Tag Archives: Entrepreneur

Top 3 Challenges that SMEs Should Overcome

a small time business womanSmall enterprises are generally well-off, but a significant section of them is undergoing unending hardships. Some are even on the brink of being phased out. Others are already out of the market. This is because of a few challenges here and there. In this article, you will unravel not just the kind of challenges SMEs face but also the solutions.

1. Lack of expertise and market research

Most people have money but lack investment skills. As such, they invest their money in SMEs but end up finding it hard to stand market competition. Therefore, it is imperative to first acquire skills in whatever field you want to invest in. Alternatively, you can hire someone with relevant skills to help you run your venture. Also, for you to effectively research on market demands and customer preferences, you need to be skilled.

2. Inadequate business planning and strategy

For you to achieve both short-term and strategic goals, you need to have a defined business model, plan, strategy, and vision in place. Think of how and where you want to operate your business. Specify if you are going to specialise in a product or service. Talk about how you want to market your brand. Evaluate the kind of stakeholders you want to partner with. Also, look at the formulas of attracting and keeping customers to your business.

3. Inadequate financial skills and discipline

Another sensitive aspect of running a small enterprise is financial management. SME owners often carry out transactions without proper planning and financial discipline. Here, it can be a prudent idea to partner with financially literate firms such as SME corporations in Malaysia for advice. This can draft you a thorough budget, forecast your finances, sort out bad debts, and most probably help you avoid overtrading and impulsive buying.

Investing your money in an SME is a great business idea. However, your dreams will only come true if you consider working on many common problems that SMEs face.

Understanding the Business: Why You Should be an Entrepreneur

Entrepreneurs in Utah Small businesses propel the economy. This is why the government supports the entrepreneurial spirit. It’s why startups are increasingly important. These are exciting times for anyone with a business idea.

It’s not all about tech

When somebody says the word “startup”, many people automatically assume it has something to do with tech. That’s because the term is commonly used in the tech community, in news and blogs and other articles about tech. The truth is, the majority of startups do not have anything to do at all with technology.

In like manner, not all successful startups are tech-based. There are many young companies that find success in different industries. So if you have a business idea, know that success rate does not necessarily depend on how close you are to technology, although you must at least find out what technology is doing for your industry at the moment.

You can get investors

Investors are always on the lookout for the next big thing. They are more experienced in determining whether a business idea has any chance at all at making it, but they are still not god-like in such abilities. They understand better than anyone that what they do is a gamble.

You can get investors, however, if you make your business attractive enough. Here are some tips.

  • You need a properly detailed, solid business plan.
  • Your business must answer a need; there’s no point in starting it if people don’t have a use for it.
  • You must know your niche well.
  • You must have the right people with you. Having only a few cousins or friends with you does not attract investors, unless those same people are highly qualified for the job. One bad egg is all it takes for an investor to say no.
  • You must have an exit plan in a specific number of years.

When you have to exit

Even if you don’t get investors, you must at least have some plans for the future. It is the sign of a good business leader to stick with a worthy project for several years, but if your plans keep falling through and it’s taking too long to achieve any success, you must know when it’s time to bail.

In some instances, the person who started the business will begin to feel like leaving, for any reason. It may be that the business has become a burden for them personally, or that they want to move on to something new. For such moments, you should sit down with a business broker in Utah like Utah Business Consultants to find a way to exit your business with minimal risks.

Entrepreneurship is the lifeblood that flows through the veins of the American economy. If you have an idea and you have the means to go with it, then consider starting that business. You’ll never know how far you can go unless you try.