The digital economy presents us with problems and opportunities. Small companies now have an unprecedented reach with their customer base. This shift in business operations is transforming industries and offering new ways to overcome constraints that were previously untenable.
The downside to this, is that the restructuring of internal and external affairs means a difficult time for businesses. As this shift is relatively new, many are wary of which paths and decisions to take.
In their Position Paper For A Vibrant Singapore, the Singapore Business Federation warns that these times may prove challenging to local businesses. According to their research, 46 percent of SMEs are classified as “high risk” entities in regard to their credit ratings.
So the question arises, how do SMEs ensure a smooth journey through this difficult period? Following the paper’s recommendation, these are 4 tips you can take to navigate your company’s growth.
1. Expand Your Geographical Boundaries
Indigenous companies are being encouraged to partake in the global arena, while ensuring that base operations are maintained to grow alongside foreign MNCs. Remaining in the local market limits the ability to expand. Look for growth opportunities that allow you to take your business to international markets.
In 2010, the government set a target to produce over 1000 globally competitive companies, with revenues exceeding $100mil by 2020. Today, only a mere 300 of that intention have succeeded.
2. Utilize current technology to gain international exposure
The technology spread has made many devices and programs available to industries that would not be able to afford them 10 years ago. With a lower entry barrier, small businesses are being given the opportunity to compete with the big fish in the pond.
Startups should not underestimate their ability to reach an international market, and consequently, be prepared when they do succeed. This is not just limited to companies, but even sole proprietors. With small and smart investments, you will be able to take a step into the global arena.
The nature of the internet has made globalization a very practical target for businesses. As long as your business is primed and logistics are certain, don’t be afraid to take a step forward in this direction.
3. Hire the right talents and invest in people
Going global solo is possible, but having the right people by your side helps facilitate mobility. It’s a cliché, but no man is an island.
Take the time to review your organisational structure and incentives to attract the best possible talents. Keep in mind prospective talents that you can nurture and invest in to grow alongside you.
Investing in training programs will help keep your staff motivated and loyal to your cause. You will want them to be prepared for handling larger duties as your business grows.