The impact of SMB automation downtime can be so significant that it causes a business to shut down forever. Unlike larger corporations that have contingencies and fall-back money, insurance and plans, a smaller company may not be able to weather an incoming storm. So what’s the worst that can happen? From abandoned sales to costly IT recovery, here are some examples.
Productivity Losses through Idle Staff
There are numerous automated systems that can fail with an immediate impact on the workers of a small business. CRM, inventory and even robotics failures can prevent employees from doing their jobs, but they must still be paid. Productivity can come to a standstill, and the staff is paid until they come back online. There are some unforeseen issues, but plant equipment maintenance and preventative inspections can help reduce the chances of common failures.
Revenue Loss from Abandoned Sales
Even the slightest dip in sales can have a massive impact on a small business. If your company is service-based, it is likely that it will experience abandoned sales and, of course, revenue loss as a result. Common automation problems include payment gateway errors, website downtime, and POS problems. Any of these leads to shoppers leaving their carts and going elsewhere for their products and services, and some are unlikely to return due to the bad experience.
SMB Automation Downtime Can Impact Reputation
One of the hardest things to hit a small business is reputational damage, with 60% closing within six months of something that causes irreparable harm, such as a cyber attack. Of course, there are a few ways to minimise technical issues at your business, so downtime is kept low. However, failing customer-focused tools such as ChatBots, email notifications, and even scheduling fail. It’s hard enough to deal with difficult customers, and this will add to the problem!
IT and Network Recovery Expenses
There probably isn’t a business on the planet that relies on IT and networks in some way, and any automated service is wholly reliant on IT systems. But as you know, IT infrastructure can fail, which can be a disaster you may not come back from. Most SMBs don’t have internal staff to resolve IT systems and will need to call expensive repair services to sort out the problems. However, you can reduce the costs and chance of issues with outsourced managed IT services.
Contract Penalties from Supply Chain Issues
Sometimes the automation problems are so severe that they completely disrupt the entire process of your business. The supply chain is a critical logistical necessity for almost every type of business, and one misstep can cause a chain reaction that shuts the entire system down. You can take steps to reduce supply chain issues, but the issues can extend beyond downtime and into expensive penalties for missed contracts, just adding even more to the overall costs.
Summary
Lost productivity through idle workers is one of the worst hidden impacts of SMB automation downtime that can happen. However, you can also experience reputational damage that’s hard to recover, and supply chain problems can cause your business to miss contract obligations.
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