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Despite lingering anxieties about the pandemic and a variety of economic and commercial issues, the majority of SMEs believe it is now imperative to begin building back from the crisis.

They are ready to step up their business investment, with ambitious plans for recruitment, renewal of equipment and machinery, and both domestic and international expansion. Fintech business lender MarketFinance asked 2,000 SME owners across the UK about their outlook for 2022 and beyond, gauging their short and long-term plans for business investment and growth. MarketFinance has today released a comprehensive research report of its findings, which are summarised here.

Confidence 

Analysis of the survey results has shown that business confidence amongst SMEs is improving, with many firms now focused on recovery and growth. With pandemic disruptions now largely settled, half of SMEs (48%) expect their turnover to stabilise or to increase over the next 12 months. Similarly, 50% of SMEs expect demand for their products or services to stabilise or to increase over the next six months. MarketFinance’s research has found that the majority of SMEs (63%) expect their business to grow over the next three years

Investment 

With survival mode no longer a necessity and cash flow pressures beginning to ease, the vast majority of SMEs (70%) now feel confident enough to increase business investment over the next 12 months. A quarter of SMEs plan to hire new staff, while 24% expect to purchase new equipment and machinery. When asked how they were factoring borrowing into their investment plans, 23% of SMEs said access to a broader range of borrowing options could enable them to increase investment even further.

Borrowing 

The research findings demonstrate that borrowing will play a key role in recovery and growth with 62% of SMEs saying that prudent borrowing could help them fund growth. However, three quarters (71%) of SMEs do not believe traditional banking products are the most obvious and convenient way to borrow for investment. Despite this lack of alignment between current finance needs and the options available through traditional routes, more than a third of SMEs (37%) are looking to take on new borrowing facilities.

Growth

With confidence high and a sense of having moved beyond recovery and into a new stage of growth, many businesses are looking forward to seizing a host of opportunities in 2022. Almost all SMEs surveyed (81%) plan to invest in sustainability, while 30% say they are considering merger and acquisition (M&A) activity in the year ahead  – more than twice as many as those primarily focusing on organic growth (14%). Over a third of businesses (34%) say they already sell overseas, or have plans to begin doing so. That figure is highest amongst the largest businesses surveyed (turnover between £5m and £6.5m) but even amongst smaller enterprises significant numbers are focused on export.

Anil Stocker, CEO at MarketFinance, commented: “It’s clear that the business environment has shifted and SMEs are looking ahead with a quietly confident and cautiously optimistic view. UK businesses intend to ramp up growth through domestic and international expansion, digital transformation and even M&A activity. But as they reset their post-pandemic goals for a post-pandemic, they’ll need to be confident of their funding base. 

Given that so many SMEs are looking outside of traditional routes in their search for finance, we’re particularly proud to have been accredited by the British Business Bank as one of the few alternative providers under The Recovery Loan Scheme. Schemes like the RLS are a golden opportunity for SMEs looking to gear up for growth, providing easily accessible funding at a lower cost across a wide range of products. We expect to see a large number of SMEs taking advantage of the scheme over the next 6 months as their growth and expansion efforts gain momentum and they invest in ambitious plans for 2022 and beyond.” 

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Further Reading:

• Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
• Read more about the impact of COVID-19 @ www.fieldservicenews.com/COVID-19
• Read more about Fintech on Field Service News @
• Learn more about Market Finance @ marketfinance.com
• Follow Market Finance on Twitter @ twitter.com/marketfinance

More than half (57%) of SME owners plan to expand trade to new territories outside the EU and at home after the pandemic with the help of online tools, according to global small business platform, Xero.

The boom in e-commerce and new EU trading conditions are driving many SMEs to break into fresh territories and customer segments. According to Xero’s Future of Small Business report, more than a third (36%) say it’s too expensive to sell to European countries, due to Brexit trading regulations and import-export charges.

This hasn’t dampened small business ambitions. It’s pushed 44% to explore new markets for the first time, with one third (33 per cent) increasing their customer base geographically during the pandemic due to a bigger focus on borderless e-commerce sales.

A THIRD OF SMALL BUSINESSES INCREASED THEIR CUSTOMER BASE GEOGRAPHICALLY DURING THE PANDEMIC DUE TO A FOCUS ON BORDERLESS E-COMMERCE SALES, AS COMPANIES QUICKLY ADAPTED AND EMBRACED NEW TECHNOLOGIES

The rise in remote working and rapid adoption of new technology has made it much easier to sell beyond physical location. 2 in 5 (41 per cent) say that online tools have been key for targeting new customers both at home and abroad. And 34% of SME owners are now more willing to hire staff that are completely remote as a result of Covid.

“The way small businesses operate on a global scale is transforming and it’s positive to see the impact of Covid and Brexit hasn’t dampened their ambitions. Technology and automated software in particular – like e-commerce platforms – have undoubtedly opened up trade opportunities for small businesses, allowing them to trade both across the UK and further afield,” said Donna Torres, director of small business at Xero.

