As the business environment currently faces “significant challenges,” marked by more insolvencies and fewer new companies being established, it becomes “urgent” to adopt “robust strategies to ensure business sustainability.”
In this context, Rauva, a Portuguese integrated financial management platform for small and medium enterprises (SMEs), outlines in a statement sent to Notícias ao Minuto five strategies to promote business longevity and strengthen business resilience:
- Enhance Financial Literacy – “A solid understanding of financial principles is essential for managing any business. Entrepreneurs should continuously invest in their financial education to stay informed about both best practices and emerging trends. This can include participating in workshops or webinars on financial management, as well as regularly reading specialized content. Additionally, digital platforms with features that promote financial literacy, such as dashboards that allow viewing financial data and transactions in real-time and provide strategic insights, are key tools for entrepreneurs to identify patterns, anticipate difficulties, and make informed decisions”;
- Invest in Digital Transformation – “Digital transformation involves using technology to alter and improve business processes, customer experience, and value proposition, ensuring competitiveness in an ever-evolving market. For SMEs, this means adopting digital solutions across various operational areas, including financial management, to enhance efficiency and responsiveness. In practice, this can involve replacing manual spreadsheets with software that automates tasks like invoicing, expense categorization, and accountant communication”;
- Use Advanced Financial Management Tools – “The implementation of financial management tools is crucial to optimize operations and obtain real-time insights into the financial health of businesses. Integrated management and accounting platforms enable companies to automate routine tasks, reduce errors, and focus on strategic initiatives. Essentially, these tools can include features like automatic invoicing, intelligent expense categorization, bank reconciliation, and tax alerts. By centralizing these functions in a single system, companies save time, increase efficiency, and reduce the risk of failures”;
- Engage Specialized Financial Consulting Services – “Access to specialized financial advice can significantly impact a company’s financial efficiency and compliance. Having the support of certified accountants or financial consultants allows for more informed decision-making and ensures regulatory compliance. This close support helps entrepreneurs focus on business growth while simultaneously ensuring solid financial management”;
- Prioritize Customer Feedback and Adaptation – “Actively seeking and responding to customer feedback is essential for continuous improvement and audience satisfaction. Implementing systems to gather insights from customers and demonstrating willingness to adapt products or services based on this information reinforces the commitment to market needs, fosters loyalty, and enhances company competitiveness.”
