To save money on operational costs, most small business owners utilize free applications or outdated technologies to complete daily tasks. While this concept may be necessary for the beginning stages, these options are no longer efficient once your business expands. Unfortunately, most entrepreneurs don’t realize this fact until things go haywire. From employee burnout to poor work quality, these platforms’ continued use limits a company’s ability to maximize its resources and achieve success.
As it can be challenging to identify these issues before things get out of hand, here are a few signs that it’s time to upgrade your company’s software.
Takes Up Too Much Time
One of the first signs that you should invest in advanced business software is when current tasks take you too long to complete. For example, if you’ve been manually entering customer data into a spreadsheet, and it sets you back several hours, this method is no longer viable. The more time you spend on this task, the less time you have to focus on core business practices.
Entrepreneurial Burnout
Novice entrepreneurs often take on a bulk of the responsibilities to avoid hiring staff. They work from morning till night, trying to complete their extensive to-do list. Before long, small business owners start to feel overwhelmed. This type of stress often results in burnout. If you’ve been feeling emotionally and physically taxed, you should invest in new software. Continuing to work these long hours while neglecting personal needs is a disaster waiting to happen. Eventually, you’re incapable of managing the business in any capacity.
Human Error
The problem with using old-school methods to complete specific tasks is that it leaves room for human error. For example, some entrepreneurs use Excel spreadsheets for revenue forecasting, budgeting, and other accounting tasks. While an affordable option, one incorrect entry could result in financial inaccuracies that cost you big. If you or your accounting staff frequently find errors when double-checking financial reports, an upgrade is vital.
Collaboration Problems
Whether you’re sending estimates, invoices, or completed projects to clients or your internal staff are working on a new marketing campaign, efficient collaboration is required for success. If you’re still relying on emails to send clients or department personnel data, you should reconsider this method. For instance, if you send someone an excel spreadsheet via email, it could get lost in their inbox. There’s also the possibility of everyone working from a different version of the document, which causes confusion and wastes time.
Security Breach
Hackers have gotten more advanced in stealing company data. From customer information to business financial accounts, if you’re using outdated software or methods to access and store this data, you’re taking a significant risk. Leaked or stolen customer information could lead to bad reviews, dissatisfied customers, and lawsuits. If a hacker gets into your financial accounts, they can easily manipulate information, complete transactions, and even drain your funds.
Employee Complaints
Employee morale goes hand in hand with workplace productivity. If your employees are dissatisfied, this worsens their mood and impedes on their performance. In some instances, talented employees quit for better opportunities, which results in the need to hire new staff (a costly and time-consuming process). If your team expresses their frustration with existing software or procedures, it’s a telltale sign that you need an upgrade.
Client or Customer Complaints
If you think dealing with disgruntled employees is bad, imagine a frustrated client or customer. If you’re not providing high-quality services in an efficient timeframe, you could ruin your reputation. From bad reviews and Better Business Bureau complaints to missed opportunities and lawsuits, bouncing back from this is challenging – especially for newly established businesses.
Inconsistencies With Hardware
Most companies utilize hardware like computers, laptops, tablets, and smartphones to conduct business. These devices have operating systems that periodically update. If you’re using outdated software, you may find that it’s not compatible with your hardware. If this does occur, you’ll find it difficult to access data and complete daily tasks.
There’s no denying that running a business is expensive. That’s why entrepreneurs are always on the lookout for ways to save. Though using free or outdated software and business practices are common, it is not ideal for long-term use. If you’ve noticed any of the above red flags, it may be time to evaluate your budget and make room for software updates.
