History shows that small businesses are vulnerable in financial downturns. With talk of a UK recession well underway, Robert Epstein, head of small business at Microsoft, assesses how technology can help your small business through the downturn.

With cash-flow under strain and pressure building to cut costs, decisions on technology investment can sometimes depend solely on whether the solution will reduce overheads.

My advice to the UK small business community is to consider whether cutting costs is the only solution. Instead, think about how you can make the most of what you have. For example, by making the right technology investments you could not only help cut costs, but maximise productivity and streamline processes.

Don’t be afraid to ask for advice

From my experience in a small business, I’ve encountered many ways in which technology can be used to reduce costs.

I found the support from organisations such as my local Chambers of Commerce, Federation of Small Businesses and Business Link invaluable; it is here you will be offered unbiased advice.

But before investing in technology you should speak to a specialist IT supplier with experience of small companies facing the same issues as yours. For example, Microsoft has a network of 900 small business partners across the UK that are happy to dish out expert advice where needed.

Thanks to online collaboration tools, networks can be geographically diverse but work in a more connected way and people are working informally together and sharing problems and advice through online forums and blogs.

We’re seeing them form communities to work together on projects and share skills and experience where sometimes it might be lacking. Get involved with this great free medium and share your questions with others.

Manage your cash-flow

As everyone seeks to manage cash-flow there’s an increased risk of delayed payments to your business and if you’re working close to the wire, these payments can mean the difference between success and failure.

Accounting software can help you to be aggressive with you cash-flow management – automatically chasing up on payments and implementing systems to make sure you are totally clear on monies coming in as well as out.

CRM software helps companies manage their existing customers better in a climate when new business is more difficult to secure.

Make use of the internet

Technology is often seen as a cost centre rather than a means of delivering competitive advantage. Businesses often see the expense of buying a server, setting up a complicated IT infrastructure, or hiring technical staff to maintain it.

This doesn’t have to be the case if you are savvy in your approach; all you really need is a computer and an internet connection. 

There are some great applications and tools available on the internet that you can download and use at no cost to you, giving your company a more professional appearance and offering the marketing templates you need to reach out to your audience.

Rather than buying software upfront, why not rent it from an IT supplier meaning all you have to do is log on to an internet site to access it.

To some this is a daunting prospect and many shy away from letting a third party look after their business information, however renting software can do more than cut business costs, it also takes away many of the associated management issues. 

You can also better manage costs by the way you buy technology. You can get the latest technology solutions without stretching your credit through finance programmes where you can pay for your IT purchases through monthly repayments.

There are finance offers from IT companies that provide alternative sources of funding from the traditional banks, which could be very useful right now. 

The best piece of advice I can give is don’t try to cut corners in an attempt to cut costs, you can easily appear more professional to your customers and suppliers by using simple and free/low cost tools.

Making use of mobile technology can save your employees time, this in turn can boost productivity and save you money.

Technology such as internet enabled laptops and smartphones that allow you to take calls, view mails and surf the web on the go, meaning that you can stay in constant contact with employees, the business and customers. 

It allows you to focus on driving business rather than having you and your staff waste valuable time travelling to the office, enabling them to work on the move or at home.

Ultimately, as many small businesses realise, investing in technology really can help businesses overcome the challenges they are facing in the tough times ahead.

The most successful will be those companies who plan ahead and look to the long term goals and cost savings, rather than panicking and slashing investments in the short term.

This will help them get ahead of the game when markets get back to normal. Small businesses have the benefit of being flexible and adaptable in changing markets. Investing in the right technologies will magnify this and improve efficiency and productivity.

For more information about Microsoft small business products, visit the website.

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By LaunchLab.co.uk  on   Nov 26,2008

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Keywords

technology    software    productivity    efficiency    latops    employees   

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