It has been two years since the pandemic affected businesses on a global scale and will continue to do so in the foreseeable future. Despite that fact, we’ve seen SMEs strive and even grow bigger despite the current circumstances. This proves businesses can remain profitable with the right strategy.
Whether you’re planning to start a business or you already have one (but struggling to keep it afloat), these tips and strategies will help you succeed in 2022.
1. Go Digital
You should make full use of the technological advancements to modernise your business.
It presents the perfect opportunity to move your processes online and allows you to become more cost-effective and expand your market.
This is extremely important if your production line, supply chain or marketing is disrupted by the pandemic. By creating a platform where you can introduce your business and services on a global stage.
Put your best foot forward digitally and doing so will also boost your business credibility.
2. Be Frugal
Usually, SMEs have lower credit ratings and smaller funding. Despite the lack of capital, upstarts agree to paying too much lease, buying big for the business (i.e. buying flashy laptops or posh work space) and most importantly, not having a clear financial plan.
In a forum organized by Go Negosyo, Vice President Leni Robredo addressed common SME challenges and how to manage their funds efficiently. She holds an economics degree from the University of the Philippines.
“For me, it’s always the financial [aspect]. Isn’t the advice always to not spend more than what you need? Sometimes, we [her office] also have sustainable livelihood and training programs. The failure of a business happens if we don’t know how to manage,” she said.
“So the very first thing that we should manage is that we should know how to be strictly frugal at the start. We should spend only on things that would yield returns. If there’s no return, it’s not the time. Let’s skip that for now. We can spend on luxuries when we already have extra money,” she added.
“Just hold on. But keep fighting and keep looking for solutions. Nothing is too small for us. What I’m saying is, if we really want to progress, we must be willing to do all sorts of things, as long as they’re good,” she said.
3. Always Address Your Weak Points And Customer’s Needs
SMEs are often hit by unexpected challenges, and failure to address it immediately may spell doom for your business. That’s why it is important to stay two steps ahead, sit down with your partners and create a strategy that will mitigate risks and keep customers, old and new, coming.
The late Apple CEO Steve Jobs once said, “You can’t ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new.”