Outdated Technology: How It Can Hurt Your Business, Its Value and Growth

outdated technology hurts business

Read the full article at: www.inc.com

When was the last time your small business made significant technology upgrades? According to Forrester Research, the average small business hasn’t made significant technology upgrades in five years, and has not yet fully adapted to the cloud. Why is this important? Businesses equipped with the latest IT environments, such as SaaS platforms and cloud applications to manage their payroll, accounting and other administrative functions can not only attract stronger valuations, but also secure higher sales prices when it comes time to sell.

This is especially true for retailers and restaurants, which rely heavily upon accommodating consumers’ new, diverse payment habits. New mobile payment platforms, such as Apple Pay, Google Wallet and Square are expected to balloon to $142 billion by 2019. Small businesses that are willing to put these new technologies in place demonstrates their willingness to keep up with industry changes and expand their customer base, thus allowing them to capture new revenue and later attract greater valuations from technology-savvy business buyers.

Small businesses should also be willing to invest in cybersecurity in order to protect against data breaches and hackers. Potential business buyers do not want to inherit any sort of uncertainty or risk. Putting the proper cybersecurity in place will protect important data, customer information, while helping to avoid having any unchecked IT risks derail future sale negotiations.

Any small company’s IT infrastructure can play a major role in it’s future growth or decline. Owners should stay up-to-date on the latest technologies and ensure their business is equipped with an IT infrastructure that is able to handle the market’s increasing demands for flexibility, efficiency and security. Not only will this increase the company’s revenue and profits, it will also play a major role in building value and attracting future buyers.

“Beyond revenues and profits, small businesses’ IT aptitude will start playing a larger role in building value and attracting buyers”

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