Business Support

Essential Key Performance Indicators (KPIs) for SMEs

MOMENTUM Business Support Business Support
A group of people working together on some printed analytics at a table

It’s no secret that the world of business is a competitive one. As an SME owner, you need to make the most of every opportunity and keep a close eye on your business’s performance. One essential tool to achieve this is to track the right Key Performance Indicators (KPIs). KPIs tell you how well your business is doing against your goals, allowing you to measure growth and uncover areas for improvement. In this blog post, we’ll delve into the most critical KPIs you need to track to measure your SME’s success.

1. Monthly Revenue Growth: One of the most important metrics for SMEs is growth. To measure this, track your monthly revenue growth, which shows how much your sales are increasing each month. You should target a steady, incremental monthly revenue growth percentage that will enable you to reach your goals. If your revenue growth is declining or stagnant, you’ll need to investigate why this is happening.

2. Customer Acquisition Cost (CAC): CAC is the total cost involved in acquiring a new customer, including sales and marketing costs. It’s essential to track this metric as it helps you understand how much money you’re spending to attract new customers and whether this cost can be reduced. Ideally, your CAC should be lower than your Customer Lifetime Value (CLV) to ensure profitability.

3. Gross Margin: This KPI measures the percentage of revenue that remains after accounting for the cost of goods sold. It helps you understand how efficiently your business is operating. A high gross margin indicates that your business is generating more income for each unit of product sold. A low gross margin suggests that your business is inefficient, and you may need to consider cost-cutting measures.

4. Customer Retention Rate: Customer retention is critical for SMEs as it costs significantly less to retain a customer than to acquire a new one. Tracking your customer retention rate allows you to measure how many customers you retain over a certain period and improve your customer experience. Improving customer retention rate means your business will benefit from better brand reputation and positive word of mouth, resulting in more sales.

5. Inventory Turnover: This KPI measures how quickly you can sell inventory and purchase more. A high inventory turnover rate indicates that your business is selling products quickly and efficiently, whereas a low inventory turnover rate suggests that you may have obsolete inventory or slow-moving Stock Keeping Units (SKUs). Efficient inventory management is important to maintain a healthy cash flow and prevent unsold inventory from accumulating.

KPI tracking is crucial for any SME to measure its performance and growth. Identifying the right KPIs helps you stay focused on your goals and make more informed decisions. We hope this blog post has given you a clear understanding of the most important KPIs you need to track. Remember, KPIs should be tailored to your business requirements and goals, and monitored regularly to ensure continued success.

If you’d like to find out more about KPIs or require any additional business support, get in touch. We would love to answer any of your questions and discuss your needs!

E: makeithappen@mbsmih.com T: 01903 688789

SME Networking: Top Tips to Get You Started

MOMENTUM Business Support Business Support
A person holding out their open hand with a group of people connected above it

Networking can sometimes seem like a daunting task, but it really is crucial to your business’s success. Whether you are just starting out or have been in business for years, building a strong network can help you gain new business, find support, and build valuable relationships. In this blog, we’ll cover the do’s and don’ts of networking, as well as some top tips and benefits to help you make the most of it!

Do’s and Don’ts:

When it comes to networking, there are some important do’s and don’ts to keep in mind. Firstly, do attend events and meetups that are relevant to your business or industry to make valuable connections. Secondly, do have a clear idea of what you want to achieve from attending the event. Thirdly, do bring plenty of business cards to hand out. On the flip side, don’t just sell yourself and your business, instead listen to what other people have to say and try to build relationships. Don’t ask for too much too soon, instead build up a relationship before asking someone for a favour. Finally, don’t forget to follow up after the event with an email or message.

Networking Tips:

To make the most of your networking events, there are a few tricks that can help. Firstly, be curious and ask questions to show interest in the other person. Secondly, make eye contact and smile to present yourself as friendly and approachable. Thirdly, avoid being pushy or aggressive in your approach and instead build relationships organically. Finally, use social media to stay in touch with your new connections after the event by adding them on LinkedIn.

Benefits of Networking:

Networking offers many benefits for SME owners. Firstly, it can lead to new business opportunities and referrals. By building relationships, you can get your name out there and attract new business. Secondly, it provides support and advice from like-minded individuals. SME owners often face similar challenges, so networking can provide a valuable support system. Thirdly, it can help you stay up to date with industry trends and news. By attending events and talking to others in your industry, you can keep informed.

