Although we have already highlighted some of the main problems faced by small and medium-sized enterprises in other posts, we have highlighted the economic and financial difficulties, mainly. Although these are one of the most important, others such as management should not be neglected. For this reason, we have highlighted the five most recurrent business management problems in SMEs.
Management in the company is the basis of all subsequent business operations. For this reason, we must not see the organisation as something minor, but we must give it the importance it deserves and establish a solid base on which all business activity can be based.
Precisely this importance has led us to highlight the five most recurrent business management problems in SMEs to avoid falling into them:
- Cash register control. As we mentioned in the introduction to the post, the economic-financial aspect is one of the main concerns of the company. Therefore, knowing how cash flows work can be essential to avoid falling into the financial problems that are feared. The entry of money comes mainly from the payment of customers. Generally, they do not usually pay in cash, but in many cases delay payment or make it in instalments. In contrast, expenses are usually paid on the spot. Therefore, the entrepreneur may face liquidity problems.
- Real estate agents. A widely used strategy by SMEs is to locate themselves in competitive areas, such as city centres or shopping centres. However, high property prices in these areas can be an obstacle for businesses.
- Employee management. Employees are the main source of a company’s success. Having a trained and talented team is the goal of any entrepreneur. But once you have it, you don’t have to neglect it, you have to encourage it and manage the whole team properly to achieve your goals.
- Administrative management. The commonly known “paperwork” is often a hindrance to the functioning of an SME. Normally, they do not have a team specialized in these jobs, so they are usually delegated to consultancies. Even though they do a much better job – since they are specialists in accounting and tax work – the truth is that these aspects can be neglected and even the real situation of the company can be ignored.
- Resource management. When the company starts producing, it does not know the exact number of customers who will want its products. Normally, it is the experience that determines the number of games to be produced during a day/week/month. However, it is possible that the product may be successful over a period of time. The most obvious answer is that the company will start to increase production, but what if it can’t? Therefore, having the means to deal with these changes is extremely important.