Positioning your business for success in 2022
Businesses, particularly small- and medium-sized enterprises (SMEs) learned a lot in 2021 and had many hardships to overcome. This hard-won insight will now hopefully inform the decisions they make in 2022. That said, gearing up for success in 2022 can be better achieved by employing winning strategies.
Gary Epstein, MD of EasyBiz Technologies, the official partner of QuickBooks Online Accounting Software in South Africa, outlines what these strategies are and how they can set businesses up for success.
SMEs contribute substantially to the South African economy. There are many business actions they can take to ensure their growth and sustainability, and preparations they can make to position themselves for a prosperous year.
COVID-19 lessons
While much has already been said about COVID-19, it is still a part of our reality. It would be prudent of businesses to keep an eye on local and global developments and be able to adapt to any changes.
Digitisation
Digitising of operations has become essential and this trend will continue in 2022. This should include continued remote working capabilities, digital marketing tools, cloud-based software, and enhanced cyber security. SMEs must adopt an online platform where customers can easily do business with them.
Supply chain management
SMEs need to build a resilient supply chain with dependable partners and must be able to switch between suppliers. There should also be plans in place to manage potential supply chain challenges. Many supply chain partners are now including zero-waste, decarbonisation and renewable energy practices, so SMEs need to be prepared to accommodate this.
Productivity
SMEs are more adaptable than larger concerns because they manage smaller teams and can therefore be agile in providing quality products and services. This will be an important advantage to capitalise on going forward.
Be different, be unique
Every business must stand out. Their unique selling point (USP) must be the basis of their brand identity and be carried through the business and all communication, marketing efforts and customer service.
Managing your money
Managing the accounting system is vital for the survival of any business. If need be, obtain financial and business advice from a professional. Here are six practices that can help:
- Budget
Have a budget and stick to it. Track your expenses and how much revenue you need to cover everything. Take it further and cut back on expenses in tough times.
- Unearth hidden expenses
Look out for underutilised equipment, excess inventory and inefficient IT systems, and ensure that your business space is being utilised profitably.
- Be firm about money owed to you
Chase up on payments due to you so you don’t incur debt and delay your own path to profitability.
- Pay yourself
Set aside a base salary for yourself as well as an amount for emergencies and a retirement fund. Also, don’t use your personal credit card for business expenses.
- Get clued up on taxes
Business owners must get educated on all expenses that are tax-deductible. Ask a tax consultant for advice if you need it.
- You can’t do it all
Be realistic about what you can do yourself and then seek help from a professional, even if it’s on a freelance basis. Remember, too, that cloud-based accounting software can help you manage your books easily.
Define your marketing strategy
A marketing strategy should aim to create an effective brand presence through engaging content and should measure the success of this content by collecting and analysing feedback and information from the audience. Tell a story – one that explains how your products and services can solve their problems.
Training and development
Training can be informal and done by the company or conducted externally. Internal training could include getting staff up to speed on policies and procedures, products and services, or how each team functions. If external training is required, find out which service providers offer free training first. A good example of this is cloud accounting software.
In conclusion, the beginning of a new year is always a good time to take stock of challenges facing the business and what actions can be taken. It’s also a great time to set new goals, update business plans and marketing strategies, and establish healthy financial practices. This, along with upskilling staff and digitising operations is key in gearing up for a successful 2022.