The 3Ps of Building a Profitable SME: People, Processes, and Product

In my previous article, I argued that not every startup idea will succeed as a tech company and highlighted the importance of pivoting to Small and Medium Enterprises (SMEs) when necessary. SMEs offer a more practical and sustainable path for many entrepreneurs, especially in markets like ours, where tech startups often face higher risks and expectations.

This article is a distillation of years of learning - both through my own ventures and by observing others.

Why SMEs Are Easier to Build Than Startups

While the definition of an SME varies from country to country, one thing remains consistent: SMEs are generally easier to build and sustain compared to startups. Startups, particularly tech-based ones, are built with the expectation of rapid, exponential growth. This often comes with the pressure to implement novel, disruptive ideas quickly—an approach that carries high risks and requires significant resources.

SMEs, on the other hand, are not held to the same aggressive growth timelines. They are more patient ventures, grounded in market practicality and focused on steady, sustainable growth. This makes them more achievable for many entrepreneurs, with a higher likelihood of success.

The Three Pillars of Building a Profitable SME

Based on my experience, building a successful SME requires attention to three critical areas, which I call the 3Ps:

1. People

People are the heart of any business. Their skills, ingenuity, and passion can make or break your enterprise. Building a competent team of dedicated and aligned individuals is key to laying a solid foundation for your business.

Hire people who not only have the right skills but also share your vision and values. A strong, motivated team increases your chances of success exponentially. As the saying goes, “If you want to go fast, go alone. If you want to go far, go together.”

2. Processes

Processes are the backbone of any business. Clear, streamlined processes make it easier to implement strategies, monitor progress, and measure success.

No matter the size of your business, dedicate time to developing efficient and transparent workflows. Document your operations, set measurable goals, and ensure consistency in execution. A well-defined process is a hallmark of professionalism and helps you scale effectively as your business grows.

3. Product

At the core of any successful SME is a product that meets a real need. It must add value to people’s lives and be something they are willing to pay for.

Invest time in designing, refining, and improving your product. Engage with actual or potential customers for feedback to ensure your offering aligns with market demands. A well-developed product increases customer satisfaction, builds loyalty, and enhances your reputation in the market.

Beyond the 3Ps

Over the years, I’ve built and worked with a variety of ventures - both small and large. Time and again, I’ve observed that businesses focused on the 3Ps - People, Processes, and Product - succeed 100% of the time.

Once these pillars are in place, navigating the growth stage becomes more manageable. Growth takes time and often requires external support, which is readily available for entrepreneurs willing to seek it. What matters most, however, is cultivating the right mindset:

•The attitude to learn: Embrace every challenge as a learning opportunity.

•The resilience to keep going: Persevere, even when the path gets tough.

•The ability to adapt: Stay flexible and open to change as you grow.

Conclusion

Building a profitable SME is not an overnight endeavor - it requires focus, patience, and dedication. By prioritizing People, Processes, and Product, and maintaining the right mindset, you position yourself for long-term success.

Call to Action

I would like to see you thrive on your entrepreneurial journey. That’s why I’ve taken the time to share these insights, distilled from years of experience and observation. Use this knowledge, apply it diligently, and watch your business grow.

Let me know how these principles resonate with you or if you have additional insights to share - I’d love to hear your thoughts.

Here’s to your success! Let’s meet on the other side of winning.

#KeepBuilding