18th-Dec-2025 • Martin Mwangi • SME Profitability Strategies
As a small or medium enterprise (SME) owner in Kenya, you understand the challenges of maintaining profitability. With intense competition and various economic factors at play, it's essential to implement strategic moves that can drive your business's growth.
Review your business expenses regularly to identify areas of potential cost savings. For instance, switching to energy-efficient equipment or negotiating better deals with suppliers could help lower operational costs significantly.
Cash flow is the lifeblood of any business. Implementing a robust invoicing system, offering early payment discounts, and managing accounts receivable effectively can help improve cash flow, preventing potential financial crises.
Embrace digital solutions to streamline operations and boost efficiency. Platforms like Lipabiz offer integrated business management and payments services, making it easier for SMEs to manage their finances and customer relationships more effectively.
It's five times costlier to acquire a new customer than to retain an existing one. Develop strategies that foster long-term relationships with customers, such as offering loyalty programs or providing exceptional customer service.
Don't put all your eggs in one basket. Explore additional revenue streams to ensure stability and growth. This could involve offering new products or services, entering new markets, or partnering with complementary businesses.
Investing in your employees' development can lead to improved productivity and customer service, ultimately driving profitability. Offer training programs that help your team stay updated on industry trends and best practices.