Today, technological advances boost small businesses’ ability to grow at a faster rate. Small businesses use an array of technologies like artificial intelligence, comprehensive HR tech, remote onboarding, software unification, focused cybersecurity, social media advertising etc. to facilitate better customer experience, seamless communication, reduced operation costs and improved employee productivity.
However, studies show that approximately 20% of new businesses fail within the first year due to unplanned and untimely investments, outdated technology, minimal internet presence, inefficient resources, and so on (lendingtree). The good news is that there are proven ways to avoid such pitfalls and lay the groundwork for a successful organisation. Keep reading to find out more about the importance of technology innovation and growth strategies for small business establishments.
Introducing cutting-edge technology can take your business to the next level of achievement, considering you are investing in the right manner. Here are 3 things you should check prior to investing in new technology for your small business.
Choose Technology That Suits You
This is the very first question you should dwell on while planning to acquire new technology. There is a varied range of technologies that are transforming the business world into a digital marketplace. Highly advanced technology doesn’t mean that it is the ultimate correct choice for your business. Each technology is created with a definite purpose to serve. Likewise, before investing in any new technology, you should first set up the goals and objectives for your business. Once you have a clear idea of your short-term and long-term goals, you can analyse which technology will work best for your business.
Understand Employee Opinions and Training Requirements
Often, there is a misconception that a business with advanced technology never fails. Unfortunately, it doesn’t work like that. The advancement of advanced technology is led by an efficient workforce. It is immensely necessary to consider your employee’s opinions and ideas before buying any technology for your business, for indeed it is them who will make it work for you.
Statistics reveal that 80% of small businesses are not taking full advantage of available technology(semrush). This implies that prior to investing in new technology, you should analyse employee training costs and proper implementation of the technology. Despite the utmost utilisation of technology, conducting an extensive training programme is also vital for employee motivation and, subsequently, employee retention in your company.
Risk Analysis and Management
The risk factors are mostly on the higher end for small businesses. Before making huge investments, it is always wise to identify and assess factors that might have a negative impact on your business. It is seen that technological advancements have taken businesses to their highest peak of success. However, on the other hand, many businesses have had to shut down after incurring huge losses. There can be several risk factors while acquiring new technology, for instance, skill gaps, lack of management and training, inefficient cybersecurity services, financial gaps etc. A dedicated team will play a significant role in effectively identifying, evaluating and finally mitigating potential risks beforehand.
A well-planned and thoughtful decision-making process will achieve that significant mark of success while investing in new technology for your small business. So far, we have come to the point that it is not just about the technology, but most importantly, knowing how to make it work in your favour. Furthermore, for a small business, it is important to know your target customer and offer a user-friendly experience. Therefore, the technology you want to invest in should be scalable and responsive. At times, adopting new technology can be a daunting and time-consuming task. Keeping this in mind, you should calculate the cost benefits and return on investment for your business ahead of time.