Joe Walsh, CEO, Thryv.
Many people today live on their smartphones and do everything from texting their kids to posting a photo on social media, ordering a pizza or summoning an Uber. Yet many small, local businesses—the kind that form the backbone of American communities and downtowns—have for years lacked an affordable, easy way to effectively communicate with their customers via their smartphones.
I’ve spent my life working with small businesses, and currently, I lead an organization that provides technology, software and business automation tools for small-business owners. So I’ve seen how these local businesses have fallen behind larger, better-funded and more sophisticated businesses. This capability gap is bad for both local businesses and local communities that depend on them to generate jobs and taxes and provide community support.
Happily, things are changing. The availability of easy-to-use technology, tailor-made for small and medium-sized businesses (SMBs), is leveling the playing field. I think we’re entering a new golden age of cloud technology, where small businesses finally have access to the same types of tools and services that were once reserved for well-funded, sophisticated corporations and multi-location franchises.
From customer relationship management (CRM) systems and accounting software to online scheduling and reputation management tools, cloud technology is enabling small businesses to streamline their operations, improve customer experiences and enhance their overall competitiveness. Let’s explore what led to this and what small businesses can do now that this technology has arrived.
First, what is cloud computing and why does it matter?
For a business, cloud computing means using servers located remotely rather than on a business’s premises. In recent years, enterprise companies have been quick to move their computing to the cloud, for example, by adopting enterprise CRM systems.
Meanwhile, I’ve noticed small businesses have been slower to make the transition. Many continued to rely on simple software located on their computers, such as Excel spreadsheets. Often, that software became out of date, and frequently, it was not internet-enabled, so it could not be used to easily communicate with the small business’s consumer.
But now, many small businesses have begun adopting cloud technology, in part, because that technology has become easier to use and more affordable, and partly because these businesses realize that customer expectations are changing and they must meet these expectations or suffer the consequences. They see that consumers who are used to ordering from Amazon or swiping their plane ticket at the airport expect the same seamless experience from all businesses—big or small.
Another factor is that the cost and ease of use of cloud technologies have improved to the point that small businesses feel they can afford such platforms and use them effectively with only a modest amount of training.
The transition from analog to digital starts with mindset.
However, the transition to the cloud is not always an easy one for small businesses. Many owners would not describe themselves as tech-savvy, and they may be hesitant to adopt new technologies. Others may have already invested in legacy software and are reluctant to switch to newer, cloud-based solutions.
The cloud transition is not just about adopting new technologies, either. It also requires a mindset change around how SMB owners think about their operations and customers. Starting small and gradually introducing cloud-based tools and solutions can make the journey less overwhelming.
Consider your needs to determine the best solution.
For the solopreneur, starting with a single “point” solution, such as a cloud-based reputation management scheduling, or a payment tool, may make sense to ease into the transition and gradually embrace the cloud.
Many business owners started their companies for the craft they love. They might be lawn care or photography or personal training experts and don’t want to become technology experts, nor should they have to.
In that case, all-in-one platform solutions may be the best choice to transition to the cloud. Companies like mine, HubSpot, Salesforce and more provide such solutions. Platform solutions can be a good option for business owners who are looking for a wide variety of capabilities that are interconnected and have a consistent look and feel. Furthermore, consider that many platforms integrate with third-party tools.
Set yourself up for success in the cloud.
While there are some things small-business owners and entrepreneurs can start on themselves, they will likely also need onboarding training and ongoing support as they adopt this technology, no matter how user-friendly it is.
For example, data should be clean before uploading to a new platform. Identifying and merging duplicate files, correcting inconsistent data and addressing formatting issues are all things that the business owner could handle ahead of time.
They might also want to create a road map for more strategic initiatives. Automating administrative tasks like invoicing, messaging and appointment scheduling, makes space for doing the things that matter most.
Don’t forget about security.
These days it’s also critical to ensure data security and privacy. I find that most small businesses are under the false assumption they are too small to be targeted. However, a majority of ransomware attacks in 2021 occurred in businesses with less than 1,000 employees. Make sure you are working with a cloud-based provider that can provide enterprise-grade security that protects the operational and customer data.
What is the future of small business?
As the world continues to shift toward a more digital and interconnected future, I think cloud technology will play an increasingly important role in the success of small businesses.
Remember, though, that the transition to the cloud is not just about adopting new technologies. It’s about embracing a new mindset: one focused on the customer experience. As small businesses continue to adapt to the changing business landscape, cloud technology could be a critical enabler of their success.
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