Across every industry, advances in technology are changing how businesses operate in both large and small ways. In many cases, these changes are improvements, as they can lead to more streamlined processes and higher profit margins. However, small businesses especially can be caught between a rock and a hard place when it comes to keeping up with the latest technological innovations in their sector, and there are several major reasons for this struggle.
When it comes to the implementation of new technology, the discussion always circles back to cost. The costs associated with installing and integrating new technology aren’t fully reflected in the purchase price of the system or software either, and adding a tool to address one issue can cause other problems down the road.
- Keeping Things Running – one of the major sources of expense for small businesses in relation to technology is simply the cost of keeping their system up and running. Maintenance and repairs are essential, especially when having a computer system go down means lost revenue for your company, but these systems don’t run on their own, and service doesn’t come cheap.
- Hiring IT Talent – There are few professionals more in demand than those with substantial IT knowledge. Many small businesses outsource this with mixed results, while others find themselves having to pay high salaries in order to keep a quality IT employee around.
- Knowing When to Upgrade – Of course, it’s easy to see the potential benefits of having the most state-of-the-art systems working for you, but these systems inevitably come with a hefty price tag. The rate of technological change also means that what’s cutting edge today may be all but obsolete tomorrow, and so businesses have to weigh the potential costs and benefits constantly to determine when to upgrade and how much to spend.
- Keeping Customers Happy – If your system crashes, it will almost certainly mean lost revenue for your company. But even if it’s just slow or cumbersome to use, customers can get impatient and take their business somewhere else. Many small companies especially find themselves stuck having to provide the type of online options their competitors do but not having the budget to implement it in the same way, leading to dissatisfied customers and lost sales.
- Security – While ensuring the security of systems is essential for any company, the software required is often expensive, and with so many options out there, it can be hard for many small businesses to even know where to begin.
For all of these reasons and more, the rapid pace of technological advancement in today’s society poses new and complex challenges for businesses of all sizes. In that context, having proper cyber insurance and other business insurance coverages in place is more important than ever, and we offer a great range of all of these that can be tailored to fit your particular situation.
So, to learn more about how we can work together to help your business succeed, contact our offices today.