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Small businesses are a cornerstone of the American economy, accounting for 60-80% of the new jobs in the US each year. But running a small business is no easy feat- they have to compete with large businesses that often have more resources and access to capital. Technology has leveled the playing field for small businesses, which enables them to compete with larger businesses.
It has given small businesses many tools that were once only available to larger businesses. For example, small businesses can now use cloud-based software to manage their finances, inventory, and customers. They can also use online marketing tools to reach a wider audience and connect with potential customers.
Small businesses are also benefiting from the rise of mobile technologies. Mobile devices and apps allow small business owners to stay connected to their businesses, even when they’re on the go. They can manage their finances, track inventory, and stay in touch with customers no matter where they are.
Let us look at some areas where small entrepreneurs can use technology to scale their businesses.
Crucial Role of Technology to Small Businesses
As per Martin Seeley of MattressNextDay, The pandemic has highlighted the importance of effective contactless experiences for small businesses. As a result, innovations like digital capabilities and investments in technology are important even for an online mattress business that seeks new ways not only to meet quality expectations but also to stay afloat during this time when consumers may be hesitant about how they can affordably purchase products from local businesses without showing up at their doorstep with cash-in-hand.
As seen through research conducted by McKinsey & Company – one which shows that the most successful strategies come from those companies utilizing innovative technologies such as RFID tags on packages so customers don’t need coupons while grocery shopping anymore because everything is available online.
According to an SBE Survey, around 76% of small businesses mention that cloud services have been critical to their survival during the pandemic.
In the US, the critical role of technology in keeping American small businesses alive is highlighted in the Verizon Business survey. It showed that 43% of small business plan users are using the services for digital and other technologies to deliver their products and services.
With the increase in demands, companies are stepping up to allow small businesses to continue operating. Wireless providers like Verizon have been responding by providing gig economy jobs and broadband access for rural areas to serve communities.
Technological innovations are enabling SMEs to break barriers. It is transforming the logistics industry and eases the process of doing business. Now, logistics providers are offering online freight forwarding platforms for SMEs, which removes the challenges of export by providing online quotes, ensuring full transparency and compliance, and enabling businesses to keep a secure digitized record of all paperwork.
Several other technologies are being pioneered by this sector, including using drones to operate warehouses, and AI (artificial intelligence) to automate processes and improve planning, resource allocation, scheduling, and monitoring.
Online Technologies and Small Businesses
Small businesses survived the pandemic because of the business model that emphasized technology. Many technologies that became popular during the pandemic helped companies that relied on a traditional brick-and-mortar business model connect with their customers via small digital improvements such as increased online ordering and delivery services.
But now that things are beginning to look up, how can businesses continue to stay afloat and capitalize on the momentum they have built.
Through technology and creative strategies, small businesses can evolve to keep up with larger companies. They can even beat large companies on their own game. What small businesses should do to stay in the game is reinvent and reimagine their business to create a seamless customer experience.
That includes these four main areas: unique showroom experience, online presence, location of inventory and logistics, and multi-purpose vehicles.
When we talk about online technologies, we are talking about the same technologies used to help them survive during the pandemic. It should now be a part of the business plan.
Sourcing software and services to weave technology solutions into traditional business practices is one way for a small business to grow and evolve. Businesses that feature live chat instead of an operator at the end of a phone line, for example, are eliminating the need for a live operator.
The most successful and prolific businesses during the pandemic are the web and mobile app-based delivery services.
These services have become a template for small businesses whether they are looking to add delivery services to their existing business or even create a new mobile business. Either way, they can use the same platforms implemented by their larger counterparts in the market.
Ways How Small Businesses Use Technology
Steve Rose, CEO at Money Transfers thinks that the impact of technology on small businesses often outweighs the short-lived challenges of transitional processes in implementing new systems. It helps business owners leverage their limited capital in smarter and more effective ways. In many cases, using technology provides greater efficiency and versatility. Although, they may need to make some adjustments to reap the benefits of technology.
Here are some areas where small businesses can ramp up their use of technology.
Productivity
There is a wide range of productivity tools, which can increase efficiency as a business. It means getting things done more and achieving higher revenues.
Think of time tracking software to map out where time is spent and whom. It can help entrepreneurs spot where time is being wasted and identify the opportunities to use time more efficiently. This analysis, when used properly, is favorable for accountability, process improvement, and productivity.
Using digital dictation can streamline work processes for businesses where the bulk of the work is on time-consuming transcription. The team can also benefit from using project management and task management tools to stay on top of daily business activities.
For administrative works, the digital filing system makes it easier to sort, save, share, and find documents. Developing an efficient email management system can help employees save time sorting through and reading emails.
Financial
In finance, using digital tools can manage the company’s finances to help spot wasteful spending and increase the bottom line.
According to Mitch Harad from Overdraft Apps, the use of online invoicing services to reduce the cost of collecting payments from customers. The online budget tracking app can help the management on top of expenses and reduce them. Using comprehensive accounting software can streamline the business finances, and sharing digital files with the people in finance helps improve the ongoing bookkeeping process.
Marketing
Marketing is one area of business that is revolutionized by technology. The software can help small businesses better because it has streamlined the workflows and increased the collaboration between different marketing channels.
Software is also available to create marketing plans, which is available online for the team to edit, update and share. The social media platform is one of the biggest innovations brought about by technology. Facebook, Twitter, Google+, Pinterest, YouTube, and many of its kind are the new avenues to promote businesses, products, and services.
Businesses can publish their blogs related to their products and services to relate to their target audiences. Websites have become a necessity for brands to strengthen their online presence, as well as online advertising, said Edward Wright who runs a food blog Cereal Secrets.
Learning and Collaboration
Technology also helps coordinate employees and train them to increase their productivity. With the pandemic, many companies have implemented a work-from-home arrangement leading to new ways of working. They conduct Zoom meetings to ensure their team members in different locations are on the same page.
Webinars and web conferences keep everyone in the loop without traveling for face-to-face meetings. They can expand their team’s knowledge and empower them with online business training, and share files and data on the cloud. Team messaging keeps the team communicating quickly and clearly throughout the whole time.
Customer Service
Online chat platforms can also help improve relationships with customers. Using chatbots or chat support can facilitate better customer service in any eCommerce store. Setting up an online help desk or ticket system to handle customer issues quickly and effectively is an ideal option.
It also allows clients to schedule appointments online at their convenience without leaving their homes or office. Brands can easily get customer feedback using online surveys and questionnaires.
Telecommuting and Mobile Working
The software has made it easier for people to work from home, which saves the company money on office space and productivity. With a mobile office, it allows employees to work productively from any location. The remote desktop application enables access to files on the office shared drive. It also leads to paperless systems, which save money on supplies and storage.
Virtual phone numbers and electronic fax lines mean employees can take them anywhere. On the other hand, smartphones and apps that sync with the cloud keep the team connected whenever they are on the go.
So, what does this mean for small businesses? In short, it means that there has never been a better time to start a small business than now. Advances in technology have made it easier than ever for entrepreneurs to get their businesses off the ground and reach new customers. What technological innovation are you adopting to help your small business thrive?
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