Why do only 15% of SMBs achieve their strategic goals?
Small and medium-sized businesses (SMBs) are the backbone of the economy, but they also face several challenges, including limited resources, lack of expertise, and a rapidly changing business environment. One of the biggest challenges that SMBs face is achieving their strategic goals.
According to Bain & Company, only 15% of SMBs achieve their strategic goals. This is a sobering statistic, but it’s essential to understand why SMBs struggle and what they can do to improve their chances of success.
There are several reasons why SMBs struggle to achieve their strategic goals.
Some of the most common challenges include:
- Lack of resources: SMBs often have different resources than larger businesses, making investing in strategic initiatives difficult.
- Lack of expertise: SMB owners and managers may need more formal training or experience in strategic planning and execution.
- Lack of focus: It’s easy to get bogged down in the day-to-day operations of an SMB, which can make it challenging to stay focused on long-term strategic goals.
- Lack of alignment: SMBs may not clearly understand their goals and objectives, or their team members may not be aligned on how to achieve them.
- Lack of accountability: It can be challenging to hold team members accountable for their performance when there are limited resources and demands on everyone’s time.
Despite these challenges, there are several things that SMBs can do to increase their chances of success. Here are a few tips:
- Could you develop a clear and concise strategic plan? What are your business goals? What strategies will you use to achieve them? Could you make sure your plan is specific, measurable, achievable, relevant, and time-bound?
- Set measurable goals and objectives. How will you measure your progress towards your goals? What are your deadlines? Ensure your goals are aligned with your overall strategy and communicated to your team members.
- Identify and implement key performance indicators (KPIs). KPIs are metrics that track your progress towards your goals. Could you make sure your KPIs are specific, measurable, achievable, relevant, and time-bound?
- Invest in strategic IT solutions. IT can help you automate tasks, streamline processes, and improve communication and collaboration. Could you make sure your IT investments are aligned with your overall strategy and that they will help you achieve your goals?
- Create a culture of continuous improvement. Always be looking for ways to improve your business. This includes setting regular goals, tracking progress, and adjusting as needed.
Here are some additional tips for SMBs that are struggling to achieve their strategic goals:
- Please feel free to get outside help. Suppose you don’t have the time or expertise to develop and execute a strategic plan. Several resources are available to help you, such as business consultants, coaches, and mentors.
- Benchmark your performance. Compare your performance to other businesses in your industry. This will help you identify areas where you need to improve.
- Be flexible. Things don’t always go according to plan, so flexibility and adaptability are essential. Be prepared to adjust your strategy as needed.
Achieving strategic goals takes work, but it is possible. By following the tips above, SMBs can increase their chances of success.
In addition to the tips above, there are a few other things that SMBs can do to improve their chances of achieving their strategic goals:
- Create a strong team. Surround yourself with talented and motivated people committed to helping you achieve your goals.
- Empower your team. Give your team members the authority and resources to do their jobs effectively.
- Celebrate successes. Taking the time to celebrate successes, both big and small, can help boost morale and motivate your team members.
