why do SMEs succeed?
When you start a new business you’re excited for what the future holds. You’ve got the passion, but you must also have a comfort level with ambiguity, challenges, and uncertainty.
The unfortunately 9 out of 10 startups will go out of business, with only half surviving five years or more. Not very encouraging stats are they? So what makes a business leader successful?
have a well-defined vision
Every business leader must have vision. The idea for a company starts with a vision, along with a dream of what the business could become. Defining a business strategy and then building a marketing strategy based on this is a must.
Small business owners must have a vision for what the business will look like, but most importantly how to monetise the business idea before the first pound is spent or earned.
getting things done is top priority
Successful business leader simply know how to get things done. Top of their abilities need to be productiveness and efficiency. The ability to do your work in a timely manner is vital to why your company reaches its goals and milestones.
It’s important that you set a date to launch and stick to it. Move at a faster pace than your competition. Do the hard work necessary to get tasks done right and done on time. Productive people know how to make the most of their time. Don’t be afraid to employ, knowledgeable people in your industry it will help accelerate your business. They can help troubleshoot when things go wrong and mistakes are made. Not to mention, they can quickly hone in on problem areas and improve your products or services as a result.
master the budgets
Perhaps you have some capital from investors, a business loan, or have also made a little money along the way. Running a lean operation is a key to success. An efficient financial manager will have every angle covered, with a budget assigned. And, of course, unnecessary spending should be avoided.
Establish what is absolutely necessary to reach milestones within your budget. At any stage of your business, doing more with less is an important practice to adopt.
networking is key
The old adage is true: it’s not what you know, it’s who you know. Networking is a key to small business and startup success.
A management team that has an influential network in the business is completely priceless. The best startup businesses have a leader with incredible social skills, this skill can bring in influencers or experts that can support you in various aspects of business.
Conversely, within the business, need to be inspirational and make people want to follow them, especially since starting a business comes with a lot of uncertainties. New ventures potentially come with cuts in salary, no benefits, and long hours, to name a few sacrifices that may need made.
An obvious benefit of networking is referrals, with the promise of new business. And most of the time those referrals you get through networking are high-quality and even pre-qualified to fit your business.
keep high standards and push positivity
Discipline is the result of self-control and strong personal standards. If your leadership and employees aren’t disciplines, you will fail, even in the best economy. When you are self-disciplined, it will lead to positive work ethic, and work ethic leads to a more effective and efficient work environment. You need to set the example to get your team members aligned and working together to accomplish your goals.
invest in the right processes and systems
You won’t have the capacity to process orders, distribute, or even serve your customers with excellence without the right technology. The first system you need is inventory management. Your inventory is literally cash sitting on your shelves. Wouldn’t you want to track piles of cash? Then why don’t you track your inventory? When you don’t control your inventory, you will eventually experience the pain of over or understocking. Either one ends up with lost revenue through write-offs or unhappy customers who end up shopping elsewhere.