As a business owner, what is your main inspiration to start your own business apart from entrepreneurial instincts?. Most of the successful entrepreneurs will say, "they went into business because of their passion, vision and belief they had in themselves." For them, it was a do or die situation.
The question to contemplate is how entrepreneurs develop and exert the business approach while running the business over time. There is certainly a difference in the business mindset of entrepreneurs who went after their passion and ended up successful business owners than people who inherited businesses. Family-owned SME's has a competitive edge than those business owners who entered the business environment when they saw an opportunity to serve the customers and make money.
Family-owned SME's generally has a structure (built with time) that has endured market conditions and has survived the turbulence of business. However, family-owned firms often are resistant to change. On the contrary, Newfound SME business owners are somewhat more aware of the business environment but lack the acquaintance of strategic planning and naive to operational challenges.
Financials are the heart of every business, but they are significant for SME's. To keep the hood on financials, the management of SMEs often poise between financials and operations. The SME's business owners work towards small goals, goals such as how to keep the company afloat, retain premium customers, grow its revenues and maintain the operations. There is always a lingering fear that every SME business face regularly. Common worries are
losing a premium customer;
breaking down of the equipment;
losing trained employees to its competitors;
spending money on recruiting and training of new employees before they can work independently.
Business owners spend most of their energy assuring that they should not face any of the above fears. Facing them swings their financial calculations for the entire month and in worst scenarios, take them out of business.
Running operations and maintaining finances is vital, but most of the SME owners forget to consider that financials have a companion in the form of strategic planning. Planning and allocating the firm's resources and capabilities, and building on them can make business owners immune and confident to face their fears.
It would be a highly beneficial and colossal step in the right direction for SME owners or management who give a thought to reconsider their priorities and spend time and budget on strategic planning.