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Five Challenges facing Small and Medium Enterprises…

Posted on 14 September 2011

Southlake, TX – September 14, 2011; Small and Medium Enterprises (SME’s) are known as the engine of economic growth. The entrepreneurial spirit is alive and well, aided by the desire of many individuals who transform their ideas into a business on their own. The opportunities for SME’s are endless when they develop and follow a plan, however, the challenges they face are not inconsequential.

 

SME’s keep local communities functioning, while the opportunity exists for an expanded client base when they use resources at their disposal wisely. However, there is no shortage of challenges confronting SME’s. Here are the five most common challenges;

 

1. Lack of adequate funding; Most SME’s begin with too little funding and do no plan for un-foreseen circumstances. It is the single most reasoning SME’s close shop. The single most reason for underfunding facing SME’s is not having a solid business plan. The second most reason…not following their business plan!

 

2. Resourcing; Employing the right number of employees is key. Even more important is hiring the right employees. Can SME’s keep their best employees once they have been trained? It is costly to SME’s to hire and train new employees. Health cost are skyrocketing and SME’s compete with larger corporations for top talent in benefits and salaries.

 

3. Credit facility; A good insurance for Challenge #1. Business opportunities will arise, and SME’s must be in a position to take advantage. In late 2008 the credit pinch began to affect SME’s in an unprecedented way. It is essential to keep a company’s credit rating high, making the choice easier for banks when it comes to loan approvals. Credit cards are fine temporarily, but are not a long term solution due to their interest rates.

 

4. Technology; Keeping abreast of the latest in technology can be daunting. With the advent of social media for communicating with customers and the need to be on the leading edge as opposed to the “bleeding edge” SME’s must invest in their infrastructure. Cloud computing can and will bring order to technology for SME’s, however, it is not a panacea.

 

5. Local, State, and Federal Regulations; Always at issue for SME’s is the IRS Tax Code, not to mention the constant state of flux with environmental regulations and health insurance challenges.

 

If you find yourself facing any of these challenges…The Cypress Group can assist you. Contact us today.

 

Doyle J. Girouard is a business transformation consultant and coach, frequent speaker, and author. With 15 years of knowledge and experience in the Travel Industry he assists clients achieve strategic competitive advantage.

 

Doyle J. Girouard

CEO and Senior Managing Partner

The Cypress Group

Email; doyle@thecypressgroup.com

Website; www.thecypressgroup.com

Travel Website; www.TravelKeyNote.com

Twitter: http://twitter.com/doylejgirouard

Facebook; www.facebook.com/thecypressgroup

Phone; 817-421-4774

Cell; 817-307-7577

 

© 2008 The Cypress Group – All Rights Reserved

 

NOTICE – PROPRIETARY INFORMATION
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This article and its contents are the property of The Cypress Group, and reserves all rights to ownership, use, reproduction, distribution, and publication of this document and the intellectual property therein. Some parts of the document are reprinted from other sources.

 

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