Often, SMB (Small to Medium Businesses) do not consider operating at the same level as large businesses with divisions such as human resources, operations and accounting. This is because most small to medium businesses consider these ideas and departments unnecessary without having enough personnel to fill these departments. However, one thing that should be kept in mind is that if large businesses are rethinking their strategies, then SMB’s should also do the same. While they may not have millions of dollars at risk like large corporations, it is still a good idea to think about using new strategies that will produce real results for them. Purchasing strategy is one area for businesses of any size who are thinking about changing their old strategies and switching into a more effective one.
A research made by CPO Exchange revealed that 83% of senior professionals agreed that they have to “rethink their procurement strategies” to put their business into a better position in the present market. The research also found that senior purchasers are finding areas such as stakeholder management and risk management more important in today’s economy. Aside from this, 69% of respondents recognized supplier risk management and procurement risk management as the main priorities. Surprisingly, reducing risk has become a higher priority than cutting expenses with only 57% of the respondents prioritizing cost reduction. The research also revealed that 39% of purchasers want to restructure various processes by employing procurement technologies that streamline processes while 45% aim to enhance stakeholder management.
As a small business owner, it’s important to take note of what large businesses are doing so you can benefit from their large R&D budgets. If they are making changes and rethinking strategy, without costly research, these are queues you can follow in your business. Whatever your business size, you can definitely benefit from employing risk management in your business. This will help you reduce any types of business threats and take advantage of the opportunities that come your way. This strategy will also help you deliver projects on time as well as keep it within your budget. If you own a small or medium-sized business and you think that your current strategy does not work, it is the right time to rethink about your strategy to make sure that your business will continue to operate.
Since the operating environment is always bound to changes, it is also important to look for new ways on how you can keep up with these developments. Large businesses are always after the newest trends in the market so that they can cater to the needs of their clients. Social media sites and other forms of marketing are commonly used by businesses. Big corporations are also taking advantage of the popularity of these strategies, but they keep on thinking of new ways to make their products or services always look fresh to their customers. SMB’s should do the same and make sure that their offers will be remembered by their target audience. If a business owner thinks that his current strategy lost its charm and is no longer producing an acceptable ROI, then he or she should move on and find another one that can bring back the interest of his clients. By taking queues from large corporations, SMB’s can definitely make some changes and improvements to help grow and expand in a tough economy.