Member Article

Growth for micro businesses; agility is key

According to a report from Lord Young, micro businesses have grown by 40 per cent since 2000 and currently account for 20 per cent of the private sector’s turnover.

Micro businesses are integral to economic recovery, however, to continue to grow they need to innovate, take advantage of intelligent outsourcing and be realistic and self-aware in order to identify missed opportunities.

Expansion through innovation

One of the benefits of a small workforce is the ability to make decisions quickly, without the red tape many larger businesses face. Renowned business leaders are often touted as having ‘the mind of an entrepreneur’ because they think and act decisively. In turn, whether a decision leads to a great success or a learning opportunity, time is not wasted drafting large plans or assessing risk. SMEs need to take advantage of agility and flexibility of their business and embrace growth through innovation.

Starting a business in a recession is a popular thing to do, whether it is driven through necessity or out of desire. As such, when economic times are tough, SMEs can identify niche opportunities in a market and move quickly to fill them. To foster rapid growth, small businesses should rely on tools like industry bodies, government assistance programmes like the Start Up Loans campaign and the adoption of technology to innovate, raise finance and find new customers.

Strategic outsourcing

Operating a small business is difficult as resources are often limited and the owner needs to be all things to all people. Time is a precious commodity and as such, SME owners should utilise appropriate outsourcing to maximise time and save money. For example, tools like pay by the hour advice / services, template legal documents and competitive pitching sites are readily available online.

Many SMEs also outsource needs like IT, telecoms and finance assistance as they require lots of time and specialist knowledge. By working intelligently, using shared services an outsourcing, business owners will be able to drive down costs, stay nimble and respond quickly to upcoming opportunities.

Don’t miss a thing

Recent research of 2,000 micro business owners in the UK found that small businesses receive nearly 20 calls a day and miss approximately seven calls a day. In such a tough business climate, every opportunity should be maximised and coveted. For those struggling with calls or admin, it’s worth looking into a digital receptionist to help with the phones and apps to streamline admin / diaries.

It’s important for SMEs to self-audit and understand where they could be missing out on a growth opportunity. Perhaps it is missed calls, overlooking a new market or unorganised finances, but it’s imperative for small businesses to be aware of these gaps and then make a plan to address them, if they are to prosper.

SMEs are the lifeblood of the economy, creating jobs and driving innovation, acting more agile and quickly than their corporate counterparts. As such, SMEs should rely on the flexible use of people, technology and services in order to continue to grow and shape the UK economy.

This was posted in Bdaily's Members' News section by Penelope .