Max Henderson, Co-Founder of Hotpod Yoga, also commented: “Dealing simultaneously with a global health pandemic and Brexit, has certainly been challenging. Luckily for us, the reaction in the UK since lockdown restrictions eased has been extraordinary and we’re seeing our classes hit 100% capacity across the whole country. 

“This kind of rebound has meant we're back on the front foot and looking to launch around 40 new locations across the UK and Europe within 12 months - but with that comes a lot of work to understand the rules of operating in different markets and of course a large amount of paperwork for things like customs and rules of origin.  We’re yet to see the immediate effects of Brexit on trading, with cross-continental trade having been put on hold due to various lockdown restrictions in each market, but given our success in the UK, we’re optimistic about the opportunity.”

Thea Paraskevaides, Founder of Beaumont Music, explained her situation: “Due to Brexit we've had to register for VAT in six countries which we were already distributing to. The amount of paperwork this has come with is overwhelming but using digital software like Xero has made the process far more streamlined.”

Xero has a dedicated Brexit Hub - here - with advice and resources to help businesses stay up to date.

Research methodology

The survey was conducted in January and February 2021 by Censuswide with 500 SME owners and 2,000 consumers.

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Further Reading:

• Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
• Read more about the impact of COVID-19 in the Field Service Industry @ www.fieldservicenews.com/COVID-19
• Learn more about Xero @ www.xero.com/uk/
• Follow Xero on Twitter @ twitter.com/xero/

Kris Oldland, Editor-in-Chief welcomes back Kevin McNally, Sales Director of Asolvi as they look through five key considerations to factor in when trying to build a case for investment within a field service management solution including, definable return on investment, health and safety compliance, increasing customer engagement, reducing staff turnover and avoiding a competitive disadvantage....

 

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The advent of Cloud computing has had a profound effect on field service management.

Indeed, there is no denying that the emergence of Cloud computing has been a core driver in the ability for smaller and medium-sized field service companies to be able to compete with their larger competitors - and such competition has raised the bar for service delivery in all corners.

Anecdotally, how often have you heard someone comment (or indeed thought to yourself) ‘how is it that say my local florist is able to give me a detailed overview of where the flowers I have sent to my wife are at any given point within their delivery and are able to give me a 30 minute window for when they will arrive, yet the multi-national organisation that provides one of the key widgets that is essential to my businesses productivity can only tell me that an engineer will be with me at some point between 8 and 5?’

Of course, the truth is that the delivery of flowers is far less demanding of expertise than that expected of a highly qualified engineer capable of fixing said widget – which of course means that the scheduling requirements are also equally less complicated for the local florist.

In addition to this, the local florist will, largely by definition, only be serving a local area – whereas the B2B provider of the widget will almost certainly serve a national market, if not an international one.

So it is unfair perhaps to compare one to the other, accusations of seeking the similarities between apples and oranges are in this instance somewhat understandable. Yet, ultimately in today’s connected world, we must remember that we are no longer competing solely with those companies within our direct vertical sphere.

 

"Today, we are competing very simply against the best service experience our customers have ever had, whether that be within their consumer or their corporate lives..."

 

Today, we are competing very simply against the best service experience our customers have ever had, whether that be within their consumer or their corporate lives.

However, what this anecdotal example does highlight with true clarity is how smaller service organisations, be they florists, electricians, HVAC engineers or any of the other array of small entrepreneurial companies that help keep our day to day lives running, have been able to harness the power of modern FSM solutions.

This development is mostly the result of the introduction of SaaS-based subscription-style licensing which makes access to such systems possible. It seems like a long, long time ago that Tesseract, an Asolvi product became the first company in the world to offer their full FSM solution in the Cloud and on a SaaS model. Indeed, today almost all FSM providers now offer their solution in such a manner.

This means that smaller companies can have access to tools like scheduling, stock and parts management and mobile work management applications for their field-based staff to access via a mobile device. Yet, they also have the advantage of being more agile, more streamlined and less weighed down by legacy systems and processes that their larger peers undoubtedly face.

 

"In a Bring Your Own Device (BYOD) scenario keeping on top of MDM can sometimes feel like painting the Golden Gate Bridge – by the time you finish at one end it’s time to head back the other way and start all over!"

 

Many, many aspects of introducing an FSM solution can become more challenging the larger an organisation is.

Optimised scheduling engines need to be ‘taught’ the rules under which they are to operate – the larger the workforce and the more diverse the skill-sets within that workforce, the more ‘lessons’ that need to be fed into the scheduling system for it to operate as intended.

Also, let’s consider the devices that are being utilised by the field workers – mobile device management (MDM) is a challenge that few IT departments will relish.

In a Bring Your Own Device (BYOD) scenario keeping on top of MDM can sometimes feel like painting the Golden Gate Bridge – by the time you finish at one end it’s time to head back the other way and start all over!

Even in an environment where devices are provided by the organisation, there may be a mix of options within one company, with different devices being provided that meet specific roles within the organisation – such as rugged devices for field-based technicians.

This can result in a mix of iOS, Android and Windows operating systems (possibly even more) which all need to be factored into the MDM equation.

Again, this is a challenge that becomes magnified by the scale of the workforce in question.

