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Tag: Tech Tips

  • How to Leverage Fintech for Efficient Cash Management | Entrepreneur

    How to Leverage Fintech for Efficient Cash Management | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    With limited resources and tough competition, efficient cash management can make or break your business. One major challenge is unpredictable cash flow, which often results from irregular sales cycles or delayed client payments. A 2023 QuickBooks survey revealed that 61% of small business owners find cash flow to be their biggest hurdle. This inconsistency can make it tough to plan and ensure there’s enough capital to cover essential expenses.

    Startups often rely on manual processes for things like invoicing, expense tracking, and financial reporting. These old-school methods can lead to errors, inefficiencies and a lack of real-time financial visibility. With tight budgets and limited expertise, managing cash flow becomes even more challenging. Tasks like reconciling multiple bank accounts and forecasting future cash flow can be overwhelming without the right tools. That’s why startups need a smarter approach to cash management, and fintech solutions are here to help.

    Related: How to Properly Manage the Cash Flow of Your Startup

    1. Fintech brings financial transparency

    There are tools that offer real-time payments and notifications, keeping you instantly informed about the status of your transactions. This means you can spot and address any issues right away, helping you stay on top of your finances and avoid any unexpected surprises.

    On top of real-time tracking, these tools can also forecast your future cash flow. They use past data and current trends to predict what your cash flow will look like down the road. This helps you plan better and avoid running into cash shortages. By knowing what to expect, you can make smarter decisions and ensure you have enough funds to cover future expenses, making your financial management smoother and more predictable.

    2. Perfect your numbers

    Fintech tools make keeping your financial records accurate by automating data entry, so you don’t have to do it all manually. For instance, payment software can automatically link with your accounting software and update your records for you. This reduces the chance of mistakes and keeps everything accurate without all the manual work.

    This means they can catch issues before they become big problems, helping you keep your records in check and avoiding costly mistakes.

    Related: Busywork Sucks — How Automation Can Eliminate Boring Tasks for Entrepreneurs

    3. Cut costs and streamline operations

    Fintech tools can help you save time and money by automating everyday financial tasks. They take care of invoicing, expense management and payroll automatically. This means you and your team spend less time on admin tasks and more on important work that helps your startup grow and even thrive.

    Digital payment solutions usually come with lower transaction fees than traditional banking methods. These services have cheaper processing costs as compared to the slow payment options, which helps you keep your budget in check. This way, you can manage your finances more efficiently and save on unnecessary expenses.

    4. Stay agile and make quick decisions

    Fintech solutions make transactions super-fast, so you can jump on financial opportunities or tackle needs instantly. With features like instant payments and real-time bank updates, you can make quick decisions that keep you winning and ready to respond to changes.

    Fintech tools provide detailed financial reports and analytics that help users make smart choices quickly. For startups, where timing is everything, having easy access to clear financial information lets users stay flexible and adapt on the fly. This agility helps users drive growth and challenges more smoothly.

    Related: Slow Payment Options Are Costing Your Business — Here’s the Alternatives of the Future

    Getting started with fintech

    So, how can you get fintech solutions working seamlessly in your startup? Here’s a simple strategy from my experience. Start with the basics — focus on core tools that address your immediate needs, like cash flow forecasting or automated invoicing and billing. Once you’re comfortable with these, you can gradually introduce more advanced tools, such as expense management systems or detailed financial analytics. Make sure the tools you choose integrate smoothly with your current systems to avoid disruptions and keep things running efficiently.

    Investing in training is also important. Around 70% of organizations provide training for their staff to effectively use new technologies. Proper training helps your team maximize the benefits of your fintech tools. Your team must know how to use the software and troubleshoot common issues. Many fintech providers offer training resources and ongoing support to help with this. Regular check-ins with your provider will update you on new features and best practices.

    Lastly, keep a close eye on how your fintech tools are performing. Regularly review their effectiveness to ensure they meet your needs and spot any inefficiencies. Be ready to adapt as your business grows or as new fintech solutions become available. Flexibility is essential for maintaining efficient cash flow management strategies and ensuring your startup stays on top of its financial game.