In conclusion, networking is a vital part of being a SME owner. By following the do’s and don’ts, using our networking tips, and understanding the benefits of networking, you can build valuable relationships and grow your business. So, get out there and start networking today!

If you’d like to learn more about our networking tips or require any other business support, get in touch. We would love to answer any of your questions and discuss your needs!

E: makeithappen@mbsmih.com T: 01903 688789

10 Intriguing Facts About UK Small Businesses

MOMENTUM Business Support Business Support
Two people standing infront of their small business while leaning against a door with a sign which reads "Open"

As the heartbeat of UK’s economy, small businesses have always been a formidable force. The innovative solutions that they bring to the table and the entrepreneurial spirit that they uphold make them a vital segment of the global market. Want to know more? Check out these 10 intriguing facts about UK small businesses:

  1. There are over 5.9 million small businesses in the UK –
    As of 2022, there are over 5.9 million small businesses in the UK, which account for 99.3% of all UK businesses. This figure has been on the rise for the past decade.
  2. Small businesses employ over 16.8 million people in the UK –
    Small businesses are responsible for creating most jobs within the country. 16.8 million people are employed by UK small businesses, making them an indispensable part of the country’s economy.
  3. 89% of small businesses are sole traders –
    According to the UK’s government data, around 89% of small businesses are sole traders. This statistic indicates the importance of entrepreneurship in the UK’s economy, with a majority of small businesses being led by ambitious entrepreneurs.
  4. UK small businesses make up nearly half of total UK revenue –
    Small businesses in the UK generated £2.3 trillion in revenue in 2022, which equals almost half of the country’s total revenue. This statistic proves the immense impact of small businesses on the country’s economy.
  5. Small online businesses generated £33.3 billion in 2022 –
    The e-commerce revolution has dramatically impacted small businesses, especially those that operate online. As of 2022, small online businesses generated £33.3 billion in sales, which is expected to increase significantly with new digitisation trends.
  6. Almost half of small businesses are operated from home –
    A significant proportion of UK small businesses are run from home, with 49% being operated from a residential property. This trend is increasing due to the flexibility it offers and increasing digitisation.
  7. 20% of small businesses fail within the first year of operation –
    Starting a small business can be risky, and data shows that only 80% of startups survive their first year. However, this statistic is still an all-time high compared to previous years.
  8. The number of small businesses has increased by 66% since 2000 –
    Over the past two decades, the number of small businesses in the UK has increased by 66%, which is a testament to the innovative spirit of the country.
  9. Women make up 40% of small business owners in the UK –
    Female entrepreneurs have been on the rise in recent years, with women making up 40% of small business owners in the UK. An encouraging trend for gender equality in business.
  10. London has the highest number of small businesses in the UK –
    Unsurprisingly, the UK capital boasts the highest number of small businesses in the country. Around 26.7% of all small businesses in the UK are based in London.

In conclusion, small businesses continue to be a crucial part of the UK economy, playing an essential role in creating jobs and generating revenue. These ten intriguing facts about UK small businesses highlight the entrepreneurial spirit of the country and the continuing evolution of the small business landscape.

If you’d like to find out more insightful facts about small businesses or require any other business support, our team would love to help! Get in touch:

E: makeithappen@mbsmih.com  T: 01903 688789.

Stay Ahead of the Game: Social Media Trends for 2023

MOMENTUM Business Support Business Support, Digital Marketing, Social Media
A woman sitting at a desk using her mobile phone

Social media continues to play a central role in shaping how we communicate, consume and make decisions. With every year, comes new advancements, trends, and technologies in the social media sphere. For small businesses looking to maximise their social media presence, the key is to stay ahead of the game by keeping up with these trends. Here are some social media trends that your small business needs to know to succeed in 2023.

Repurposing content: In 2023, repurposing of content will continue to be a significant trend in social media. This is where businesses recycle old content into new forms of content. For example, turning blog posts into infographics, using Instagram stories highlights, and reposting top tweets. Repurposing allows businesses to bump up their content’s online exposure and reach a wider audience. This is particularly important for small businesses because it means that they can sustain their social media presence without continually generating new content.

Video Content: With the rise of the short-form video platform Tik Tok, video content will continue to be a trend in social media for small businesses in 2023. By creating videos for social media, businesses can exhibit their creativity and connect with their audience. Small businesses can use various formats such as live-streaming, video testimonials from clients, and explainer videos to create engaging video content. Video content has been shown to increase engagement and build customer trust.

