Medium sized companies that fail to make the most of the digital revolution are being left behind.
And I don’t mean the Cloud or a new website – the real benefits of the digital revolution are how we make money from the changes. Think about it, we all know mega companies like Dyson and Amazon structure their operations differently to get maximum growth – and who could argue about their financial reward! But most Entrepreneurs don’t know why and how they do this. What are the real advantages of the digital revolution for businesses?
Advantages
Firstly, the Dyson’s of this world benefit from advice from international law and accounting firms with a global real-world perspective, you might be well read, but do you really think about your business as global and do your advisors?
Secondly large organisations shamelessly recognise and control 5 distinct functions; 1. Marketing & Sales, 2. Operations, 3. HR, 4. Finance and 5. Legal & Structure. Ruthlessly synchronising and controlling these functions to maximise, top-line and bottom-line growth. Pre-digitisation, there was no way to split these functions all over the world and control them well because there was no reliable means of instant communication. Big businesses now operate specific functions from the best location to their advantage, knowing they can control these functions seamlessly.
SMEs are waking up, partially due to COVID-19
Medium sized business, forced to operate differently during COVID-19 are starting to see the opportunities, but how many are now capitalising on them?
Why SMEs Fail
Most SMEs can’t visualise their business as these distinct 5 functions; believing their control is easier when everything is an amorphous whole. Heavy focus and many waking hours are devoted to sales, neglecting the other 4 functions because they see Sales as the route to growth: outdated and flawed thinking.
Successful sales without great HR people management and efficient operations isn’t sustainable, so no sooner have orders come in but MD’s switch to resolving operational issues, this pendulum effect taking up time and headspace and impeding growth.
Similarly, if the Board neglects the investment funding required to busy on sales, how can operations and HR grow to meet demand. If the business structure and legal framework don’t support the most efficient operation, how will investors rate your funding and risk level compared to better, larger competitors? Here are the many headaches medium sized businesses face.
How some SMEs are making more money without increasing sales
To benefit from the digital revolution, choosing the corporate, finance and employee laws that best benefit your business is a no-brainer for those that want to achieve maximum growth and achieve their wealth ambitions.
Singapore shares British DNA in terms of language, law, finance, education and culture. But with just 17% corporation tax, no capital gains tax, no dividend tax and no inheritance tax there are some clearly important differences and advantages. This is where lawyers come in, understanding the business functions and shareholders aspirations. Identifying the best structure and a clear set of rules to co-ordinate business activity and yield maximum wealth from the business.
And the digital revolution finally gives SMEs access to expert legal advice from an international perspective. It will be those that recognise this, who engage with global strategists and legal experts who capitalise on the digital revolution and achieve maximum wealth from their businesses. Those that don’t are undoubtedly being left behind.
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