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Technology has allowed small players to set up shop in industries dominated by global companies.
Small and medium-sized businesses (SMEs) have become an essential part of the economy. SMEs account for about 90% of businesses and more than 50% of employment worldwide, according to the World Bank.
The small-scale enterprise has gone mainstream. It has become an essential contributor to job creation and global economic development.
The proliferation of startups is partly due to the comforts provided by technology. Companies use software and online apps to automate processes and increase their output.
The technological advancements utilized in commerce also allow SMEs to save money.
Read on to understand how e-commerce tools and tech platforms reduce small businesses’ costs.
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Technology Offers Mobility and Efficiency
Online software has increased employees’ mobility, resulting in quicker turnaround times. That’s because it’s easily accessible, requires minimal setup, and needs no maintenance.
For example, CRM software stores all kinds of customer data. It allows businesses to cater to each customer. Automated features enable sending out customized emails and marketing messages.
There’s also a proliferation of mobile apps that allow people to work on the go. You can find applications for project management, time tracking, and more.
Businesses on a budget can purchase a subscription and use a data package according to their needs. This option reduces costs significantly.
Technology also enables companies to cut expenses associated with meetings. Subsidizing employees for travel, accommodation, and food can add up.
The availability of video conferencing lets people collaborate with ease. This is true even when they’re working from home and in different parts of the world.
It Reduces Risk
Working with numbers can be risky, especially if you’re an entrepreneur without accountants to sort out your finances. Failing to track cash flow or pay taxes on time can negatively affect your company’s bottom line.
Using software with cost management features and accounts payable automation helps reduce the risk of human error that could lead to a loss in profit. The system sounds an alert when it spots errors or inconsistencies. The manager who receives the alert can then solve the issue immediately.
Technology Enhances Productivity
Utilizing technology in financial management boosts productivity in the workplace. Employees complete routine tasks faster and with fewer mistakes. Managers have access to intelligent and intuitive systems. Consequently, the company is able to streamline its processes. Employees’ work improves as a result.
A Product Information Management tool, also known as a PIM, is a great way to manage your products. It is a cloud based software that allows you to add, edit and optimize products all in one place. This not only reduces the need for pointless spreadsheets, but also reduces the time to market.
This is especially important for SMB’s where you are competing with fortune 500 companies. You NEED to be selling on every channel possible and if you are still working with outdated spreadsheets, it means outdated product information on all those different channels too.
Luckily PIM’s have become much more affordable, allowing you to compete with the e-commerce giants as a small and medium sized company.
Technology Allows for Better Client Involvement
Automated processes provide businesses with more flexibility when working with clients.
These processes lead to more client involvement and more transparent communication.
For instance, more and more automated systems are incorporating client portals. These portals allow clients to log in and add input through discussion boards. It also lets them add files necessary to the completion of a project.
Some automation software also comes with a feature for sending automated updates. This allows the clients to be on the same page and gives each team member the opportunity to be involved throughout the project’s different phases.
It Ensures Information Security
Company data must always be well-protected. Yet it can get complicated when an organization needs to deal with a large amount of data.
For this reason, data needs to have a secure and reliable environment where it can be stored. Cloud computing technology can organize and protect business information while making it accessible to those who need it.
The idea of the cloud was put forward in the 1990s. However, it wasn’t implemented until 2006. Cloud computing was the technology that changed the course of data management. Now, it makes data storage more cost-effective. Gone are the days when huge hard drives contained vast chunks of protected data.
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The Bottom Line
Technology offers numerous ways for small businesses to save money.
CRM software and cloud storage allow for better data handling. Video conferencing platforms and apps enable people to meet virtually. Teams can get things done without having to be physically present.
Financial management tools and services like Spenmo make analyzing and controlling expenses easier.
All these show how startups can rely on technology and the internet to make better decisions and reduce costs without affecting the business’s strategies.
So, harness the power of technology. Use it in the correct manner and enjoy the benefits it has to offer. It is all about business innovation, and innovative business leaders are the ones who will usher their companies to grow.
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