Asset tracking software and SMBs
Small businesses are the backbone of the global economy. In the United States, over half the working population – around 120 million people – are employed by small businesses. Not just this, but they’ve generated around 65% of all new jobs since 1995! This means that helping SMBs be more productive can be one of the best things that can be done to boost confidence in the business sector. Because of their size, middling margins, and competitive nature, though, small businesses can face problems that are completely unique to them. Technology has a huge part to play in helping alleviate or even eliminate these problems. Below, we’ll look at 6 of the most common problems faced by SMBs, and how businesses can tackle them head on using asset tracking software.
Just because a business is small in size doesn’t mean it can’t make the big bucks. In fact, SMBs are often able to scale up steadily and create impressive returns on investment. 64% of all SMBs in the United States today say they are in a ‘hyper growth’ phase – meaning their year on year revenues have increased drastically and are expected to grow faster with time. While encouraged, however, such growth can often be unstable, and can run ill-prepared businesses into the ground. Managing the needs of new investors and potential customers is difficult on its own, but add to that the complexity of ever-growing capital, and you’ve got a big problem on your hands! This is why an asset tracking solution that takes care of all inventory and equipment management needs can add great value to SMBs, helping them focus on more pressing matters that can’t be solved by intelligent software!
People who work for SMBs, often in small teams, know one thing better than most – doing a bit of everything. SMBs, by their very nature, often can’t take on employees for incredibly specialized gigs that are becoming a necessity in today’s business climate. This is why SMBs can often find it hard to go in-depth on things huge enterprises take for granted.
18% of all SMBs admit to not measuring or recording any KPIs.
There is number crunching and figure-keeping, sure, but it is limited to the size, workload, and experience of the team hired. In fact, less than 30% of all SMBs use website analytics or call tracking to assess how well their business is doing. 18% of SMBs track nothing at all. At least as far as business assets are concerned, asset tracking software can help these SMBs solve problems of poor record keeping by generating detailed reports that provide actionable insights on asset productivity, vendor history, custodian reliability, and more, to ensure these businesses have all the information they need to make the best decisions possible.
All businesses must face risk on a daily basis. This can be related to investments into a new avenue, trying out different strategies for customer acquisition, or ensuring that their business assets are providing as much value as they possibly can. The latter is something that can definitely helped using asset tracking software. In fact, 30% of SMBs see keeping up with the latest business technology as a primary rung to success. This is why an asset tracking system is extremely important for asset intensive SMBs. It lets you keep track of all your inventory and manage asset maintenance needs for more reliable business processes, ensuring you keep risk at bay.
When you have so much to do, but limited capital and personnel to accomplish your lofty goals, the best thing to do is to prioritize. The most successful SMBs are those that are best at prioritizing their tasks. In terms of equipment management, one of the best ways of prioritizing isn’t just by ranking things in order of importance, but actually by creating linkages between different elements that need work and working on them all at once. Consider all the things an asset tracking system can do. Adding new assets into the system, creating purchase orders, communicating with vendors, generating service tickets and scanning asset labels all under one system can be a breeze if you choose the right product. And think of all the time you’d save!
Planning for the future
While short-term planning needs to be extremely precise for SMBs – leaving no room for error – at some point these businesses must also look to the future.
72% of SMBs expected their revenues to increase 10% between 2015 and 2016
Knowing which avenues to explore later on, developing a long-term strategy, and planning out the allocation of future resources is therefore extremely important to ensure longevity. 72% of SMBs expected their revenues to increase at least 10% between 2015 and 2016. To figure out how to best put this expected revenue to use, businesses could do well to utilize the insights gained from an asset tracking system. They not only tell you which physical assets are adding the most value to your business, but also indicate equipment which has outlived its usefulness, and how best to spend your next procurement cheque.
Striving for efficiency
At their small scale, if SMBs aren’t efficient, they’d do well to not be in business at all! This is a ruthless and fast-paced corner of the business sector, and any mistakes can lead to huge losses for your average SMB. The low capital investment and relatively smoother set-up means competition is rife, and businesses are popping up all the time, only to be replaced by those with more efficient models and processes. Consider this: since 2015, some 97,000 new SMBs have opened their doors to the public! This is why SMBs have to streamline their workflows wherever possible, making sure their business model is both lean and flexible. An asset tracking system that helps them squeeze the last bit of productivity out of their business assets can be the difference between boom and bust in this industry, which is why it reads like a no-brainer in terms of SMB investment.
While some of the equipment that SMBs use may not be extremely expensive, the losses incurred from the mismanagement of business assets can be too high for a small business. This is why asset tracking software is a great idea for SMBs wishing to minimize risk, plan better for the future, and ensure their processes are as lean and efficient as possible. While not all problems associated with the competitive and ruthless sphere of SMB engagement can be fully eliminated, business-centric solutions such as asset tracking software can significantly alleviate them and ensure your SMB meets with the least resistance on its road to success!