What to Watch Out for When Choosing a Tool/Platform for Your Small and Medium-Sized Business

You are a two-person co-founding team of a new startup. You have the next great idea that is going to take you to unicorn status. You set up your bank account and do everything else in a spreadsheet because it’s easy and what you know. 

Fast forward to 6 months. You have some sales, raised a pre-seed round, and hired a couple of employees. Youā€™ve heard about several tools for different parts of the business (probably also spammed on Linkedin with $100 for doing a demo): Ramp, Brex, and BILL for credit cards, bill pay, and spend management; Gusto, Rippling, Trinet, Justworks for Payroll; Carta & Pulley for equity management, etc. 

CONGRATS! Now itā€™s time to UPGRADE YOUR TECH STACK!

Keep reading to see what you should consider to choose the right tools for your business successfully. If you have any questions, feel free to comment, and KBC can help you out.

What should I look for in a tool for my business?

Here are some factors to consider when choosing the right tool for your business.

  • Ease of Use: Look for products that are easy to use and implement. Balance the need for advanced features with the practicality of your skills and your teamā€™s skills. If there is a specific implementation fee or the product appears too complicated, it may not be the right fit for a small business.Ā 
  • Features: Figure out which features are essential for your business and prioritize them. For example, if youā€™re looking for an accounting tool, consider whether you need multi-currency support or inventory management. If you only manage local clients and invoices, you should look for features such as tax compliance, cash flow management, multi-user access, and more.
    • Recommendation: Create a ā€œmust-haveā€ feature list and a ā€œnice-to-haveā€ feature list to help you stay focused.
  • Scalability: Tools and products should be adaptable and support the growth of the business. Ensure you wonā€™t outgrow your tool in the near term while balancing ease of use and features that fit business needs.Ā 
  • Customer Support: Even the most intuitive tools require some assistance and support. Reliable customer service and support features are essential as the tool is implemented and issues arise. Look for tools that offer robust customer service options such as chat, email, phone support, and dedicated customer representatives.
  • AI: Artificial intelligence is everywhere and transforming tools and apps at a remarkable pace. While evaluating tools, it is imperative to distinguish between AI hype and essential AI components. Ensure you understand how the AI is built into the product and the types of models used.
  • Integration: Ensure the tool integrates seamlessly with your existing systems and software. This will save you time and effort.

Choose the right investment.

Budgeting can be tricky for a small business, and opting for the cheapest tool can be tempting. However, balancing the cost with the value the tool provides, is essential. While a free or low-cost tool may feel appealing now, the long-term impact could be costly if it has too many limitations, minimal support, or the need arises to switch tools in the future.

How do I know this is the right tool?

Reviews and customer testimonials can be your best resources when evaluating tool options. Read these critically to understand challenges faced by other customers and their findings on the costs/benefits. Ask for customer references from similar companies or contact your network for recommendations. 

Many tools offer demos and free trial periods. This is your chance to understand the tool’s actual potential and how it fits into your day-to-day business operations. Evaluate the ease of use and the time it takes to implement the tool and garner feedback from key team members. Spending this time upfront to evaluate the tool can help you make the right long-term decision for your business.

Iā€™m ready to upgrade my tech stack!

Take the time to evaluate your options, involve your team in decision-making, and ensure the tool integrates seamlessly into your existing operations. Making an informed choice will set your business up for long-term success, enabling you to focus on driving value and delivering results.

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