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The Small Business Administration defines a small business as any entity with 500 employees or fewer. However, the truth is, around 94% of all firms in the US can actually be categorized as a microbusinesses. This means they have fewer than 10 employees.
Microbusinesses contribute a great deal to the economy. What’s more, they create a generous stream of jobs. They may be small in scope, but they certainly are not small in ambition!
Vocational trades formed a significant percentage of small businesses a decade ago. However, today there’s so much more diversity in small-scale initiatives. Whether it’s design agencies, consultancies, or freelance operations, these kinds of ventures are steadily gaining momentum. And with entrepreneurs getting younger by the day, the small business scene has never looked this vibrant. But what kinds of challenges do these enterprises face?
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The Big Test for Microbusinesses
According to the National Small Business Administration, small businesses face some unique tests that larger enterprises don’t have to worry about. This includes concerns over economic uncertainty and lower consumer spending. What’s more, various regulatory investments can be a hassle, particularly for microbusinesses, because of their lower financial flexibility.
These companies have unique obstacles thrown their way, to be sure. And they also have fewer employees to deal with these problems. Therefore, microbusinesses need to be flexible in the face of external hurdles. This kind of agility is often more crucial than having a loyal consumer base, for example, or creating a superior product. Moreover, being able to respond to these challenges can often mean the difference between success and failure.
On the other hand, this can be one of the ways in which small businesses have the upper hand on larger businesses. That’s because red tape and bureaucratic processes make it harder for the latter to react to shifts in the market quickly. But while a smaller business can be more flexible, it can also be vulnerable. Therefore, these businesses need to be more strategic when it comes to their decision-making. But how can you achieve this at your organization?
Giving Your Microbusiness a Leg up with Technology
The need for efficiency is much higher in a microbusiness. That’s because there is little room for error. Say an overzealous employee has ordered too much stock for your small retail store. You’ll have to store it properly. What’s more, if you don’t have readily available storage space, you’re going to have to find some. You’ll also hope the stock doesn’t expire, malfunction, or become redundant. This is just one scenario that can play out horribly for small businesses if they’re not careful.
This is why small businesses are a prime candidate for implementing technology. The truth is, 27% of all small businesses have no IT support at all. Knowing this, it is not difficult to understand why the rate of success can often be so low for these companies. The role of technology in averting disaster for microbusinesses therefore cannot be overstated.
The fact that there are fewer people getting work done at these organizations means they need help every step of the way. But technology can make things easier by saving time and money. Moreover, it can ensure that you have mechanisms in place to avoid costly mistakes. In addition, technology can significantly lower operational burdens on your employees. In short, if you want efficiency, technology is your friend.
The Case for Equipment Management in Your Small Business
If you want to use technology to make your business more efficient, asset tracking is a great place to start. This entails a system that enables you to track and manage all your assets. Moreover, you can take care of all equipment-related activities. DAM software from asset bank is an example of efficient software that can be used for these purposes.
This might include procuring equipment in the first place. Additionally, you’ll use it to log service details, calculate taxes and depreciation, then formally retire those same assets. Therefore, if you think your business might be too small to benefit from robust asset management software, think again.
Even the smallest business can have a handful of employees who are using a number of different pieces of technology, such as laptops and chargers. Additionally, your company might need to keep track of maintenance activities. Then consider the large amounts of inventory even small businesses go through on a regular basis, such as stationery or food and sanitation supplies. Couple that with the need to constantly keep track of who has access to what, and you’ve got yourself a huge asset management challenge.
This is why an equipment management system can be a great boon for small-scale businesses. Think of the fact that only a third of all small businesses don’t survive to see their second year. Automating equipment management is a crucial organizational activity that can help you beat these odds.
What Web-Based Asset Tracking Software Does for Your Business
Equipment tracking software enables your company to automate complex asset management activities. What are some of the benefits you will gain from such a solution?
1. Lower Administrative Burdens
Microbusiness can be a tough work environment. So much needs to be done on a daily basis. What’s more, you have only a handful of employees to accomplish those tasks. Therefore, you must precisely streamline your workflows.
Asset tracking software makes managing, ordering, and assigning assets easy. So rather than focusing all your energies on remembering when the next batch of batteries needs to be ordered, for example, you can simply trust that the equipment management system will have your back.
2. Improved Employee Accountability
It can be difficult to keep track of employees. Therefore, accountability needs to be at the top of your priorities. This is especially important, as smaller companies are more vulnerable to workplace theft. Automated asset tracking will allow you to keep track of company assets with little effort on your part. Employees can simply log into the system and mark assets as they check them in or out. Then everyone in the company will have quick details about usage and availability.
3. Better Equipment Reliability
It goes without saying that employees can’t be productive without the right equipment. If you work in IT, you can’t really do your job without a company laptop, for example. And if you’re part of a maintenance crew, you need uninterrupted access to your tools.
To avoid such scenarios, asset tracking software tracks your maintenance activities. Further, it enables you to draw up servicing schedules. Best of all, it sends you reminders any time an item is due for maintenance.
4. Reduced Overheads
According to a recent study, 82% of businesses that fail do so because of cash flow problems. But what steps has your business taken to lower operational costs?
The truth is, small businesses can find it hard to cut corners. They don’t benefit from economies of scale like their large-scale competitors. Moreover, they often have to hit wild targets in order to stay afloat. This is why asset tracking is a such a handy tool for these types of companies.
With asset tracking, you can lower storage costs and administrative expenses. You can ensure that your assets aren’t misplaced. In fact, you can avoid paying taxes on “ghost assets.” These are assets that you might have retired or lost over the years.
Setting up Automated Asset Tracking for Your Microbusiness
Microbusinesses face unique challenges in the corporate sphere. Owing to their low employee count and extreme sensitivity to operational overheads, they can find it difficult to plan for the future and perfect their business processes.
Automated asset tracking can enable your microbusiness to lower demands on time and money. It can also allow you to significantly streamline workflows. Often, getting started with such a program is no harder than looking up a web-based asset tracking software online. Then just sign up and import your data into the system.
Remember, the trick for microbusinesses is to think of big solutions that can seamlessly align with their smaller scale.