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    Nick Chandi

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  • Entrepreneur | 5 Technologies to Help You Stay Ahead of Market Changes and Automate Business Processes

    Entrepreneur | 5 Technologies to Help You Stay Ahead of Market Changes and Automate Business Processes

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    Opinions expressed by Entrepreneur contributors are their own.

    When the economy is struggling, it’s common for business owners to focus on cost-cutting measures — reducing expenses and slowing down hiring. However, simply tightening the belt isn’t enough to get ahead during a downturn. The companies that come out on top during economic recoveries are the ones that have also found new ways to grow.

    So, how can you gain a competitive advantage during economic turbulence?

    Having streamlined processes, consistent performance and reliable technology are key. Business automation can support these efforts — as evidenced by the 74% of surveyed companies who reported that using technology solutions for automation helped them during the pandemic. Meanwhile, 23% even managed to exceed their revenue expectations.

    Here are five ways to transform your business workflows with the latest technology:

    Related: How to Use Automation Effectively in Your Business

    1. Embracing AI

    AI appears to be this year’s buzzword with the ChatGPT hype and Google introducing Bard, but it’s a beneficial technology for businesses. By adding AI-powered automation, companies can boost the processes within different business units.

    For example, in marketing and sales, AI can be used to personalize marketing strategies and create custom content. In IT and engineering, AI can streamline code writing and review processes. And in risk and legal, it can provide quick and accurate answers to complex questions by sifting through vast legal databases.

    An illustration of AI’s impact on business automation is the case of a banking software company, nCino. The company used AI to automate processes related to loan origination and compliance. This allowed the company to securely collect data from clients and make onboarding faster — and nCino gained an advantage over competitors by reducing the time for getting loans. That was a critical issue during the pandemic.

    2. Maximizing cloud efficiency

    The cost of cloud computing is difficult for many firms to manage. This is mostly because they are unable to monitor the precise usage of their cloud resources. In fact, 54% of businesses claim that the main reason resources are wasted is because of a lack of visibility. Cloud automation is an alternative, though. In fact, 75% of chief information officers concur that automation has boosted profits, made the business more agile and enhanced the customer experience.

    Cloud automation offers a powerful tool for IT teams, enabling them to efficiently create and manage cloud resources. This optimizes resource utilization and minimizes security risks posed by manual workflows. Although automation cannot replace human expertise, it is a game-changer for operational efficiency.

    3. Streamlining user experience

    In today’s business world, user experience plays a crucial role in shaping corporate processes and how businesses interact with their customers. A seamless front-end experience can make all the difference in a customer’s journey. The better the experience, the more likely customers are to return.

    And when it comes to delivering a memorable and engaging experience, the 3-D web is leading the charge. According to Shopify, implementing 3-D content has the power to skyrocket customer engagement, resulting in a 94% conversion lift. The technologies behind this transformation include WebGL, Unity, Play Canvas and PixiJS, making it easier than ever for companies to add a cutting-edge touch to their online presence.

    Related: How Artificial Intelligence Could Help You Design a Better User Experience

    4. Building cyber resilience

    As companies grow and technology becomes more complex, it becomes harder to manage security and compliance manually. That can result in slow response times to security issues, mistakes in how resources are set up and inconsistent policies.

    Security automation makes it easier to manage security. It facilitates daily operations and integrates security into the way a company uses technology from the start. In fact, 70% of the most cyber-resilient companies use security automation.

    There are three categories of security automation tools to enhance an organization’s cybersecurity. Robotic Process Automation (RPA) automates routine tasks with software robots. Security Orchestration, Automation and Response (SOAR) unifies threat views and automates responses. Extended Detection and Response (XDR) integrates security data for better threat visibility and response.

    Related: Automation Is Becoming a Business Imperative: Don’t Wait Until It’s Too Late

    In today’s rapidly changing business environment, companies must have the agility to confront and overcome obstacles. Technology provides a vast array of automation and optimization solutions that bring stability and efficiency, acting as a strong foundation and efficient engine to keep your business on course.

    However, a one-size-fits-all approach to technology implementation is not the solution. It’s crucial to evaluate your company’s specific needs and implement technology solutions that align with your business goals. Only then can you fully harness the power of technology to achieve long-term success.

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    Slava Podmurnyi

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  • Blockchain Technology: Overhyped or Underused?

    Blockchain Technology: Overhyped or Underused?

