Xavier Russo
Posted: 05 August, 2009 |
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If you’ve ever bought a computer, you’ve felt it. Felt the pain that comes from seeing your shiny new system drop in price by 10% soon after you bought it… or 25% or 50%. With technology moving as quickly as it does, this price-drop pain is almost inevitable.
But spare a thought for the poor small business owner who gets talked into buying a $50,000 business management system. The mother of all price-drop pain is heading their way…
Sure, it all sounded good in the sales pitch. Automate your business. Streamline your processes. Understand what’s driving your business. Engage your customers. And so on…
And it is good. Or rather, the functionality is good. The problem is the price-sticker.
It’s an investment in your business, says the sales guy. Cutting edge technology. Developed for mega-corporations. And now you, Mr/Ms Small Business Owner, can get your hands on it.
So you sign on the dotted line and hand over a sizeable chunk of your annual budget.
But how are you going to feel when you find out your smaller competitor down the road just got much the same functionality … for only $50 per month?
Because that’s the reality of what’s happening in small business software today.
Traditionally, you had to buy an expensive upfront software license. Now you can simply “rent” what you need, via software-as-a-service. All you pay is a simple monthly subscription… at a tiny fraction of the previous cost.
Wham!
That’s the sound of price-drop pain hitting whoever got sold a $50k system for their small business.
Wait, you say. Some businesses need a high end system to run their operations. And you’re right: some do. But they are typically mid- to large-sized firms.
For most small business owners, a $50k system is complete overkill.
Small businesses are often better off with a software-as-service (SaaS) solution for a low monthly fee. Think of it as big business power at a small business price. And there are plenty to choose from, with a wide range of business management software solutions for small business available to meet your needs now and well into the future.
Of course, once you’ve grown into a big company, you may want or need a big IT system. But in the meantime you can sleep easy at night knowing it will cost a lot less in a few years than it does now! |
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Xavier Russo is a co-founder of SoftwareShortlist and also works as a freelance consultant on strategy and marketing. His management consulting experience includes Booz & Co and Gemba Group, and he led the marketing team at online art gallery RedBubble.
http://www.softwareshortlist.com
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SoftwareShortlist is an innovative online platform
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software for their specific needs.
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