Small to medium sized business are vital to any economy as they provide the backbone of service and product provision, create much-needed revenue for the government in the form of taxes and provide job opportunities which contribute to a low rate of unemployment. The creative side of small businesses is highly valued, as many innovations in product and service design start from these humble beginnings. Additionally, small businesses, as a function of their structure and flexibility, can react to market trends and be changing consumer preferences and behaviour. This results in many gaps in the market being identified and commercially provided for by the small business.
Small businesses form at the invention of one person’s ideas and actions – an entrepreneur. Commonly entering the market as a result of turning an opportunity into a marketable product or service, entrepreneurs are valued as they are prepared to take risks, are driven by achievement and self-motivated, who are not put off by potential failure while driving to be ahead of the competition.
Due to their flexibility and size, SMEs are well positioned to introduce and develop new ideas and concepts in a commercially viable manner. This is empowered by the owners not having to seek approval for any immediate changes to the business, its offers, or how they operate. In contrast to larger firms where their overheads must be offset by high levels of output to spread the costs, small businesses, through their ability to make a profit on much lower sales figures, can sell to smaller markets, establishing a niche where they have a competitive advantage over larger firms.
However, it is not all easy for the SME, as they face many barriers to the delivery of their products and services and the owner is usually at a financial risk with the monetary investment required to open the operation. Additionally, financials and economies of scale that larger firms enjoy are not achievable, resulting in the purchase of materials that form the businesses offerings to market, being a higher price. The owner often lacks many of the necessary skills required to successfully operate a business, which is reflected in a large number of failures within the first year of operation. The lack of experience and knowledge is often hindered by the inability of the business to afford consultants who have expertise in the areas of accounting, marketing, stock control and other essential elements of performance.
In reaction to this, software developers have created a suite of small business management software tools that level out the playing field, with affordable and workable management solutions that assist the small business in the development of business financial reporting, financial budgeting and planning, stock control, employee payments and tax responsibilities.
Don’t let inexperience hold you back from streamlining your operation. A small business management software tool will allow you to take back control of your business, reduce costs and allow you to spend more time at what you are good at – identifying more opportunities in the marketplace to be fulfilled.
For more information on management software, see this website.