Did you know that 90% of the businesses in Pakistan are Small and Medium Size Enterprises (SMEs)?

These SMEs are the backbone of Pakistan’s economy as they contribute 40% to the GDP and provide employment to 80% of non-agricultural workers. Unfortunately, many SMEs are operating informally in the country and are not registered with SECP. Due to this reason, they face numerous challenges in operating effectively and expanding their business operations. The guide below will help you enhance your SME operations and and set you apart from your competitors.

1. Create a clear Business Plan

A well-written business plan outlining the goals, objectives and expected outcomes helps not only the owners but the employees as well to have a clear direction of where to go and how to get there. In short, it keeps everyone on the same page, helps in operational efficiency and aids in financial planning.

2. Stay Complaint with Regulatory Authorities

In order to be more competitive in the local market, the first step is to ensure compliance with all the federal and provincial regulatory authorities. Compliance not only enhance the company’s reputation but also avoids any sort of legal restriction.

Tips to ensure Compliance.

• You can ensure compliance by conducting periodic internal tax audits.
• Maintain a calendar for all important deadlines (income tax, sales tax, withholding tax, etc.) to ensure timely filing taxes and avoid notices

Tips to leverage available Tax Incentives:

• You can offset annual tax liabilities by using advance tax payments.
• Make sure that you have properly claimed tax credits available for charitable donation, Point of Sale of machine as well as allowable deductions such as Zakat, WWF, WPF.

If you need any help in company incorporation, Filing of Form A/B, NTN/ GST/ SRB/ PRA/ KPRA/BRA     Registration. Contact us on +92(0) 300 829 3433 or email us on info@sanaullah.co for free consultation.

3. Streamline Processes

For efficient execution of operations, streamlining processes is very crucial. In addition to this, customers have a delightful experience because of the improved quality of service due to streamlined processes. Lastly, Streamline Processes also contribute positively in employee productivity.

4. Invest in Technology

Businesses in today’s world are thriving by inducing technology for streamlining of their operations. Incorporating CRM tools helps in driving sales and manage leads easily. AI-powered automations can lower the percentage of repetitive tasks to a great extent while increasing efficiency. Through the implementation of cloud based solutions, large teams can collaborate very effectively and manage their project from any part of the world. On the contrary, securing valuable data of the company from cyber-attacks is very important for smooth functioning of any organization. Therefore, investing in cybersecurity is a big win for SMEs.

5. Focus on Customer Experience

In the past years, the digitalization has changed the customer expectations of their experience from their favorite brands. Due to the availability of big e-commerce players, the customers now want seamless and one-click experience while they are interacting with their favorite brands. Enhancing customer experience will not only increase customer loyalty but also helps in organization’s growth.

6. Enhance Employee Training

Training programs play a key role in optimizing operations of a SME operation. Employee skills and productivity is multiplied significantly through these training programs. This provides a gateway to SMEs to adapt successfully in dynamic markets.

7. Perform an Efficiency Audit

Regularly analyzing company’s financial health contributes in examining the effectiveness of applied strategies to ensure stability as well as to pave the way for sustainable growth. For doing this, you can take services of a consultancy that provides financial advisory services. Also, there are many accounting softwares available that produce financial reports and do bookkeeping with higher efficiency.

8. Develop Strong Supplier Relationships

Just like customer relationships, managing supplier relationships is equally important to ensure smooth business operations. Partnering with suppliers result in cost reduction, improves product quality and adhere strongly to adaptability. Invest in procurement software for better and clear communication with suppliers.

9. Leverage Data Analytics

Data provides deep insights that contributes to the decision making process to a great extent. Through the proper use of data, inefficiencies in business operations can be identified. The metrics collected from data analytics can determine key areas of improvement in all departments of the company and contribute in defining objectives for businesses.

10. Allocate budget for Marketing

Crafting and implementing marketing strategies with the help of Artificial intelligence (AI) can create huge impact in terms of traffic and company’s visibility on the social media platforms. A detailed marketing segment should be covered in the business plan along with that a budget should be decided, depending on the extend of the marketing efforts planned.

Conclusion

Achieving operational efficiency throughout the business is an essential strategic initiative that provide three benefits including customer satisfaction, cost reduction and Agility.

At Sanaullah & Co. we offer tailored solutions that helps SMEs achieve operational excellence. If you also want to achieve sustainability in your business. Contact us today to learn how we can contribute to your business optimization!