Effects of Technology on Small Business
How has technology impacted your business?
Technology has actually changed many things about the ways businesses are being conducted. Whatever type of business one is doing or about to start, failure to consider the impart technology may have in the business may be like digging one’s grave.
In most cases, people tend to look at the good side of technology. If you are a business owner, it is advisable to also look at the other effects technology may have on your business.
Over this weekend, a person was discussing his plight with me. I actually felt for him but the truth is that he failed to be pro-active. He runs a travel agency. This is the business he has been doing for decades and things were going on smoothly. The business was growing as he kept expanding his clientele to both individuals and corporate organizations. However, in the past five years, the business has been nose-diving year on year basis. New clients have not been added to the existing ones. Existing ones seemed to be disappearing. The effect is that, businesses have not been coming as usual. As you know, travel agents depend mainly on commissions on their sales of tickets. If they don’t sell tickets, income may not come. Why did I say that the man was not pro-active? I thought anyone who is into travel agency should not underplay the effects the online bookings may have on his business. This man was just watching and wishing that things would improve without taking any step. In this ever changing business environment, it is important that business owners should be willing to change or adapt. Otherwise, refusing to adapt or change may send you completely out of business.
With technology, an individual does not necessarily need the service of a travel agency to book a flight. With a debit or credit card enabled for online banking, one can conveniently complete booking arrangements without moving an inch. The whole transaction can be completed at the comfort of one’s house. Ironically, it may even be more expensive going through a travel agent. So, the question is, why would anyone like to patronise a travel agency?
Read Also: The Relevance of Information Technology in Small Business
Of course, technology is a blessing indeed. With technology, we can communicate more effectively. We can share information faster than before. We can quickly connect to suppliers or customers and conclude deals. We have access to different types of information just at a click of button. I can continue to list the benefits of technology on and on. However, today is not a day for that. The thrust of this article is to encourage our entrepreneurs and business owners in general, to take cognizance of the effects the technology may have on their businesses. It is not enough to look at the present situation. You have to project to the future vis-a-vis the trends of the technological development. Apart from the example of the travel agency given above, there are other businesses that technology may force to fold up if pro-active steps are not taken.
Just of recent, I receive financial statements from two quoted companies where I happen to be a shareholder. I found out that they no longer send their financial statements in prints. They now send their financial statements in compact disk. You can just imagine the effects this will have on the publishing press that had been printing the financial statements for them. I am quite sure that with time, they may even stop sending financial statements in compact disk. They may decide to be sending their reports in digital form via emails.
Also, the sales of recharge card that used to be a good small business idea before, is dwindling rapidly now. I can’t even remember the last time I bought a recharge card last. With the new technology, one can send a code from his mobile phone to his bank and request for airtime of a specific amount. Within seconds, your phone will be credited with the value of the airtime you requested for. You can even send card to another person using the same platform.
Therefore, technology is changing a lot of things. A business idea that was once a goldmine may no longer be a good business idea today. A business that used to be a cash cow may not even be able to generate anything again today. Entrepreneurs and business owners have to wake up. There are business tools you can use to analyse your business so that you can determine the sustainability of such business. Don’t wait till the technological trends overtake you. You have to be proactive. With this, you will not be caught unaware.
Read Also: PESTEL Analysis And How It Can Be Used
Feel free to comment on how technology has impacted your business.