Salesforce for SMBs(small and medium businesses)
Every business has a purpose be it small or large and each business enjoys its fair share of profits. Small and medium enterprises are a great start towards a sustainable future but there are many challenges to overcome. It is not easy to compete with dominant businesses because SMBs do not have the financial power and infrastructure to give large corporations a tough time. In this article we will discuss various challenges faced by SMBs and how cloud computing can help solve some of them.
SMB (small and medium businesses) Business Challenges
Forming a business is no easy task because it requires a lot of investment and the return is low. It takes years to stabilize a business and generate a healthy income. The major issues SMBs face is the cost of operating the business. Small businesses are usually owned by a single person and he/she invests all the money in to the business. The investment is quite low compared to large corporations and the need to earn profits is urgent. People usually invest their savings in to the business with a timeline of on year to make profits. The major drawback of small businesses is the urgency to make money but at the same time they incur high operating costs.
SMBs do not benefit from economies of scale because they do not order in large quantities as a result they end up paying higher prices for materials and other goods required to run a business. Owners work hard and efficiently to cut down costs in order to stay profitable. Sometimes it is not enough, SMBs barely break even in the beginning of the business and till they have a sustainable client base, they do not make any profits as well.
Secondly, SMBs have a very low return on investment unless it is a unique idea and the business has first mover advantage. A person might invest thousands of dollars but earn barely hundreds in the first 5 years. This really hurts the motivation to conduct a business and as a result failed entrepreneurs end up closing down their business to get a job. The digital world has given many opportunities to SMBs to increase their ROI but the lack of knowledge or ability to hire a specialized employee really damages the opportunity.
If you compare a company as big as Amazon to small online retailers, you know that Amazon is more trust worthy because of its vast infrastructure. SMBs cannot afford huge offices, warehouses, acquisitions and more. They rely on a small infrastructure which is great for communication but not necessarily good for growth. Most SMBs prefer to stay small because expanding the business will require double the amount invested initially. The process is painstakingly slow and can make or break your business.
IT Challenges and Why Cloud Computing And Salesforce Is The Solution
In terms of IT infrastructure, SMBs usually have just one person who manages everything from network to database to servers to equipment. This seriously effects efficiency if your business relies on IT because some aspects of IT require a lot of time and one person is not enough for the job.
As mentioned above, in a small businesses IT may be a one-person shop. The most costly endeavor in the IT department is managing data. No matter which industry you are operating in, data is key to a successful business. Data management has become extremely costly because it requires a big infrastructure which might need an upgrade every 2 to 3 years. Small companies cannot afford to invest so much on data management because they are already low on money.
SMBs are now looking towards more cost effective solutions such as cloud computing. In the next 5 years, 75% SMBs are expected to shift to cloud computing. The advancements in technology has helped save billions in cost all around the globe. Cloud computing is growing each day and major players are stepping up to bring better solutions at lower costs.
37% of small businesses utilize cloud computing in their operations and this number is expected to double by 2020. There are hundreds of cloud computing apps available that help in making your business more effective and reduce costs. Instead of hiring 2-3 experienced financial officers, SMBs can opt for cloud solutions that take care of all their financial needs.
Web 2.0 has changed how we perceive internet. Everything is going online and cloud computing is at the heart of it. Even companies as big as Salesforce are taking productivity solutions online to automate every company department processes with no hardware cost.
It allows as well integration with all major softwares used within the organizations and is very easy to maintain and use. The scalability is by fact unlimited and Salesforce will follow a small organization while it is becoming a multi-national with nearly no structural change in the IT landscape.
As a result, the cost reductions are huge which makes Salesforce an ideal solution for SMBs in the long run.
Adopting it can help SMBs overcome many problems. They can reduce costs and increase profitability in a short span of time. Cloud computing opens up more growth opportunities at low investment and they can also increase their return on investment. It is a major advantage for all departments because cloud computing makes data management a breeze along with other solutions. It is an ideal time for SMBs to switch to cloud computing because the technology is maturing and there are nearly no risks now as compared to 5 years ago.