Young people in modern office concentrating on tasks while using technology
It can be difficult to decide how to spend money on technology for your business. Here’s how to determine the technological investments that will best suit your needs. — Getty Images/xavierarnau

In our Startup2021 series, we're helping aspiring entrepreneurs navigate the business climate of the COVID-19 era. Each week, we'll share an in-depth look at one step you can take toward launching your business in 2021.

To small business owners both new and established, the value technology provides is clear; however, with tight budgets and lofty goals, it can be difficult to decide how to spend money on the technology that will afford your business the best ROI possible. Here’s how to determine the technological investments that will best suit your business.

Business areas where technology offers the best ROI

Technology solutions for your internal team

Employees make your business successful, so it’s important to find the best ways to invest in them. Investing in technology solutions for your internal team allows you to retain top talent and gain productivity from your current employees. HR management tools can keep you from becoming the bottleneck in your system and give your employees the autonomy to perform their duties. With these tools, employees aren’t kept waiting for approval or completion of certain tasks.

Attendance software can keep track of the hours your employees work, as well as help streamline the PTO approval process without losing valuable work time. You can also create employee development opportunities by providing them with the technological tools they need to strengthen their professional skills like online classes, certifications and software training.

Technology that levels up your customer service

As technology persists as the best global connectivity tool, customers are beginning to demand a more customized, effortless experience from brands they trust. Regardless of your industry, it’s important to adopt technology that helps automate responsibilities and gives insight into customer behavior to move prospects along the pipeline faster, all while making more sales and offering a unique customer experience.

[Read: 5 Small Businesses Reveal the Online Marketing Tools They Can't Live Without]

Working with customers can take hours of your time as a new business owner. To save time, try investing in innovative technologies that will help handle customers more easily and efficiently. Customer Relationship Management (CRM) software is a great way to personalize customer communication and track your sales progress. You can also invest in mobile apps or chatbots on your website to help answer potential customer questions or nurture qualified leads.

Technological solutions can improve how efficiently your business operates. Look for technologies that can streamline tasks and processes that take up a lot of your team’s time and effort.

Benefits of investing in technology

Reduce costs

Technological innovations give you and your team the chance to automate tasks that normally take a considerable amount of time to complete. Investing in technology can seem like a large investment at first, but over time, technology such as cloud computing and automation can save you money in the long run.

Increase revenue

To drive revenue, it’s crucial to provide your customers with superior service. Technological advances level up your business’s capabilities while giving you the ability to personalize each customer interaction.

Improve efficiency

Technological solutions can improve how efficiently your business operates. Look for technologies that can streamline tasks and processes that take up a lot of your team’s time and effort. These automated capabilities will give you more resources to create new solutions that drive sales.

Promote innovation

By introducing new technologies into your business, you’ll be able to pivot in times of instability and lead in your industry. For example, companies that had technological advancements in place such as cloud computing were able to adapt to stay-at-home orders in 2020.

[Read: 10 Tech Tools To Scale Your Business]

Technology mistakes to avoid

Forgetting to maintain your tech

The best technological investments require maintenance and regular upkeep to function at their best. Remember to backup your computer system and update its software each time there’s a new update.

Neglecting security measures

IT experts have seen an increased amount of hackers and those committing data theft. Remember to install malware protection on your technology devices and keep an eye out for online scams or security breaches. Make efforts to protect your intellectual property.

Choosing cheap equipment

While it may seem like a good idea to buy a cheaper piece of equipment, it’s important to do your homework beforehand to see if this will be the best investment for your business. When business owners cut corners on equipment, they usually end up paying more long-term with replacements and costly repair services.

Not backing up your data

Your data is valuable and a loss due to an incomplete or failed backup can be devastating. Check your backup equipment regularly to ensure it’s capturing everything. If you’re unsure, always have a backup to your backup such as a USB drive.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

Follow us on Instagram for more expert tips & business owners’ stories.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

Logging into too many apps to run your business?

Our COmpass platform pulls all your apps into one dashboard where you can see key business insights using just one password. Make better, smarter, more insightful business decisions everyday.

Learn More

Brought to you by Squarestack

Published September 13, 2021