Technology can give small firms big edge

Small-business owners–with fewer employees and less capital than their larger competitors–can still edge out the big guys by maximizing technology.

By Sarah Hale
Tribune Newspapers: Orlando Sentinel

Whether you run a low-tech or high-tech business, utilizing the latest and greatest technological advancements in your industry and updating your software programs will enable you to better compete against larger companies.

Incorporating e-business elements, such as building an interactive Web site or developing an online marketing plan, also will strengthen your global reach.

If you think technology doesn’t apply to your business, think again.

"Every business is technology-dependent," said Carol Ann Dykes, associate director at the University of Central Florida Technology Incubator.

"From managing inventory, finances and personnel to handling customer-service issues, it’s all being done by using technology."

Although updating a computer system or building an Internet site can be costly, the changes could save you money in the long run and help attract customers.

Take Waste Pro USA, for instance, a Longwood, Fla.-based garbage-collection and waste-removal company. The trash business is cashing in when it comes to implementing different technologies. The company’s interactive Web site helps to attract and inform clients, while safety changes to the trucks have lowered insurance costs.

"How else would we compete against the larger, national companies?" said John Jennings, Waste Pro president.

"We market ourselves by taking full advantage of all the technologies out there," Jennings said. "Some aren’t necessarily part of our industry, but once you incorporate the idea, it becomes a win-win for both us and the customers."

From little changes to big ones, a smaller company is often more flexible when it comes to implementing new ideas.

Start-up businesses also are at an advantage. These firms can introduce and adapt to innovative ideas from the get-go, rather than retrain employees who might not be so nimble when it comes to change.

At Waste Pro, with services in Florida, Alabama and South Carolina, Jennings and his team have introduced a variety of high-tech touches to the low-tech business.

For example, a video screen and audio system were added to each truck, allowing the drivers to see and communicate with employees riding on the back. The video screens, which feed off a camera in the rear, also help drivers to see oncoming vehicles.

Automated scales were added to the trucks, which help to gauge landfill disposal fees and other costs.

In addition to the truck changes, the company’s computer system was recently updated, which improved the business billing system and automated invoices. Payment also can be collected via the Internet, saving 78 cents per customer, Jennings said. Payment records also are easily stored in the system.

"The high-tech touches really work to our advantage," said Bob Hyres, a senior vice president with the company. "We’re smaller than some of our competitors, but in some cases, we’re a notch ahead when it comes to technology."

Business owners should continually research the latest high-tech capabilities in their industry and most recent software programs, Dykes said. While it could take longer for a big company to implement a new program, a small business with more flexibility would be better equipped to start sooner.

"It’s an easy way for the small company to have an edge over a bigger one," she said.

Broaden your customer base by creating a company Web site. An interactive Web site can service clients 24 hours a day, while also providing company information to prospective clients. Thanks to the Internet, some small and midsize businesses are able to attract national and international customers.

Copyright © 2003, Chicago Tribune

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