By Pavlo Phitidis
Very often, the bigger your company, the longer it takes for you to innovate. Agile small businesses can, propel their growth by adopting workable technologies, that lead them towards solving customer problems accurately, efficiently and cost-effectively. This leads towards freeing up time, money and effort within the business and ultimately, enables growth. Freed from the shackles of bureaucracy and slow systems, you can digitize elements of your business to accelerate growth and value.
Why Should I Digitize?
Adopting technologies to create a better business should be part of your short and long-term plans. Ultimately, the long-term plan for any business is for to create a retirement nest-egg for you, or for it to be sold to an eager buyer. An interested buyer would objectively assess your business in three ways, and you can use these three elements as impetus for making better business decisions:
How far into the future will it generate revenue? If your business has the potential to operate for a long term, the more valuable it is.
How much free cash can it generate? Free cash is the money that’s not tied to operating costs or the day-to-day running of this business. The higher the free cash level that’s within your business, the more attractive that business is to a potential buyer.
How risky is your business and what can be done to reduce that risk? A risk calculation, or discount rate, assesses how much your business is worth today, and how much it will be worth in the future, while considering any actions that are taken to minimize the risks within that business.
How Does It Work in The Real World?
On The Money Show with Bruce Whitfield, we outlined three real-life examples of how digitizing elements of a business has enabled growth and opportunity. Here’s how it worked:
Increasing Forecast Terms in Honey Harvests
While the Greek farming communities are often focused on traditional harvest methods, an opportunity to digitize certain processes has enabled a higher honey yield for 1850 of the 7000 informal farmers. By converting honey farmers to a digitized hive management process, an entrepreneur we work with has enabled farmers to increase their honey yields, while decreasing the amount of effort they need to put into managing their hives. This unique mobile application helps farmers to select the perfect location for their hive, and then goes on to measure the hive health, by using a vibrational quotient. This application also delivers hive weight data to farmers, so they can easily assess the best time to harvest their honey, and find their hives, thanks to geolocation technology.
Aurik, Increasing Free Cashflow
At Aurik, we help entrepreneurs to build their businesses into assets of value. As part of our operations, we have many internal processes that help us to do this, but some of them created stumbling blocks. In 2016, we mapped out our entire business process and uncovered the most problematic tasks within it. We then adopted a low-cost technology solution that enabled us to digitize 83 of our most frustrating administrative tasks, thereby freeing up our team’s time, energy and abilities. While some of our team felt uncertain about having some tasks digitized, the benefits of our adoption strategy became apparent very quickly, and our team now focuses on far more meaningful work.
Not Just Another Water Pump to Reduce the Discount and Risk Rate
Pumping water out of mines is an important, yet onerous and expensive task as, most often, when a water pump fails, the entire device needs to be replaced. Working with us, an astute entrepreneur, however, developed a unique solution, by adopting technologies that save time, money and effort. Creating a pump line that measures flow and pressure, while decreasing air flow, he is best able to isolate the most inefficient areas of flow. Using a mobile application to assess these pump lines, he can spot problems on the fly, replacing just a ball bearing, rather than an entire pump, when a problem occurs. His unique digitization strategy has not only helped his business grow, but turned his customer base into one that relies upon him for water elimination. His customers’ dependency upon him actively minimizes the risk level attached to his business.
Can we help you find clever ways to digitize your business? We’d love to help. Get in touch with our team at Aurik and let’s discover digital opportunities for your business.