What is IoT? How Does It Help To Cut The Cost of Small Businesses?

Due to technology we are seeing many improvements in the business world. Above all, technology is bringing a new automated business solution with each passing day. So, if you have a small business and want to make progress, we can’t emphasize the importance of technology.

What is IoT? How Does It Help To Cut The Cost of Small Businesses?

IoT is one of those things playing a vital role in boosting productivity, speed, and ease of doing business by eliminating human error. Still, most people are unaware of the IoT and how it’s positively changing lives.

In simple words, we can say it’s a buzzword for the 21st century and has brought a shift in consumer markets. But before discussing different aspects, let’s try to get the main idea:

What is the “Internet of Things”?

The Internet of things is the complete form of IoT. However, the concept refers to a situation where one device is connected to another and creates a whole network.

But the entire network links with the internet. However, we can use these devices to perform daily life functions in business.

These devices are equal to humans that can talk to humans. So, in small companies, you can automate all features by giving commands using the internet of things.

Example: Alexa is the top example of IoT. Nowadays, we see these devices in our homes performing tasks like switching on the TV, fan, etc.

Importance of IoT for small businesses:

As per stats, around 80% of small companies use IoT because they think it can increase ROI. Apart from this, more than 50% of businesses are planning to shift towards IoT-related initiatives. In 2015 there were around 44% unaware of the IoT concept.

But in 2016, the ratio declined and came down at 19%. Hence, it proves the importance of IoT, and now these devices are even used for household purposes. Here is the data that is showing growth of IoT over the years:

• In 2020 it was around $31 billion
• 2021 it was about $40 billion
• But in 2025, it is expected to touch $76 billion

So, it means the adoption of IoT is unstoppable and has increased a lot in past years. The main aim of this technology is to improve the efficiency of processes. Moreover, here we are stating the impact of IoT on different industries.

We can see that the below 100 have immense space to grow further. Other than the above industries, the health care, public sector, and transportation industry have a considerable growth margin.

How is IoT helping small businesses to cut down additional costs?

A business comes with many responsibilities and requires you to perform specific actions. But if you fail to perform these duties, then it affects profitability.

But IoT has made it easy, and you can increase business efficiency without spending extra money. So, here are ways in which IoT is helping small businesses.

Helps to reduce cost:

Cost reduction works as a magic wand for any business. However, when it comes to reducing costs, nothing performs better than IoT.

Apart from this, the internet of things is becoming a different industry introducing different products each year. As per stats, vendors who were selling IOT earned revenue that was up to $470 billion.

Thus, all these software, machines, and technologies are helping businesses to streamline operations. But if there wasn’t the concept of IoT, then we could have hired human sources for automated tasks.

Moreover, the IoT technology comes with sensors that help to keep equipment ready all time. If there is a minor fault in the technology, it requires minimum repairing.

Gives control:

Smart locks are the most powerful solution that has solved so many business world problems. Now small businesses have internet-enabled smart locks that are a perfect example of solving real business problems. Moreover, smart locks allow you to access data without being physically present there.

In this situation, you can change passwords anytime to protect your data. You can do whatever, and everything is just a few clicks away from you.

Make inventory management easy:

Inventory management is another daunting task for small businesses. For instance, a business dealing with FMCG products knows that tags are of immense importance. But the small IoT devices connected to the internet proved a real blessing for this task.

You can attach tags or invoice template samples with the products later and the machine can read them easily. The device will record everything from sales, returns, quantities to audit.

Added-up advantages of using IoT:

Tesla, Amazon, Target, and other top companies are already using the internet of things to do business. So, if large companies are using them then why not the small ones? Here are added up benefits of functioning IoT:

• Helps to monitor and record data and save the business from scams
• Improve business productivity and ROI
• Increase competitiveness b/w companies and industries, and as a result, customers get better service.
• Increased revenues
• Reduced energy consumption that saves the environment
• IoT keeps the world safe from waste

It’s a critical thing that will help you convert your small business into a huge success. Now in this technological age, you can file taxes using the internet.

It doesn’t matter whether you are an independent worker or a business owner. You only need to file a 1099 pay stub for an independent contractor, and you are all set to go.

Technologies that you can use for IoT:

All of the above benefits lead towards a low-cost business structure and more revenue. So, if you are wondering about the technologies that you can implement in the business, then here are the few:

All these things work for you to attract more customers worldwide without even leaving your space. Around 60% of organizations are now using IoT, and it’s widely adopted in all industries. So, the IoT industry is making every passing day, and small businesses can benefit in many ways.