Personalised content: In 2023, personalised content will be more crucial than ever. With algorithms continuously modifying users’ timelines, businesses must focus on making their content tailored, relevant, and personalised. Personalised content includes targeting different audiences, segmenting email lists, and customising social media ads based on audience predispositions. For small businesses, personalisation is essential because it increases customer loyalty and brand loyalty.

Customised Influencer Marketing: Influencer marketing has been a crucial trend in social media for a while now. In 2023, it will become more personalised, focusing on specific influencers in niche markets. Small businesses can take advantage of this trend by identifying social media influencers that fit their industry, and partnering with them to create content. Content created this way has been shown to increase sales leads and build stronger customer relations.

Ephemeral Content: Ephemeral Content defined as digital content, is short-lived and designed to showcase more authenticity with limited time for capturing the moment. Instagram, Snapchat, and Facebook stories commonly exhibit this trend in social media. Video content in social media manifests as live streams or disappearing videos, images or texts. Small businesses can use ephemeral content to share behind the scene moments, teasers for product launches, and provide exclusive looks into their businesses. Ephemeral content appeals to audiences that crave authenticity and transparency.

Small businesses that can anticipate and adapt to social media trends early will have a significant advantage in 2023. Repurposing, Video Content, Personalised content, Customised influencer marketing, and Ephemeral content are top social media trends for small businesses to consider.  Developing and improving social media strategies with these trends can help small businesses establish an immersive online presence, boost their brand reputation and connect with a wider audience. The social media landscape continues to evolve, so embracing innovative approaches is critical to staying relevant and successful in 2023.

If you’d like to discuss our Social Media Management services or require any other business support, our team would love to help! Get in touch:

E: makeithappen@mbsmih.com   T: 01903 688789

Understanding The Average Productive Time Of An Employee

MOMENTUM Business Support Business Support, Home Working
A woman working at a computer while taking a phonecall and writing in a notebook

In today’s fast-paced business world, time is money. It’s essential for small business owners to understand the average productive time of their employees to ensure optimised productivity. The average productive time of a UK employee is a crucial factor in determining the extent to which businesses can achieve productivity goals. In this blog post, we’ll dive into the specifics of how much time an average employee spends on productive tasks and what you, as a small business owner, can do to maximise it.

According to studies, the average productive time of an employee is 2 hours and 53 minutes! This means that the rest of the workday is spent on non-productive tasks such as checking emails, scrolling through social media, and chatting with colleagues. So, where does this leave businesses? It leaves them with an unsatisfactory amount of productive time which deters the growth of their company. If this is a recurring issue, there are some steps you can take to boost employee productivity.

Firstly, start by determining what tasks are critical to your business’s success. By setting clear expectations of what is expected of your employees, you will enable them to remain focused on the essential tasks that drive the business’s success. You can implement this by prioritising individual workloads or delegating specific responsibilities to your team, which can help them stay on track.

Secondly, consider the physical office environment. An office layout will significantly impact employee productivity, and research shows that it can enhance an employee’s mood and productivity. Optimising the office space is key when it comes to creating the perfect working environment. You can provide comfortable seating areas, natural light, and make sure the space is free from distractions like noise to help your team remain focused on their tasks.

Thirdly, adopt technology and automation. There are various software solutions that can streamline the workflows, tasks, and data management like CRM, collaboration tools, project management software, and more. Automating these tasks can create more time for your team to dedicate to other critical tasks.

Lastly, something as small as planning regular breaks can also help boost productivity. Studies show that allowing short breaks for employees can improve their mood, focus, and productivity. Encourage your employees to take intermittent breaks between tasks to refresh their mind and prevent fatigue.

Your team’s productivity is a critical component of your business’s success. Knowing the average productive time of a UK employee empowers small business owners to optimise their productivity and improve their work habits, leading to increased motivation and productivity. By prioritising tasks, optimising the office environment, automating tasks, and promoting frequent breaks, you can maximise the productivity of your employees and ensure the success and growth of your small business.

If you’d like to find out more about our thoughts on employee productivity, or talk about alternative solutions to increase your return on investment when it comes to choosing who can help you with your back-office tasks, get in touch!

T: 01903 688789 E: makeithappen@mbsmih.com