Many craft businesses, but also other small companies such as snack bars, restaurants or stores, are family-run. They may not yet have their own website and their business processes are largely analog. In these cases in particular, it is worth taking a look at the opportunities for digitalization.
There are numerous challenges to overcome: There is a shortage of skilled workers everywhere, and apprenticeships are hard to fill. At the same time, the prices of raw and other materials are soaring, as are personnel costs. In these cases, it can help you to use digital alternatives.
With the help of digitalization, for example, you can simplify
- ordering raw materials and supplies because you are not tied to specific regional suppliers. You can compare offers, qualities and prices throughout Germany, Europe or even worldwide.
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Payroll accounting: This can be carried out almost automatically with the appropriate software.
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Invoicing, account monitoring and dunning: These tasks can also be handled digitally and therefore more easily.
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Data exchange with your tax advisor: Every accounting software has the corresponding interfaces on board.
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Communication with your customers: Because you can reach them not only by phone during normal office hours or by post, but also around the clock by email, via your website or social media.
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Appointment scheduling: This can also be automated with tools.
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Recruitment of qualified personnel, as you can search for suitable candidates throughout Germany.
We take a closer look at these areas below.
The company's own website
Even as a small company, you benefit from a web presence - even if you only offer your services locally. Anyone who wants to buy something or is looking for a particular service will first and foremost find out about it on the Internet. In Germany, 62.6 million people use a cell phone. This allows users to find the right places to go and be guided directly to them.
With your own website, customers and interested parties have the opportunity to become aware of your products or services 24 hours a day.
To make your website a complete success, the following points are particularly important:
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Your site needs a professional and high-quality design.
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Technically, your website runs smoothly: it is user-friendly and self-explanatory.
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Imprint and privacy policy are available.
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You offer high-quality content that appeals to your target group.
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You keep search engine optimization (SEO) in mind when writing your texts: You integrate the most important keywords in the headlines and competently answer the most important questions that potential buyers might have.
You can have your own website created easily and inexpensively. This ensures that the website is designed professionally and entirely according to your wishes. In addition, you will receive support to increase the findability of the website in search engines. The overall cost to you is very low.
The investment in such a service is worthwhile, because without your own website you could lose potential customers to your competitors.
Further advantages of your own website
News and current events can also be communicated quickly and, above all, free of charge via your website: Perhaps you are extending your opening hours, organizing a special sale or an "open day"? With a website, you can reach many people without incurring any additional costs.
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Interested parties can find out about your offer, the address of your business, directions and contact options as well as regular opening hours and view reviews online around the clock.
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By having your own web presence, your business gains respectability: your reputation increases in the public eye.
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If reviews of your company are available, feedback from your previous customers makes it easier for interested parties to make a purchase decision or book your services.
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If you manufacture your own products, you can integrate your own online store on your website. This will open up new sales opportunities for you: You will reach a much larger customer base than in a retail store.
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Appointments and bookings can also be made online. If you integrate an appropriate tool into your website, you save on staff.
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A dedicated page gives you the opportunity to present your entire product range in detail in words, pictures and videos or to present your services in full. Unlike on social media platforms, which we will discuss in a moment, you are not subject to any external rules: Your website belongs to you!
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With an image film or portraits of your employees, you can show your (potential) customers the faces behind your company. This creates sympathy and trust.
Not all small companies have their own website. Some deliberately choose not to, but are present on social media. We advise companies of all sizes to use both.
Facebook, Instagram, TikTok, Twitter - there are various channels. It is worthwhile for you as a company to have a regular presence on at least some of these portals: You have direct access to your target group there. You can find out what they want and need, get feedback on products and services and tailor your offers accordingly.
You can also advertise yourself and your services or products free of charge with interesting, funny or engaging articles. You also have the option of placing paid advertising.
A mix of both is recommended in order to achieve a high reach as quickly as possible. Advertising with influencers - influential figures on the respective platforms - is also ideal for drawing attention to your business.
The different platforms have different focuses. The requirements for posts also differ. Your posts should always be tailored to the chosen channel: On Twitter, concise statements are suitable. Instagram is primarily a photo app. Videos are in demand on TikTok and YouTube.
Tips for using social media:
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Choose the channels that best suit your business and your target group.
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Create high-quality content specifically for these portals. This can be text, photos or videos. The better your posts are received, the more often they will be liked and shared. Particularly well-made, high-quality and entertaining posts have the chance to go viral, i.e. to be spread quickly and thus attract a lot of attention.
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Take care of your social media presence. A successful social media presence requires regular maintenance. This means answering questions in the comments and commenting on reactions to your posts. Don't forget: social media thrives on interaction
Are you finding it difficult to choose the right social media platforms? Think about your desired customers and answer the following questions for yourself: Which age group do you want to address? How do you want your company to be presented to the public? Are you planning to post images, texts or videos? Or should it be as colorful a mixture of everything as possible? This will determine where a presence is most worthwhile for you.
