SME: THE ESSENTIALS NEEDED TO START UP A SME (SMALL BUSINESS).

 

Small and medium-sized enterprises are referred to as SMEs. SMEs are small businesses that anyone can start. Given the state of the global economy, having numerous sources of income becomes essential, but it is also harder than ever to launch a firm.

I'll use my native Nigeria as an example. Years ago, there was a crop of young, bright entrepreneurs that dabbled in mini-importation and retailing. It was the era of modest Chinese mini-importation . The economy held great promise, the exchange rate was reasonable, and import taxes were likewise reasonable. Many young people started small-scale businesses importing a variety of goods for retail use from China and a number of other nations, including Vietnam, etc. It was a successful business enterprise, particularly when a wise choice of product was selected. I may say that time was the SME industry's heyday. After this period, there was a period marked by unfavourable foreign exchange rates and high import taxes, which made it challenging for small-scale importing to be successful.

In the modern era, thorough study or research should be done before starting a firm. Not only on the kind of business to start, but also on how it should be conducted and where it should be located (the buying and selling points).

 

The fundamental things to think about when beginning a small business are listed below.

CAPITAL

Capital is the cash used to start, maintain, or expand a business. Capital is essential because without it, that wonderful idea would not materialise into a successful firm. It is also important to keep in mind that without a company plan, capital may be ineffective or only be saved. Since so many people have money but no company concept to invest in, it is crucial to have both money and a great business idea.

To ensure that the capital is adequate for launching the business at least, it should be carefully assessed in relation to the sort of business in the vision. A small business should be launched on a small size in order for the entrepreneur to be able to handle the firm as a startup and develop with the business. It might not be a good idea to wait until everything is perfect before establishing a business. I would advise starting a firm as soon as the fundamental components are available.

One should think about a business in accordance with the quantity of capital available since the capital available, especially when it is limited, may suggest the type of business to enter into.

WHERE TO GET THE GOODS FROM

Where the items can be purchased from is a crucial consideration after choosing the type of business to start while taking the funds available into account. Since commodities can be purchased locally or worldwide, the amount of capital available also has an impact on this.

GRADE (QUALITY) OF PRODUCTS

If the intended products are of poor quality, it is advisable to avoid starting a firm. This is due to the fact that the entrepreneur has little possibility of success when offering subpar items. Selling low-quality items is a temptation brought on by a lack of resources, greed, or ignorance. At all costs, one should resist this urge. Only when the products are of great quality can the brand image be enhanced.

WHERE TO SELL

It's a capital-intensive project, and where you purchase is just as crucial as where you sell. But there is good news, and I believe every small business owner should make plans for it. The good news is that some businesses can avoid renting a physical shop because having a store is not required. Online stores are here to stay and, unlike conventional businesses, they span the gap of distance. Anyone in the world can find your store, make a purchase, and have it delivered right to their door. One of the wonders of technology is this.

Since there are free public web stores where one may register and begin selling, one does not need to pay to create an online business. These retailers can be found in Nigeria via Jiji.ng, Jumia Nigeria, Konga, Habari (owned by GTB), and other sites. One can start selling from the convenience of their home by setting up a store without spending any money. Additionally, social media (such as WhatsApp, Facebook, Twitter, Instagram, Tiktok, etc.) has given business owners an effective way to promote their products and services without spending any money.

DELIVERY SERVICE

Especially with internet sales, most businesses cannot function without delivery services. Because some of these commodities are urgently needed, having a quick and effective delivery service is a big benefit. Among other benefits, having a quick delivery service can help you make more money. One does not need to worry about developing one for his or her new organisation because there are numerous delivery service companies with various operating techniques. If you are just starting out and are unable to establish your own delivery service, find one that works for your company and stick with it.

CUSTOMER CARE SERVICE

Customer retention depends on providing good customer service. Because clients are the kings and queens of your business, having high-quality products is not enough. If you want your company to last the test of time, you should take customer feedback seriously. Because client feedback is difficult to obtain, the appropriate response should be one of gratitude.

Not every business transaction goes as expected. The satisfaction of your customers should therefore come first. For the same reason, I previously recommended that businesses focus on high-quality goods. Where the products are of good quality, there are less disagreements. Save yourself the additional stress of resolving a dispute over poor-quality goods. The product or items are the primary reason the consumer came, and offering high-quality goods resolves at least half of the challenges faced by the business owner.

If there are any points that I missed, feel free to call them out and explain them in the comment area. We would appreciate your feedback, suggestions, shout-outs, and opinions. Additionally, if there is a subject you would like us to write on, please let us know. They will be welcomed by our team, who will eventually work on them.

You might find this interesting...

Choosing a career as a young person.