How To Restructure A Small Medium Enterprise (SME)
Do you want to restructure your small medium enterprise and make it more profitable?
There are a lot of Small Medium Enterprise (SME) in Singapore, and most of them depend on the government to guide them, by providing subsidy and incentive through Enterprise Singapore, or previously commonly known as Spring Singapore, instead of going ahead to restructure the business to face the new challenges.
Instead of embarking on businesses where government is providing subsidy, a business entity should embark on a business after careful analysis and evaluation and determine the feasibility and profitability of the business, if not, we will lose focus on what we set out to do in the first place.
It seems that a lot of SME only take on business where government is providing subsidy and incentive, it gives the impression they are looking at collecting the goodies or really want to do the business?
Before a SME is restructured, the owner of the business must know what he wants for his business for the next few years or decades.
Why do we hardly see SME expand beyond Singapore and become Multi National Corporation or MNC?
There are quite a few reasons for that.
- As mentioned above, a lot of them are in business or start the business because government is providing subsidy and incentive.
- Lack of succession plan from the pioneer of the business, most of the time, the owner or operator of the SME find it difficult to continue the business as his children are not willing to take over the business and he does not have a professional manager to run the show for him.
- Element of change and evolve with time is lacking, with the change of business environment especially with the COVID-19 pandemic affecting all sorts of businesses and life, there is a need to have new normal in the way business can operate and survive.
- Most SME in Singapore were started in the last century and even though some may have been taken over by the children or the 2nd and 3rd generation, however will it be operated by the 4th generation or 5th? considering now the children seldom follow the parent to the office , even they do go to the office, they will still be busy with their mobile phone instead of observing what the parents are doing.
So how to make a SME change to MNC and expand beyond Singapore and move out from their comfort zone and find more challenging business in the region and beyond?
Can We Help?
If you are one of the SME who is thinking of expanding and taking the next step to become a better business entity and one which employees like and enjoy working in, do contact us and we can work out the plan for you.
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At the same time you may want to subscribe to our short business solutions in our Lazy People Guide and learn a thing or two, if you are interested, you can click HERE to learn more.