From lack of brand awareness to balancing growth and quality, there’s a lot that a small business has to see in the starting.
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Did you know that SMEs comprise about 94% of all the businesses in the UAE? Employing millions, this sector is one of the major contributors to the economy. But what goes on in the making of a business? Do they grow overnight? Or is their journey filled with hurdles and difficulties? No business has a perfect success story and most of them have to face certain issues. We highlight some of these problems below.
1. Brand awareness
Due to the availability of a lot of digital resources for gaining knowledge, people are more aware than ever of various products and services. This makes it difficult for most companies to build a potential client base since people do not get convinced that easily. There is a lot of competition in the market and spreading brand awareness requires a very strong strategy.
2. Strong leadership
A strong leader can make or break the team. The success of any team depends on the way the leader leads. A leader must have the ability to be flexible and change his way of leading by adapting to the needs of his team. He should know how to use the best qualities of his team to get the work done. He learns from experience and implements those lessons in his leadership.
3. Client dependence
Never rely on a single client for most of your revenue. It is important to widen your client base to grow your business and establish stability. If a single most paying client quits, it won’t affect your business much.
4. Finding the right employees
Many small businesses face this issue. In their attempt to save costs, they compromise on the quality. They lose a chance to hire the right person. Placing people in the wrong department also affects their productivity and their skillset goes unutilized. A person who is not suitable for the job can be harmful to the running of the business.
5. Money management
Most businesses start with limited money and face the challenge of maintaining regular cash flow. Mostly, the invested money is expected to return through the payments that the business receives. With no savings and unpaid bills, money management is a nightmare that many businesses face initially. Most businesses use revenue management tools to keep track of payments and manage revenue related tasks with in-built automatic tax calculation. They keep you notified of any unpaid invoices and encourage continuous business dealings with customers. It’s always better to get professional help to maintain your books of accounts. This task becomes very complex with the growth of the company. Hence, it's advisable for SMEs to give priority to their bookkeeping.
6. Balancing quality and growth
Most businesses have to reach a middle ground when it comes to compromising their quality for their growth. Usually, it is not easy because business owners may go on a path of unhealthy inclination to progress. This hampers their quality to the point that they lose a vision of their product. There’s more to it than meets the eye. Businesses do not achieve success overnight. There is no one way to hit the jackpot, but most businesses believe in the trial and error method to see what works for them. The key is to never see any problem as a failure, but a step towards your goals. Though the road to success may be difficult, we can help to make it smooth. With McLedger invoicing and complete bookkeeping services, we make sure you can easily judge your business’s progress.