Is It Wise To Buy Technology When Cash Flow Is Limited? Yes. (But…)

tight-budget-cash-money-wallet.jpgIt’s a difficult decision to know if one should invest in technology or invest in something else. There are all sorts of competing needs (and wants) that business owners struggle with.
Tom O’Shea, general manager for Wasp Barcode Technologies says that one guiding principle should be if technology is affordable and provides rapid payback consider investing in it.
For example, as I shop in many retail locations, I wonder why EVERY establishment does not have a bar code point of sale system.
Using a cash register, which is really a giant calculator, is so inefficient, unproductive and a waste of money.
Having a point of sale solution enables each cashier to process more customers in less time (this boosts customer service), enables you to have real time insight into your inventory (saving you money and boosting productivity) and includes additional features that can provide enhancements in these and other areas.


For example, for $999 (I hate “9’s”) you can get everything you need for a complete point of sale solution from Wasp. (you have to supply the computer and monitor). This package is Wasp’s new Point of Sale Rapid Start bundle. At this price and what I think will be a fast return, you can’t afford to NOT have a point of sale solution.
Point of sale solutions for retailers is just one of many ways to save money. As computer prices fall to amazing levels, like under $600 for a decent notebook or even more portable netbook – every productive employee (especially knowledge workers) should have a computer available to them at the office, at home and in their travels (personal or business).
Although software has traditionally been a pain – installation, customization, crashes, support and etc, with hosted applications (software as a service) software is affordable (monthly fee) and there is NO installation necessary.
I could go on.
But discuss with your local technology consultant what technology you should be investing in. You’ll be more efficient and profitable NOW and as customers spend more you’ll be ready for the uptick in spending and resurgence of customers.

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Ramon Ray, Editor & Technology Evangelist, Smallbiztechnology.com . Editor and Founder, Smart Hustle Magazine Full bio at http://www.ramonray.com . Check him out on Google Plus, Twitter or Facebook

6 thoughts on “Is It Wise To Buy Technology When Cash Flow Is Limited? Yes. (But…)

  1. NetworkAegis

    This is an awesome post. The only thing I would add is it is all about the conversation. When investing in new technology for your business PLEASE take the time to have a proper conversation about your options.
    Recently I took down a server based application at an insurance agency after it had been up for only 3 months. The software, server and labor added up to over $7,500 dollars. The application was doing fine and did everything the vendor said it would (I know a miracle) but the agency found a hosted application that did more and gave them more information they could use.
    The agency simply threw away $7,500 not to mention the time of all the folks within the agency that went into setting it up. I wasn’t upset that the agency took the application down. I was upset with myself and the agency for not having a proper conversation before we moved forward with this project.
    Recession or no cash is always king in Small Business. Time is even more important as there are always a 100 other things to get done. It must be said that taking the time to investigate your options before implementing them is the single biggest thing you can do to ensure that you are getting the most from the money you spend on IT.

  2. Bill Bennett

    Great Post.
    I learnt (or as Americans say learned) a long time ago to spend money on productivity tools.
    If the pay-off period can be measured in days rather than weeks it simply doesn’t make sense not to spend the money. It’s another matter entirely when the pay-off period runs to months or years.
    These days tools you mention are available almost at throwaway prices.

  3. John Krech

    Yes is a great investment when cash flow is tight because it can help free up cash flow. For example, according to a study by Aberdeen, the bottom 30% of companies have 9 times more inventory than their peers in the top 20%. This is a huge drain on cash flow!
    For example a bottom performing business with 200000 dollars in revenue would require more than 65000 dollars in inventory while a top performing business with the same sales would require less than 10000 dollars.
    Inventory is a silent killer and inventory optimization technology is a great way to free up cash flow. Technology platforms like Phitch work to guide small businesses to have the right amount of inventory – guiding them from bottom performing to top performing. Along the way – Phitch frees up substantial cash – essentially providing big company results on a small company budget.

  4. John Krech

    Great post. Technology can be a great way to free up cash. Inventory can be a huge drain on cash flow. Bottom performing businesses have NINE times more inventory than their top performing peers. Technology solutions that provide the business intelligence to not only track inventory but optimize it are a great to way to avoid having too much or too little inventory. Imagine what a bottom performing business can do with the cash that is no longer tied up inventory. Inventory optimization is no longer just for big business and solutions like Phitch can be obtained for a little as $15 per month.

  5. Rakhealth Thailand

    the pay-off period can be measured in days rather than weeks it simply doesn’t make sense not to spend the money. It’s another matter entirely when the pay-off period runs to months or years.

  6. Rakhealth Thailand

    I learnt (or as Americans say learned) a long time ago to spend money on productivity tools.
    If the pay-off period can be measured in days rather than weeks it simply doesn’t make sense not to spend the money. It’s another matter entirely when the pay-off period runs to months or years.

    https://www.vdofin.com/

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