01-05-2025
- Business
- Business Journals
It's National Small Business Month: Consider these tools to maximize productivity and profitability
When a company implements tools to boost productivity, it allows the business owner and key employees to spend more time on revenue-generating activities than on tedious manual tasks.
Meanwhile, tools that increase profitability allow a business to grow, add new equipment and make key hires.
That's why, in today's competitive economic landscape, small businesses are adopting Customer Relationship Management (CRM) software, social media, artificial intelligence (AI), cybersecurity and mobile apps.
These tools can help with the continued success of these firms, which is important to the health of the U.S. economy – 31.7 million small businesses sell their products and services near and far.
In honor of Small Business Month in May, here's a look at how these tools help with productivity and profitability.
CRM: CRM is a technology tool that helps a business manage its customer database, track the progress of sales leads, send follow-up emails to potential customers and gauge the performance of marketing campaigns.
The U.S. is experiencing a surge in demand for CRM software, driven by a growing focus on improving customer experiences and streamlining sales processes, according to Statista.
Although CRMs won't necessarily help you land new customers, they can help sustain existing relationships by automating services and customizing customer experiences based on historical interactions, according to the U.S. Chamber of Commerce.
Social media: Small businesses need to constantly attract new customers and generate repeat business and that means meeting people where they are, as noted on According to Statista, there were more than 5 billion social media users worldwide in 2024, which could increase to 6 billion in 2028.
Using social media platforms like Facebook, X and Instagram can help a business boost profitability. As the business publication reports, social media increases brand awareness, drives leads and sales, fosters authentic customer relationships, breaks through advertising noise, helps you stand out from larger competitors, sends traffic to your website and enhances customer communication.
An added benefit is that it's less expensive than other forms of advertising.
Artificial intelligence (AI): The use of AI in business is on the rise, according to the latest McKinsey Global Survey on AI. Seventy-eight percent of companies said their organizations use AI in at least one business function, up from 72% in early 2024 and 55% a year earlier – a trend driven by larger companies.
AI tools can also make money for small businesses, Forbes reported, by automating routine tasks, enhancing customer experiences, optimizing inventory management, streamlining financial management and fostering innovation and growth. Small business owners can gain the maximum benefits from AI tools by starting small, selecting AI tools specific to their needs and scaling incrementally as they gain proficiency with the technology. Such an approach enables entrepreneurs to focus on creative solutions for business challenges and pursuing new business opportunities.
Cybersecurity: Ninety-four percent of small and medium-sized businesses (SMBs) consider cybersecurity critical to success, according to a report from Microsoft Security and Bredin. These businesses are susceptible to cyberattacks and their aftereffects because they typically lack the tools and internal IT experience to prevent, detect and respond quickly.
Businesses reported spending on several tools to protect themselves, including phishing and ransomware protection.
'Savvy SMBs are taking steps to shore up protection for precious company and customer data and other assets,' the report said. 'Putting tools and technical expertise in place to prevent attacks has become a key success factor.'
Not having to deal with a cyber breach allows the business owner to stay focused on core operations. Profitability is impacted by not having to pay the high cost of an incident.
Mobile apps: As reported in Entrepreneur magazine, nearly 60% of small and medium-sized businesses do not have a mobile app. This means they're missing an opportunity to reach most consumers – who own and use smartphones – in a simplified way.
The good news is 28% of SMBs plan to develop one in the future.
'A dedicated app for a business can strengthen a brand's voice, build brand recognition, grow loyalty amongst customers and keep a small business competitive,' the report said. 'This may sound like an expensive undertaking for SMBs; however, by choosing an ecommerce app that you own rather than an online marketplace, you won't run into the added fees that some marketplaces charge per month or per sale.'
These apps impact productivity and profitability in numerous ways, according to Adobe for Business. This includes building a stronger brand, improving customer engagement and loyalty and creating personalized marketing channels.
