SME's need to get busy living or get busy dying.

The current economic conditions are the worst we have experienced in years. Every time we turn on the television we are bombarded with news of cuts and job losses. Whilst I agree it’s very tough out there for business at the moment, SME’s can either get busy living or get busy dying.

Our economy is predominately established on a small business foundation with estimates that around 95%+ of the economy being within the small business sector. We have to remember that in Northern Ireland, small business is big business.

Being an optimist in general, I think small businesses can shine in these times if they are smart, flexible and willing to change with customer needs. Skilling up to plug into new opportunities will be crucial.

We hear announcements on a semi regular basis of new investments from the US and if SME’s are clever they can adapt to provide services and support to those investments. Those companies will want and need local knowledge, support, products and services. But, and it’s a big but, SME’s need to gear up to a level to be able to provide those products and services.

This will involve change on many fronts. For example, it will be crucial that SME’s let those companies know that they can provide the services or products at the right price (for both them and the customer). How SME’s traditionally market themselves will need to change. They will have to tap into social media and its infinite opportunities.

In order to survive and grow, SME’s will need to be competitive on both quality and price. To do this, they need to look internally for a second. Now I am normally the person who is always encouraging companies to look outside of themselves, to take in their environment, to know what their customers want, but sometimes they need to check if they are doing things the most effective and cost efficient way.

SME’s will need to assess if they can cut costs and overheads. I will caveat that statement by saying that doesn’t mean they have to cut quality or jobs (employees are a company’s greatest strength after all).

 A great example of how this can be achieved is by implementing LEAN processes. These have been used with great success for many years with big and small business alike. They can help drive down costs by simplifying, standardising and continually improving processes and systems in a business. LEAN processing is basically a toolkit or a set of steps that a small business can follow to achieve a planned result.

Whilst LEAN processing is often deemed to be useful for bigger companies, it is equally important for many SME’s. Simply changing and improving the processes within a business can affect massive benefits to small businesses. This will help them to work SMARTER and better.

Outputs of this process can include increased staff morale; greater productivity; improve quality; reduce work in progress; less wastage and increased profitability.

Working smarter rather than harder is the way forward for SME’s. This coupled with a flexible approach and the ability to embrace change, will help SME’s to survive and flourish in a very difficult world.

For more information on LEAN processing contact Ortus on 02890 311002