SMALL

BUSINESS
STARTUP
TECHNOLOGY
GUIDE

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SMALL BUSINESS STARTUP
TECHNOLOGY GUIDE

Digitally advanced small businesses are twice as profitable than less

technically savvy companies. They also experience higher revenue and
customer growth. But technology alone doesn't deliver results. Technology
partnerships, strategy, and a strong foundation are crucial for small startup
businesses.

Develop a framework to ensure a return on investment (ROI), and you’ll

position your small business startup for success.

In this guide, you'll learn how to evaluate your technology and prepare for
growth while tying key objectives to specific business outcomes.

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SMALL BUSINESS STARTUP
TECHNOLOGY GUIDE

WHAT IS A STRATEGIC
APPROACH TO TECHNOLOGY?
A simple but well-planned technology strategy will define how your technology supports your
goals. It ensures that each digital objective aligns with one or more business drivers. With a
planned approach, you can introduce technologies that improve startup processes while
developing a solid foundation for the future.

Moreover, your technology plan can uncover critical gaps and vulnerabilities you will need to
address. Use your findings to fuel growth, strengthen your cybersecurity posture, and build
resilience.

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TECHNOLOGY GUIDE

TIE TECHNOLOGY INVESTMENTS

TO SPECIFIC BUSINESS OUTCOMES
Most decision-making falls to you as a startup entrepreneur, including technology objectives
and follow-through. Deloitte found that 70% of small to medium business (SMB) owners
handle their digital technology decisions . Unfortunately, "Only 8% of companies say they are
getting their money's worth in terms of good business outcomes and advanced digital
capabilities," according to Bain.ii

Understanding how your technology goals affect your startup's performance is a critical step.

In the Technology Investment Fitness Index (TIFI), Price, Waterhouse, Cooper (PwC), one of
the nation’s most reputable business accounting firms, recommends assessing the "alignment
between IT spending and business capabilities."iii Consider your business drivers and ensure
new technologies tie to one or more outcomes.

Your business drivers may include:

Boosting revenue through

productivity improvements

Increasing agility by automating

business workflows

Driving profitability by
decreasing costs

Improving revenue by
expanding your customer base $

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TECHNOLOGY GUIDE

DISCOVER TRAINING
OPPORTUNITIES
PwC reported, "One in three jobs will And when your team is small and capable, it's
disappear or "be severely disrupted" over the easy to underestimate the time it'll take to
next ten years "because of technological digitalize workflows and maximize value from
change." Companies must support their staff technology investments. A longer adoption
by teaching them" how to think, act and thrive time than expected can put your digital goals
in a digital world that is sustainable over behind schedule and even shut down projects
time."iv altogether.

Before officially opening their doors, many

entrepreneurs and their teams develop Acknowledge weaknesses and the
preferences for specific cloud-based tools. If risks of not addressing them before
you're familiar with an application, it's easier updating or choosing new technology.
to use it for business than training on a new
system. However, it's better to standardize Work with technology partners
processes and software early for security and like Cox Business that provide
growth purposes. This decision may require round-the-clock support, self-help
upskilling or reskilling. resources, and staff training when
possible.v

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TECHNOLOGY GUIDE

ASSESS YOUR TECHNOLOGY

FOUNDATION
Reliable Business Internet, business phone service, and cloud services are must-have tools
regardless of your industry or niche. The technology foundation needs a line of defense
against cyberattacks, not only for the technology but also people and process. You may be
tempted to save money by looking for the lowest-priced providers for each.

But the money saved could become a massive headache

when your business grows, and your platforms can’t
scale. Determine your immediate and future needs
to find the right fit for your business.

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TECHNOLOGY GUIDE

INTERNET
AND WI-FI
Your immediate needs will differ depending on
your business location, consumer base, and
usage patterns. Review business and home
office internet services to see pricing and
speeds for each tier. Compare these to your
current and expected usage. Speak with a Cox
Business representative to explore packages,
customer support, and hardware options.

Consider these factors:

Number of concurrent
users and potential
customers on Wi-Fi
Amount of
high-bandwidth activities,
such as video conferencing
Number of connected
devices, like printers, mobile
phones, and laptops
Remote or traveling
employees needing a Virtual
Private Network (VPN)
Availability of failover
solutions for your internet &
router (security essentials)vi
Type of customer service
methods offered and
availability
Options for advanced business
Internet security to protect
businesses from evolving
threats like ransomware

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TECHNOLOGY GUIDE

BUSINESS PHONE
NUMBER AND SYSTEM
Your business phone number isn't only for
communication. It's about getting your new
brand out there. You'll want a business
phone number for your website, Google
business page, and more. Even if you run
your business entirely online, a business
phone number gives your brand credibility
and will help if you make sales or collections
calls. Also, it keeps your team connected.

