{"id":1658,"date":"2023-11-25T14:05:01","date_gmt":"2023-11-25T12:05:01","guid":{"rendered":"https:\/\/bethanieconsulting.co.za\/blog\/?p=1658"},"modified":"2024-06-22T17:45:56","modified_gmt":"2024-06-22T15:45:56","slug":"smes-cannot-manage-what-they-dont-see","status":"publish","type":"post","link":"https:\/\/bethanieconsulting.co.za\/blog\/index.php\/2023\/11\/25\/smes-cannot-manage-what-they-dont-see\/","title":{"rendered":"How SMEs Can Achieve Growth Through Enhanced Visibility"},"content":{"rendered":"\n

Successful businesses understand what their value drivers are, have insight into it and know how to manage it.<\/p>\n\n\n\n

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In the fast-paced and competitive landscape of today’s markets, small and medium-sized enterprises (SME\u2019s) face numerous challenges that demand constant innovation, adaptability, and growth. However, many SME\u2019s struggle due to a lack of visibility and insight into their own performance, strategies and risks, governance, processes, and customer dynamics. Therefore, SME\u2019s cannot manage what they don\u2019t see.<\/p>\n\n\n\n\n\n\n\n

Understanding Value Drivers<\/span><\/p>\n\n\n\n

SME\u2019s must obtain and develop insights and value-added information to enable them to monitor their own performances, cash flow, operational processes, customers, and risks. Therefore, the determination and management of value drivers will enable SME\u2019s to monitor, manage and control these factors. SME\u2019s need to focus on key value drivers that are relevant and applicable to their businesses and optimise them to drive value for their businesses.<\/p>\n\n\n\n

Value drivers are the key factors that significantly contribute to the overall success and prosperity of a business. These elements or aspects have a substantial impact on a company’s value, performance, and sustainability. Identifying and understanding these drivers is crucial for SMEs as they influence the targeted outcomes.<\/p>\n\n\n\n

Value drivers can enable SME\u2019s to measure, monitor, and improve their performance, efficiency, and profitability. They can also help SME\u2019s identify and leverage their competitive position, differentiate themselves from competitors, and create loyal and satisfied customers.<\/p>\n\n\n\n

Insights and Information for Managing Value Drivers<\/span><\/p>\n\n\n\n

To effectively manage value drivers, SME\u2019s need specific information and data to monitor, control, and optimise their performance, cash flow, processes, customers, and risks. This includes a comprehensive set of financial and non-financial data, such as financial and management accounts, annual financial statements, market research reports, risk registers and heat maps, market and competitor information, operational information and more. This information must be complete, credible, reliable, and regularly updated to provide actionable insights.<\/p>\n\n\n\n

Key Value Drivers for SME\u2019s:<\/strong><\/p>\n\n\n\n

Revenue Growth<\/u><\/em><\/p>\n\n\n\n

Revenue growth is one of the most common and obvious value drivers for any business. It reflects the ability of a business to generate more sales and income over time. <\/p>\n\n\n\n

However, revenue growth alone is not enough to create value. SME\u2019s need to ensure that their revenue growth is sustainable, profitable, and aligned with their strategic vision and goals.<\/p>\n\n\n\n

Some of the ways that SME\u2019s can drive revenue growth and value are:<\/p>\n\n\n\n