Do you really need to hire new employees—or would new technology serve the same purpose? According to the fifth annual Brother Small Business Survey, a whopping 72 percent of small business owners believe new technology would provide a better return on their investments than hiring new employees (28 percent) this year. No wonder nearly half (49 percent) the small business owners surveyed said investing in new technology is their top priority this year.
It’s not exactly cut and dried. If you’re confused, you aren’t the only one: 63 percent of survey respondents say they often feel “overwhelmed” by the number of tech tools available to help run their companies, and struggle to keep up with knowing what technology to buy.
What are small business owners planning to buy this year? Well, 41 percent say they’re going to invest in mobile devices such as smartphones and tablets. About one-third will buy Customer Relationship Management (CRM) software, 20 percent will buy social technologies and 15 percent say cloud services will be essential to their businesses this year.
So how do you know whether you should hire—or if buying new technology could fill the bill just as well? When debating new technology, ask yourself:
- What is the learning curve for this tool? Can you or your existing employees get up to speed quickly enough that the tool will quickly start providing a return on investment?
- How much time will the tool save? If the amount of time it saves allows you or your employees to absorb the new tasks into your existing workday, that’s ideal. However, if the new technology will add hours to your workday, you may need to hire new staff to handle the load.
- Will this tool create additional work or additional business? Sometimes a tech tool can work so well it creates more work. For instance, your new CRM system may create more work at first as you follow up more frequently with prospects and customers. However, eventually it should create new business, not just new work. When you implement a new tool, figure out the break-even point at which it’s generating enough new business to finance hiring a new employee.