As an entrepreneur, you’ll have to learn how to be frugal. However, being frugal and hurting your business by holding back vital investments are not one and the same thing. You see, there are some investments that help you win and keep clients, make you more efficient and save you money both in the short and long run. One of such investments is an investment in business technology. Here are six reasons why this is so, as well as why, if you need to save money on some front, the business tech should definitely not be the field where you should be frugal.
Perhaps the best example of how far the investment in technology can get you could be seen several years ago when Amazon bought Kiva Systems for a staggering $775 million. At the moment, the majority of the business world believed that Amazon overpaid for the famous robotics manufacturer but today, it’s clear to everyone that it was one of the smartest decisions that this e-commerce titan ever made. Robots don’t ask for a day off, work overtime without demanding suitable compensation, don’t get injured and don’t make human errors. To a smaller degree, this is what introducing suitable machinery could do for your small enterprise, as well.
Business intelligence and big data
The next issue that we have to address is one of analytics. In the past, in order to make accurate analytical estimates, one had to pay for a whole team of analysts. Today, this can be replaced with a sophisticated business intelligence software. In order to make this as accurate as possible, one also has to rely on big data. While there are jokes out there that big data is like teenage sex since everyone talks about it, nobody really knows how to do it, everyone thinks everyone else is doing it, so everyone claims they are doing it, this is definitely a tech trend worth your time and attention. Moreover, initial investment fees for you to start dealing with these two trends aren’t nearly as steep as you were led to believe.
One of the biggest advantages of the present-day business world lies in the fact that your company will be available 24/7. This is less and less of a problem, due to the fact that a lot of companies nowadays employ international talent as remote workers, which means that they have someone from a different time zone to cover graveyard shift without any problem. Those who still work from traditional headquarters may need to lay down a proper broadband infrastructure. The industry standards are consistently rising and in some parts of the world, the internet is reaching incredible speeds. A perfect example of this is the fiber optics from Jordan which are creating room for numerous offers and ideas.
A direct link to your customers
Another thing you need to understand, especially if you’re in the retail industry, is the fact that paying a percentage of your profit to a third-party platform isn’t always worth your while. Sometimes, making your own e-store or establishing your own sales funnel may be much more cost-effective in the long run. Look at it this way, while Amazon’s marketplace (especially in programs like FBA) gives you a chance to start doing business right away, by making your own e-store, you’ll save a small fortune. It isn’t free but it definitely has an ROI that’s worth it. Also, it gives you a whole new level of independence and customizability of your brand presence that wasn’t there before.
Better customer experiences
Finally, technology investments alter the way in which people feel about your business. You see, by analyzing customer preferences, gathering data and watching out for their behavior patterns, you’ll be able to create a holistic system that rests on your ability to customize and personalize their customer experience. A higher level of customer satisfaction inevitably leads to greater customer loyalty and therefore, a lot greater number of return customers. As it happens, just 8 percent of all return customers create as much as 40 percent of your entire profit. Most importantly, it costs about seven times less to keep a customer than to get a new one.
As you can see, these five simple investments in business technology can make a world of difference in terms of the efficiency of your business. While the expenses might be what frightens you, the fact is that in the long run, this saves you money, either through efficiency or through increased competitiveness. Either way, it’s a win-win scenario for your business.