Systems help SMEs survive

Towers Business Development News

As a former Chief Financial Officer (CFO) of a listed company, one of the very important things that I learnt was that larger businesses operate as a series of small businesses. However, the important difference is that they have implemented systems and processes for their individual business entities that are not normally associated with small businesses.

There is no reason why most SMEs should not implement ‘big end of town’ systems to improve their business performance, thus improving the business’s chances of successful operations.

Where do you start ‘thinking like a large business’?

It starts with the LEADERSHIP TEAM which every business should have. Unfortunately, many do not have people performing some of the important roles, even on a part-time basis.

Businesses that adopt this approach have a leadership team comprising full time members and part-time consultants, with expertise in particular areas that are crucial for the business’ success.

The designations of the Leadership Team (full-time and part-time) would probably include:

General Manager/CEO

Products/Services Manager

Manufacturing Manager

Marketing Manager

Sales Manager

Chief Financial Officer

Communications Manager

Office Manager

One of the priorities should be to prepare a document: “Who is this business what do we hope to achieve?” Most SMEs will not have the time or the business knowledge to be able to prepare this document completely. The Accounting Consultant who is performing the virtual CFO services are the ideal preparers of this document in conjunction with the Leadership Team.

Some of the items to be covered in the “Who is this business – what do we hope to achieve” document include:

Vision

Rhythm of meetings for the business

Products/services

Manufacturing/delivery of services

Locations

Team

Team training and professional development

Suppliers

Customers

Communications

Marketing