1. The need for vision for SME expansion
It is no more news that some of the
world’s leading businesses today, especially those in the dot.com
sector, started with offices in garages (Microsoft), college dormitories
(Dell Computers) and as experimental projects (Yahoo!, Google, Youtube,
etc). Nevertheless, these entrepreneurs had a bigger vision on their
inside. They dreamt one day to take over the business landscape with
their unique product and service offerings. Today, our lives, social,
business and professional interactions, are largely dependent on the
products of these erstwhile “midget” firms. For instance, what can you
do today with regard to spread sheet and word processing applications,
without using Microsoft application software packages? How can you stay
in touch with friends, customers and business partners today without
using online mailing services like Yahoo!, Google and the rest? The
point I am trying to make is this: because your business started in a
garage, a small shop, your balcony, your boys’ quarters, your kitchen,
etc, does not mean it cannot become a local, national and global
champion. It only depends on your vision. Your capacity to envision the
future and define the role you want to play in it is the starting point
in business expansion and personal success.
2. The need for a business plan
To become a business success, MSMEs must
embrace the corporate culture, attitude, behaviour and practices of
Multinational Enterprises (MNEs) or large corporations. One of the
corporate practices of large corporations is thinking on paper or
electronic notepad. They don’t just plan to execute a strategy, business
tactic or vision by just mouthing it or saying it is stored in their
head, they write down the business plan for their corporate vision. A
business plan is a beam of light that guides the business owner/manager
in the tortuous highway of business. It is also a compass, a rudder, a
beacon, a touchstone, a barometer, a lodestar, a personal assessment
plan, a marketing tool, a finance document, an HR guide, a piece of
investment outlay and a strategy document for a business. So, having a
business plan is not just an ordinary expense that is to be done when
your business has grown, wise business owners go through some form of
business planning processes even while their business is in the garage.
Business plan strengthens corporate vision and facilitates its
realisation.
3. Organic Development as a
Business Expansion Strategy
By organic or internal development, this
is when an organisation achieves competitive edge and growth by
utilising and matching its competencies and skill-sets with the
opportunities/needs in the business environment. It is an inside-out
kind of development, resulting from the efforts of the business
owners/managers to build their businesses by using their strengths
(skills, products, services, proprietary rights, etc) to match the needs
and opportunities in the business ecology. This can be done through the
following:
• Skill Audit. This is important. An
organisation can achieve strategic fit and stretch by auditing its
various competencies, skill-sets, product or service knowledge, business
acumen, etc, and maximally putting them to use to achieve greater
competitive advantage and profitability for the business. Let’s take for
instance, if your organisation makes soap very well and you have some
unique formula that is not available on the market and some technology
that helps you in cutting your soaps into some exciting shapes and so
on, you can use that strength to achieve competitive advantage in the
marketplace, other things being equal.
• Identification of backend
opportunities. Your organisation must constantly strive to identify
lateral business opportunities that can fetch some revenue for your
business. For instance, a school owner can go into publishing of note
and/or text books. She can hire out her school space on weekends for
corporate or social events. She can get some professional institutes,
tertiary and technical institutions to use her facilities in the
evenings or weekends for training their students on their
distance-learning programmes.
• Strategic stretch in leveraging
present competencies to take advantage of new market opportunities.
Similar to the above but a little different, by strategic stretch, you
are creating new markets by deploying your existing competencies to take
advantage of new market opportunities. As a school owner again, having
discovered that your neighbourhood has many adults without formal
education, you can tap into that opportunity and use your teaching
skills and facilities to start an adult education centre. All these
activities, no doubt, are not going to affect your main nursery, primary
and/or secondary school operations.
• Aggressive marketing and positioning.
This is one area most SMEs would prefer someone should do this activity
for them. However, it is not bad to have a marketing unit in your firm
as an SME. That, in fact, is a step in the right direction. However,
what I am advocating here is the need to make marketing an
organisational activity and culture that cuts across from senior staff
to junior workers. You should be an advocate of marketing as an activity
that everyone on your payroll should be involved in because of the dire
consequences the business can be subjected to when sales are low.
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