Small To Medium Enterprises (SMEs) face challenges at every stage of their life that will hinder progress and make them limb all the way. Even if survived, these challenges still create a spiral of bad decisions, money pits and desperate actions all the way that will eventually drain out the cash of the business.
It’s a fact that almost 50% of new businesses shut their doors in the first three years of operation due to these challenges.
These challenges are summed up in the following three categories:
Three predicaments are a major concern for every SME.
- To fill in the departmental roles such as accounting, Human Resources, marketing, procurement and other functions.
- SMEs cannot afford to fill in these positions independently, thus end up hiring someone that caters for more than one role.
- Salary levels usually do not attract the right talent or education to fill in one role, let alone more than one!
The business ends up juggling between these three predicaments endlessly wasting time, effort and cash, while compromising on performance and deliverables and bringing down the business with it. Also, this is a failure formula on the long run because what is sacrificed is not only performance, but bad judgement, lazy attitude and zero commitment to business success.
We call this the “Bermuda Triangle” because it’s a spiral that sinks most of the SMEs everywhere in the world!
A decision maker needs reports to monitor and control the business such as KPIs, financial statements, marketing data and other information to engage internally with operations and externally with the market. Examples are customer acquisition cost, cash flow spreads, raw material benchmarking, etc…
SMEs cannot produce such reports due to lack of resources and expertise. SMEs tend to hire low caliber that do not grasp the basic skills of their job description in favor of the low salary. Reporting is forfeited in the process, which keeps the decision maker in the dark with no tools to run the business.
C in C suite stands for chief. Chief management position comes from long years of experience handling different departmental roles, expertise in navigating the terrains of business and people, exposure to number of sectors and engagements and skills in prioritizing decisions and functions. This is something that SMEs lack in general.
As detailed in the above two challenges, filling the company’s departmental roles adequately is important and accurate reporting helps the decision makers understand what is happening both internally and externally, however, interpreting these report and steering the business in the right direction is what matters most, especially when the owner does not have the right background in operations or operating remotely due to other engagements.
The C suite expertise provides the right feedback to the decision maker to make that strategic call in the right time and save the precious resources of the business. It could be shutting down a loss-making branch, automating a segment of operations, investing in a vital training course for employees, expanding a new store, adding a new service or product, accepting a new project despite the low margins or downsizing personnel.