This is a guest post by Danny Roberts.
Becoming a small business owner is both challenging and exhilarating. It often represents the coming to fruition of what started as an idea and is now a reality. You now have offices, a legitimate business, letterhead, staff, etc. But with great power comes great responsibility, and so the entrepreneur is also in need of making decisions regarding services, applications and infrastructure needed to support the business.
A trend that is continuing to gain momentum among small business owners and entrepreneurs is the incorporation of B2B SaaS applications into one’s startup or growing enterprise. SaaS entails the hosting of software on the cloud that is accessible to anyone (with the proper credentials) from anywhere around the globe (provided they have an internet connection). Mostly handled through subscriptions and memberships, SaaS has gained in popularity because of its flexibility and affordability for many small entrepreneurs. There are many advantages to using SaaS apps for small business, a handful of which are outlined below.
Before SaaS came into the picture, deploying a new system in an organization could be extremely costly in terms of time and resources required to manage a full-fledged implementation. Customizing a software product to a business was normally not within reach for smaller businesses, and even larger ones struggled with the cost of consultants, IT resources, and upkeep. Now, with the advent of SaaS, these barriers-to-entry have been all but eradicated. Smaller companies are able to pay a subscription and have access to software solutions that would have been previously out of reach. Providers take care of updates, patches, and other technical maintenance needed for the software, which frees up resources that were once designated for costly IT departments. Additionally, unlike the implementation of a proprietary application which requires a significant commitment of company funds and resources, SaaS solutions can be terminated or shifted as the business requires. By capitalizing on the advantages of cloud hosting, the business owner can explore new products with far less restrictions than a proprietary product would allow.
SaaS solutions afford business owners a greater flexibility to grow. The way usage is structured, SaaS is able to meet a company’s needs in the now, in terms of size and number of users; but should the business grow, cloud-based solutions are inherently scalable and can thus relatively easily serve the needs of the organization in the future. Knowing that the incremental cost of growing an IT infrastructure that supports the business is manageable, the entrepreneur can spend more time on the organization’s core business rather than being held back by the cost of expanding. What’s more, because SaaS solutions are able to handle the needs of a growing workforce, more customers, increased inventory, etc. the marginal cost of hiring one more worker, or adding additional clients becomes more economical.
The multi-tenant model in which SaaS applications are offered is another way these solutions are stimulating entrepreneurial and small business growth. By engaging clients from several industries and organizations, these solutions promote a constant two-way flow of feedback. This allows the user to enjoy a state-of-the-art SaaS application that is continuously updated by like-minded business owners, making it a better and more up-to-date product. Because SaaS applications are being constructed and renovated based off of crowd-sourced wisdom, this essentially makes them tailored solutions for specific types of business problems.
Business owners looking for SaaS solutions should take advantage of online marketplaces to research and compare SaaS apps that can suit their needs. An extremely flexible and affordable alternative to proprietary applications, SaaS allows the entrepreneur to devote more time to core business functions while being assured that support systems are safely in place. The future for small business owners is looking bright indeed!
