Article | June 23, 2021
The start of the COVID-19 pandemic created unprecedented demand for digital marketing irrespective of large businesses or small-medium businesses. Along with it, the pandemic brought the ever-increasing demand for tech stack in business. Business tech trends are important for small business owners in 2021 that play a vital role in the growth and efficiency of their business. Growing business and start-up tech stack issues for small businesses differ from large enterprises.
Tech stack has been in marketing for ages, yet it was the most neglected aspect by small business owners. However, the emergence of the pandemic brought business technologies for small businesses into action. Embracing technology is crucial to enable your company to equip with the right tools to find the solutions for the ever-changing demands and expectations of consumers.
Small business technology trends will be substantial/significant in 2021, and here are the best 7 small business tech stacks to reshape your business.
What is a tech stack?
A Tech stack is a set of technological tools used to build applications for web or mobile, software, and other operational tools. Tech stack is also called a solutions stack, technology infrastructure, or data ecosystem. As more and more businesses have started operating through computers and mobile devices, the tech stack has become a necessity to the app, web, or software development process.
About 89% of companies are going digital; thus, adopting it as their first strategy for business, the demand for technology is also growing. The technology stack is used for various reasons: sales, human resources, finance, digital marketing, operations, and analytics.
Why businesses need tech stacks?
Tech stack helps small business owners leverage capital in more effective and smarter ways. You will benefit from building your tech stack, whether you manage a large company, a start-up, or a solopreneur, and automate some processes. Your tech stack defines how different parts of your business fit together and interact. The right tech stack can streamline all your processes and help your team increase efficiency, improving your bottom line.
Top 7 Small Business Tech Trends for 2021
Artificial intelligence (AI) and machine learning
The rise of artificial intelligence and machine learning is a significant trend and has transformed the way businesses are operating today. Most of the solutions are now implementing AI technology, where small business owners can include them in new and existing processes in 2021. Soon artificial intelligence (AI) will be widely adopted by small businesses in 2021 as it offers more personalized experiences to their customers by automating manual tasks and saving time. AI acts as an automation tech stack in business operations. AI will be implemented into new and existing processes and on a broader scale in 2021, from voice assistance to personalized customer experiences.
AI-based tools offer various benefits, which includes:
• Reducing time spent on tasks
• Increasing results
• Lowering costs
• Reducing risk
• Improving flexibility and responsiveness
Here are a few existing AI solutions that can help your small businesses.
AI-infused CRM is a marketing and sales tech stack for businesses. It helps to improve sales and marketing. Customer-relationship management is nothing but a system designed to collect customer data through communication channels such as phone, emails, and social and thus helps to automate and boost the sales process. It is a significant small business tech stack that helps small business owners to identify and focus on audiences based on the customer feedback received through all those communication channels. Based on this information, you can adjust marketing and lead generation activities through implemented AI-infused CRM. AI-infused CRMs can be utilized to gather marketing and sales-related insights
AI-infused CRM can be the best marketing tech for small businesses.
AI-powered Chatbots is one of the effective small business tech trends. It automates customer communications. Many small businesses do not have strong customer service or sales teams. In such a case, AI-powered Chatbots can ease the pressure by working 24/7 without taking any breaks. Furthermore, AI-powered chatbots handle inquiries, improve customer experience, troubleshoot, and provide immediate support, and so on, all at the same time.
Streamline human resource tasks
The most unexpected arena that AI has made an entry is into human resources. AI tools streamline the hiring and onboarding process and acquire feedback from the new employees about improvisation required in the HR process. It saves time and money from manually interviewing every applicant. According to small business trends, 84% of small businesses still manually manage inventory and record data.
5G is a super-fast new global wireless fifth generation of cellular capability replacing 4G LTE connection. 5G promises faster data transmission speeds, a better and more consistent user experience, and improved network reliability, eliminating delay in data transfer between different devices’ communication. Small businesses can leverage IoT sensors of 5G by optimizing their workflow with automation, operating CCTV cameras, or placing a motion detector in a store during after-hours. According to Statista 2021, there will be more than 1.9 billion 5G subscriptions worldwide by 2024. 5G is a significant innovation for small business tech.
Comprehensive HR Technology
The need for comprehensive human resources software and tech by small and medium-sized businesses gained importance in 2020 due to the remote work in practice. By adopting this technology, small businesses can track their employees and their needs. This trend will continue in 2021, too, and can bring change in small business tech.
