Challenges that MSMEs need to overcome in 2021!

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This article was published on: 12/05/21 4:45 PM

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Challenges that MSMEs need to overcome in 2021!

 

If you’re one of the many manufacturing business owners spinning numerous plates and tackling everything that needs doing single-handed, or indeed if you’re a consultant helping said business owners in areas outside their expertise, this article will add value and help you overcome your challenges with ease.

 

We live in rapidly changing times, especially for business owners. Considering that, in a single generation, businesses have had to adapt to entirely new marketing channels (web and social), deciding how to invest in and utilise new technologies, and compete on a global stage — things that were barely imaginable to our parents’ and grandparents’ generations.With changing times, the added task of learning new things and keeping oneself updated is a challenge itself.One side effect of these rapid changes and growth is that no single CEO — or any employee, for that matter — can be an expert in everything. This was, perhaps, always true, but it has never been more apparent.This is why, in my opinion, some of the biggest challenges businesses face today are best met and addressed with qualified consultants. Bringing on a consultant helps CEOs add the expertise and skills they need to address particular problems at particular times and can provide the best possible outcomes. Just a few of the challenges that businesses are facing that are best addressed with the help of a consultant include:

 

Uncertainty about the future

Being able to predict customer trends, market trends etc. is vital to a changing economic climate, but not every CEO has Warren Buffett-like predictive powers. Bringing in a consultant trained in reading and predicting those all-important trends could be the difference between a bright future and a murky one.

 

Financial management

Many CEOs  are flooded with brilliant ideas. That means they’re great at the big picture and disruptive thinking, but less good with things like cash flow, profit margins, reducing costs, financing, etc. Small and medium businesses may not require a full-time CFO but would do better to employ a financial consultant who can step into the role as needed.

 

Monitoring performance

Using a meaningful set of rounded performance indicators that provide the business with insights about how well it is performing is essential. Most business people are not experts in how to develop KPIs, how to avoid the key pitfalls and how to best communicate metrics so that they inform decision-making. In most cases, companies rely on overly simple finance indicators that just clog up the corporate reporting channels.

 

Regulation and compliance

As markets and technologies shift, so do rules and regulations. Depending on your industry, it can make much more sense to bring in a consultant to help with these areas rather than trying to understand the complexities yourself — and risk fines or worse for non-compliance.

 

Competencies and recruiting the right talent

Again, a small or medium-sized business might not need full-time human resources or recruiting staff, but during peak growth periods, finding the right people and developing the right skills and competencies is the key to a sustainable future. Bringing in a consultant with the expertise to find exactly the workers you need would be a wise investment.

 

Technology

As technologies change practically at the speed of light, companies need to innovate or be left behind — but many CEOs started their careers and businesses before many of these technologies even existed! Consultants can be vital for integrating new technologies, in particular mobile, app development, and cloud computing.

 

Exploding data

The older  generation certainly didn’t have to deal with terabytes of data or worry about what to do with it. 90% of the world’s data was created in the past two years and managing, keeping safe and extracting insights from the ever-increasing amounts of data your company produces needs to be in the hands of a qualified professional who can help you get the most return from that data.

 

Customer service

In a world of instant gratification, customers expect instant customer service — and can take to the web to share their displeasure at less than satisfactory service just as quickly. Consultants can find ways to improve customer service and bring it into the 21st century.

 

Maintaining reputation

In a similar vein, because customers can voice any displeasure so much more publicly and loudly than ever before, businesses have to monitor and maintain their online reputations. And while it’s an important task, it’s one best suited to a third party who can monitor and mediate with a certain amount of distance.

 

Knowing when to embrace change

Early adopter or late to the game? Consultants can help CEOs determine when to embrace change and when to stay the course. Not everything new is better, yet eschewing every change runs the risk of becoming obsolete. A professional outside opinion can make all the difference in these decisions.

 

Knowing the order status

Business owners need to know every status update regarding orders. If there is a case of delay, it is vital to understand the reasons(supplier delayed,machine breakdown etc) for delay so that the customer can be well informed and avoid any misunderstandings.

 

Knowing the exact profit according to invoice

Any business owner may want/need to know the profit made in a particular order or invoice. It is essential to have the detailed costing of the order to estimate the profit as per the invoice.

We are living in an era of constant change for the foreseeable future: change is the new normal. Preparing for and embracing that change by investing in the right kind of advice is the best way to meet these challenges head-on.

All the above enlisted challenges can be overcome with a single Enterprise Resource Planning system that will constantly provide real time data remotely or on site. A best fit ERP like Expand smERP can sort out optimal challenges faced by manufacturers in the export and import sector.

The Indian MSME sector is the backbone of the national economy. With around 63.5 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.69% of the GDP from service activities as well as 34% of India’s manufacturing output. They provide employment to around 120 million people and contribute around 45% of the overall exports from India. The sector has consistently maintained a growth rate of over 10%. One fifth of these MSMEs is based out of rural areas, which indicates the deployment of a significant rural workforce in the MSME sector and is an exhibit to the importance of these enterprises in promoting sustainable and inclusive development as well as generating large scale employment, especially in the rural areas. SMBs need to buckle up for not just facing but overcoming some of the very critical challenges for them. 2021 comes with a lot of expectations but the impact of 2020 for SMBs is still in the air. Devastated with the turmoil created by the pandemic, they are still recovering from the bottom of their growth curve. But, marketers should be ready to face new challenges along with the previous year’s impact in 2021.

 

Focus more on Data Literacy than data management

There have been large conversations, webinars, blogs, seminars, events and much more about how important data can be. And, that’s absolutely true. It is a game-changing gold mine.

Despite that, the knowledge of data and how to use it has been on the lower side. SMBs need to conduct educational programs for their employees who are anyhow related to data management.

A gold mine is of no use if any one of the complete workforces is not understanding it. Investment is essential in people and better resources also for efficiently exploring the benefits of data.

Expand smERP is India’s best fit ERP software for manufacturers in export and import industries. With our systematic automated software, running your business operations remotely is easy and affordable. It is the only 360 degrees solution for the constant growth of an ambitious company. Take the step and watch your company excel even in crisis times.

 

To know more details contact us at +91 9007026542.

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