Cloud-based business telephone like Voice over Internet Protocol (VoIP) systems don't require
upfront capital investments, and some will work with your existing hardware.vii You can
forward small business phone services to personal phones off-site and access account details
from anywhere with an Internet connection.viii Of critical importance is selecting a scalable
solution that will support your company's growth.

Many of today's cloud-based VoIP business

phone systems offer a unified communications
(UC) platform.

UC applications give your teams access

to voice, video, and messaging tools from a
single login and provide a great way to
streamline communication in the workplace.

With one login, your team can access

voice and video tools that help them manage
conversations more effectively while
decreasing the risks of missing important
messages or searching through emails when
they need information quickly.

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TECHNOLOGY GUIDE

CLOUD SERVICES
Having on-site software that isn't accessible from anywhere isn't feasible for most startups.
Business owners and their teams are used to having access to documents, forms, presentations,
and customer data from their cell phones. More than 80% of SMB respondents to a Deloitte
survey "use digital tools for internal management and logistics," and 90% use them for
communication.ix

During startup days, your team may piece together various cloud services for messaging, video
conferencing, and file sharing. But management will get unruly as your business grows,
making it challenging to track conversations, documents, and user permissions.

That's not to say that you

shouldn't use free versions of
cloud-hosted tools for your startup.
But we recommend working with
a trusted and reliable
Cloud services provider
like Cox Business and Rapid Scale
to identify solutions based on
the specific needs of your
business.

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TECHNOLOGY GUIDE

EVALUATE YOUR CORE PROCESSES

Your core processes are the capabilities, actions, and activities your new business needs to
develop and deliver a service or product. This category covers everyday systems, from
accounting to product development and sales. For business resilience and growth, it's
essential to pick the right tools and document your workflows early. Consider how technology
can improve workflows and your business for each process.

CATEGORIZE YOUR CORE PROCESSES

STEP
1
Create a list of workflows required to run your startup and consider what technology can help
you achieve. Place business-critical systems and processes into the first category. These might
include methods of forecasting sales, selling online, and communicating with customers.
Technology solutions suitable for these tasks consist of cloud-based accounting, website or
eCommerce tools, Internet and Wi-Fi access, and business phone systems.

When considering what processes would

benefit from technology, it's essential to
consider the investment required. Some
technologies may be necessary, while others,
like an advanced CRM or digitally-enabled
conference room, may require additional
investment. This category may also require
extra tech support, either in-house or
outsourced. It would be best to keep each
option's potential benefits and drawbacks in
mind when making decisions. By doing so, you
can make the best choices for your business.

Lastly, create a list of improvements that

could transform how you do business.
Refining your product development and
manufacturing processes could be a
game-changer.

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Edge computing (allows for processing of data at the edge, without the need for the data to
be transported to another server environment) and dedicated business Internet are two ways
to deliver computing power to your team and increase productivity and efficiency.

STEP
2 CONSIDER IN-HOUSE VS. MANAGED SERVICES

Startup companies must evaluate their

technological capacity to execute technology
initiatives. The evaluation should assess
resources and outsourcing management to
achieve successful outcomes.

Most small business startups don't have

dedicated IT professionals on their team
when starting. And it can be challenging to
find (and afford) employees who can install,
maintain, and troubleshoot your existing
services and integrate new hardware and
software as your business grows. Plus, there's
onboarding and training to consider and the
need for 24/7 support.

Enter Managed Services. There are many reasons why your small startup business should consider
outsourcing to a managed service provider (MSP). Perhaps the most important reason is that it can
help you save money. By outsourcing IT services, you can avoid the high costs associated with
hiring in-house staff or the headaches associated with contracting multiple freelancers.

In addition to saving money, outsourcing IT services can also help you improve the quality of your
products and services. A reliable managed service provider will have the experience and expertise
necessary to provide IT support that meets your current and future needs. They can also help you
stay up to date with the latest technology trends.

Finally, outsourcing IT services can give you peace of mind. When you outsource to a trusted
provider like Cox Business, you can be confident that a team of experts is handling many of your
technical needs. Managed services can free up your time to focus on growing your business.

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TECHNOLOGY GUIDE

STEP CREATE A BLUEPRINT FOR

3 TECHNOLOGY DECISION-MAKING

Once you've identified your core processes, find one or more business drivers that make a case
for a technology improvement. For instance, increasing agility by automation is a crucial
reason for using cloud services, as the benefits are well-known. But there are dozens or
hundreds of potential cloud solutions for every problem. How do you choose?