HR tech comprises the tool that HR managers will need to deliver a better employee experience. HR tech allows to store data, automate daily activities, reduces human errors, and maximizes productivity. A centralized HR system will help your employees to communicate better. Comprehensive HR tech helps to train your employees online and offline and allows you to track your employees regularly.
As a result of the pandemic and lockdowns, the major business shifted to mobile tech, online shopping, and mobile scheduling payments to establish a contactless shopping experience to their customers. However, this trend of making payments and shopping will continue in 2021 as well. Many retailers and small businesses rely heavily on online shopping, delivery, and mobile payments giving rise to popular eCommerce tech trends such as voice-activated payments, omnichannel shopping, augmented reality shopping experience, and mobile tech among the few. Tech-assisted shopping can benefit small business tech trends as it emphasizes convenience.
More Automation for Small Businesses
Automation was a buzzword for small businesses until 2021. Automation for small businesses saves enormous amounts of precious time and money on manually completing the tasks. The largest of the budget of small businesses will be spent on automation in 2021. Automation investments will increase as small businesses include online pricing automation and inventory management systems to conveniently solve their problems. Estimates say that there would be a boom in companies looking out for utilizing automated solutions for small business activities.
Additionally, automation tools improve sales, revenues, communication, create and manage invoices, increase customer experience, and much more. Automation increases the efficiency and productivity of small businesses. It is one of the core aspects of small business tech.
More Influencer Marketing
Influencer marketing is new-age marketing. It is also known as social media influencers, wherein you use the people having a strong influence on a brand’s industry or target audience. Influencer marketing is a dynamic form of the marketing strategy of 2021. Small businesses cannot afford to use a big celebrity or a high-profile influencer in influencer marketing. In such a situation small business can find a blogger, Instagrammer, or YouTuber that most of the audience relate with and join forces with them to recommend or promote their services, products, and brand. Besides, you can personalize the marketing strategy that will help you effectively connect with your customers, improve marketing campaigns, and create a niche within your industry. Thus, influencer marketing is the best marketing tech for small businesses.
With the modern workplace and innovation of more and more tech solutions, small businesses are also adopting new technology tools, thus giving rise to the need for software integration. Integration platforms allow any software to connect well with any other software. It brings various software together to make one unified software. Companies use various software to connect teams, manage customers, send important documents and store company information, respectively. The small business adds technology tools as they appear, which are necessary to complete the aspects of daily operations. Tech stack includes many components such as CRM, content performance and search, customer experience, social, and digital analytics. All these need to be accessible while working together. In such a situation, integration makes the tech stack streamline all the processes and enable team efficiency.
Technology integrations allow more data, eliminating errors speedily, and is also a low-cost technology. The key aspect of a tech stack is how seamless, and integrated technologies are.
Frequently Asked Questions:
How small business owners use technology to improve the business?
The use of technology enhances small businesses. Small business owners use technology to connect with people, provide better customer services, resort to remote workplace methods, automate tasks to save time, and much more.
What technology do small businesses need?
Small businesses must have some popular technologies such as HR software, Cloud computing, CRM, data and information security technology, mobile applications, etc.
Why do small businesses need technology?
Technology helps to save time and physical space for small businesses. The use of technology brings efficiency to operations. Technology helps small businesses to leverage their capital smartly and more effectively.
What are the 3 tools for small businesses?
The tools that can benefit small businesses are task management tools, email and social marketing tools, and scheduling meeting tools. These tools help small businesses to save time and money for their business to grow.
"name": "How small business owners use technology to improve the business?",
"text": "The use of technology enhances small businesses. Small business owners use technology to connect with people, provide better customer services, resort to remote workplace methods, automate tasks to save time, and much more."
"name": "What technology do small businesses need?",
"text": "Small businesses must have some popular technologies such as HR software, Cloud computing, CRM, data and information security technology, mobile applications, etc."
"name": "Why do small businesses need technology?",
"text": "Technology helps to save time and physical space for small businesses. The use of technology brings efficiency to operations. Technology helps small businesses to leverage their capital smartly and more effectively."
"name": "What are the 3 tools for small businesses?",
"text": "The tools that can benefit small businesses are task management tools, email and social marketing tools, and scheduling meeting tools. These tools help small businesses to save time and money for their business to grow."
