The budget is just a couple of weeks away. The question that many business owners want to know is how it might impact Micro, Small or Medium Enterprises (MSMEs). There is much talk of the VAT rate and the high costs of keeping a business open. While we can anticipate some breaks from the government, in my experience much of the success and survival of a business will not depend on governments, but on the business owner and or managers. I had an open and honest conversation recently with a seriously successful business owner who spoke about the importance of knowing when to quit a product, client or business practice, or even close or sell a business when it just isn’t viable any longer. Often, we can be emotionally attached to our businesses, and there remains a sort of homage paid to business owners and entrepreneurs that we are loathe to concede. So, all talk of budget and what may or may not happen at it aside, it will remain to be the case that in an ever-evolving economic landscape, micro, small, and medium enterprises in Ireland face a myriad of challenges. With escalating costs, a shrinking workforce, increased regulation, and customers demanding greater value for money, it is critical for business owners to proactively prepare for the uncertainties ahead. The good news is that you can help your business weather some of these uncertainties. First, consider conducting a Comprehensive Business Audit. Understanding your current position is the first step toward preparation. Conduct a thorough audit of your business operations, finances, and supply chain. Identify areas where costs can be reduced without compromising quality. This includes renegotiating contracts with suppliers, exploring bulk purchasing options, and reviewing overheads. Conducting a Comprehensive Business audit requires your time more than any special skill. Next, Embrace Technology and Innovation: Investing in technology can help streamline operations and reduce costs. From automating repetitive tasks to using data analytics for better decision-making, technology can enhance efficiency. Explore digital marketing strategies to reach a broader audience, and consider e-commerce solutions to cater to changing consumer behaviours. Innovation should be at the forefront of your strategy, encouraging new ideas and services that can differentiate your business from competitors. Third, be creative and imaginative about your Workforce Management. With fewer available workers, flexibility in workforce management is essential. Consider offering remote work options or flexible hours to attract talent. Upskilling and reskilling current employees can help fill gaps in expertise. We are fortunate to have a University here in the South East so you could explore partnerships in that or other local educational institutions to create internship programs that can lead to a pipeline of future talent. You might do well to investigate how you could diversify Revenue Streams
Relying on a single source of income can leave your business vulnerable. Explore opportunities to diversify revenue streams, whether through new products, services, or markets. Consider collaborations with other businesses to offer bundled services or joint promotions that can attract a broader customer base. You may find benefit and support in Networking and Community Engagement -building a strong network within your local business community can provide support, collaboration opportunities, and resources. Join local business associations, such as the local chamber, attend networking events, and engage with other business owners and managers. Sharing experiences and strategies can help you navigate challenges more effectively. Another angle to consider is that of Sustainability as a Competitive Advantage because consumers are increasingly drawn to businesses that prioritise sustainability. Implement environmentally friendly practices and communicate your commitment to sustainability to your customers. This can enhance your brand reputation and attract a customer base that values corporate responsibility. Finally, set aside time to engage in Financial Management and Cost Control: In an environment of high costs, robust financial management is paramount. Create a detailed budget that accounts for potential fluctuations in expenses. Keep a close eye on cash flow and consider establishing a financial buffer to withstand unexpected downturns. Having a conversation with your accountant, bank manager and or financial advisor is a good first step.
The landscape for micro, small, and medium businesses in Ireland is undoubtedly uncertain, but with proactive preparation and strategic planning, it is possible to thrive amid challenges. By embracing innovation, focusing on customer value, managing costs, and building a resilient workforce, your business can position itself for success in the face of adversity. Check out the new one-stop-shop for businesses – The National Enterprise Hub which has details of all government supports such as grants, funding, training, and tax relief and a phone-based support team – see www.neh.gov.ie. Remember, adaptability and foresight are your greatest allies in navigating the complexities of today’s market.
Monica Murphy PhD. Is founder of MONERE Coaching, Training & Development, based in Cappoquin, Co. Waterford. Her first book “The Manager’s Handbook for a New World of Work’ is available now at: www.moneredevelopmentservices.com
