According to the World Bank, small and medium enterprises form the majority of businesses worldwide, representing about 90 percent of businesses and contributing 40 percent of GDP to emerging economies.
However, sustaining a small business is no easy task. It takes optimum efficiency levels and effective management strategies to be part of the crop of small businesses contributing massively to job creation and revenues. Here are a few easy tips for growing a small business.
Small business leaders need more than the early founder’s passion. Business growth thrives on well-informed decisions. Today, many business leaders have turned to analytics for accurate decisions. As a business owner, you may already be sitting on a ton of data from social media comments to your mailing list. Invest in a data management solution or Business Intelligence (BI) software that harnesses all your business’s data, transforming it into comprehensive results like statists and charts to help with business planning and investments.
Adopt Lean Management Strategies
Wasteful operations can curtail an organization’s capacity, especially if you’re a small business with a smaller resource base. The longer these wasteful operations go unchecked, the slimmer your growth chances become. Lean management can be a proactive way to eliminate wasteful operations. This management principle focuses on continuous improvement, resource optimization, and steady workflows. These three pillars help rid your operational efforts of waste, including time and raw materials. It can also help to improve inventory optimizations within company.
Focus On The Customer
Customers have a simple rule. Treat them right, and they’ll keep coming back. But treating them right transcends proving great products at affordable prices. Today’s customers have a myriad of expectations. For instance, 70 percent of customers say they feel frustrated when companies share posts or populate their websites with content that has nothing to do with them.
For this reason, customer-centric businesses personalize their interactions, calling customers by their first names, creating content around customers’ interests, and so on. Your customer relationship management strategy should focus on attracting new customers and retaining loyal ones. These two objectives require different strategies. If you combine both well, you’re likely to have a rich and balanced customer base.
Consider Outsourcing And Partnerships
If you’ve run your small business for a while now, you may already know that you can do everything by yourself. You need effective employees and other players in your market to elevate your business’s status. Partnering with brands in other markets can help you reach more customers without setting up shops in those markets.
Also, outsourcing can be a great way to get well-trusted industry professionals in your fold without employing them permanently. The outsourcing trend is gradually gaining ground due to its effectiveness. Studies show that about 37 per cent of small SMEs outsource at least one business process for efficient operations.
Diversify Your Offerings
What’s next after launching your first successful product? It pays to research your market and identify new product ideas to satisfy customers rather than over-exploiting your existing product.
Generally, increasing your business’s sales and revenues can be challenging for new managers. But these tips can make the growth process more manageable.