Paul Flick is the CEO of Premium Service Brands, a leader in home services franchise opportunities.
Technology is a powerful tool for small businesses. A whopping 95% of small businesses rely on at least one technology platform to increase efficiency, and 85% plan to ramp up their use of such platforms, according to the U.S. Chamber of Commerce. Approximately 61% of businesses use technology for marketing, and more than 50% use it for processing sales and customer communication.
Implementing technology solutions can add to the bottom line of small businesses and improve customer service. Allowing customers to interact with your business digitally is also becoming the norm. A study conducted by Deloitte revealed small businesses that are digitally advanced “earned two times as much revenue per employee” versus businesses with little digital engagement.
Customized Technology Solutions
While there’s no shortage of companies offering technology solutions to help entrepreneurs, many businesses are turning to in-house or custom technology to meet their unique needs and deliver quality service to customers. Custom in-house technology can be useful for automating workflow, improving data analysis and facilitating project management.
If the technology is successful in-house, there’s a chance it could be beneficial to other small businesses and have a broader market potential. Capitalizing on the success of your in-house technology by making it available to a wider audience can create additional profit streams and position your company as an innovator.
There are many notable examples of companies that opted to leverage their technology solutions. Slack started as an internal communication tool for a gaming company, but it now boasts more than 200,000 paying customers worldwide and is used by 77 of the Fortune 100 companies, according to the company’s “About Us” section on its website. The developers of Square initially built a credit card reader after struggling to sell a piece of art. Today, Square, which has been renamed Block, helps power small businesses and is a “$54 billion financial powerhouse,” CNBC reported. The founders of Shopify intended to create an e-commerce platform for their online snowboard shop, and the platform is now used by thousands of businesses.
While the odds of your technology turning into a household name are small, marketing your in-house technology can enhance your brand’s reputation and provide networking and new business opportunities.
My own company, which is a franchisor specializing in the home services industry, wanted to improve customer service and help our franchisees open multiple brands. So, we created a rewards app that aims to simplify the process of finding quality home service providers. As part of the app, customers upload receipts to accumulate points, which can be redeemed for discounts and deals from our brands.
Along the way, I’ve learned some tips on how you can determine if there’s a market for your in-house technology.
1. Assess demand.
Take time to determine if your resolution has a broader scope and addresses a widespread problem. For instance, my team knew that the rise in private equity funding was enabling many franchisors to acquire a large portfolio of brands, and having a solution to improve customer lead generation is crucial, so we knew our product could be a helpful resource.
To determine if your technology solution has a broader scope, use your intended audience for market research. Get feedback from them on the usefulness of the product. For example, before we launch our app, we’re pilot-testing the technology among our franchise community. Select a small sample of businesses in other industries, and allow them to beta test the technology at no cost to see if it streamlines their operations. If you are trying to reach a broader audience, allowing them to test the technology is beneficial.
2. Be prepared.
Before you introduce your technology to a broader market, make sure you have the infrastructure in place to cater to a wider audience. In addition to pricing your technology competitively, you need to make sure you’re ready to be successful.
For example, we outsourced our technology development for the project to ensure we had the resources of experts in the field. You can also network with a staffing company to explore the potential for hiring contract workers as demand for your technology ramps up.
3. Don’t get too distracted.
Leveraging technology has perks, but it’s important not to get distracted from your core business. Don’t stretch your resources too thin or strain your finances.
Entrepreneurs are visionaries. Staying nimble and continuing to find ways to add additional profit streams will help ensure the long-term success of your venture.
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