Small Business

Embracing Automation, the Positive Impact of Technology on U.S. Small Businesses

By Matthew Feierstein, President of EverCommerce

I grew up in a family of small business owners – my father was a doctor who ran a small orthopedics practice, and later my family and I ran a competitive cheerleading training academy. I learned first-hand, from a young age, how challenging it can be to run a small or medium-sized business (SMB). It takes passion, dedication, and commitment to support the business and its customers to find true success.

With that intense pressure to both survive and thrive comes the challenge of maintaining a healthy work-life balance — especially if you do not have the proper systems in place to keep your businesses running smoothly at all times. 

Yet small businesses have a tremendous advantage: Customer Service. Consumers will often choose to patronize a locally owned shop because the customer service is just better (think about how the local coffee shop owner knows your name, versus the ubiquitous chain). Maybe it’s a little less efficient, but for many consumers, the customer experience is what matters at the end of the day.

That’s why it’s no surprise that small and midsize businesses make up 99.9% of all U.S. businesses and serve as the backbone of the economy. Despite lingering COVID-related challenges and rising inflation impacting the global economy, 69% of North American service-based small businesses reported moderate to healthy recoveries from COVID-related anomalies. This past year alone, there was a 61% increase in demand across field services, home improvement and healthcare, with field services businesses reporting the largest increase of 83%.

To continue thriving in this uncertain economic state, while carving out a little space for work-life balance, SMBs need to combine their well-deserved reputation for personal service with the operational efficiencies that technology can provide.

Transformative Technology

When it comes to selecting and implementing the right digital solutions, SMB owners have to approach this decision with their entire team and broader operation in mind. While the transition may feel minor at times, these changes can make a big impact that is felt in all corners of their business.

In a small business operation, inertia can be very real. Small business owners often know they have a pain point, but behaviors, processes, and systems need to change before they can implement a solution. Meanwhile, they have supplier bills to pay, shelves to restock, employees to train, and a whole list of other priorities.

However, with the right technology, the payoff can be quicker than you might expect. Despite the initial investment, with the right set of technology solutions, SMBs will most likely be able to minimize certain expenses and generate process efficiency over time, which in turn makes things easier to do. If SMBs are struggling with access to capital or ongoing employee shortages, the efficiencies that could come as a result of the implementation of a new solution could be their most effective asset against the headwinds they are fighting.

Embracing Automation

In some circles, “automation” is a scary word that is associated with either robots or layoffs. As it relates to small businesses, automation means streamlining operations so that you can spend more time doing what you love — spending time with family and connecting with customers.

Automation gives businesses the power to be more tech-forward and provide customers with an experience that is easy to use and simple to understand. Automation also creates customer action tools, like surveys, that help businesses to better connect with customers.

For anyone beginning their automation journey, business owners should focus their attention on team collaboration and streamlining operations.

Better Collaboration Across Teams

For business owners, there is a lot to keep track of: managing schedules, making appointments, collecting payments, fulfilling invoices, dispatching employees, and tracking inventory, to name just a few.

To improve collaboration, business leaders should plan effectively and use their objectives as an organizational guide for their teams. Employees will be more focused on their tasks at hand and in turn will have more time to spend building the business and with customers due to the minimal time they are now spending on behind-the-scenes operational tasks.

By implementing technology tools that automate much of the manual processes, collaboration among employees will ultimately improve. That, in turn, will reduce the risk of miscommunication and errors that can occur with employees and teams across different functions or locations.

Streamlining Day-to-Day Business Operations:

Businesses are run more effectively when their operations are streamlined. This helps save costs, generates more revenue, and leaves more time to properly engage with customers.

The technology that SMBs choose to adopt to streamline operations is also incredibly important. SMBs should focus on integrated technologies rather than cobbling together a variety of solutions, as these tend to create a more cohesive user experience for both employees and customers.

Well-run technology platforms help small business owners start, run, and grow their businesses while also surviving economic turbulence. This is particularly true as businesses experience generational turnover within their operations and with customers. Businesses that fully embrace technology tools like business management software, integrated payments, and scheduling, for example, will find themselves outcompeting their peers, better understanding the needs of their customers, and navigating turbulent economic times.

The Future of SMBs

By focusing on transformative technology and automation, SMB owners and their teams will have more time to take care of other priorities that demand their attention rather than being bogged down by time-consuming administrative tasks.

Now is the perfect time to lean into change and utilize technology to implement more efficient business operations. How are you planning to start your automation journey?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.