5 Ways Tech Can Maximize Small Business Efficiency
[This article was written by McKenzie Jones.]
According to statistics, the majority of small businesses collapse in the first year due to cash flow problems. If you want your business to not be part of the statistics, use technology to become more efficient. Modern technology can help you manage customer relationships, company resources, inventory, employees, and data needs more effectively.
Customer Relationship Management
Customer relationship management or CRM software can help you manage and sustain long-term bonds with customers. This technology streamlines all communication between small businesses and customers. The data is retained in a centralized system for secure access by all departments.
Features of a Viable CRM System Include:
- Automatic collection of data: when a customer makes an online purchase, that information is automatically recorded into the CRM database.
- Campaign tracking: the CRM software allows you to observe how your campaigns are doing. You can track the performance.
- Accurate revenue forecasting: the CRM software keeps data of all financial transactions done by your customers. You can generate reports that display the spending pattern. Then, using that data, you can accurately predict the sales for the coming financial quarter.
CRM technology can assist your organization to improve the customer experience for better efficiency. Numerous departments can utilize the CRM information to generate personalized solutions for all customers.
Enterprise Resource Planning
Enterprise resource planning or ERP technology will help you manage company assets more efficiently. Assume the accounting department has run out of printing papers, and they’re about to order new ones. The sales department has just received a fresh batch of papers. Instead of ordering more printing papers, the accounting department can borrow some from the sales division. That’s what ERP technology does. It allows various departments to exchange information and assist each other.
ERP software like JD Edwards (ERP software) can aid the business to eliminate redundancy and mundane tasks. Since departmental information is centralized, an ERP system allows you to observe everything the company is doing. In the process, you can assign unique tasks to various departments to improve efficiency and productivity.
ERP software also allows you to standardize business processes and minimize wastage. ERP systems are programmed according to industry guidelines and regulations. Therefore, departments have to function according to industry standards.
Inventory Management System
An inventory management system or IMS helps you to mark your stock. You need to monitor all inventory to avert losses through theft and damage. With an IMS system, you can categorize the stock into disparate groups; you can separate fragile goods and perishables from the rest of the inventory. That way, you’ll minimize damage when unpacking fragile goods.
You can also keep track of inventory that sells and restock before subsequent orders come in. An IMS system prevents overstocking and understocking. When you purchase more stock than you need, your money gets tied up in the inventory. You have to sell all inventory to recoup your money and become liquid again. An IMS prevents you from understocking and losing customers to competitors.
Human Resource Management
Satisfying employees can be a tall order because you have to keep track of all their achievements, accomplishments, and creative skills acquired. It will also take the human resource manager a lot of time to compile that information. To improve efficiency in human resource management, use personnel software.
Human resource management or HRM software keeps all employee data in a centralized location for direct access. Your employees can update the system themselves if they’ve acquired creative skills. The system helps you monitor payrolls and days-off. It makes it easy for you to compensate employees based on their attendance and performance.
The system can also help in the recruitment and onboarding of new employees. You can utilize the data to specify the requirements for a vacant position.
Another way to maximize efficiency is to invest in cloud storage. It’s cheaper and more cost-effective than maintaining onsite servers. Furthermore, cloud service providers tailor their services to accommodate the individual needs of the business. Therefore, you can buy storage according to your demands and upgrade later when the business starts booming.
Cloud storage providers provide security for your data; therefore, you don’t have to invest in expensive antivirus software. The system is convenient because you can access the data remotely.
To conclude, technology can lower business running costs and bolster efficiency. For example, you can use cloud storage to lower your storage running costs. You can utilize HRM software to manage payroll costs and reduce turnover rates.
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