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    Opinions expressed by Entrepreneur contributors are their own.

    With the recent collapse of FTX, investors now worry about the future of cryptocurrency. While some blame the technology, we should remember that people are corruptible, not blockchain. The ledger-based technology making cryptocurrency possible is as much a breakthrough today as it was yesterday. Unfortunately, crashes like FTX play into fears that blockchain is more hype than breakthrough. Will blockchain once and for all prove not very useful in the enterprise?

    When blockchain technology spawned a new way of thinking about money and creating wealth, many in the enterprise IT space began thinking about using blockchain technology to streamline business processes. For example, the global supply chain is still not working as well as it could. More than a decade later, enterprise adoption of blockchain technology is crawling at best and stalled across the board in many of the world’s largest companies.

    Blockchain is an emerging technology, meaning its full potential and practical uses are still evolving. This creates hype as visionaries dream about using the technology to its full potential, usually long before everyone else sees its usefulness. This is the downside of emergent technology, as hype often masks reality.

    Related: The Blockchain Is Everywhere: Here’s How to Understand It

    Remember the cloud?

    When cloud computing first came out, it was an emerging technology. Software developers scrambled to develop SaaS applications where people bought a software service instead of installing the software on each workstation. Two decades later, the endpoint for the evolution of cloud computing revealed itself to no fanfare. Cloud computing is behind the scenes and responsible for billions of data exchanges daily.

    Everyone takes the cloud for granted today. But go back 20 years, and the same hype drove similar conversations about cloud computing. Indeed, go back half a century, and you will find hype about using computers in the enterprise. There was even excitement about driving cars instead of horses. The point is that the hype is part of the adoption process that all emergent technology must go through to become behind-the-scenes technology.

    Facts behind the hype

    Blockchain technology and the movement of digital information across disparate locations are not exaggerated. Human civilization needs blockchain because it protects the process of moving digital data from one place to another in a physical realm people cannot see. Once a Bitcoin gets transferred, the record of that transfer does not change.

    What can change is the cybersecurity surrounding the transfer. Because software is a product of human creation, bugs will pop up from using the technology. Our society deals with this regularly. Consequently, there will be bugs; that is a fact.

    Another crucial point is that blockchain technology must use other technology with no attached hype — for example, securing cloud computing SaaS applications using Wi-Fi. If every other part of the information exchange is secure, working out the bugs is a process of elimination.

    Related: How Blockchain and Cryptocurrency Can Revolutionize Businesses

    Trailblazer vs. trail follower

    Although some technologists perceive blockchain as overhyped, what does that mean, and what should the enterprise do about it? Hype in the tech sphere is a cultural phenomenon driven by followers waiting for someone else to lead. Everyone knows blockchain is the future, but only some want to be trailblazers. Unfortunately, it does not help when a trailblazer fails. Enterprise leaders get worried and pull back.

    Provocatively, it collapses like FTX, which works to legitimize hype for emergent technology. Spectacular collapses tend to spur serious progress into making the technology live up to its hype. For the enterprise, the hype centers on supply chains as the world seeks a better way to manage global shipping.

    Making blockchain work for the enterprise

    Walmart and other large retail businesses need blockchain technology or something like it, which is driving much of the hype. The global supply chain is not functioning as it could, so the enterprise needs blockchain much like the healthcare industry needs caregivers because of a worker shortage. In this light, overhype is a motivator for taking action or getting in line and waiting for the trailblazer.

    The enterprise’s decision-makers need motivational buy-in from software engineers with a trailblazer mindset. Moreover, the software applications must be heavily backed by robust security specifically designed to manage the movement of digital information from one point to another.

    Related: How Blockchain Can Make A Positive Impact On Global Issues

    Incremental change

    Enterprise adoption of blockchain is slow but not unexpected. Our modern society wants everything right now. If the digital revolution taught us anything, change is incremental. The best way to get comfortable using blockchain comes from using it in small test programs. Once these smaller programs work as a system, scale the operations together, then work the bugs out from there.

    Patience and hype need to get along better. However, trailblazers in the tech sphere must be patient or risk being victims of hype. Focus on small steps representing steps forward — for example, using an extensive global supply chain with only a tiny part controlled by blockchain. Once the blockchain-supported supply chain section runs without bugs, please step back and understand how it fits into the bigger supply chain. The process and setup systems needed for incremental change do not pay attention to hype.