Article | August 30, 2021
Human resources are a subjective term to each individual and a business entity. Many small firms overlook human resource departments, believing them to be time-consuming, so they do not engage human resource specialists to assist with business operations. Instead, they attempt to manage the tasks either directly or by delegation to current workers. However, human resources benefit both the business and future workers. This blog gives information on small business human resources in detail.
According to connecteam, 54% of small firms manage employment and other human resource activities on their own to save money; nevertheless, this type of management presents several challenges and frequently blows up in their faces.
According to the Bureau of Labor Statistics, human resource management professionals will see a 10% increase in employment between 2016 and 2026.
HR is crucial in a small business from recruiting and retention through payroll and benefits. The shortcomings in any of these things result in:
Penalties for non-compliance
Inefficiencies that cause your manufacturing cycle to slow down
Above mentioned points define that you cannot underestimate the importance of HR support for small businesses.
Employees are one of a corporate organization's most valuable assets. So, it is needful to protect them. Therefore, human resources requirements for small businesses are essential.
Let us Know What Human Resource Management is
The Small Business Association (SBA) defines human resources as:
"The people who work for a company or organization"
"The department of a company that is responsible for managing those resources."
Human resource management (HRM) is concerned with your workers, whether they are hired, managed, or require other types of direction and support. Human resource management involve significant duties; some basic human resources requirements for small businesses should be considered and fulfilled. They are those who establish the tone for how employees interact,resolve conflicts, and collaborate.
There is a new trend in human resource outsourcing, and some small businesses are deciding to outsource a significant component of their human resources.
Responsibilities of Small Business Human Resource Management
Recruitment and selection
Education and development
Compensation and benefits
Retention of employees
Creating an atmosphere that is safe, healthy, and productive
Benefits of a Human Resources Department
Ensure a safe and healthy work environment
Attract and retain high-caliber individuals
Access Human Resources Anytime, Anywhere
Access to Employee Benefits at Large Corporations
Contribute to Time and Energy Savings
Fundamental Component of Human Resources
For small businesses, employing dedicated people in meaningful work can enhance performance, loyalty, and retention. Thus, in combination with the human resources manual for small businesses, the human resources department supports them in achieving their goals. This is accomplished, however, by increasing workplace happiness, making judicious use of existing resources, and developing an efficient expenditure model.
by boosting workplace satisfaction, judiciously utilizing available resources, and establishing an effective expenditure model.
With the clearly defined human resource policies and best practices for small businesses, you can assist workers in their growth and in contributing their expertise and knowledge for the growth of the firm.
Whether a small or a large business, the success of a corporation is highly dependent on its ability to manage both internal and external stakeholders successfully. The HR department very well accomplishes this.
Below Are Some Human Resources Requirements for Small Businesses.
Maintaining employee records is an essential aspect of the human resources manual for small businesses. Having it done guarantees that your business complies with labor rules and is protected in the event of a future issue.
Regardless of your business's size, it is requisite to gather and maintain these three papers for each employee to protect yourself and your company.
I-9 File: The US Government utilizes this form to determine and verify the eligibility of your personnel to work in the United States.
Personnel General File: This section covers the paperwork and certificates obtained from workers throughout the employment process. This includes resumes, verification of training, W-4 forms, payroll information, and disciplinary actions.
Medical Records of Employees: This file may contain doctor's notes, information on a disability, or information about a medical check-up. The information contained inside is confidential and must be kept secure against unauthorized access.
Employee's guidebook is a vital aspect of small business human resources element. The handbook includes an idea of expectations, best practices, and requirements.
It also includes:
The organization's vision, objectives, and values
The code of conduct
The anti-discrimination rules
The safety and security regulations
The non-disclosure agreement
Work schedules (covering how to monitor time, take leaves, and notify management of leaves)
Other general information not required by law
Posters That Are Required
The nation's or state's laws in which your business operates may require you to publish information at your place of business or in an easily accessible location. Additionally, the Department of Labor (DOL) requires posting certain labor law posters in the workplace.
While many business owners believe that small business human resources costs are redundant, a human resource department may have a significant influence on your workers' well-being and the success of your firm. Unfortunately, many employees quit their employment due to poor or non-existent human resource management.
Frequently asked questions:
Does a small business need human resources?
Every business, regardless of size, must have a human resources department or at least one person dedicated to HR duties. HR simplifies many duties for business owners, allowing them to focus on other critical elements of operating the firm. In addition, human resources can do a variety of tasks that other employees are unable to.
