Small and Medium-sized Enterprises (SMEs) play a major role in most economies, particularly in developing countries. They account for the majority of businesses globally. Before setting  up an SME, the following must be considered:

Business Plan

This will give direction and also helps to keep you on track in order to achieve the set goals. The set goals must be SMART (Specific, Measurable, Achievable, Realistic and Timely).

Customer Service

Customer service excellence is one of the most effective ways to build and sustain a competitive advantage. Building a good rapport with your customers will help you get feedback from them and this will help you improve in areas that are lacking. It is not a disaster if there are glitches, but how you handle putting things right speaks volumes about your business. A satisfied customer is the best source of advertisement.

Technology

Understand the kind of technology that suits your business needs and only invest in what you need. Keep pace with changes in technology to remain competitive. Spending money on surplus technology is a waste of resources.

Competition

Unless your services or products are unique, then you need to have a competitive advantage. Pay attention to your business rivals, find out what they offer and then you can pinpoint how you can differ, and why customers should choose your services or products  over theirs.

Recruit the right people

Having the right team is crucial in an SME set up. An employee’s personality is a key factor in choosing the right team. Do not commit to permanent contracts until you assess the value being added to the company by the new employee. The assessments can be achieved through offering short term contracts or probation periods. This helps the company to avoid costly mistakes and to assess the employee’s potential.

Marketing

With the current technological advances, you do not need to spend much on expensive marketing. This can be done by yourself or your staff for free. All you need is to invest time in carrying out research about your competitors since most of the information is available online. Find out how they win business, who their partners are and their target market, then develop a marketing strategy that will give you a competitive edge over them. Without a clear marketing strategy, your products or services will never get off the ground, even if you are the best in the industry.

Finances

Proper financial management is a key aspect to consider for an SME. You need to keep a close eye on finances right from the start as the first rule of survival. Allocate budgets, don’t offer too much credit and don’t overspend. Seek expert knowledge if you face challenges in financial management. Book-keeping is also important as a control measure of financial performance and so that you know the position of the business.

Conclusion

There is no excuse for making basic blunders in business. However, if the above factors are considered before setting up an SME, your business has higher chances of flourishing. Avoid being too ambitious as this can lead to disaster. Make sure you have the means and resources to see a job through properly to the end. Fail to deliver, and your reputation will suffer.

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