In today’s day and age, startups are extremely common. Everyone has a great idea, and they all plan to capitalize on that idea and turn it into a successful business. Unfortunately, a lot of startups miss their mark and flop heavily. In fact, the failure rate of all U.S businesses after five years was over 50 percent.
One of the biggest reasons startups flop in today’s world is due to lack of automation. Automation can do a lot for a startup, and can actually offer just as much value as the startup’ unique idea does. If a startup ever wants to compete with larger corporations and expand, then automation is key. However, what exactly does automation do for a startup?
Saves Time and Money
Automating your business will allow you to complete tasks much faster, and will also be much easier on your wallet. Automating a task allows it to be done much faster than if it were done by hand. This allows you to put valuable resources into other areas since your automated process will take care of certain tasks. In addition to completing the task more efficiently and effectively, an automated machine can do it for cheaper. There is no need to pay an automated machine an hourly wage or to spend money on a corporate wellness program for them. This makes automation key in cutting costs and increasing efficiency.
Easier Customer Interaction
Even though some customers say that they hate dealing with automated responses and would much rather speak to a real person, the reality is that automation makes customers’ lives much easier. Instead of waiting in long lines to speak to a representative, a customer can usually just get the answers they need from an automated response. In addition, these automated responses can be available 24/7, making it extremely convenient for customer interaction. Finally, automated responses allow for all your company’s information to be in one place that the customer can easily access. By streamlining the customer interaction process, you are making it much more efficient for both you and your customers.
One of the biggest drawbacks of your employees is the potential for human error. This is entirely normal as we are all human, and we all make mistakes from time to time. Human error is what makes us who we are, for better or for worse. That being said, human error can still be extremely costly and even cost the average multinational corporation $62.4 million dollars per year. However, you can eliminate the prospect of human error in certain areas of your business by automating them. While you may experience a few glitches or bugs in your programs from time to time, it would be nothing near the amount of losses that can occur from human error.
If you ever want your startup to expand and compete with major corporations, then you will need to adapt and integrate automation into your startup. Massive corporations like Tesla are so successful because they were able to adapt and make trends like automation a core component to their success. Automation allows business to lower production costs and divert resources to more pressing matters. This means that if you automate your startup you could use the savings to expand your business. This could include opening up new locations or expanding your marketing efforts. Regardless of what you choose to do, it is clear that if you want to become a major player in any industry then you are going to need to integrate automation into your business model to some extent.