Sunday 6 July 2014

How small businesses can grow using low-cost technology

There is no question that getting a handle on modern technology is key for most small business owners looking to grow. With so much competition out there it's important to keep ahead of the game when it comes to innovation and know which areas are worth investing in.

However, small business owners are not all necessarily tech whizzes, and a huge variety of options make it difficult to work out what the best options are. Should you move your customer services to the cloud? Invest in creating an app? Focus your marketing energy on social media? And crucially, what are the best ways to ensure you're getting a good deal on your technology?
One of the main areas which has been creating a buzz in small business for a few years now is the use of cloud-based CRM (customer relationship management) tools. One business which has benefitted hugely from implementing CRM is Koozai, a digital marketing agency. Robert Barrett, the managing director, explained how this technology has been instrumental to the company's growth.

"We started out with a more expensive, well-known brand before moving to a platform which worked better for us. Not only is it more cost-effective on a monthly basis, but it's a lot more user-friendly and it saves on time and training for our staff," he said. "Just a few years ago a CRM system could set you back tens of thousands of pounds, whereas now you can get great software for just £20 per month, and add features as and when you need them."

Another small digital agency which implemented a similar strategy is Cyber-Duck, which uses software provided by another SME, Zendesk, to manage their CRM.

Sylvain Reiter, the development director, explained why they implemented this system: "When we first started out we had only five or six clients, so it was easy to keep on top of what everyone was doing. As we got bigger we started to realise we needed to put systems in place to ensure we were providing a good service and keeping our operation efficient."

Both companies agree that when it comes to moving to the cloud, cost is key, but it's also crucial to give your staff good training and ensure you select a package which is easy to scale as your business grows.

Explore the options you have available to you

What happens when an entrepreneur realises there's a specific form of technology which could help their business grow, but can't afford to invest the capital? Rob O'Malley, founder of Call-Centres.com, decided he wanted to build an app which would help him keep in contact with customers and position himself as an industry leader.

He found out about a series of free workshops delivered by the Technology and Innovation Futures West Midlands project run by Coventry University Enterprises and decided to attend. Straight away, he was able to understand exactly what he wanted from the app, and begin building it himself.

"Not counting the cost of my time, the whole thing cost only around £150 to build from start to finish," he said. "There's no way I'd be where I am if I'd had to outsource – I'd probably still be in the early stages and thousands of pounds down."
Dominic Hiatt had already launched one PR company when he started Just In Time PR, but this time he decided to ditch the marketing agencies and use social media to promote his business. Without the budget to pay for ads on the side of a bus or promoted results on Google, he relied on Twitter to get the word out.

"Twitter has given us around 80% of our sign-ups and, most importantly, regular clients. It works because you're introducing your business to people without interrupting them and hard selling. You can build exceptionally lucrative relationships through Twitter if you have the patience to look at it as a long-term play," he said.

Although free, using Twitter requires a heavy investment of time and energy, as posts will need to be interesting, entertaining and informative, driving potential clients in your direction without sounding like you're constantly trying to sell your product or service.

"You can't be purely commercial when on social [media]" says Hiatt. "If people sense that you're only there on the off-chance you'll make money out of them down the line, you'll get nowhere. A lot of businesses are selling on Twitter but you need to be authentic and transparent in the way you do so."
Rachael Naylor is a voiceover artist, and like many freelancers and small business owners, she finds it hard to ensure her invoices get paid on time. In addition, working with several different clients a week means invoicing can be a lengthy process. After doing some research, she came across Zapper.com, a scan-to-pay app that allows you to scan a QR code with your smartphone either online or by paper, and instantly transfers money from one person to another.

"I think QR codes are being overlooked," says Naylor. "This technology allows me to speed up my invoicing and makes it easier for myself and my clients."

Taking the time to find out what options are available is important, but small businesses shouldn't be drawn to technology just because it's free, as there are often low-cost alternatives that will be more appropriate and save time in the long run.

"There are so many cool payment apps that are free and easy to use but are not appropriate in a small business capacity," she said. "My advice for other small businesses who are seeing what's out there in terms of technology investment would be to think about what will work for them as well as their client base."

Content commissioned by Guardian Professional on behalf of FedEx Express. - Copyright Guardian

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