7 biggest challenges SMEs face – and how to overcome them
1. Attracting new customers
According to research by Statista, 79pc of UK SMEs stated that their toughest challenge was attracting new customers. This is a problem that so many businesses struggle with, and this includes the big players too. However, larger companies with historic success behind them usually find it easier to attract new customers as they have a strong brand supporting them.
2. Maintaining profitability
No matter what industry a business operates in, maintaining profitability is a challenge which every business has had to consider at some point. However, there are a number of things that can help:
Reduce costs
Increase turnover
Increase productivity and efficiency
3. Retaining valuable employees
Appreciation goes a long way. A failure to demonstrate the worth of employees and the work they do could lead to a business losing some of its most valuable assets. In fact, recent research found that half of employees would leave a position if they didn’t feel appreciated.
4. Securing finance
Although business lending is now far more accessible than in previous years, accessing finance is still a concern. Many SMEs are turned away by their high street bank, but it’s important to remember that this isn’t the only option.
5. Increasing Revenue
It’s common knowledge that every business struggles to drive, maintain and sustain growth. Last year alone, nearly six in 10 (59pc) SMEs found increasing revenue problematic.
6. Embracing technology
While most businesses have welcomed technological advancements of the past few decades, there are others who have buried their heads in the sand. Technology plays a key role in business and there are now software and apps available to make things easier and simpler for business owners and to alleviate some of the challenges they may regularly face. Some of these include accounting software packages, marketing tools to help distribute monthly newsletters and project management tools.
7. Social media
A mistake many businesses make is thinking that they have an online presence just because they have a website. There is so much more to be done beyond this and while a website was an essential a decade ago for any business serious about being successful, social media has proven to be a powerful tool in helping to maximise brand exposure.
