Financial Trends Top Small Businesses are Looking Forward To

| December 25, 2012
Small Businesses Financial Trends

Small Businesses Financial Trends

The world of business moves fast and changes fast. In order to survive and be successful we must adapt and keep up. Here are some of the trends that shape the business world today and will continue to do so in the coming years.

Cloud Computing

For the coming years, more and more firms will be relying on cloud computing. This not only goes for business giants, small businesses will also need this for their success and survival. Cloud computing is simply defined as a “service” rather than a “product”. The term “cloud” actually refers to the internet, and this involves the use of internet in computing, analysing and organising data. Cloud computing allows users to access pertinent information without downloading them to their devices, it would also allow them to share and edit important work files without downloading them and sending them over and over again. A simple example of a cloud computing application is the Google Documents suite.

Cloud computing enables small businesses to analyse and organise data from their website, social media campaigns and market research. Other technologies that manage information such as Quote to Cash can help companies meet business processes.

The Advent of Mobile Payments

For the coming years, small businesses will see an increase in mobile payments. If they want to be in the trend, they must also keep up with this type of payment. Some businesses, however, may have difficulties setting up their point of sale terminal, craft businesses selling during festivals is one example. A solution for this is to sell via phone apps. Payments can also be processed via tablets.

Deal Models such as Groupon

Small businesses can save costs effectively by using deal models or flock services such as Groupon and Living Social. This is because customers want a good deal. But using such deal models pose some uncertainties, for brick and mortar businesses the use of such is quite questionable. The question is if these businesses can afford a loss in revenue over the fact that they can gain customers.

The answer here is variable; some businesses would run these promotions even though they can’t afford them while some throw themselves “into the fire”. To solve this problem, businesses should simply do a cost to benefit analysis. These promotions fit individual businesses, if you venture in one or two promotions it would be okay, but if you venture on a larger scale there is a significant risk.

Mobile Delivery of Websites

Going mobile is the set trend for the year 2012 and probably for the coming years. To prepare for this trend, businesses, especially those that are web based must consider investing in software that will make their websites appropriate for the mobile screen. B2B and B2C transaction must not only look good on mobile screen, it should function well and be able to handle transactions well in mobile.

Analysing and Preparing For Risks

Let us learn from the Great Recession and the European debt crisis. These events teach us to be prepared for all possible risks thrown to us by business ventures. Whether the business is on a small scale or in a large scale, risk assessments should be done, and these should be done at a regular basis. Companies should look out for the following risks:

  • Credit
  • foreign exchange
  • and interest rate

Keeping ahead by ensuring adequate finances on hand and advanced planning for the repayment of debt are keys. Avoiding risk rather than reacting to it is also important.

This article is written by Henry Jacobson, an author of many web articles on business, finances and financial management. Henry focuses on business solutions such as knowing financial trends, and technological solutions such as Quote to Cash.

 

 

Financial Trends Top Small Businesses are Looking Forward To

 

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