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    Steve Taplin

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  • Why Are Founders Still Ignoring This Easy Way to Boost Profits?

    Why Are Founders Still Ignoring This Easy Way to Boost Profits?

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s not every day that you stumble across a truly surprising statistic, but this one should shake any entrepreneur in their boots. The average SaaS company spends just 6 hours determining its pricing strategy. Now, that isn’t 6 hours every month or even every quarter. That’s 6 hours over the entire lifespan of a business. Ask any founder how long they spent choosing fonts and layouts or adjusting the logo’s size in the document’s header. The answer will, without a doubt, be orders of magnitude longer.

    Not devoting time to pricing means entrepreneurs miss out on a crucial part of optimizing their business. They already work to optimize everything else, and pricing strategy can significantly affect their company’s bottom line. The investment required to optimize it is minuscule relative to spending hours and wasting labor on choosing the perfect font.

    Related: How SaaS Is Changing the Way We Work

    A widely quoted Harvard Business Review piece published thirty years ago already made a case for optimizing pricing models, and still, founders haven’t caught up. In the article, aptly titled “Managing Price, Gaining Profit,” the authors assessed how much an increase in price affects the average company’s bottom line compared to an increase in volume. Price won out by almost four times as much.

    With such high leverage on price, even if a company’s managers are spot on in their pricing 90% of the time, there is a big payout for improving that to even 92%. Even though these results were corroborated years later in a McKinsey study, it seems founders are still coming up from behind on this issue. It also bears to note that pricing is a double-edged sword — if a 1% rise in price can improve your profits by a significant margin, then a 1% price cut can damage them.

    What is it that the price reflects?

    Companies often look at price as simply what the customer will be willing to pay, but that might be a mistake. That approach fails to consider the thousands of moving parts that need to seamlessly work in unison, almost like magic, to provide value. The price should reflect that.

    Researching pricing can be overwhelming because the sheer number of pricing models, strategies and tactics available is gigantic, so it’s almost impossible to know where to start. And frankly, there is no shortage of the mistakes you can make, i.e., pricing based solely on undercutting your competition, not segmenting customers, not trying enough price points, overcomplicating pricing presentation, and dozens more. But thankfully, in the world of tech, a conversation about pricing is brewing, and there are some surprising and exciting developments out there.

    One group of products notoriously difficult to price is legal cases. If a class action lawsuit has a 50% chance of reaching a verdict or settlement worth ten million dollars, the case has an expected value of five million dollars. However, valuations of commodified legal cases usually run on gut feelings and lawyers drawing from their own experience.

    Pricing and valuation is virtually a neglected field regarding the commodification of legal cases. An AI-powered justice intelligence platform called Darrow has seized on this and developed an algorithm that uses big data to value legal cases accurately. This platform finds a fair price and opens the door to a new suite of investment opportunities.

    As Software-as-a-Service is a relatively new concept, it makes sense to step away from old-fashioned pricing models. We’re no longer in the ’90s, and the SaaS buyer experience needs to reflect that. Software company Stigg, for example, has built software and API that gives companies fine-tuned control over what can be priced and packaged separately, helping businesses ship better plans to their customers.

    The irony of using software for pricing is that management will likely not spend more than 6 hours deciding between freemium, trials, subscriptions, usage-based pricing, etc. But at the very least, a program is doing the thinking in the executive’s place. Such software can serve executives particularly well today as companies cut costs, slow hiring, and search for ways to boost productivity.

    Thirty percent of CFOs are considering layoffs, and most expect a recession to come, according to a new Grant Thorton survey. Considering the state of the economy and rising inflation, companies can no longer afford to keep hires on board that aren’t holding their weight, and decisions to make certain pinpointed cuts make total sense. But sometimes cuts — especially in layoffs and reduced benefits — tend to hurt morale.

    Finding ways to maximize profit before resorting to cuts should be a top priority, and updating pricing is an excellent place to start. Pricing is too important to simply be left up to ad hoc decisions and gut feelings, and industry leaders would benefit from remembering that.

    Related: Don’t Try to Maximize Growth and Profitability at the Same Time. It’s Impossible.

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    Ariel Shapira

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