What are the essential human resources requirements for small businesses?
Human resources are the bedrock to your organization because it is responsible for hiring skilled workers who appreciate your corporate culture. The most critical human resources requirements for small businesses to succeed are:
Employee development and training
"name": "Does a small business need human resources?",
"text": "Every business, regardless of size, must have a human resources department or at least one person dedicated to HR duties. HR simplifies many duties for business owners, allowing them to focus on other critical elements of operating the firm. In addition, human resources can do a variety of tasks that other employees are unable to."
"name": "What are the essential human resources requirements for small businesses?",
"text": "Human resources are the bedrock to your organization because it is responsible for hiring skilled workers who appreciate your corporate culture. The most critical human resources requirements for small businesses to succeed are:
Employee development and training
Article | April 7, 2020
The main US COVID-19 website outlines the American Government’s response to the coronavirus. Currently, the primary source of business information is US Centers for Disease Control and Prevention (CDC), which has a guide to the outbreak. Key sections include:
Article | July 29, 2021
The first and crucial part of building your small business is setting up finance for your business. Overhead costs for small businesses are also included in this broad category of business finance. An old proverb, “You need to spend money to make money,” gels perfectly with the business notion.
Business owners spend a lot of money creating a product or service, which is considered “direct costs.” Some expenses are not directly related to the creation of a product or service but aid in the operation of your business; these are referred to as "overhead costs" or "indirect costs." However, from an accounting standpoint, overhead costs are not considered expenses at all.
Small business owners have a lot of costs to consider especially overhead costs. Here are a few examples of overhead costs: a business license, accounts payable, invoices, office supplies, accounting, and legal fees, bank fees, and many more to pen down.
Business owners are behooved to be careful and make sure that their expenses should not outweigh their income. Business overhead is one area that most businesses face, and it is worth investigating further and managing it accordingly.
Overhead expenses consume most of the remaining space on your profit and loss statement. However, cutting your overhead costs will improve your business finances.
Let us further discuss few aspects of overhead costs and how to reduce overhead costs for small businesses.
What Are Overhead Costs?
Overhead costs are the indirect but requisite expenses for running a business. These costs do not directly generate revenue for the company, but they do not change as your business grows. Overhead costs must be borne even if no products or services are produced or sold for a period and cannot be
Here are few examples of overhead costs for small businesses:
Electricity bill, gas, water, internet, etc.
Rent for office spaces, warehouses, etc.
Business licenses and permits
Marketing and advertising materials.
Salaries and wages
Insurance for vehicles, employees, and properties.
The key is to keep track of your overhead costs and not let them interfere with your efforts to grow your business and turn a profit.
Once your concept of direct and indirect costs is cleared, the calculation of overhead costs becomes relatively easy.
Types of Overhead Costs
The overhead costs are divided into three main categories that can directly affect your small business fixed costs, variable costs, and semi-variable costs. Fixed costs are easily trackable. Below are few types of overhead costs for small businesses.
Fixed Overhead Costs
The majority of your business expenses fall under fixed overhead costs and do not change regardless of the profit earned by the company or change in the level of output; it remains the same each month. Fixed costs are easily tracked and managed as well.
Fixed costs are pretty predictable and are required to keep a business running smoothly.
Few examples of fixed overhead costs
Renting a manufacturing facility or a corporate office.
Fixed asset depreciation expenses.
Software subscription fees.
Fixed overhead costs are stable and do not deviate from the amounts budgeted for them. However, there are a few exceptions, such as if sales exceed what the company budgeted for, in which case fixed overhead costs may rise as new managers and administrative staff are hired. More employees are added to the company.
Similarly, if you decide to purchase a few additional pieces of machinery to increase production, this will result in a permanent change in fixed overhead costs.
Variable Overhead Costs
Variable overhead costs are those that change depending on the business activity, such as sales volume. Variable costs rise as your sales rise and fall as your sales fall. Variable overhead costs, as opposed to fixed overhead costs, vary from month to month.
Here are some examples of variable overhead costs:
Maintenance of equipment.
Unless the number of workers increases or decreases with production volumes, the labor involved in the production, or direct labor, may not be a variable cost.
Semi-Variable Overhead Costs
Semi-variable overhead costs have qualities of both fixed costs and variable costs. A business may incur such costs at any time, though the exact cost will vary depending on the level of business activity.
