If you are thinking of launching your own business, or you already have one and are working to make it grow, can’t you just imagine the day it will become a great company, solid, in constant development, recognized and imitated by many?
Or maybe you are not interested in seeing it become a corporation with dozens of offices and dozens of thousands of employees, but rather a super profitable, solid and sustainable company, which are also attributes of a mature company that has already found its points of interest. balance and is ready to continue serving and growing.
Of course, large companies and SMEs have very different realities. The former are huge villages in which a thousand and one things happen simultaneously and on a large scale: supplies are purchased, strategies are planned, inventories are managed, contracts are reviewed, talent is attracted and developed, services are offered, credits are processed, taxes are paid, results are measured… And for this, it is essential to have large staff, many of whom must be experts in different disciplines.
That does not happen in SMEs, today the most important productive arm of Mexico and, in general, of all the economies of the world.
SMEs represent more than 99% of companies in Mexico, contribute more than 52% to the Gross Domestic Product and create more than 72% of formal jobs in the country.
Despite the obvious differences between a large corporation and a haberdashery or a dental office, there are common elements between the two; Let’s not forget that both are businesses and must follow more or less similar rules to be functional.
One day a super-successful businessman in the steel industry told me: “I am very surprised to meet industrialists who ignore basic business practices, while there are small entrepreneurs who know them and know how to apply them very well, and you know? they are the same for both.”
Yes, you will surely think that large companies have capabilities that small ones do not have to work “by the book”, that is, applying standard business practices without worrying about daily operations. The small businessman is usually immersed in many of the tasks of his business and uses his effort and sometimes even his intuition to give results and grow. Not bad… how many prosperous businesses have not been born from the warrior spirit of the entrepreneur, and from his sixth sense to discover and take advantage of opportunities? the majority!
However, it is also true that there are practices of large companies that can be adopted by SMEs to increase their productivity and accelerate their growth.
Below, I share five that I have seen that work very well and guarantee results in business:
- governance
That is, you set the business rules that favor efficiency and give clarity to the results. If you leave those decisions to free will (what you buy, how much you reinvest, who you hire, to name a few), you run the risk of losing money and jeopardizing its viability. These rules will give you transparency and facilitate its optimal administration.
It is incredible how quickly large corporations have transformed into the digital world. Do you know why they do it? Because they identified that this new ecosystem saves them money, makes them more efficient and expands their ability to penetrate the market. Going digital implies that a large part of your habits –from how you communicate, how you buy or sell or provide service, to how you work– migrate from face-to-face to virtual. Surely your competitors are already in that arena, hurry up!
Adopt processes that give concert, sequence and clarity to the core activities of your business. Don’t leave it to chance! The processes will allow you to take advantage of all resources, including the most valuable: your time, to achieve results consistently.
- administrative discipline
Governance is key, because it defines the rules, but carrying them out requires a fundamental aptitude: discipline. Don’t let yourself be overcome by temptation! Establish controls, prioritize your decisions and remain firm in the use of your capital. Many small sacrifices will lead you to big gains.
Achieving a result requires drawing a route, that is, objectives, activities and deadlines. There are different planning models, one will work for your business! Planning will allow you to anticipate (and avoid) risks, as well as offer you valuable information so that you can make the best decisions.
These five practices will help you improve your bottom line, give you more clarity and stability so you can think and act smarter and more strategically for your business, and why not? For your life.
Claudia M Sheppard Claudia M Sheppard is a Mexican entrepreneur, strategist and business mentor, CEO and Founder of The Latin Powerhouse