Choose the right technology by looking at:

Project type Budget Integrations Security Technical

and size supportxii

Ease of use Timeline Scalability Resource

redundancy

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SMALL BUSINESS STARTUP
TECHNOLOGY GUIDE

UNDERSTAND
HOW TECHNOLOGY
BENEFITS YOUR
STARTUP
Your technologies and techniques can give
your business a competitive advantage.
However, failure to understand the benefits of
technology can lead to misconceptions about
the desired ROI during digital transformation.

Tying your objective to business drivers

provides clarity. But it helps if you also get your
co-founders, investors, & employees on board.

Present your team with case studies, competitive research, and information that supports your
objectives. Don't forget to show how technology benefits them personally. Automation reduces
costs for your startup. But it also decreases tedious tasks and allows your team to focus on doing
the jobs they love.

Scalability
Technology enables you to keep up with demand and invest in growth.
Likewise, you can scale down when needed. In most cases, cloud-based tools
and managed services provide the most flexibility, as you don't need on-site
infrastructure or to increase your tech staffing. Instead, an online portal
provides access to account details, allowing you to add or remove users,
features, and permissions from any internet-connected device.

Mobility
Undoubtedly, the flexibility technologies provide for mobile users and virtual
teams is a crucial benefit for startups. Mobile tools for staff allow them to be
productive from anywhere. Likewise, customer-facing, mobile-optimized
platforms increase customer satisfaction and build brand trust. And as an
entrepreneur, turning your cell phone or tablet into a virtual workspace can
be life-changing.

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The flexibility and mobility provided by technology support:

Customers: Staff and Leaders:

contractors:

Mobile-optimized With a talent shortage It can feel like there's

eCommerce sites and a tight labor no work-life balance
and apps deliver the market, developing a when you're in charge
experience your customers solid and diverse team of a startup. The
expect. Startups can can be challenging. flexibility of mobile
exceed expectations by Technology keeps staff tools lets you monitor
using mobile-optimized connected, and remote business-critical
solutions for more than work expands your labor situations from
shopping carts. Consider pool. Crunchbase Y anywhere while also
how technology can Combinator data found setting boundaries
enhance customer service that "70% of startups using various
or make it easier to offer remote work notification, device,
leave a review. options.11xiii & software settings.

COLLABORATION & COMMUNICATION

Clear, consistent communication and collaboration are vital to your
startup. The right collaboration tools keep your team engaged, make
meetings more effective, and enable project oversight. Deloitte
reported that "around 90% of SMBs believe digital tools
have fostered innovation in their business, particularly
in entering new markets and communicating with
customers."xiv
Artificial Intelligence (AI) and Machine Learning (ML)
technologies capture data from conversations, helping
your startup analyze sales pitches and conferences.

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TECHNOLOGY GUIDE

Furthermore, communications platforms like Microsoft Teams and Cisco Webex can help to
organize and unify your meetings, documents, chat messages, and more.

CUSTOMER
EXPERIENCES
SMBs that maximize their use of digital tools
are five times more likely to reach new
customers and three times more likely to
experience customer growth, according to
Deloitte.xvii Technology helps streamline
workflows, improve security, and personalize
communications. Each component enhances
experiences and increases customer satisfaction.

BUILD YOUR STARTUP

DIGITAL TOOLKIT
Regardless of your industry or business model,
technology plays a vital role in your startup.
While technology can improve workflows and
experiences, costly mistakes can waste resources
and frustrate users. Reduce your risks by
developing a technology strategy. Build a strong
technology foundation and align digital
initiatives to business outcomes. Plus, don't
discount the value of technology partnerships.

i(Deloitte Touche Tomatso Limited, 2017) viii(Cox Business, 1998-2022) xiv(Teare, 2022)
ii(Padmanabhan, 2021) xi(Cox Business, 1998-2022) xv(Deloitte Financial Advisory S.L.U., 2019)
iii(PriceWaterhouseCooper/PwC, 2015) x(Deloitte Financial Advisory S.L.U., 2019) xvi(Cox Business, 1998-2022)
iv(PriceWaterhouseCooper / PwC, 2019) xi(Cox Business, 1998-2022) xvii(Cox Business, 1998-2022)
v(Cox Business, 1998-2022) xii(Cox Business, 1998-2022) (Deloitte Financial Advisory S.L.U., 2019)
vii(Cox Business, 1998-2022) xiii(Segal, 2022)

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