Of course, another challenge magnified by the scale of the workforce is the simple fact that the introduction of any new business technology, including an FSM solution, is inherently a change management project – and as any change management consultant will inform you – good change management is about people. It is a simple equation to understand that more people mean more effort and complexity when undertaking such a task.

In terms of FSM solutions, the shift to the Cloud has absolutely changed the competitive dynamics within various industries in favour of those smaller companies who are savvy enough to embrace cloud-based FSM and unencumbered by challenges such as the above which larger companies may face.

This has given smaller organisations to flourish and thrive in the modern business eco-system, but this increased competition has resulted in huge organisations like Thyssenkrupp or ABB further driving innovation as we have showcased in these pages previously.

Our sector is going through a huge evolution with non-competing companies pushing each other to achieve more through service delivery and the cloud has played a major role in that allowing us to do so.

 

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The potential for Augmented Reality being utilised in field service delivery can be leveraged just as effectively by smaller and medium-sized businesses as it can by their larger enterprise sized peers. Kris Oldland reports...

The potential of Augmented Reality within field service has been discussed for some time now, but as often happens with emerging technologies we tend to see early adopters come from enterprise rather than SMB sized companies.

Indeed, with the need to invest in expensive additional equipment plus the applications to power these devices surely this is one area where larger organisations can gain a competitive advantage?

Ultimately, the answer here comes down to a matter of perspective.

The intrinsic value of AR is that it can allow an organisation to dial in the expertise within their organisation directly to the customers’ location.

In any service contract, the true inherent value is within this expertise. Let’s take an example of a faulty widget which is stopping an organisation from being able to operate at an optimal level of productivity.

 

"In any service contract, the true inherent value is within this expertise..."

 

Do you think that the customer – who is facing this loss of productivity, cares whether that experience, which will enable them to get back up and running, comes in the form of a well presented, corporately branded field service engineer on site or if that experience comes in the form of a remote expert able to guide either an in-house maintenance engineer or a locally sourced third-party service engineer, step by step on how to get the widget back up and running?

Of course, from the field service provider’s perspective, there are numerous benefits of getting their engineer on site. One of the significant benefits being the all-important face to face interaction with the customer, but if we are talking about reducing the time to get that customer back up and running from days to hours, or even hours to minutes – then what value could that add to the service contract in the future?

Another scenario could be that the fault may be a relatively easy fix.

One which for the experienced engineer with a relatively standard technical skill set could be easily performed – yet as the majority of service directors will attest to the cost of getting that engineer on site is the biggest red line on their P&L.

How much would your company save if you could hire a local contractor, on a day or maybe even hourly rate, with the same broad technical skill set to attend the service call and be able to reduce the time he is onsite to an absolute minimum by allowing an experienced engineer, who can see what the onsite engineer sees, guide him through the repair, using digital annotations, to make it explicitly clear what actions to perform in order to provide the fix?

The key question here is, of course, how many such occasions, in which you avoid that expensive truck roll, would it take to pay for the device and application licence? Remember, the key selling point for AR, as with mobile, is on delivering a tangible return on investment (ROI).

In fact, let’s stay focused on ROI and those dreaded red lines on the P&L.

 

"The transitory life of the field service engineer is one that is hugely appealing but as your engineers grow older, they may be less inclined to travel so frequently, with family commitments taking preference..."

 

Retention of experienced field service staff and the training and development of new entrants into the field workforce are of course two other major areas that field service directors need to pay significant attention to.

Again AR can play a major role in both of these critical areas.

The transitory life of the field service engineer is one that is hugely appealing but as your engineers grow older, they may be less inclined to travel so frequently, with family commitments taking preference.

Traditionally, the only real means for such engineers to find a work-life balance within an organisation that was better suited to their changing needs was often management – but not all engineers, make good managers.

AR can allow a company to provide their more experienced engineers with the opportunity to find that better work-life balance, negating the risk of all that valuable experience and knowledge walking out of their door.

Similarly, it can take many months and in some sectors years for a company to be comfortable sending out a new engineer to client sites.

Whilst such training programs are admirable and often essential in terms of maintaining brand reputation, they can be a huge drain on resources.

AR can allow companies to dramatically cut the time needed for development and send their new recruits out into the field sooner – but with the safety net of being able to dial in an experienced engineer into the site remotely to help them when the going gets tough.

AR can even open up exciting opportunities for SMBs to expand into territories that would absolutely have been cost prohibitive for them to do so in the past.

Again, if your true value is the knowledge, expertise and insight within your field service organisation AR is the perfect tool for transmitting that value in real-time to anywhere in the world.

Ultimately, every field service organisation, big and small, will today empower their service engineers with a mobile phone and many AR solutions will run on such devices so even the need for investment in actual hardware is nonessential, making AR an extremely realistic introduction for even the smallest field service operation.

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Kris Oldland, Editor-in-Chief, Field Service News talks to Pål Rodseth, CEO of Asolvi about how he has brought together three key companies serving the SMB field servicer market across Europe, the meaning behind the new brand name Asolvi, how their customers are benefiting from the collectively shared learnings of a wider pool of peers and what the future holds for Asolvi.

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