Xero periodically released updates/trends based on anonymused data from more than 100,000 businesses on the Xero platform. By analyising business profiles, performance and expenditure, it allows them to provide updates on business trends and operations.
Some of the key standouts of the analysis were:
- 68% of small businesses that increase their technology spends are likelier to be growing businesses;
- Businesses that boost technology spending the most grow revenue 3x faster than those with the weakest growth in tech spending; and
- Businesses that boost technology the most grow employment by about 5% a year.
While the numbers indicated above are not an exhaustive or comprehensive analysis of business performance - they are indicative of a wider trend that is consistent in the numbers: businesses that invest in technology are likely to be able to better drive and sustain growth.
So what does this mean for your business?
It's clear that technology is a driver for business performance. It can be both an enabler - in assisting with administrative functions - but also a way to better leverage and scale your operations. And based on the analysis from Xero, there is a link between business performance and investment in technology.
As a business, and especially given the turbulent times we've had, now is the time to look to how you can invest in technology in a way that assists your business.
From our experience; a clear strategy for implementing technology, aligned with resourcing to help provide feedback and review of its implementation is a winning combination to ensuring you can make the most of technology in your business. Without clear direction, buy-in and feedback from your team; the best intentions can often miss their targets.
Before looking to implement technology, look to define a clear strategy of what you're trying to achieve and how the technology can assist. Then assign and empower your team to drive these objectives with your technology partners.
If you're looking to find out how you can implement technology in your business, or even just want a discussion to see what's possible; please contact us for an obligation free discussion.