You’ve been running your business the same way for years; you know what works. Change can be uncomfortable, and maybe you feel like you don’t have the time or capital to think about anything new. Those who fail to embrace digital transformation risk becoming obsolete, while those who do can unlock great opportunities: increased revenue, efficiencies that save money, and an even better relationship with your customers. While the cost of tech to achieve this is one of the biggest challenges, a business loan can help get you where you need to be.
Digital transformation is not just about e-commerce or opening a business account on TikTok – it’s about using technology to fundamentally improve your operations, becoming more adaptable and resilient. Thinking digital first could bring the following benefits:
Improved customer experience:
Done properly, digital transformation takes place over three stages: digitisation, automation, and full transformation. Read more about this process and get guidance on how to navigate the culture change within your business.
New tech means whole new ways to spend your budget. The South African SME Tech Index 2023 found that 45% of companies had increased tech spending in the last 12 months, and 38% planned to increase spending in the coming 12 months. And it’s not only the software that necessitates the spend: there could be expenses related to training and development, too. Creating a digital-first business also means opening yourself up to new risks, so it’s important to protect your investment by putting cybersecurity measures in place.
The issue is not finding a loan, it’s about choosing the right one. The types of business loans available each have their unique terms, interest rates, and eligibility criteria. While some owners can raise capital through crowdfunding, angel investors (who inject cash in exchange for equity) or venture capital, most medium businesses will need to get support from a bank or alternative funder. Trust is a non-negotiable when consulting with a financial advisor or business funding analyst.
Sometimes the best tech is the stuff that’s invisible to your customer. Unless it’s core to your business proposition, they shouldn’t be noticing it. Everything should just work seamlessly. Some of the most useful tech that can give you a return on your investment include:
To store customer data, financial records, and business documents securely, and enable your team to work and collaborate remotely.
To use chatbots to handle routine inquiries; look at data to find sales opportunities and personalise marketing campaigns; predict product demand and optimise inventory levels; and detect fraud.
To monitor stock levels in real-time; track machine or vehicle performance and predict maintenance needs; and optimise energy consumption.
To analyse customer behaviour to identify preferences; measure how well your marketing campaigns are working; identify trends in sales, expenses, and profitability; and optimise business processes.
Feel like you need to go back to school? HubSpot Academy offers free online training for the digital age. From quick, practical courses to comprehensive certifications, you’ll learn everything you need to know about digital marketing, measuring brand engagement and more. If you have some new software in mind but want to compare prices, capabilities and alternatives, GetApp is a helpful repository with reviews of any app you can think of, by other business owners.
If you’ve been trading for three years or more, and have an annual turnover of R10M+, you’ve got business funding options. An opportunity bridge loan could give you an amount ranging from R100K to R5M, to be repaid in three months. A large business loan could give you amounts ranging from R500K to R5M, to be repaid in 12 to 24 months.
If you’re a little newer, with a trading history of at least one year, and an annual turnover of R1M+, a small business loan could give you between R100K and R500K, to be repaid within six to 12 months.
Investing in your company’s digital future can increase your revenue, help reduce costs, and enhance customer loyalty. The next step is up to you.
Need smarter finance for the modern world? Apply now and a dedicated business funding analyst will take you through the options that are most suited to your goals.
