3 Common Challenges SMEs Face (and the solutions)

As a small business, there are many challenges you will face over your growing process and journey. It is important to recognize these problems and evaluate which of the myriad of solutions will be most effective for your business. Here are some common challenges and their solutions.

Marketing

While communicating to your target audience and defining your brand can be a demanding process, there is always a simple solution. One essential step is to embrace technology and specifically social media. It is important to utilize a variety of platforms that reach your market and increase exposure.

Allocating your time and resources to creating a strong online presence on the most effective mediums. It is essential to have an omni-level approach, not only using social media but also websites and blogs. Using a variety of communication channels is essential. When choosing which social medium platform to use for your company, it is important to evaluate your options and ask questions. What content do you want to share? What platforms is your audience currently using? Which platform allows you to do both effectively? The answers to these questions may change over time, which is why it is vital to have Key Performance Indicators (KPIs). 

Similar to other aspects of your business, it’s important to measure the performance of your assets. KPIs will help determine the effectiveness of your initiatives and determine if your goals are being met. KPIs can change depending on the campaign but could include tracking the amount of engagement and interaction your company is gaining through your chosen social media platforms, monitoring your click-through rate for advertisements, or measuring your purchase flow-through rate for a campaign.

As your company grows, setting up an effective campaign, monitoring all the performance indicators, and adapting the marketing strategy accordingly can become a large task. To keep the business growing, marketers are turning to AI-based technology to quickly harness data and improve their market research. Upgrading to modern, AI-driven market insight tools helps marketers understand the audience’s presence and create a meaningful connection.

In 2018, 51% of marketers used AI as a tool, and an additional 27% of marketers plan to use it in the next year – as it was proven to be a helpful tool. According to Insider, “this represents the highest anticipated year-over-year growth of any leading technology that marketers expect to adopt in the next year.” Some beneficial marketing tools include aiding content creation to enhance the personalization. AirBnB is a company that uses AI in its daily marketing. The company uses an algorithm that helps users find the best housing option for the best price. The algorithm also can fluctuate prices based on the time of year, upcoming holidays, vacancy rates, and more. 

Productivity

How are you ensuring your team has efficient operations and performance? Guaranteeing productivity can be complicated. Managing and delegating tasks, having a strong plan and direction, along with time management. However, technology allows for innovative solutions to be put in place to ensure your company and its people are productive. Increased productivity can start with something as simple as automating your company’s day-to-day business processes. Improving productivity usually starts with addressing some of the “low hanging fruit”. What tasks are repetitive, monotonous, and take up a substantial amount of time?

Improving productivity through automation can be daunting, so it’s best to start with something small and see the returns. There is a simple software that allows for automating business processes from accounting to scheduling to project management. For more complex solutions, a custom solution will be more appropriate. Read more about custom solutions and what will work best for your workflow here. Simple tasks, such as email marketing, can be automated. This reduces labor and other resources being spent on repetitive tasks for time to be re-allocated. 

Automation has more benefits than just productivity, it ensures quality results and reduces errors. It elevates your product or service while elevating your competitive advantage. There are also economic benefits. In the last 50 years, there has been a 3.5% boost in global GDP due to automation.

Modernization

We live in a fast-paced society where things are constantly changing. Now more than ever, with most businesses being conducted online, it is important for your SME to be modern. Modernizing business often slips our minds, especially if our old methods seem to be working. The solution could be as simple as following journals and leaders. Trends can be seen on a variety of platforms from a range of people.

Use your network by seeing how businesses within your industry adapt to transformations and trends. To modernize it is important to continue to grow your network. Connecting with existing and potential clients allows you to hear what alterations they would appreciate in the future. Similarly, watching how your competitors are modernizing can give you insight into what works and what doesn’t.

Why is this important? If your audience is responding well to trends, they will appreciate you following those trends. Not only will it benefit your customers, but it will help your business as a whole. Having the ability to have flexibility in your business gives you a competitive advantage, especially as you continue to grow. No matter what market or industry your business is in, it is not easy to stay on top of the newest trends; reacting and adapting is essential. Read more about how CEOs and decision-makers in business can stay on top of current trends and AI inventions here. 

Conclusion: challenges & their solutions

There is a multitude of solutions to the challenges your business may face. It is important to be prepared to face those challenges and embrace the digital tools as the solution – such as databases. It has been proven that technological solutions provide improvements in many forms, such as; productivity and return on investment. At Sangwa Solutions, an expert can help consult you on what solutions best fit you and your workflow needs.