As banks make it more difficult for small and medium-sized businesses to take out loans, expenditures for improving internal business processes can rapidly shrink or disappear altogether in an economic slowdown.
Customers reign in spending, businesses look for ways to streamline their workflow with cost-effective solutions. But only to find that the bank will no longer give them the loan to make it happen so the cycle continues.
The New York Times notes that the withholding of credit comes as the economy tightens and joblessness grows, making it difficult for companies that would be able to grow to secure the funds to do so. By mid-June 2008, the credit banks were giving was decreasing rapidly by more than 6 percent.
About $150 billion that companies cannot get for their business needs at present (and very likely in the future).
Imagine wanting to do internal restructuring to be more cost-effective and needing to make a significant expenditure for the software, etc., to accomplish it and then not being able to get the money for the investment.
What to do in a tight economy to improve my business?
The answer is to be creative. If improving customer relations, employee management, and project management to reduce costs and increase flexibility are what you want to do, consider the benefits of hosted web software.
Using the hosted web software without investing in capital expenditure or taking a loan from the bank to expand your business is the best solution. Unfortunately, in times like the present, you may not be able to get loans even if you want/need them.
According to Jeff Pyden of OmniVue Business Solutions, hosted online software has many benefits for companies who find themselves in these kinds of situations.
How does a Hosted Web Software help?
First, hosted software is done on a pay-as-you-go and monthly or yearly basis etc. The hosted version allows you to add or remove users and there are no upfront software costs. Still, you can always get permanent licenses later if you need them.
Since no money has been spent on internal resources, there is less risk and more affordability and flexibility, which can be ideal for the current economic situation.
Hosted web software, like OfficeClip, are internet-based solutions, allowing you to access your data anywhere, anytime, anyplace with just a web browser.
Businesses can efficiently manage data and applications such as Web Timesheet, Contact Manager, Online Calendar, and Document Sharing. In addition, the hosted version allows you to add or remove applications as your needs change.
So if you have financial concerns, are worried about the economy, or want to try something new to improve important aspects of your business, hosted web software may be perfect for you.
SK Dutta is a software architect and creator of OfficeClip Suite of products. He loves to design and develop software that makes people do their job better and more fun. He always explores ways to improve productivity for small businesses. He is also an avid reader in many areas, including psychology, productivity, and business.