Professionalize your SME: the key to stop putting out fires and grow strategically

Professionalize your SME: the key to stop putting out fires and grow strategically

December 10, 2024 – 11:08

From operational difficulties to staffing challenges, an SME leader is often caught in a “firefighting” cycle that prevents thinking about the future and building a long-term strategy.

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The daily life of a small or medium-sized business is usually marked by a constant struggle to solve urgent problems. From operational difficulties to staffing challenges, an SME leader is often caught in a “firefighting” cycle that prevents thinking about the future and building a long-term strategy. However, there is a solution to escape this circle: the professionalization of the company.

Professionalizing an SME not only involves organizing processes and formalizing key areas, but also provides a structure that facilitates sustainable growth and allows leaders to focus on what really matters. In this article, we will explore why it is so important to professionalize an SME and how this process can lead to a qualitative leap in the business.

Professionalization begins with the adoption of practices and tools that organize the operation, which represents an important cultural change for the organization. In this sense, heProfessionalization is a process that must be understood as a long-term investment in the company’s potential. While the change may seem overwhelming at first, the benefits quickly manifest when the company achieves a more robust structure that does not depend exclusively on its owner or general manager for every decision.

One of the first steps on this path is to establish clear roles and responsibilities. In many SMEs, people hold multiple positions or cover multiple functions, resulting in confusion and often operational bottlenecks. Where everyone does everything but no one can take charge of anything. By defining an organizational chart and assigning specific responsibilities, employees can focus on their areas of expertise, which promotes efficiency and increases commitment to results. It is clear that there are people who can occupy more than one role, but as the business grows it is easier to look for replacements and expand the scope of each task if this is defined.

Another fundamental practice is to implement metrics. To measure is to compare and to compare you have to establish patterns, standards. The lack of accurate data and key performance indicators prevents you from making informed decisions and anticipating problems. Without proper metrics, entrepreneurs fly blind. The selection of this data must be used to make decisions. In the highly computerized world we live in today, generating information is not as difficult as knowing what decisions to make is. But first, things first: let’s define what makes us better define the steps of our business. And then, compare, iterate, improve.

Furthermore, a central aspect of professionalization is working on organizational culture. SMEs usually have a culture based on closeness and teamwork, but sometimes they lack clearly defined values ​​and policies that guide behavior. Professionalizing a company does not mean losing that close spirit, but rather complementing it with practices that facilitate collaboration and ethical decision-making. This way, the company is not only stronger internally, but also becomes more attractive to potential talent.

Finally, professionalization also implies working on strategic planning, an aspect often postponed due to the pressure of day-to-day life. Developing a long-term vision allows you to identify growth opportunities and define the direction of the company. As A professionalized company can better face crises, identify new opportunities and adapt more quickly to change.. This strategic approach not only helps owners envision the future of their business, but also allows them to communicate that vision to their employees, who can align and contribute to collective success.

Professionalizing an SME is much more than applying good administrative practices; It is a transformative process that allows the company to grow in an orderly and sustainable manner. For SME owners, adopting this mentality can be the difference between perpetuating a daily struggle or leading a solid, profitable and promising business. The path is not without challenges, but the results are usually visible in every aspect of the company, from productivity to the work environment. Ultimately, professionalization empowers leaders to let go of urgency and focus on what’s important: building a business that delivers value and is prepared to successfully face the future.

Industrial engineer and consultant specialized in the professionalization of SMEs

Source: Ambito

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