In a recent survey by Deloitte, almost 80 percent of SMB are not taking full advantage of digital and tech tools available to them. There is a wide range of business technology now flooding the market, including business intelligence tools aimed at boosting profitability and customer loyalty. Yet, many small business owners remain confused about selecting the right technology for their business. In the Small Business Payment Insights Survey, while 55 percent of small business owners think keeping up with tech is critical for success, 41 percent of them claim technology is a distraction from their core business. Hesitancy, uncertainty and an information overload continue to impede small business owners from successfully integrating business tech into their business operations – or knowing which tech to choose. The solution? Starting off with a few fundamental business tech tools that any small business owner can benefit from in the digital age.
Cashflow Management Tech For Real-Time Performance Tracking
Cashflow management is the number one reason behind small business failure. Around six in 10 small businesses struggle with cash flow management, according to QuickBooks State of Cash Flow Report. Thanks to this, almost one-third of them find that their profit margins, payroll functions and business financing repayment are impacted. To combat this, small businesses must focus on cutting their credit collection periods and reducing their payment processing periods – something cashflow management tools can address at a fraction of what it would cost to hire an entire department.
Keeping updated on debts and receipts outstanding can help SME owners get a real-time picture of their business performance and implement collection procedures as needed. For this, accounting software such as Xero, Quickbooks and Freshbooks can help by keeping invoicing and receipts current. To budget and keep track of expenses, personal expense trackers such as Mint are budget-friendly and just as applicable in a small business environment. To address the 29-day payment processing period small businesses experience, online payment platforms can be used. If you are worried about the cost of such technology or the training needed to effectively use it, comparison websites showcasing budget invoicing software can help you find an option that is user-friendly and easy on the business budget.
HR Tech For Optimal Recruitment And People Management
When it comes to human resources, many small businesses agree that juggling it can be time-consuming and cost-intensive. The recruitment process typically takes around 42 days and costs $4,129. For SMEs, HR technology such as Bamboo, Workable and StaffTrak ATS all offer affordable options that allow small businesses to track and control their recruitment processes in house. When it comes to the benefits aspect of human resources, including securing workers comp insurance for small businesses to protect both business and workforce, insuretech companies and digital platforms can now build customized benefits packages for small business employers in a matter of minutes, cutting out middleman costs and processing time.
Cloud Computing And Storage Is Nondiscriminatory
Approximately one in five small businesses suffer a cyberattack at some point. Of those attacked, 60 percent of them go out of business within six months of the attack. With the average cost of a cyberattack pegged at over $200,000 for a small business, investing in cloud computing technology is essential for the security of sensitive business and customer data and the longevity of the business. There is now a host of malware and anti-virus solutions on the market aimed specifically at small businesses, including CyberGhost, McFee and BitDefender.
The use of cloud computing technology can also make the collaboration process easier for small business owners by allowing owners to merge several business functions into one application. This allows for a more integrated and smoother flowing business process. Many cloud computing technologies like Salesforce are also applicable to larger entities – something a small business looking to grow will benefit from. Finally, it provides the option of a contingency plan in the event of data loss, migration or transfers.
These technologies are not only desirable for small businesses today but have become crucial in their business operations. With concerns of data security and customer information processing rising, every SME should be adding these business technologies to their agendas.