What is an SME? Definition and Characteristics
SMEs (Small and Medium-Sized Enterprises) are the cornerstones of the economy, representing the vast majority of businesses. They are characterized by their agile, flexible structures and lower employee counts compared to large corporations.
Characteristics of SMEs:
Flexibility: Quick decision-making processes handled directly by owners.
Personal Relationships: Strong, direct interactions with local customer bases.
Innovation: High potential for developing new ideas and products rapidly.
10 Tips for Reducing Fixed Costs in SMEs:
Efficiency and Improvement: Automate business processes to save time and labor.
Outsourcing: Reduce infrastructure and payroll costs by outsourcing functions like accounting, IT, and HR.
Energy and Water Saving: Use LED lighting and energy-efficient equipment to lower utility bills.
Review Supplier Relations: Negotiate for better terms and consider bulk purchasing for discounts.
Improve Stock Management: Increase turnover rates and minimize excess inventory costs.
Rent Instead of Buy: Evaluate leasing options for equipment, especially for short-term projects.
Control Personnel Expenses: Focus on employee training and motivation to increase productivity rather than unnecessary hiring.
Space Optimization: Rent out unused office or warehouse space to eliminate waste.
Digital Marketing: Switch to targeted digital ads which are more cost-effective than traditional methods.
Enhance Customer Loyalty: Focus on retaining existing customers, which is more economical than acquiring new ones.
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