When you have a genius concept for an SME that you think will take the world by storm, it’s easy to want to rush through the startup stage and get to the point where you start generating revenue. However, by doing this, you can cause some serious issue that may affect the long-term stability and success of your venture. With that in mind, check out our post below that highlights some of the significant risks to avoid so you can guarantee that your SME has the best opportunity to thrive possibly.
Launching too fast
One of the biggest failures to be aware of is launching your SME too fast. Of course, it’s essential to get things moving, and stagnation will cost unnecessary time and money, which is something that all SME owners will wish to avoid.
However, there is a difference between working to launch at a measured pace, and rushing things. The latter being a situation you don’t want to be in. Why? Well because it’s all too easy to launch a brand or product without having done the necessary product and customer research.
What this means is that you may end up launching with a product that isn’t up to standard, or that isn’t perfectly matched for the market you will be selling it in. Sadly it’s these type of products that don’t do as well as first predicted can endanger the long-term viability of your business.
To that end, it is worth investing in product research, done by experts if possible. Yes, your first idea will be good, but it’s doubtful that it should be the one that actually is manufactured and sold without extensive testing and alteration first.
Secondly, be sure that you thoroughly understand the market demographic that you will be aiming for, and reflect this. Not only in the design of the product you launch, but also in the tone of your content and the platforms you use for marketing.
Finally, if you find that your SME is in the position where your ready to launch but you are not wholly convinced that you have hit the marks above, go for a soft launch first. Then you will be able to gauge the customer interested in a much more accurate way. Something that can allow you to make more precise forecasts, and will enable you to launch again with modifications if things don’t go entirely to plan.
Not having the right insurance
Next, another serious problem that SMEs can encounter if they rush through the startup stage of their businesses is that they aren’t thoroughly covered if anything goes wrong.
Of course, no one ever products that anything major will occur, that is the nature of most mistakes and accidents. However, just because we do not have the foresight to see them accurately, it doesn’t mean that there is not a significant risk of employee injury, employee dismissal complaints, customer injury, or even customer legal action.
Therefore it is essential that during the startup stage you find a provider like the ones in this Local Insurance Directory that can offer you the correct type of business insurance for your SME. Of course, the precise types of insurance will differ depending on what your business does, but they may include third party, product liability, professional liability, and even property insurance to protect against things such flood, fire, and burglary.
Settling for any staff, not the right staff
Also, a significant failure that SME owners will want to avoid whenever possible is to rush the recruitment process and settle for filling the roles, and getting bums on seats, rather than cherry-picking the very best people for the job.
Yes, we know that time is always of the essence and if you have tasks that need to be completed, it is more than frustrating to have no one to do them. In fact, this can be so much the case that is very easy to take a gamble on an applicant that you in any other situation would not be 100% on. However, if you do find yourself in the position, you must sit back and consider whether this is really the best way to start up your company.
After all, there is always the option of outsourcing a myriad of tasks now. While this option may not be suitable for jobs which require developing a working relationship or interaction between team members that you want to foster over the long term, it can certainly help you out of a jam in many situations.
Also, it is worth putting in some extra attention and effort into the recruiting process that you run. What this means is that you may not want to hand it over wholesale to an agency and instead run your own process.
This will allow you not only to get some decent face to face time with anyone you plan on employing, but it also means you can choose the task they need to go through during the interview process. Something that will allow you to include personality testing, trial days, and any other activity that will give you a more detailed view of whether they are truly the right person for the role or not.
Unstable cash flow
Lastly, when launching your SME with a view to long-term success, its vital that you secure the correct types and amounts of funding in the startup stage. After all, you can have the best products and team, but if you don’t have the final backing to continue, it will all be for naught.
To that end its vital that you not only explore all the options for funding including business loans, grants, and bursaries but also have a positive relationship with your business credit provider.
Then you can ensure a line of credit is open for unexpected costs and situations and this will enable you to keep afloat during the leaner starting months, as well as expand and grow as the market dictates. Both things that will be essential if you plan to not only succeed, but for your SME to be around for a long time as well.