The Philippines has undoubtedly modernized in the past decade, with the country being a noted leader in e-commerce and digital wallet payments. Yet, many SMEs (small and medium-sized enterprises) struggle to keep up in other business aspects due to limited resources, fear of change, and a lack of knowledge about where to start.
This is not particularly surprising for long-time SMEs that have relied on more or less the same systems for decades. The smallest disruptions—even positive ones—may result in short-term losses that could be difficult to bear. Even when resources are available, overhauling systems, investing in new technology, or retraining staff can seem impractical when day-to-day operations already demand so much attention.
The real elephant in the room is the perception that modernization is only for corporations with prodigious resources. Sometimes, despite the math and the odds working in favor of modernization, there remains a deep-seated hesitance to invest in new tools and systems if it means going deeper into debt or risking employee payrolls. In other words, it’s easy to justify the status quo and far more difficult to get the ball rolling.
Thankfully, modernization doesn’t require a complete overhaul overnight. Quite often, small, manageable steps are all that a long-time SME needs to take. Let’s look at practical changes you can make that will align your business with today’s markets and systems.
- Offer A Full Range of Online Payments
Accepting digital wallets like Maya and GCash is already a good start but you should also start accepting direct bank transfers, credit cards, and other popular cashless payments. If you engage with customers online, consider offering link payment options, like those offered by Maya Business, so that they can also pay over email or messenger apps. The more payments you accept, the less chances you will lose a sale right before converting a customer.
- Digitize Your Records
Transitioning from paper-based records to digital files is a painstaking yet necessary step towards modernization. If you have years’ worth of paper documents, you’ll need to invest in scanners, cloud or onsite storage, and data entry teams to get started. Start by digitizing your most frequently used documents and consider hiring an IT service with experience in digital transitions for the rest.
- Adopt Updated Accounting Software
Switch from manual bookkeeping, Excel, and last-generation accounting software to modern solutions like QuickBooks or Xero. These tools reduce the need for error-prone manual data entry, empowering your business to track its finances more efficiently. It will also keep your SME compliant with Bureau of Internal Revenue (BIR) regulations, avoiding legal risks.
- Create a Well-Optimized Business Website
While you probably already have a business profile on Facebook or TikTok, a simple website has much more potential in securing your online presence. You’ll have much more control over your branding and messaging, and you’ll come across as a more trusted business as well. You can even set up an e-commerce component to give your SME a new online sales channel.
If you don’t already have a website, start with a simple, scalable, and future-ready platform like WordPress and invest the time to create a professional site. If necessary, get knowledgeable web development, graphic design, and SEO professionals to build or redevelop your site, emphasizing user experience and credibility.
- Use Your Social Media Platforms Wisely
Stop posting blindly and be strategic with your social media use. Look into the quirks of each platform then consider organic and paid methods of growing your follower base on them. Then, develop a content creation and social media strategy that educates and engages your followers so that they’re primed to convert into customers. Also, make sure that there’s a clear path to conversion and be prepared with link payments and other cashless options.
- Automate As Many Processes as You Can
Email responses, inventory tracking, and even social media posting can all be automated. If you automate enough areas, you’ll be effectively saving on labor costs and enjoying more scalability. Just as important, you and your team will have more time to focus on things that directly grow the business.
- Invest in Your Employees
Speaking of teams, you cannot modernize your business if your employees don’t have correspondingly modern skill sets. Accompany all your new technology investments with training sessions to help your staff adapt to new tools and technologies.
Though you want to make sure that employees are focused on learning the tools they’ll use, you’ll also want to equip them with big-picture skills. Have them undergo workshops on data management, cybersecurity, responsible AI use, and customer service best practices so that they’re empowered to grow your company.
- Integrate Customer Relationship Management Tools
Implement a customer relationship management or CRM system to manage your online and offline customer interactions and track sales leads. Platforms like HubSpot help you organize customer data and improve communication, increasing customer satisfaction and driving loyalty.
- Explore E-Commerce
If you sell physical products, consider setting up an online store through popular online marketplaces. There are some fees and documentary requirements to contend with, but a presence on these platforms will allow you to reach a wider audience and operate beyond your local area, including in the wider ASEAN.
Start small and focus on just selling your best-selling items. Not all businesses find these marketplaces as useful as they expect, so don’t commit too much until you get a sense of these platforms.
- Optimize Your Supply Chain and Inventory Management
Once your data is properly digitized, your SME’s supply chain, inventory, sales, and payment systems should all be linked to provide better visibility and bring down your warehousing costs. Linking these systems through an enterprise resource planning (ERP) system or custom solution should enable you to view the flow of inventory and other resources in real time, giving you cost and time savings in virtually all your business operations.
Take the First Step Today
Long-time SMEs are in a great position to benefit from the modernization steps above since they likely have some existing scale as well as strong brand equity to work from. Suppliers might be more willing to give considerations, and your new digital marketing campaigns will have a firmer foundation to push off from.
Still, the world is moving fast. Every day you delay means you get left further behind. Start today by choosing one or two steps from this list and committing to them. With each small change, you’ll build a more resilient business that’s ready for the global stage.
