Randall Castillo Ortega talks about the importance of planning for SMEs

Randall Castillo Ortega talks about the importance of planning for SMEs

There is a significant percentage of entrepreneurs who omit considerations to take the best organizational forecasts in the face of the great challenges presumed by the start of a business, such as legal, labor, financial, operational and tax issues. All these are fundamental pillars to structure a due settlement process, in order to shape a business underway, whose first vision is to grow over time. Randall Castillo Ortega , founder of investment firm RACO Investment and an expert in Central American business operations, offers some of the more important considerations that every entrepreneur, whether an independent professional or owner of an SME business, can take into account.

An independent company or professional requires that the individual immerse himself or herself in short-, medium- and long-term organization and planning. This means that you should review the service provided, standardize operations, maintain a good relationship with your employees, plan in time and review financial results, among others.

Company leaders should be aware of everything that happens in the organization (sales, finance, marketing, employees, etc.). Sometimes practices of wanting to solve things with “immediacy” are maintained, which is not a good idea. Explains Castillo, “To work as a team, as so often talked about, is to have a well-defined plan, comply with it and incorporate flexibility, without falling into the rigidity of compliance. Involving collaborators in the process and being a leader in managing crisis situations is critical.”

Hiring that collaborator to connect with our thinking is a complex issue and it’s not easy to get. However, if we are clear in our goals, objectives and projects, it will be possible to visualize the required candidate. Under this picture, it is valid that the idea that training of both the leader and the employee is vital, a salary payment in which both parties are satisfied, and that the collaborator feels identified with the business and part of it, can become a good ally of his project and not an enemy who steals his ideas.

You, as an entrepreneur, must be well trained to provide yourself with the service your client or potential customer requires. States Castillo, “As head of the business, the entrepreneur must listen to what his client requires. It is not the same to fulfill a job as to meet a need, all supported by a good analysis of a sales plan in which you analyze your peaks of high and low demands.”

Don’t forget that investing in promotion and effective advertising helps. Use technology optimally to select the target market, as not all will be our customers.

If you’re starting a business or have already started it and haven’t done your “business plan,” don’t worry; you’re in time to do it. If your business is already up and running, you can rethink it. It’s never too late to pick up and review the business turn. Planning is having a plan that includes budget, fixed costs, multiple costs, team, sales projection, cash flows, strategic alliances, among others. Your ongoing review will prevent your company from becoming part of future statistics.

“Continuously monitoring the business process is critical. Avoid waste and high costs of repetition in work. Solve errors, hire suitable staff for the position and manage inventories properly. These are issues that need to be addressed promptly,” adds Castillo.

There’s some additional good news for According to Article 15(b), Law 9635, Law on Strengthening Public Finance, all SMEs (natural and legal persons) who initiate operations from the enactment of that Law, will enjoy an exemption of 100% of the payment of income tax, during the first year of commercial operations.