Small and medium-sized businesses (SMEs) account for approximately 30% of Pakistan's GDP. Despite this, small businesses in Pakistan face a number
Small and medium-sized businesses (SMEs) account for approximately 30% of Pakistan’s GDP.
Despite this, small businesses in Pakistan face a number of challenges.
In addition to lacking the necessary business training, they have difficulty obtaining bank loans, resolving commercial disputes, and filing taxes.
If you have the appropriate skills, concepts, and information, you can succeed as a small business owner in Pakistan.
The process of starting a small business in Pakistan and joining Pakistan’s entrepreneurial community requires a lot of work and expertise.
You can navigate this difficult path with these five practical tips for Pakistani small business entrepreneurs.
Tips for Small Businesses in Pakistan
In order to overcome some of the common challenges entrepreneurs in Pakistan face, here are five tips for small businesses in Pakistan.
The first tip is to pay attention to tasks that generate revenue
Outsource all other responsibilities that take time away from earning money, such as bookkeeping and record-keeping. Focus on growing your clientele and obtaining positive testimonials.
You can’t make the most money possible if you’re spending too much time on unrelated tasks that don’t directly contribute to it.
You can always hire an outside professional for jobs like bookkeeping, marketing, and sales.
You can’t be exceptional at everything, so focus on creating or running a profitable small business. Use outsourcing to handle the rest.
You only have a limited number of hours in the day, so make the most of them. Write down all the things you need to accomplish every day, and rank them according to when you’re most productive.
You can break up your routine and reclaim your independence in your company by using automation, if you find that you only have a limited amount of time to spend on the things you truly love.
Various technologies are available to automate various processes, but not all of them are useful or necessary for small businesses.
AI cannot replace the human brain’s imagination network, for instance, so systems that automate tasks requiring creativity are seldom worth adopting.
Ideally, your company should automate the unimportant, tedious tasks.
The second tip is to limit what you focus on
It is important to concentrate on the essential elements that are most important to your company.
Most business owners make the mistake of believing that defining their firm tightly will limit their prospects.
The more you concentrate your efforts on a single or a small number of niches, the more likely you are to be perceived as an authority in your field.
Since Daraz and other large businesses have a lot of money to spend on branding, marketing, and customer service, they can sell in other markets.
The best way to increase your chances of success as a small business owner is to become very focused.
The third tip is to proceed with caution when hiring family members
Business owners have fallen into this trap and suggest caution when considering hiring relatives.
Consider your options carefully before hiring members of your extended family as employees.
Coworkers might perceive favouritism if they believe your family members achieved their position through genetics rather than expertise and effort.
You also don’t want to risk damaging your family ties if things don’t work out professionally.
In this case, you may do so if you carefully consider a family member to hire because you value their character traits. Although every scenario is unique, the main lesson to be learned from this is to consider whether a family member would make an effective hire despite not being related.
It’s also a smart idea to consider if you and your partner want to start a business together.
Likewise, negotiating commercial terms with a friend can be difficult, just as it can be challenging to do so with a family member. Additionally, if the commercial relationship doesn’t work out, you may lose your friendship. As a result, resentment can eventually develop.
Keep your personal and professional ties separate and exercise caution if the risk seems excessive.
The fourth tip is to save money by looking for ways to save
In a volatile environment where every bit counts, even the smallest increase in sales or expense reduction can make a difference to a company’s profitability.
Most small businesses can improve their bottom line by taking simple, common sense actions as part of a cost-reduction strategy without a comprehensive company overhaul.
The end of the year is a great time to step back and examine your business procedures closely.
Consider what you’re doing well in your company and where you might improve before you implement cost-cutting strategies.
Regularly analyze your business spending to find areas where you can save money.
Keep a close eye on your spending because the areas where you need to make cuts may change over time or even month to month.
The best way to strengthen your small business finances is to reduce costs. Examine where your money is going and what could be cut.
The best way to reduce your company’s costs is to find a wholesale distributor. You may be able to save money by reducing unused software subscriptions, moving to a shared office, renting, leasing, or purchasing used equipment.
Taking steps to improve your cash flow and financial situation is essential when you run a small business.
The fifth tip is to provide excellent customer service
In order to gain recurring customers, small businesses should provide excellent customer service.
Customers who receive excellent customer service are more likely to stay with your business and recommend it to their friends, family, and coworkers.
A great way to ensure you deliver outstanding customer service is to keep your finger on the pulse of your target market.
Your brand should monitor online comments made by consumers.
Once you’ve reviewed the comments carefully, make any necessary adjustments to better serve your customers. Then, ask clients for feedback on trusted sites like Google and Trustpilot.
Small businesses can benefit from social proof, which can be a powerful source of revenue.
Small business success is difficult and rocky.
There are many challenges entrepreneurs may face along the way that will test their patience, persistence, and perseverance.
If you are an aspiring entrepreneur in Pakistan looking to start a small business, or if you want to run a small business alongside your day job, Markaz can help you do just that.
We offer a range of services and programs specifically designed to support small businesses in Pakistan, including business counseling, access to capital, mentorship and training.
When you begin your journey to creating a small business in Pakistan, you’ll have an easier time overcoming obstacles to growth and success if you implement the tips we have highlighted above.