White Shark by Pedro Szekel | CC BY 2.0
For those of you who don’t know, Kevin O’Leary is the most aggressive and ferocious shark in the Shark Tank—ABC’s Shark Tank, that is.
If you have not seen the television show, Shark Tank is about aspiring entrepreneur contestants who make business presentations to a panel of “shark” investors. The contestants offer the sharks a stake in their company in exchange for an investment. And yes, these sharks are investing their own cash. Shark Tank contestants either leave with a deal and a bright future for their company or they walk away empty handed with no offers.
Now, if you don’t take away anything else from this blog post, at least take away this—watch Shark Tank. This show is unbelievably entertaining while portraying the interactions and dynamics between entrepreneurs and potential investors.
In a recent interview with Inc., O’Leary laid out what he thinks are the three most important reasons why small businesses should invest in technology:
Declining Costs
Not surprisingly, O’Leary talks a lot about increasing revenue while cutting costs. He explains that investing in technology now will help small businesses avoid negative consequences in the future.
“When I talk to entrepreneurs, I always talk about using technology to enhance productivity and cash flow, particularly small businesses. The cost of implementing technology continues to go down every year. All of their competitors are taking advantage of it,” said O’Leary.
O’Leary also points out that investing in technology doesn’t mean you have to wait ten years to see the ROI anymore. Today, companies typically start seeing a return within 36 months.
Customer Intelligence
According to O’Leary, incorporating technology into your overall business strategy increases business intelligence so you can drive revenue quicker. Take Boston-based cupcake company and one of O’Leary’s investments, Wicked Good Cupcakes, for example.
Wicked Good Cupcakes has been able to obtain a competitive advantage by leveraging a customer database solution, which lowered the shop’s customer acquisition costs. As O’Leary points out, you “make money by buying technology.” And there’s proof in the numbers. Wicked Good Cupcakes has seen its revenue grow from $14,000 a month to $480,000.
Leveraging Mobile
O’Leary recognizes that, for many small business owners, it’s often daunting to implement technology. He suggests working with another company who specializes in enterprise mobility. Many small businesses can’t afford a CTO, but they can partner with a company who will help them introduce technology into their business. Technology companies that not only deliver solutions but also help educate organizations on how to leverage their product will enable businesses increase revenue and cut costs.
Bottom line: Technology isn’t going to slow down. As Kevin O’Leary proves with the organizations he has invested in, technology drives real results. Companies who ignore technology are the ones who are going to fall behind, and eventually lose business to their competitors.
What results has your company seen from an investment in technology? Let us know by commenting!
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