The 3 biggest challenges that SMEs face in the current climate
The circumstances that surround major economies emerging from recession are always difficult to deal with for those in the commercial sector, as the ground is constantly shifting and accurate predictions are hard to commit to.
For small and medium-sized enterprises things can be even harder, as smaller profit margins make fluctuations in trading harder to negotiate without causing damage to operational capabilities.
However, SMEs are also recognised as playing a major role in any economic recovery and are often responsible for driving innovation and competition across many economic sectors, as funds begin to flow again and consumer confidence returns.
With Bank of England governor Mark Carney in the headlines once again reiterating his pledge on low interest rates in order to “secure fledgling recovery”, what are the 3 biggest challenges that SMEs face in the current climate?
Looking after your client base is a priority at all times, but in times of financial difficulty it is even more important.
Client management systems can either be undertaken in-house or outsourced. Often this choice will come down to how big the client base is for a company and if employee staffing levels allow for specialist positions to look after the work.
Much the same can apply to recruitment and in times of economic revival it is often the companies that are able to expand quickly and react to positive trading conditions who go on to outpace their rivals.
Using a specialist recruitment agency need not mean extra expense and is often the best way to find the most qualified candidates for skilled positions.
Looking after the finances of any business is an essential task and today's advantages of cloud computing and 24/7 access to non-local software systems means that a hands-on approach can be easy to achieve.
If your SME is struggling in the current financial climate, arranging a pre-pack administration may be an effective way to ensure that as little value as possible is lost from the business.
There are always specific instances that require more specialist outside help, and taxation matters and other legal requirements are often best handled by accredited professionals.
However, for most day-to-day financial book-keeping tasks, an in-house solution can often work out to be the most cost-effective answer.
By Phil Smith