Entrepreneurship in Mexico may seem complicated and even more so, enter the new era of digital commerce. However, it is easier than you can imagine. That’s how it is! You can start your own digital business. But before embarking on the adventure you should ask yourself, What is required for trading to be successful?
In this article we will explain in detail everything you need to become part of this new wave of digital entrepreneurs and make your digital business something that everyone talks about.
The importance of SMEs in Mexico
Small and medium-sized enterprises (SMEs) have a common characteristic and that is that they are very important for the national economy. This thanks to the contributions in the production and distribution of goods, products and services. In addition, the ease they have in adapting to changes makes them become an important source of employment for the country.
SMEs represent an excellent means of promoting economic development. Currently, they represent 97% of the companies in Mexico and generate employment for 79% of the population. In addition, they contribute to income equivalent to 23% of the country’s Gross Domestic Product (GDP).
With the above, it is clear that special attention should be paid to SMEs, since in this type of company, most people think of companies with people in suits and professionals or, on the contrary, very small organizations that will not evolve easily. Generally, SMEs have a wide range of businesses, since they range from companies in charge of production to marketers and service providers.
And yes, it is not entirely easy to create or maintain one, as there are many, but most of these can be avoided.
An important problem that we can highlight about them is the management of resources, because the lack of investment in terms of infrastructure, security and technology stalls their growth. The average percentage of investment in these items is barely 0.5% and 0.7%.
Other data that affect the current situation of SMEs are:
- Of every hundred companies that are created, ninety do not even reach two years. The rate of “mortality” is very high.
- The turnover rate of SMEs is very high. Just as many businesses disappear, a large number of new companies are also created.
- Mexican SMEs must compete with products that come from abroad, which seem to have some added value and even, sometimes, at lower prices.
Generally, small businesses face constant problems and a lack of tools to fuel their growth.
One of the biggest difficulties is the lack of knowledge about the sector, lack of financing, as well as poor administration, which makes it difficult for them to become a consolidated, profitable company that provides a service that meets the needs of Mexicans.
Despite the challenges that owners face, there are businesses that manage to survive. So SMEs in Mexico will continue to increase.
If you want your business to be part of one of the positive statistics, then you must be very clear what is required for a business to be successful.
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What is required for your trade to be successful?
- Economic growth
- transcendence through time
- profit contribution
Now yes, we are going to delve into each point of the previous list to break down the characteristics of a successful business.
Surely you are thinking about exorbitant amounts of money billed and what that entails. But stop for a moment and let’s talk about what it really takes to be a successful trade.
And it is that, as we anticipated in the previous list, successful businesses are those that continuously provide benefits, both to owners and clients and to society.
In addition, a successful business manages to grow in the face of demand. However, it is well known that a business can fail at any time. This does not mean that the product or service is bad. These types of breaks can be due to many factors that sometimes change or are simply not taken into account.
Many SMEs are created every day in Mexico, but only those that have enough flexibility to overcome the challenges that arise on a day-to-day basis can stand out.
It really is not that there is a formula to guarantee success, since as we mentioned before, trading lives within a context depending on the market in which it operates. And this segment can coexist with different factors that influence beyond the will of those involved.
For this reason, we share 7 important tips for you to achieve the main objective of an entrepreneur: to have a successful business.
7 tips for a successful business
- Adapt to your market.
- Choose your sector very well.
- consistent actions.
- Your star product.
- Solve problems or needs of your audience.
- Build your financial budget.
- Suppliers and staff.
Now let’s talk a little more about each tip.
Adapt to your market
A business needs to be ready to face the needs of the current market, therefore, you must know and understand the industry in which it will enter and the audience it will be focused on. In addition, it is necessary to identify the competition in order to take advantage of them.
Technology is a very important factor in business adaptation. Business owners must be constantly updated and not lose sight of the new trends that affect the market and the sector in which they operate. Likewise, innovation will always be an added value.
Choose your sector very well
The sector of the business, in a certain way, influences the success that the trade will have. It is more likely that it can be more successful when it is carried out in a market that has activities of constant demand, which potentiates growth. There are many, choose the one that suits your personality
It is believed that businesses that start in sectors where there is already development do not obtain as many benefits as when they start in “new” sectors. This is a myth, since there are businesses that come to revolutionize the sector and become leaders. Such is the case of fintech, which came to change the financial sector worldwide.
We must be clear about the sector to which our business belongs and know what we can offer, as well as the limitations.
Consistent actions
It is necessary to have a solid strategy full of coherent actions that allow you to plan the guidelines to achieve your goals.
It is very important to define a clear goal and the small actions that will bring you closer to it.
Remember that it can be a long, medium or short term goal. And think: if I don’t have a destination, where do I go? Define the route that your brand must take so that it can be a successful business and never betray the values of your company.
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Your product is the star
The star service or product of a successful business must be of good quality, in addition to:
- Unique: the particular characteristics make the product stand out from the rest of those offered by the competition.
- Consumable: any product or service that is consumed must be purchased periodically. This can enable success through customer loyalty and customer repurchase. “The product must be of high consumption.”
Solve problems or needs of your audience
For a service or you need to solve a specific problem. This should focus on a sector of society that presents a need and solves said problem.
For a business to stand out it must:
- Finding a solution to something that was believed could not have it.
- Improve the solution of something already existing.
Build your financial budget
Any business needs to carry out the activities necessary for its operation. These types of investments are considered key pieces in businesses of all sizes.
These debts or investments, such as bank loans or , are necessary when the business starts, but also during its development. Remember that, to achieve a successful business, it is important to have a and to prevent the business from being over-indebted.
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Suppliers and staff
The business personnel and those involved must be carefully selected, taking into account profiles aligned with the business values. Your internal teams are the life force that enables your brand to become a successful business or a failure.
Now you know what a successful business is and the most important characteristics to take into account to achieve it, but times have changed and so has the way of offering a product or service.
Today it is possible to go further with the help of digital transformation and this is a challenge that you must face to achieve the goal.
How to succeed doing e-commerce in your business?
Currently, buying and selling online becomes something more than necessary and everyday for people.
To understand how relevant these businesses mean, it is enough to know that currently nine out of ten Mexicans buy online and it will continue to increase.
In Mexico, it was observed that e-commerce grew by 500% in 2020 alone. This exponential growth speaks for itself.
By selling online you increase the range of your business and the presence of your brand in the virtual world, that space where you can reach anyone who has access to a connection.
When you sell online and your products or services are of quality, as is the experience you offer, you can have clear advantages of generating prestige and positioning your brand more easily.
To make a business successful, it is important to have the best tools that allow them to carry out their actions in the day to day of their business. Tiendanube is the preferred e-commerce platform for entrepreneurs in Latin America. and discover how easy it is to create your website with a shopping cart. You’ll love it! 💙
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