Opportunities for SMEs in the UK
As companies grow, they continually find themselves face-to-face with challenges that they need to overcome.
By Dax Dasilva, founder and chief executive of Lightspeed.
Twelve years ago I set up Lightspeed to provide a point of sale commerce solution for independent businesses that has since helped over 40,000 companies worldwide grow into successful, profitable organisations. In that time, we’ve seen a number of key themes many of our partners have had to deal with, particularly those in the UK, and how they have managed to turn them into success.
Finding Investment
Funding remains top-of-mind for many startups, but crucial to building a sustainable business and giving it the opportunity to grow. The challenges range from securing the investment in the first place, to knowing when it’s the right time to approach the market, and most importantly, who the right people are to bring into your business.
Ensure you conduct due diligence when facing investors, and the amount you really need to raise. If your aspirations are huge, you probably need investment. If they are lower, it may not be something you need to jump into.
Before meeting with investors take the time to properly present your business. You have a short time to hook their interest, so make sure you’re getting across the key messages right away. Prove that you have a plan in place if you were to receive the investment, and just as importantly what the expected return is, whether it’s growing the company physically or financially.
Finally, while financial investment is wonderful for a new business, there is also a benefit in having a mentor that can act as a strong advisor.
Finding the right presence
Many businesses are trying to create an online presence to compete with the larger chains that benefit from globalisation, but the bricks and mortar stores still has a huge amount of influence. Customers still want to meet the company, get to know the brand and most importantly see the product. However, it can be difficult to find a physical store, especially in the right area and at the right price.
One way some new businesses are bypassing these troubles is through the concept of a pop-up store. Even if you don’t turn over huge revenues whilst the store is open, the community and brand impact can be invaluable, bringing online sales later down the line.
When looking for the right location for a permanent store or pop-up venue, I recommend doing detailed research, ensuring it’s an attractive area for your customers.
Staff
Although talk of automation is rife throughout the business world, staff still have an incredibly important role to play in SMEs, delivering a better, more personalised customer experience..
It can be hard to let go, but as you grow you will need to have trusted staff that can continue the job when you’re not there. You will eventually learn from your staff, and that’s when the business starts becoming scalable. You don’t want to become a bottleneck in your company, so take the time to employ the right people.
Payment systems
Customers have become used to a lifestyle where they can pay for items with the swipe or tap of a card. Limiting what payment methods customers can use hugely restricts the money your business can make.
As a business owner, you need to remove all barriers to ensure a frictionless payment experience for your customers. Some payments will come at a cost to you, but review how your customers are spending, and whether it is worth the investment on your side. For example, even though accepting American Express comes at a significant expense, some of our customers have found that transaction amounts tend to be higher when then card is accepted.
Technology
When deploying any new solutions, many businesses struggle to make the shift from tradition to technology. It can be difficult to know what commerce solutions are on offer, and which of those are right for your business, especially as their USPs can be relevant for you at different stages of your journey. If you’ve initially managed your accounts using pen and paper, when do you make the decision to make this automated, and will this work with your existing payments system?
It’s also important to think of the long-term plan. The larger your business, the less you want to be managing multiple channels. Choosing the right technology can help scale your business and do all these things effectively.
Small business owners are often required to wear all hats at once, which is difficult to manage, but also incredibly exciting. Regardless of what stage your business is at, in my experience, for every issue faced there is usually opportunity to capitalise on, to set yourself apart from competitors and drive your business forward.
