SMEs OFFER TIPS TO FACE COMPETITIVE MARKET

Jakarta Forum - Jakarta, Regus Global CEO, Mark Dixon, has offered seven tips on how small and medium scale enterprises (SMEs) can learn from previous years and pick themselves up to ride on the wave of recovery, it was reported here Thursday.

The Regus Group is the world`s leading provider of innovative workplace solutions, operating a global network of more than 1,000 business centers in 450 cities and 78 countries.

Dixon believes that SMEs have strong prospects ahead if they take steps now to become smarter, greener and more successful. The seven tips are what every SME should think about when they go back to work after the Chinese New Year.

Recovery has been scheduled among most corporate calendars for the 2nd or 3rd quarter of the year, coupled with widespread expectations of rising earnings, the prospects look good for many SMEs. However, while projections might look good, it still remains something that cannot be guaranteed.

"Businesses need to learn from the lows of 2008 and 2009 and make changes to their future strategies and operations. They also need to do it before the recovery happens, rather than waiting." Dixon said.

The first tip is to think small. Businesses of all sizes could learn from the example of small businesses. The Regus Business Tracker Study showed that companies with fewer than 50 employees are more bullish about 2010 than their larger counterparts, suggesting the economic recovery will be led by them.

There`s also evidence that smaller companies are more go-getting and externally-focused - putting their energy into marketing and customer retention, while large firms are struggling with internal concerns like cost management and staffing.

The second trip is to take a trip. When it comes to focusing externally, businesses shouldn`t let international boundaries stand in their way; China, India and other emerging economies have huge potential for future growth.

With communication technologies becoming ever more advanced and ever cheaper, doing business abroad can fuel future growth prospects, according to Mark, adding that a word of warning, though: research into new markets is key, as is finding the right international partners otherwise costs can begin to spiral out of control

He pointed out that the third tip is to work smarter. Businesses all over the world are looking at the cost of headcount, but many neglect to look at other fixed costs.

For the majority of businesses, property is the second biggest fixed overhead. Even so, 95% of businesses fail to identify it as an area where they could make major savings, he noted.

Instead of locking themselves into costly, fixed-term property arrangements, they should look at more flexible arrangements, such as short- or medium-term leases, or virtual working. Flexible working can reduce a company`s property costs by up to 60% whilst creating a more motivated workforce.

The fourth tip is to go green. Take the opportunity to benefit from more energy efficient technologies. Cost-saving, green technologies like energy monitors, and zonal air-conditioning and lighting can significantly cut utility bills.

He said organizations like the Minister of Environment can give advice on energy-efficient technologies and grants. In addition virtual and flexible working can reduce a company`s travel costs, as well as cutting employees` carbon footprints.

According to him, tip 5 is to look around. Recovery or no recovery, some sectors have been thriving even during the recession. Telecoms, for example, is strong globally, with many developing countries installing new mobile technology.

Sustainable technology is also doing well, thanks to strong investment in the sector. Businesses of all sizes should look for ways to benefit from the opportunities in thriving sectors, and never get so trapped by day-to-day management that they fail to spot new openings.

Tip 6 is outsourcing, he said, adding that companies should focus on revenue-generating activities and outsource the rest. Property, administration and support services can all be handled by other people, allowing businesses to concentrate on the activities they do best.

The seventh tip is networking. Love it or hate it, networking is vital for meeting new customers and contacts, and gathering information and advice. It`s one of the easiest ways to generate new business, he added.

If a silver lining can be found in the dark cloud of the economic crisis, it could be that SMEs will enter the next decade leaner, more nimble and better prepared to the weather in the next storm, he said.

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