The era of the internet brings forth the influx of profitability of small businesses in the world. Typically, technologies are linked to success and profitability of a firm or a business. In a corporate world, the more high-tech a firm is, the more successful it is to be perceived by many.
But believe it or not, technology also breeds profitability challenges to small businesses. Small enterprises are the usual casualty in the stiff competition in the corporate world. When new technologies arrive it is the big enterprises who normally can afford to upgrade.
This is but one of the profitability challenges faced by small businesses in a technology-driven business world.
Here are the other challenges to profitability of small businesses.
1. Slow internet connection
If anyone wants fast, he must cough out an amount of money, that’s the fixed deal. Faster internet connection requires greater amount of money from your capital than the usual internet speed. And small businesses are not that keen in improving their internet connection, thinking it will just be a waste of capital. But little did they know that speed is one of the names of the game in the business world. The faster you are connected in the world, the greater chances for your business to be profitable.
2. Accounting and bookkeeping software is expensive
We all know that big firms in the corporate world equip themselves with the highest technology in accounting and bookkeeping. Proper accounting and bookkeeping help corporate monitor its cash outflows and inflows. In this way, a firm can able to budget its capital expenditures properly. And what better aid in accounting and bookkeeping other than software that deals with these two business elements. With accounting and bookkeeping software, businesses are done a lot easier and mistakes are minimized if not eradicated at all. After all, accounting and bookkeeping mistakes can result in losses.
3. Employing unlicensed anti-virus and anti-hack software
Because small businesses usually have a small capital, they always commit this one of the biggest mistakes in their operation. They do not consider the security outcome of using unlicensed anti-virus and anti-hack software. They tend to embrace any software that is being offered for free which is usually unlicensed. And most often than not, unlicensed anti-virus and anti-hack software pose more threats and bad effects rather than good.
4. Online financial management expertise services unaffordable
We always hear that big businesses have it all. Well, that cliché is so true. They can afford almost everything that furthers their profits even more. And one of the ways to shoot their profits higher is employing online financial management expertise services. This kind of online services usually hires professionals and experts in different financial aspects of a business. And normally these professionals and experts never go wrong. But small businesses cannot afford this service online. They tend to make do with whatever they have. And that’s where the losses take place.