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How Small Businesses can Scale Up their Operations Using Apps?

Apr 1, 2022 | Small Business | 0 comments

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Apps are all over the place these days, no matter what sphere of life it is. With increasing internet penetration across the world, apps are one sure shot way to deal with customers from almost anywhere. As small businesses do not have the capital MNCs have, hence it is not easy for them to scale up their operations.

To scale up operations, a company needs capital, manpower, and the use of modern technology. A small business may not have the first two, but they can definitely make use of apps to scale up their operations. One can consider the Use Case of cloud kitchen, using which even small restaurants have been able to scale up their operations. They do not need to have a big space or a large delivery staff. All they need to do is get themselves listed on a popular food delivery app, and they will get a big jump in the orders they receive.

 We can also consider the use of third-party apps by small businesses in eCommerce. Small businesses can get themselves listed on popular eCommerce apps and get orders from across the globe. With good ratings and reviews about their products, their operations are bound to go north.

Some facts & figures regarding Smartphones, Apps & their usage:

  • By the end of 2020, 46.45% of the world population possessed a smartphone(Statista)
  • China, India, and the USA are the top 3 countries with the highest number of smartphone users(Statista)
  • Mobile Apps are expected to generate USD 613 billion in revenue in 2025(Statista)
  • Average smartphone user makes use of 10 Apps per day & 30 every month(Buildfire)

 

The above statistics clearly show that smartphones & apps are here to stay and are already revolutionizing how businesses make money. So, it makes sense for small businesses to join the bandwagon and make it big in their niche with mobile app development.

Factors that make Apps a boon for Small Businesses:

1. Internet Penetration Across the World

It is estimated that between 2000 and 2016 the number of internet users across the world increased from 413 million to 4.3 billion. This indicates the rate at which internet penetration is increasing with even far-flung areas connected to the internet via mobile towers. With such connectivity, mobile apps are the best way to promote and grow one’s business.

 

2. Lower Cost of App development

 

Only a few years back, developing and maintaining apps was not so cheap. However, with more companies dedicating resources to app development and the availability of Software Development Kits, the task has become cheaper and less cumbersome. This allows small businesses to build apps and use them to their advantage.

 

3. Increase in Turnover

 

Once a robust app is in place, a small firm can leverage its reach and technology to increase its client base. Use of promotions, integrating payment gateways, receiving reviews to improve products/services, and keeping clients informed can all be done via an app. All this will eventually lead to improving efficiency, increased business, and scaling up of operations.

 

4. Apps make it Easier to Engage Customers

 

It is a well-known fact in business that the cost of acquiring a new customer is very high. If the firm is unable to retain the customer for repeat purchases or for purchasing new products, then it will be a big loss for the company. Apps make it easier to reach out to already established customers and keep them informed about new products or services. This helps in scaling up their operations without additional workforce.

5. Apps help in Competing with Large Firms

 

Just imagine how difficult it would be to compete with companies, whether big or small, who have their apps. It would be impossible to scale up the operations as other companies would get a majority of the business. Having a reliable app is the need of the hour and not a luxury. Any small business, which aspires to become big, needs to have an app.

 

6. Apps provide a High ROI

 

The advantage of having an app far outweighs the cost of developing one. It is a great marketing tool, and unlike traditional marketing, one can calculate the return on investment. A small business may not be able to afford print or television ads but use its app as a marketing tool by sending notifications about new products/services.

 

7. Makes it easy to Analyze Data

 

Data is the next big thing for all companies, whether big or small. Apps make it easier to collect data regarding customers, purchases, and payments. This data can be analyzed to come up with specific conclusions which can be used to improve products/services and make informed decisions related to pricing.

 

Conclusion:

Corona’s pandemic has made online services a big hit, especially in metros and suburban areas. This gives small businesses which are still trying to set themselves up, a level playing field on the internet by going for mobile app development. Small businesses can rely on apps to increase their client base and scale up their operations. The coronavirus has constantly been mutating across the world, causing mass infections and subsequent lockdowns. This makes app the king for buying everything from groceries to clothes and changing consumer behavior significantly.

Article contribution by Amy Kariya

 

So, want to scale up your operations? Go for an App!

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