3 Tips on Starting Out as a Business for SMEs

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Updated: May 5th, 2020

Starting out as an SME is a challenging task for any business owner. Most SMEs struggle to survive for their first five years and a lot of them encounter challenges such as getting cash-strapped, losing out to competition, experiencing reorganization, being unable to supply the demand in the market, or a combination of these things. Despite these, most economies in the world run on SMEs. They account for over 90% of the businesses all over the world and without them, economies are more likely to suffer.

But you do not have to worry about these things. Here, we compiled five tips for you to read that successful SMEs attribute their growth to, so you can avoid the pitfalls of starting out as an SME:

1. Make sure your product or service has an actual value to society

When we are talking about “actual value,” we are referring to the identified demand in the market. Most SMEs start out overhyping their product or services and failing to determine whether a demand actually exists. This is something you should avoid doing because most SMEs fall to this trap and lose their business in their first five years.

2. Choose the right people

Staffing is an often overlooked managerial aspect. Most businesses succeed because they were able to get the right people to do the right jobs correctly. It is important to choose those who have the same passion as you have in running your business. Although skills can later on be acquired, it is still important to get someone who can do at least the bare minimum.

3. Develop a good business relationship with your customers

This sounds obvious but developing good business relationships with your customers is a challenging task to do correctly in practice. Not all customers are made of the same cut that is why personalization is the way to go. Know their needs and preferences and ensure that your products and services fit them. 
You can also use CRM systems like Saphyte to fast-track this process so you wont have to worry about manually inputting information from each customer.