Fact is, there are more SMEs in the Philippines than big corporations, and that SMEs have a huge contribution to the growth of Philippine economy. There is a big opportunity for further economic growth if only SMEs are properly directed towards becoming big. The stagnant growth for many ventures is more of the entrepreneur’s fault. For such entrepreneur, venture growth is more of a chance than something planned from the start.
Here are some techniques for entrepreneurs to direct the venture towards growth.
- Have a grand vision and stick to it. Yes, it is OK to start small but somewhere along the venture’s life there has to be growth. Vision is very important because that is the direction where the entrepreneur intends to bring the business; which also includes the how to get there. An analogy is a pilot (entrepreneur) who chooses the route (strategy) to use for a plane (business) to get to its destination (Vision). A vision needs to be big enough for the entrepreneur to be challenged, but not too big that it frustrates the entrepreneur when he does not get it. To be able to stick to the vision, a lot of self-motivation and self-mastery is required from the entrepreneur.
- Collaborate with institutions that grow businesses. Educational institutions, Business and legal consulting firms and government departments are just few of the many places entrepreneurs can go to to seek help in developing their business . Institutions like what I mentioned bridge the gap from being an SME to a big company. This happens through the experts that help direct the business towards its goals.
- Openness to having partners.When you are a new company and have little assets, borrowing from banks is not going to be easy. There are many documents needed as a requirement for loan approval. Loaning money from non-commercial banks will require you to pay higher interest rate which eats up a big part of your income. Instead of banks, show your expertise and encourage the 3F’s (Family, friends, and friends of friends) to invest in your business. Having partners is beneficial for your business because you get an opinion from another perspective. It is best to choose partners who can contribute their strengths in the weak areas of the entrepreneur.
- Creating linkages.A lot of growth of the venture can come from industry linkages. Your linkages will help expose your companies to other people for possible income or investments. Try and be active in social media, or if you want a more personal interaction, you can join business groups and chambers. When choosing linkages, choose the one that will add value to your business.
Growing a business is not easy but it is essential. Essential for the company’s business and for the growth of the economy. The 4 techniques above can be your guide in your road to progress. Resources must also be allocated to ensure that you will be able to execute them. Your next move should be to think of your business’ growth philosophy. If you have not thought of it, then it is time to put them in place.