For many business owners, operating in the UAE during the last year created a unique set of bewildering challenges from navigating the seismic impacts from the Covid-19 pandemic to managing new regulations such as UBO and ESR. With such an economic backdrop, standing still is not a viable option and it is evident many companies sought to adapt to the new realities of increased competitive pressures on revenue, cost and margins and "pivot" into new business models such as E-Commerce to develop new revenue streams.
Meeting these challenges places a heavy burden and not many companies can tackle everything at the same time; so what should your business consider? At the heart of making this strategy work is any business' ability to learn and adapt to market feedback quickly with the lowest possible cost of operations. This internal capability is in fact the sum of your business' technology, processes and human resources to effect change. Adaptability and efficiency must be the bedrock to position your business to capitalise on market dynamics.
According to Haroon Juma, Managing Director at SimplySolved, SMEs have a more complex issues compared to large enterprises in managing change. "Managing new operating requirements can be a complex and overwhelming issue for many businesses especially in the start-up and SME segment which represents 90% of all companies in the UAE. Many companies are unclear where to begin and without this understanding they are likely to take longer and waste resources. Coupled to this, operating challenges from COVID-19 have amplified and accelerated businesses to pivot and adopt new business models such as E-Commerce whilst seeking to implement internal efficiencies to reduce costs."
It is evident for many SMEs, limited resources constrain their ability to execute well with the necessary internal insight, operational know-how and investment in technology and personnel. It can be a challenge to properly define, plan and effect improvements to internal operations if management and resources are already stretched attending to daily operations and have limited budget. In this context, what are the benefits and pitfalls for companies to consider?
Cost Management Has Limitations & Outsourcing Has Opportunities
It is common for many start-ups and SMEs to initially focus on top line revenue and pay less attention to internal efficiencies. When top line growth slows it is natural to focus on cost and controls. There is clear evidence the COVID-19 post pandemic realities forced companies to focus on cost reduction to conserve cash resources. There are limitations though to cost reduction.
Cost reduction and controls yield instant results; however, research has shown they can also reduce your business' long term competitive edge and sustainability. Getting results and effecting improvements quickly will help the short term at the detriment of the business' long- term growth. "Many clients have turned to us to operate their internal finance, HRM, payroll and Tax processes and in doing so we realised 40% comparable savings. We can only achieve this through a quality driven best practice approach to minimise risks" continues Haroon Juma, "As a consequence they also benefitted from streamlined and improved internal procedures and controls"
The ideal goal in cost reduction is to not only to reduce expenditure but to also apply new ways of working to ensure your business can support any growth, outsourcing to a credible partner is a viable option worth considering if you are prepared to take on board the necessary changes in your operating practices.
Automation Can Increase Efficiency & Agility
Systems play a key role in automating business processes and ensure you provide superior goods and services and have the information to make insightful decisions. However all too often IT projects fail to deliver or overrun budgets and timelines. There are well documented reasons and research has shown the main factors emanate from approaching these projects as purely IT projects where the business impacts and engagement is overlooked.
With increased compliance requirements from the FTA and ESR, reporting capabilities from IT must not only serve internal stakeholders but external parties to minimise risks. Ensuring your platforms are ready for the current VAT and future requirements from e-invoicing is advisable to assure the longevity of your investment and minimise costly changes.
There is significant opportunity to create more efficient business from implementing more integrated processes supported by an IT system, however delivering a workable solution is underestimated by businesses when they minimise business involvement and training. Selecting the right platform is important, just as important is business change and is embedded in our delivery approach with a strong focus on implementing better business processes.
Executing For Success
If your business is looking to improve its competitiveness, assessing capability gaps and planning the best approach taking into account people, process and systems impacts is a mandatory first step to assuring any project. Organising, allocating resources and taking informed business decisions on time to control change and resolving the inevitable issues will also keep the project on track.
Your business may lack the experience and skills to fully scope all the elements to deliver successfully and adding expertise and experience will increase the probability of success. If your business is small and growing, outsourcing may be the most viable option if the solution from your outsourcing includes the full blend of systems, best practices and training. Taking the decision to improve your business agility and operational efficiency early in your business phase is always advisable to help minimise costs and complexity and set your company on a course for higher performance and profitability.
Complete Business Support
"Trust and confidence is key to serving clients, partnering with our clients is ingrained in the company. It is for this reason SimplySolved has invested assuring quality in ISO 9001 Quality Management and ISO 27001 Information Security certifications and is an accredited Federal Tax Authority Tax Agent"
SimplySolved supports 100's of UAE clients through advisory, project and outsource services in Accounting, Audit, VAT & Tax Registration, IT Software Solutions, HRM & Payroll Services and Marketing Solutions to Small & Medium Enterprises. Performance and efficiency are our major goals. We offer a range of services and IT platforms enriched with best practices to maximise business benefits.
Contact Us Today, Talk To Our Experts at 043445338 or Visit us at www.simplysolved.ae