Small and Medium Enterprises have been struggling in today’s economic era of growth due to various reasons and little is being done to improvise the issues. There are many types of problems that SMEs face in the competitive age of industrial development. Some of them might be lack of proper management systems, finances and much more
Following are few steps that can be put in place to avoid huge issues arising from small issues.
A big fault which has been observed with many small companies is the lack of preparation when the need for cash flows arises. The companies as they function neglect the prospective investors and venture capitalists just for the reason that they have sufficient cash flow for the time being. The companies/entrepreneurs need to realize the importance of keeping the prospective investors and stakeholders updated with the balance sheets and other documents so that they wouldn’t have to explain the whole concept of the company when in need of the cash
There are many small companies that have faced this issue at one time or another. The processes that are made and put in place are not set up to face contingencies that arise during normal work hours. Contingencies can never be anticipated but the top management needs to understand the market that they function in and put in place backup plans that can come into full functional mode when the time arises
Process definition and process optimization are 2 different things! Though it helps us understand how the work is to be completed; process optimization helps us speed up the output and extra cost involved in the production. Production companies that do not put up methods to reduce/optimize production often end up losing big on cash that they are putting in.
Strategizing the launch:
It is quite obvious that customers are the ones who decide which product runs and which ends up hitting the trash can. Before launching any product it is mandatory that the product first reaches the testers and experts in the product field. There are many enterprises that end up losing big time because their product was not tested in the field and were prematurely launched!
“It is always better to be safe than sorry”- a famous and true saying that is required in today’s competitive corporate world! These are few tips that can help you avoid some of the common mistakes that companies make!
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