It is often said that SMEs are the backbone of the economy, as they are many in number and provide customers with a variety of different services and products. Many SMEs rely on investment in order to grow and prosper, which means that they must have investors who are attracted to their business model and quality offerings.
There are numerous factors which contribute towards a business’s overall quality and potential for success. Here are some of the practical qualities of an SME which might make them attractive to investors.
It’s true that the customers of any given SME are the top priority, given that they are the ones who spend the money which drives the business forward. An SME which has a proven track record of delivering excellent customer service is a great candidate for sustained success, as it shows that they will always do their utmost to deliver on customers’ needs.
Nowadays customers often leave online reviews about the service they received from a business, making it easier for other customers (and investors) to get an idea of how effectively the business meets their requirements and expectations.
There is no disputing the importance of a business’s online presence in the modern age. In 2017, 87% of people bought at least one product online, showing just how much custom comes from the online sphere. SMEs which are actively trying to boost their online presence (through social media, SEO, digital marketing) are far more likely to grow than those which don’t.
For investors, finding an SME which has plenty of interest from online customers should be a priority. Even the smallest of businesses can make a big difference to their trade simply by having an effective website, so it is well worth examining how effectively SMEs operate online.
Having a strong online presence goes hand in hand with having an effective delivery service. It is all well and good if an SME can get customers buying their products online, but if the quality of the delivery service turns out to be poor, then customers are going to shop elsewhere.
If an SME uses a professional delivery service such as Tuffnells, then it should be a good indicator they have an effective delivery process in place, which ships products to customers on time and in perfect condition.
Perhaps the most important factor in deciding whether to invest in an SME is what they actually offer to their customers in terms of products/services. Those SMEs which offer something new/original to the industry or market in which they operate are bound to stand out from the crowd (if they get their marketing right).
Gauging how well a service/product will perform in the long run is never easy, but looking at how the SME is structured and managed could give a good indication of how adaptable and resilient it may be. After all, those businesses which are not constantly looking for ways to adapt and develop their service or product run the risk of stagnating and, ultimately, failing.
These are some of the basic elements of any SME which investors should take into consideration. Different investors will have different criteria when it comes to choosing which SMEs to invest in, so each category can be taken with a pinch of salt.
In order for an SME to be a worthy investment, it must have good potential for growth and be ambitious in its objectives. Any SME with these qualities is sure to use the money invested in it wisely, and could well prove to be a money maker for the investor.