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| pics: SME finance forum |
There are lots of ideas emanating from people around the world, thereby creating competition in art of delivering service and production of products around the world. For one to be able to survive in such situation creativity and diversification is therefore advised.
Due to its long involvement in the growth and development of the economy of various countries, many governments have therefore encouraged increase in development of more SMEs. They also provide loans, easy going laws that enable more SME establishments thereby providing employments and at the same time improving the economy.
Unlike other countries, the third world countries still struggle with this truth, and still fall victim of poverty. some of the setbacks are simply the lack of adequate education or training that will enable a person start up a business; this leaves the government the only enterprise that creates money which is not enough for the economy.
In spite of these problems and challenges, the current economic reform process going on globally, which is aimed at reducing poverty, unemployment and strengthening of basic institutions and sub sector of the economy, is beginning to show optimism on small and medium scale enterprises as instrument of economic growth and development in the world indeed.
It is highly pathetic that despite the incentives, favorable policies and regulations, and the preferential support by various governments aimed at improving small and medium scale enterprises, SMEs, has performed below expectation. Some of the reason may include lack of planning, inimical government regulations, poor marketing strategies, lack of technical know-how,and lack of capital; this is mostly a challenge in the third world nations.
In some other nations, the challenges they face is the the ability to be consistent and remain in business, due to the teaming rate of SMEs in these nations.
How to survive in a well of many fishes
The fear of loosing your once faithful customer to another firm, is quite heart breaking and one is not advised to sit and watch other fishes drown him down, but have to sit up. The first thing you do is;
1. Be creative
When it comes to the art of the shop/office/eatery etc, try to make it classic, not the usual style, probably change the look every year, or six month interval, just be creative about it. Try to find out what others in your field are doing, how is their office, and then go for classic and exotic. This step will make your visitors/clients/customers always want to come, because they anticipate something new. Don't just sit down and expect something new in your gain or more clients when you still have the same window blinds you had 3 years ago; that is poor.
When it is a product, you may want to change the recipe, or some ingredients, add new ones, etc. If you are not creative at this time, you are going to be left out in the game of business no matter how many years you existed, so be wise.
2. Diversify
Yes you can diversify. Don't think that because you make cakes you remain in only cake making or a particular flavor or type: try something else. You run a hotel, only where one can sleep and wake up, why not make sure they have breakfast or dinner. It is very important to think deep what your client may want or be thinking at different point, with this you can add to your services what they were probably thinking or wanted even without been told. For example, all hotel give same services, but you can decide to add free transport to and fro their various destination, or even those that have booked and are in the airport, all these for free, but brings more visitors and differentiate the hotel from others.
3. Finally, proper staffing
In the quest to gain more money, avoid managing staffs. You have a large customer base still you have only two persons attending to them, you don't even have a customer service personnel; you are only being foolish, because you are loosing customers by so doing.
It is not only lack of proper capital that kills a business but lack of trust in that business. Without trust, you will lack the ability to grow your firm to a greater height.
by-cpb
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