Utilities are classified as a semi-variable expense. These costs are only fixed up to a certain level of output. For example, the office’s electricity bill is a monthly cost but varies as per the season.
Semi-variable overhead costs include:
Utilities (power and water costs).
Company vehicle expenses (i.e., gas).
Ways to Reduce Your Overhead Costs
Going paperless is a simple way to save money. Although it may not appear to be a high cost, paper and ink do add up. Instead, adopt technology such as a cloud-based system to store all of your vital corporate data online. This will save you time and money while also allowing you to keep track of details for a more extended period. In addition, going paperless is cost-effective too.
However, going digital also reduces clutter and makes it easier for business owners to stay organized. In the event of a computer or program failure, make sure you have a backup of all your documents.
Going paperless is an intelligent decision to reduce overhead costs for small businesses because of few advantages such as being environmentally friendly, easy access, and digital file system easy to organize.
Create a Systematic Purchasing Process
It's a good idea to appoint one person in the company to handle, examine, and authorize purchases so that he can see all the expenses that management plans to incur before they're paid. In addition, negotiating contracts and placing office supply orders should be the responsibility of this person.
By putting one person in charge of purchasing, that individual can devote all of their time to finding the most incredible deals. The individual in charge of purchasing should be a skilled negotiator who is not hesitant to ask for a discount. Request that your purchasing manager go shopping for better prices on the things you buy frequently. Consider rewarding your purchasing agent with a bonus if they achieve specific cost-cutting goals without sacrificing quality.
Purchasing equipment such as computers, photocopiers, and other necessities every year is a significant expenditure. As a result, leasing equipment is frequently the best option for businesses looking to reduce monthly costs. Renting or leasing equipment makes it easier to upgrade to newer versions of computers and other equipment. Additionally, while leasing, costs such as equipment repairs and maintenance will be reduced if not eliminated.
Tax benefits are frequently available for equipment leases. In addition, depending on the lease, you may be able to claim your payments as a business expense by utilizing specific legal provisions.
Leasing equipment is one of the most productive ways to reduce your overhead costs for small businesses.
Market to Your Existing Customers
Marketing to your existing customers can be a good strategy to reduce costs. This step reduces your marketing costs and shows that you care about rewarding loyalty, which gives your brand a boost.
Customers who are happy with your products or services are more inclined to tell their friends and family about them, and word of mouth is still the most effective marketing method.
Organic promotion from peers is more likely to be trusted by potential customers than paid advertising.
Choose a Business Credit Card That Suits You
Choose the best business credit card that suits you for your business expenses. Your company can benefit from credit cards in several ways. For example, Cash-back benefits, travel miles, or a point system are all available on cards targeted for corporate use.
When buying office supplies and paying for travel expenses with a credit card, these incentives can pile up quickly. First, examine the annual fees and interest rates associated with your credit card. Then, it could be time to apply for no-fee credit cards with lower interest rates.
Choose a credit card that is ideal for your company, particularly in credit limits, interest rates, and fees. This could be one of the methods to your cost-cutting.
Frequently Asked Questions:
What are typical overhead costs?
Overheads are business costs associated with the day-to-day operation of the business. Accounting fees, insurance, advertising, legal fees, interest, labor burden, rent, supplies, repairs, taxes, travel expenses, phone bills, and utilities are examples of overhead expenses.
How do you calculate overhead costs for a small business?
Divide the total overhead costs of the business in a month by the monthly sales to calculate the overhead rate. To calculate your overhead rate, multiply this figure by 100. A lower overhead rate indicates greater efficiency and profits.
Are overheads fixed costs?
Typically, overhead does not fluctuate with increases in product production, which is why it is a fixed cost. Mortgage or rent for buildings such as the corporate office are examples of fixed costs.
"name": "How to write resolutions for small businesses?",
"text": "Examine all aspects of your small business from the previous year to create a solid list of resolutions for the coming year. Consider your successes and failures and work to alleviate them."
"name": "What is a resolution for a business?",
"text": "In business, a resolution is a proposal made during a meeting of the company's shareholders or directors. It is discussed, and its approval represents an official confirmation of any action that the company will take. Resolutions are classified into four types: elective, extraordinary, unique, and ordinary."
"name": "Why should every business have a resolution?",
"text": "Resolutions help to focus your efforts and energy on new goals and reaching new heights. In addition, resolutions enable business owners to understand where they can increase efficiency and grow over the coming year."