Is SME Dying?
The traditional office is dying. Ways of administering a business are changing rapidly. The technology driver to the change was the Smart phone which gave connectivity, location independence and ease of access.
There was however a cultural change as well. A small business’s credibility was previously judged based on simple factors such as its location and the person who answered the phone. The most appealing address affordable and a secretary were vital for image. Home based business are rarely taken seriously.
This changed in the noughties and now it is cool and almost expected, for a young entrepreneur to work home. Office space is expensive, particularly when considering how collaborations can take place across the world through email and dropbox for free. Young people in particular have grown up with instant connectivity and do not see the point of an office based working style.
With modern cloud tools, mobile devices enable users to complete tasks anywhere. In the 80’s a business would reconcile its bank transactions by agreeing a paper bank statement with a ledger book using pencil ticks. In the 90’s banks would type the amounts from the bank statement into a PC accountancy package and ticking them electronically.
Your cloud accounting system automatically downloads bank statement lines into your browser and suggests matches with your electronic “books.” The recent launch of the new Xero “Touch” app now makes this essential bookkeeping task possible using only a phone.
So while the business is still small it does not need an office. Key personnel, customers and suppliers can have face to face meetings anywhere that is convenient to the participants. Accounting and administration likewise, helped by the simple fact that paper documents are now obsolete.
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