Even the most complex models require support.

 There are many common factors that can determine the success of an SME but quite often fit for purpose support is sometimes ignored to the detriment of the business.

I guess that we could all come up with a similar summary of factors that we look for in most SME’s:

Management qualities including determination – discipline – vision – focus – listening skills.

Product/Service – validation – protection – competitive values – market dynamics.

Marketing – brand values – customers (who are they?) – push or pull strategy – growth market.

Financial – adequate funding – sensible valuation/market cap – budget discipline – identifying milestones

 Quite often the business or sometimes the board fail to recognise or acknowledge the amount of support available that can help grow the business. Clearly that support has to be fit for purpose and quite often I have found that this is not the case.

 Accountancy

 Discussing the needs of the business with your accountant can often reveal additional services that he/she can offer over and above statutory bookkeeping which may be able to help the business grow.

It is not uncommon to see a start- up employ the services of an FD on the board and I ask myself why? If only the accountant got together with the business owners to determine the strategy it may reveal an appropriate level of support from day to day transaction execution to monthly production of accounts or advice on specific financial support.

Business owners often fall into the trap of handling the day to day transactions themselves and although in some cases i.e. shopkeepers this is necessary the skills of that person are often better utilised on the “bigger picture” issues including customer interface which is where the business can benefit.

 Legal

 The lawyer/solicitor is sometimes looked upon as a person that does not offer value for money when in fact this is often not the case. Once again the service has to be fit for purpose including complex issues such as intellectual property. The business owners and legal representatives  should decide whether in fact it is necessary for the business to protect intellectual property or whether simply to adopt  “first to market “ tactics that might be more appropriate and perhaps protection may come later or regarded as simply not relevant.

Similarly there may be core values to the business that have not been identified and may require protection such as the brand itself or domain name together with design rights.

It is far more cost effective to work through and construct a legal framework that can accommodate planned future activities such as fund raising – intellectual property – corporate activities as it can be expensive if this is framework is not in place at the time of executing the plan.

 Marketing

 This is one area that can either pay dividends or simply waste funds particularly if the business owners do not understand who their customers are and what factors are important in their decision making process.  It never ceases to amaze me how much time and money is wasted on a digital marketing strategy being supported by a company that has very little understanding of the core issues and values surrounding the product and/or service. Most of the time the money is spent in trying to establish these core values i.e. learning curve and tweaking the “buttons” to hopefully increase traffic or footfall to the site. It is the learning curve that becomes expensive so choosing the right support is essential if the company is to get value for money. Searching for the appropriate support takes time and requires a great deal of patience and focus. Too often I see the “tail wagging the dog” where the support takes the lead and this could have been avoided if the business owners understood the customer and market dynamics more.

At the other end of the scale I would strongly recommend PR as this can often result in free exposure within a relevant journal or other form of media. Admittedly there is a cost associated with employing a PR consultant but once employed for either a project or long term contract this is one area where the company can receive great exposure and build credibility quickly.

 Mentoring/Independent Director

 The personal qualities that are identified with a successful entrepreneur or board of directors by definition will sometimes reject the help or support from an outsider.

An entrepreneur will gain considerable benefit from the services of a business mentor who has the experience and skills from building a business and it often helps identify some of the major hurdles that the entrepreneur can expect and between them the process can produce suitable solutions. Having a person that shows empathy and listens to the entrepreneur will be essential to ensure the success of the relationship.

A board of directors will also benefit from the services of an independent director and although the board often searches for industry experienced people I have also seen the benefits of employing someone from outside the industry who has the business acumen to ask the right questions and support the solutions.   

Clearly the common factor is once again listening skills together with a sound business background and having a good knowledge of corporate governance.

All of the support requirements clearly differs from a start up to a well established SME but in essence there is a wealth of intelligence available than can make a considerable difference to the future growth of a business.