Article#22. Of Practical Insights
By Victor PM Nyasulu
Even though the conceptual framework of any subject is important, some people simply do not have the patience for theory! They just want to get on with it! Well, I am happy to continue with practical insights for successful management of an MSME today as I did last week.
Micro, Small & Medium Enterprises-MSMEs, I repeat, have to be nimble for success. In today’s article we discuss the practical insights around Business Concept and Strategy, Financial management, Marketing and customers, Operations and Efficiency as well as People and leadership.
1. Business Concept and Strategy! The whole concept of strategy from a practical insight point of view is really about what course of action will maximise benefit and minimise cost in a business. A clear value proposition is needful even before a business plan is drawn up. One must clarify what societal problem will be or being solved or addressed. Research to understand the market, competition, pricing and demand are key to avoid entering a market blindly and wasting meagre resources of the MSME owner. Try to be niche market biased and not be generalist from the beginning!
2. Financial management. Learn to Separate personal and business monies by never mixing the two. Money for the business must be in an account that is separate from personal use funds. A formal book keeping system will assist to achieve the required formality. Accounting software or indeed excel are now more readily accessible than in days gone past. Please note that an Accounting system need not be computerised. Put simply a book-keeping system is a means or procedure that is religiously followed to keep track of transactions in your business.
3. Marketing and customers. Seek to build brand identity of your business through-logo, colors, and messaging for recognition. Try to leverage social media/digital marketing use Facebook, Instagram, WhatsApp business etc. Understand customer feedback and Prioritise customer service. Remember that “word of mouth” is really powerful and can make or break a business in no time. It is word of mouth that has caused some banks to collapse in history.
4. Operations and efficiency. Stream line ops. Eliminate waste. Automate where possible /feasible. Pay attention to reliable suppliers for quality, reliability and timeliness. Standardise documents and their flow for consistency. Embrace technology whenever it is possible for inventory and customer relationship management. Monitor inventory carefully especially in businesses like fuel service stations where risk of fraud is very high. Fuel business in Zambia is low margin high volume affair!
5. People and leadership. Hire skilled, motivated people. Quality staff drive business success. Invest in training. Build skills and improve productivity. Clearly communicate. Maintain an open door policy with staff and partners. Set standards for ethics, work approach, and customer care. Like children staff mostly follow what the leader is doing and not just what the leader says!
MSMEs cannot afford to be superfluous because their margin of error tends to be really slim! The key is to be awake, aware, attentive and alert to such practical insights as outlined above.
Napita mukwai!
The Author of VICTOR NYASULU Consult-VNc is also Partner at NS-CGMA +260 955 746 997. vpmn69@gmail.com
