Using Technology to Improve Small Business Profits

Using Technology to Improve Small Business Profits

In this modern world, small businesses are experiencing stiff competition from their competitors who are using technology to their advantage due to globalization. For your small business to maintain a competitive advantage in the market, you should be conversant with the current trends and new technology in the market. The following are some of the ways that you can use technology to improve your small business profits:

Reducing cost

When you use technology in the production process, it will help you cut off production cost which will eventually reduce the price of your products in the market. Reduced prices will lead to increased sales hence increased profits. Technology also reduces payroll cost as it increases the businesses’ productivity with the use of fewer workers.

Machines replace numbers of workers and also reduce the time taken to complete certain tasks leading to increased profits. Using technology will also help you reduce data storage cost as you will be able to easily store your ledgers in document form in flash disks or computer hard drive which will also help you save on space.  Here is a video showing you how to save money using the cloud.

Enhanced communication

When you embrace communication in your business, you promote communication between workers and also between consumers and yourself. With the use of mobile phones, customers will be able to give feedback on your products which will help you in identifying the areas that require the change to meet consumer needs. The employees will also be able to communicate freely regardless of their location which will reduce time consumption and increase profits by reducing the time taken to travel from one point to another for communication purposes.

To widen the market

You can use technology to widen your market which will, in turn, increase your profits. For example, selling your products online will cover a wider market as you will be able to access more customers from the comfort of their homes. Selling products online will also give you a platform to advertise your other related products and provide reviews of your products which is very essential in attracting potential customers leading to increased profits.

 Automation

Using technology in your small business will help you automate certain tasks that previously required the need for you to hire an employee. For example, the task of bookkeeping can be handled by certain software applications such as Quickbooks or Quicken. Contact management sites will help you automate the task of sales; this will give you the chance to focus on strategy and help you cut down on labor cost. This will eventually increase the profits of your small business.

Finding a Mentor

Finding a Mentor

There are many people who sit in their office cubicles everyday with the dream of opening their own businesses, the desire to be your own boss is compelling.  The only way to do this however is to actually get up and start your own business, it is not going to fall into your lap.  Make no mistake, being an entrepreneur is hard work, you need to be inspired and you need to keep going even when things get tough.  Finding your footing the first time in the business world is tough.

Finding a Mentor

If you have sat down crunched the numbers and have half a business plan put together in your head, then it is time to take action.  If you’re ready to start your own business then having some help from someone who has been there will definitely help.  That’s what a mentor is, and their help is invaluable to your success.  You can bounce ideas, make connections and learn without making your own mistakes.

If you don’t know someone well enough or at all who can help you then you might want to look into joining a mentoring group.   Look around and make sure you join a group that is right for you, you want to be able to get the most out of the group you end up joining.

Figure Out who You Are

You need to figure out exactly what type of business person you want to be, you may already have this figured out.  If you don’t then you need to clearly define your goals, both personal and professional and make a plan to have it happen.  Be very very specific, “be successful” is not a goal, “increase sales by 40% over last quarter” is a clearly defined goal.  Make plans for short and long term and make plans on how to get there, being as detailed as possible.  Make sure you write them down, studies show written goals are far more likely to be achieved than just a dream in your head.

Mentoring is really only as good as the mentor, so screen carefully who you want to take advice from.  Set realistic expectations and understand that no matter how good your mentor is the leg work will be up to you.  They can help guide and educate you but at the end of the day it is up to you to take action on this information.  That being said, finding a mentor who wants to be as invested in your success as much as you are will set you far ahead of what you could do on your own.