There are few things in life and work that are more challenging than owning and managing an SME. With tons of responsibility, an abundance of tasks and chores, as well as heaps of pressure, it’s only understandable that many British SMEs fail to survive longer than a year or two. However, many SMEs engineer their own downfall due to making grave errors that seemed trivial at the time.
Going Big For Investment
It’s obvious that investors are the lifeblood of many SMEs, which won’t have the means to survive without an external source pumping money into them. However, whilst you should do all that you can to secure necessary investment, it is important to never bite off more than you can chew while trying to do so.
Many businesses set unachievable goals and target unreachable figures in order to secure investment, only to end up failing to reach these ambitions as a result. There is nothing worse than failing to meet targets, and the best way to ensure that you do not fail is to ensure that your targets are actually possible to reach in the first place. Never overstretch your targets.
Not Claiming Tax Refunds
There is an abundance of different situations by which an SME may be owed money in the form of tax refunds and you must ensure that you remain in-the-know in regards to any tax refunds or allowances you may be owed by the HMRC.
Unfortunately, thousands of British businesses fail to claim back their tax refunds and as a result, miss out on thousands of pounds by doing so each year.
There are a number of tax firms that can help work out if you are owed anything in the form of tax refunds and how much you are owed. Online, the likes of www.RIFTUK.com, can help sort out such tax matters for you.
The world of business is a fragile environment and one in which troublesome problems could be round the corner for any company. This is particularly true for SMEs, and so it is important to ensure that you are insured.
However, many SMEs have no insurance, leaving themselves vulnerable to hefty fines, prosecution and liability claims.
Hiring The Wrong Staff
Many SMEs aren’t meticulous enough when it comes to hiring staff and ensuring they find the right people for their roles.
When hiring new staff, make sure you demand a covering letter, along with their CV. This covering letter should be tailored specifically to your job spec.
Prospective workers that simply send their CV, or send a generic cover letter, demonstrate a lack of enthusiasm for the job and laziness.
Taking On Too Much
Owning an SME is burdensome enough as it is, without an overabundance of work. The more work you take on, the less time you will have to ensure that your output for other tasks is of maximum quality.
Adopt a quality over quantity approach in order to best succeed in business, regardless of how tempting it may be to say, “yes” to every bit of work that comes your way.