Speaking from personal experience, I have come across quite some common mistakes made by the SMEs. Running an SME sure is a challenging task that often forces one to make decisions that can entirely affect the operations of their business. Sometimes the decisions will contribute to the growth of your business in the long run, and sometimes the decisions might lead to an unavoidable mistake that you will regret.
The following is a list of ten common mistakes made by the SMEs that be easily prevented to help your business grow and be successful:
- Doing everything yourself
This is one common mistake that all SME owners make in fear of making mistakes. Most of the times the owners tend to take all the work on their shoulders and stress themselves out, despite the readily available resources to assist them.
By focusing more on your strength and what you can do best as an individual will be beneficial for you and your business and outsourcing the smaller tasks to your employees will most likely allow them to perform better and prove themselves capable of doing harder tasks.
- Mixing your business and personal finances
Another common mistake made by the SMEs is mixing up their personal and business finances and often leads to your finances getting tight. Obviously, it is difficult for an owner to watch his or her business suffer through financial crises, but, dipping into your personal finances to solve this issue will only make the situation worse and will not help.
- Not having a marketing strategy
You have set up your business, now all you need is customers to buy your products or services. If you do not have a good marketing strategy, people are not going to find out about your brand or company. Remember, a good marketing strategy is important for people to know you because the more people follow you, the more potential leads you will have in the near future that is essential for the success of SME.
- Hiring the wrong people
When hiring employees, it is important that you consider their personality and qualifications and evaluate to find out if they can fit your business or not.
- Lack of planning
SMEs often lack direction and focus. You need to developa good business plan in order to raise your capital and successfully direct the starting of your new business and take it in the right direction.
- Bad Customer Service
The way a business treats their customers can either make or destroy a business. Customers are always attracted more towards efficient customer service. A happy customer will soon become your regular ad loyal customer.
- Failure to manage cash flow
Cash flow is very crucial for all types of business operations. It is all very good as long as you appear profitable in all your account; however, not so good if these profits are not converting into cash into your bank accounts.
- Not using advanced technology
Technology these days is so developed that there is usually some types of devices available that can very well aid you in most aspects of your business. If you are an SME, be savvy with the needs of your business and technology you invest it, only buy what you need.
- Not doing enough research
SMEs need to know their target audience in order to increase their customer base. Doing strong market research can help you make shape your product or service the way it attracts your target customer base.
- Underestimating Insurance
SMEs often underestimate insurance, with about thousands of business around Dubai having no insurance plans in place are suffering from hefty fines, liability claims, and even prosecution, all of which can seriously affect you and your business growth.