attitude that is causing internal disruptions and take steps to remove/ rectify them. Typically, this task should be handled by your Human Resource Manager. If your company does not have that post, you can also consider hiring someone for it rather than investing your time.
4. Introduce Trending Technologies:
Nothing works better than motivated employees when your business needs a boost. Instead of discouraging change, make it a norm to appreciate new trends and technologies in your industry. It will not only keep your workforce excited but may also give you the competitive advantage of being early adopters.
However, do have a due process to check the viability of the trending technologies that come your way. Sometimes trends come and go very quickly and may leave you with a loss-making investment.
5. Get a Financial Partner:
Every small business requires financial help from time to time. From working capital loans to loans for business expansion – having a financial partner can solve your problems of short-term finance quickly. If you have commercial customers then you can also partner with invoice discounting companies. They offer short-term advances by collateralising your client-approved invoices. You can get up to 100 percent of the invoice value as an advance loan from non-banking financial companies like LivFin.
Invoice discounting also eases your relationship with your commercial partners. They can now have a relaxed payment clearance schedule whereas you are able to service consecutive orders after getting paid early by the invoice discounting company. To know more, read our benefits of invoice discounting blog post.
India’s economic growth has presented small business owners with a great opportunity to make it big. As local markets emerge, you as an SME owner can expand geographically with new e-commerce opportunities as well. However, success will eventually depend on how strong your internal processes are and how financially sound are your economies of scale.
The inputs mentioned in this article can help you get your basics right but the tough ask here is sustaining them. So, get back to the drawing board with the right process and right people to make it happen.
Also Read: How to Get a Small Business Loan Easily?
For financial partnerships, get in touch with a relationship manager at LivFin by mailing your queries to firstname.lastname@example.org.