Small businesses go leaner, more effective with technology tools

While the Great Recession convinced many big corporations to improve efficiency and reduce spending, small businesses have historically known the value of operating ‘lean and mean.’ Many have never had another option, and have always had to accomplish more with less.

Fortunately, technology is making it easier than ever for small-business owners to work smarter and more efficiently – and continue growing their businesses.

According to a recent Small Business Scorecard survey, small businesses are embracing technology as a tool to improve efficiency, with 76 per cent saying they have changed their strategies to adapt to an increasingly technology-based economy.

Online tools in particular are useful, and many small-business owners (SBOs) are turning to online companies for support in key functions like payroll management, selling, communications, meetings and business development.

Here are a handful of online tech tools that help small businesses operate cost-effectively:

File sharing: Thirty-four per cent of the business owners used an online file-sharing service. This is a largely free service (you can upgrade to a paid business account) that allows users to upload virtually any type of file to the provider’s server and then share and access the content from any Web-enabled mobile device anywhere in the world. The business version adds some extra features.

Payroll management: One of the most significant challenges for small-business owners – many SBOs turn to an all-online payroll provider. Managing payroll solo can be costly for a small business – more than $2,600 per year on direct labour alone, according to research. Mistakes can boost costs, especially if an SBO runs afoul of tax laws and requirements, and ends up facing IRS penalties.

Online outsourcing tools: These make processing payroll easy for SBOs. It allows them to remain in control of their own payroll while doing so affordably, accurately and efficiently. The system pays employees, automatically pays and files payroll taxes, and handles all necessary calculations and reports. Mobile apps allow SBOs to run payroll on the go.

Virtual or online meeting tools: These allow users to create a ‘virtual meeting’ in remote locations by combining visual and audio access. Using their own hardware, attendees can see and hear each other and also view the meeting leader’s PC screen – a plus if the meeting includes a presentation.

Marketing: This can be one of the biggest cost challenges for small businesses. A typical mailing tool allows users to design email marketing campaigns and distribute them to user-generated mailing lists. Campaigns can incorporate graphics and other user-friendly elements, and many tools are free as long as your campaigns meet distribution limits.

Small-business owners: 84 per cent in a recent survey say technology, especially online tools, helped their businesses grow. With more tools emerging every year, small businesses are able to operate more efficiently, serving more customers quickly and with lower overhead costs.