4 factors that affect enterprise development

Growth brings with it greater market share, larger profits, and in turn, also higher revenue. Perhaps you have been running your company for a few years – now that things have stabilised, you’ve finally got the time to think about your growth plan for the future. Here are four factors to consider along the way:

#1 Leadership abilities

The first question you need to ask is about the quality of leadership in your team. Will you and your managers be able to rally the team to drive the changes needed for enterprise development?

According to an article by Harvard Business Review, one of the most important characteristics of a good leader, is that he or she empowers the team to self-organise. A good leader does not micro-manage, but is able to provide clear direction and allow employees the space to plan and take ownership of their work. It is also important to be open to learning and able to foster a sense of connection and belonging.

Leaders with these traits are more able to inspire and gain the buy-in from team members, for the changes needed for expansion.

#2 Internal capabilities

Next, assess if you have the knowledge and resources to expand and develop.

Look into these areas:

• Markets: How well do you know your customers? Do you know how to intensify your market penetration or improve customer stickiness? This will give you ideas of how to expand and develop.
• Cash flow: The business needs to be in good financial health for expansion to succeed. You should also have strong cash flow management, and strategies to solve cash flow problems that may arise
• Human capital: With the labour crunch, good hires are few and far between. Yet, successful enterprise development requires you to be able to recruit and retain the manpower you need, so consider the attractive career development opportunities, benefits and renumeration package your company offers.
• Operations: What areas of your operations can be improved for processes to run smoother? Or are there gaps you need to plug? Problems that may seem small at the moment can magnify as your business expands, so take the time to find solutions first.

#3 Impacts of innovation

Innovation is key to staying relevant in today’s landscape. In 2019, a study done by the Ministry of Trade and Industry found that business who adopted digital tools were able to increase their value add by 25 percent and productivity by 16 percent. The COVID-19 pandemic only reinforced that going digital is an important step for firms to take.

So ask yourself how well you understand trends to do with robotics, the Internet of Things and Big Data. These can bring a slew of advantages, including but not limited to a better understanding of customers, faster and more efficient processes, overcoming labour challenges and making more informed decisions.

Find out about them, understand them, and see how these can be integrated into your expansion plans.

#4 Opportunities to go global

The attractiveness of going global is that it opens the doors to a wider market. But this also brings challenges to do with cultural sensitivity, new laws and market practices. Consider if moving the business overseas is an option for you, and if so, if you have the network and resources for a smooth shift.

It’s natural to struggle with any of the four factors above. In fact, companies are often put off expansion because they either lack the necessary skills, and find it difficult to identify or execute the critical projects needed for their growth plan to succeed. To overcome, you can:

Upgrade and upskill!

The Singapore University of Social Sciences’ (SUSS) Centre for Continuing and Professional Education (CCPE) offers a wide range of options from supply chain management to data analytics, so you can zoom in on and pick up the specific skills you need.

SUSS also has a reputation for strong leadership and management training programmes, including its Executive Management Programme (aka 老板班) and SME REN (韧) Programme for SMEs. These tackle the challenges and underlying  issues faced by founders, owners, entrepreneurs and senior managers working in SMEs when preparing their enterprises for growth.

Seek mentorship!

Consider the SUSS Enterprise Leadership for Transformation (ELT) programme. This 10-month programme builds on an ecosystem of mentors, peers, industry practitioners and faculty to help participants develop and implement their strategic growth plan.

Through interactive, boardroom-styled classes, you’ll gain the skills you need in the following areas: growth aspiration, building capability for growth, innovation and digitalisation, new markets; and strategic review and growth.

And to ensure you keep the momentum to execute your critical projects, the ELT offers mentorship from industry experts throughout the programme, lasting up to six months after it ends. You’ll also get access to the talent from the SUSS’ diverse schools, so you can overcome any manpower challenges.

Enterprise development is a challenging but extremely rewarding process. With SUSS, you don’t have to embark on this journey alone.

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