Formulating winning Strategies for SME’s

SME’s form the backbone of major economies in Africa yet they are the most neglected. Here are suggestions to enable not only survival but also success of SME’s ;

1-Be objective-An honest assessment of the strengths and weaknesses of the business and management skills must be done and corrective actions taken.

2-Keep it simple and focussed-in small businesses simple is effective, efforts and resources should be concentrated where the impact and profit are greatest.

3- Focus on profitable market-SME’s thrive by providing distinctive goods and services, that meet the wants and needs if selected group of consumers.

4-Develop sound marketing plans-As a business you must determine how to reach and sell to customers.

5-Manage employees well-Businesses succeed by building, managing and motivating winning teams.

6- Keep clear accounting records- Businesses need to keep track of assets,liabilities, revenue, costs and other accounting information in order to survive and prosper.

7-Never run out of cash-Cash is King in any business.

8-Avoid recurring pitfalls or rapid growth-Although growth is good,managers must be careful in growth management.

9-Plan ahead-Businneses must develop plans and convert them into productive activities.

10-Understand all phases of the business- Control of a business and improvement  of profits depend on complete understanding of all business functions