Small Businesses Need To Invest In These Four Technologies
North American Precis Syndicate
Anthony Bradley (NAPS)
by Anthony Bradley, GVP of Research, Capterra
(NAPSI)—Because they operate on razor-thin margins, small-business
owners and managers may be tempted to put technology expenses near the bottom
of any priority list. After all, small businesses have many fires to put out—and
investing in a new technology tool can seem like a problem that can wait.
But technology is a double-edged sword: Used correctly, it increases
productivity, brings savings and gives you a competitive advantage. Ignored,
it lets your competitors use it against you. And it’s worth remembering
that business software is the driver of technology value; without it, your
hardware is useless.
Software can be a thicket of specialty areas and product names: Which tool
should be purchased now and which can be put off? Capterra
recently surveyed small and midsize businesses (SMBs)
and asked them about their 2019 and 2020 purchasing intentions and budgets
for business software.
The 2019 Capterra SMB Spending Survey
illustrates four clear software categories that small-business leaders are
prioritizing and can help other companies understand the competitive
landscape and prioritize technology investments.
1. Finance and Accounting: This
is the standout tech category, with 53.6 percent of respondents budgeting for
it. If you don’t correctly handle your accounts receivable, accounts
payable, sales taxes, income taxes, reporting and audits, you’ll derail
your business—it’s that simple.
Among businesses investing in this technology, banking and construction
lead the way, with over 60 percent of respondents budgeting for finance and
accounting software. Transportation and wholesale industries have the highest
average spend at $56,330 and $53,850. More findings include:
• Transportation and wholesale businesses should expect to budget
between $50,000 and $55,000 for finance and accounting software in the next
12 to 24 months.
• Media, government, manufacturing, banking and retail should
consider budgeting between $30,000 and $40,000 for finance and accounting
• Other businesses should consider budgeting between $10,000 and
$30,000 for finance and accounting software.
2. Cloud Computing: This year,
cloud software is the second most prevalent technology, with 47.8 percent of
businesses surveyed budgeting for it. It delivers all the power of FAMGA (Facebook, Apple, Microsoft, Google, Amazon).
Cloud-enabled Software as a Service (SaaS) gives
small businesses subscription-based access to robust business software and
data storage technology. Industry experts suggest:
• Insurance and transportation businesses should expect to budget
between $40,000 and $50,000 in the next 12 to 24 months for cloud computing
• Businesses in the services, communications, manufacturing, health
care, banking and education sectors should consider budgeting between $30,000
and $40,000 for cloud business software.
3. Data and Information Security:
Over 40 percent of all industries budget for data security. Research shows cyberattacks can cost small businesses $84,000 to
$148,000 per incident and that 60 percent of SMBs
that are hacked go out of business within six months. The average budget spend on data security takes a tiered shape for
business size. Larger businesses with more data, more customers and more
employees will need more software licenses and greater functionality. Expert
• Government agencies (and those that work closely with them) should
plan on budgeting between $40,000 and $50,000 for data security in the next
12 to 24 months.
• Those in the education industry should anticipate
a $40,000 spend.
• Retail, construction, health care and wholesale should expect to
budget close to $20,000.
• Other sectors may gain competitive advantage with a data security
budget between $30,000 and $40,000.
4. Digital Marketing: This
year, 45.1 percent of SMB respondents plan to budget for digital marketing
campaigns and tools. This is natural, given that ROBO (research online, buy
offline) buying behavior is now the norm. Up to 88 percent of buyers do
online research before purchasing in a store.
The survey uncovered that digital marketing spend tracks with business
size. At 60 percent and 50 percent, media companies and retail businesses
have the highest percentage of smaller firms investing in digital marketing.
Most industries are between 40 percent and 50 percent. More findings include:
• If you’re a smaller business in the media or retail sector,
plan to spend $10,000 to $25,000 on digital marketing over the next 12 to 24
• If you’re a midsize business in the media or retail
industry, plan to spend $35,000 to $45,000 on digital marketing over the next
12 to 24 months.
• If you’re in another industry (especially insurance), you
may gain a competitive advantage with a digital marketing budget between
$20,000 and $40,000.
Businesspeople know it’s vital to find out where competitors are
going. These results should indicate where your sector is headed and what
technology to prioritize. Detailed information on survey findings—and
over 500,000 verified reviews for every type of software—is on the Capterra site.
For more information about how small businesses can make smart technology
investments, visit www.capterra.com.
“Used correctly, technology increases
productivity, brings savings and gives you a competitive advantage. Ignore
technology, and competitors can use it against you, advises Anthony Bradley,
GVP of Research, Capterra. http://bit.ly/2Bl6ZfK”
On the Net:North American Precis Syndicate, Inc.(NAPSI)