According to an online study by ARD and ZDF among the German-speaking population aged 14 and over, social media use is distributed by age group as follows:
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Instagram is in the lead among 14 to 29-year-olds (74 percent). This is followed by Snapchat (47%) and TikTok (44%).
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The 30 to 49 age group prefers Facebook (47%). In second and third place are Instagram (39%) and TikTok (15%).
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People aged between 50 and 69 are primarily reached on Facebook (31 percent), followed by Instagram in second place (13 percent) and Twitter and LinkedIn in third place (5 percent each).
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Among the over 70s, Facebook is also in first place (17%). Instagram and Twitter share second place (3 percent each).
Below, we briefly highlight a few selected social networks to make your decision easier.
No company can ignore Facebook. According to the Digital 2022 Global Overview Report, Facebook is still the most popular social network, with around 2.91 billion users worldwide in 2021. The average age of Facebook users is over 30.
There are various ways to post on Facebook: you can present your articles and services in text form, but also upload photos or videos. Users can either react publicly by liking, commenting or sharing the post. Or they can send a private message if they have any questions about your company, products or services. Users can express their satisfaction with your service and products through positive or negative reviews.
However, Facebook is less popular among young people between 16 and 19: according to a study on the use of social media, only 39% still use it. In 2012, the figure was 87 percent. You can reach teenagers and young adults better on TikTok and Instagram.
TikTok
In a recent survey of 3,500 internet users, 73% of 16 to 19-year-olds stated that they use the video platform. TikTok is designed for use with smartphones. The content on the platform is characterized by short, entertaining videos in vertical form, which can be provided with various effects, filters and text.
Tips for content creation by companies on TikTok:
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Give users of your chosen social network fun insights into your business and your day-to-day work.
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Show yourself and your employees or
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present your products and their added value in short tutorials.
If your advertising is funny or cleverly packaged, almost any topic will work. However, video production requires a considerable amount of time and effort. The films do not need to be long. But a captivating dramaturgy is crucial to keep users attentive.
On the Instagram photo platform, you have the opportunity to set up an account for your company and present your brand to users. You can direct interested parties to your website and even arrange appointments. The Instagram bio offers 150 characters with which you can present your business and give your brand an individual touch.
Instagram is particularly suitable for products that require little explanation and can be impressively photographed or filmed. You can build a community with the help of captivating stories, photos, video reels and live videos. There is also a shopping area on the platform where you can offer your own items.
YouTube
The YouTube video platform is particularly attractive for companies due to its wide reach. People of all ages are on it. This means there is a high probability that your target group will be among the users.
Creating high-quality video content such as tutorials, guides or presentations is time-consuming and comparatively cost-intensive. But unlike a post on Facebook or Instagram, content on YouTube remains easy to find for months or even years.
For example, "behind the scenes" videos are possible here, in which an employee guides viewers through the company and gives them internal insights. Tips and tricks on frequently sought-after problems are also a way of drawing attention to your company through added value and establishing yourself as an expert in your industry.
Another plus point: you can use the specially created video content both on YouTube and on your own website.
The microblogging service Twitter has 330 million active users worldwide. Up-to-dateness is a top priority on this platform. It is important to be quick and share important information in just a few words. A tweet can contain up to 280 characters, with space for up to four photos, a GIF or a video.
This makes cross-media advertising possible. For example, you can tease video content and lead interested parties to your YouTube page or your website. You also have the option of linking individual tweets to a thread. By using popular hashtags or creating your own hashtags, you can ideally achieve a high reach.
LinkedIn and Xing
The career networks Xing and LinkedIn are worthwhile for business contacts: both platforms were founded in 2003 and are focused on the world of work. As a company, you have the opportunity to create a profile there and connect with business partners, employees and service providers.
If you are looking for trainees or new employees, Xing and LinkedIn are ideal places to start. Xing focuses on the DACH region (Germany, Austria and Switzerland). LinkedIn has an international focus.
Digitization of accounting and processes
However, the benefits of digitization go beyond creating your own website and using social media. Is your office already paperless? If not, it's worth taking a critical look at your company's work processes.
Digitizing your accounting saves you time and money: Incoming invoices can be sent, checked and paid quickly and easily in digital form by the company to the right people.
Digitally, it is possible to keep an eye on payment flows at all times. You can monitor income and expenditure in real time. Liquidity management and budget control are crucial for successful business management.
Another advantage relates to personnel planning. With the help of software, it is particularly easy to schedule shifts and coordinate employees' vacation and working times. You no longer need to plan upcoming appointments individually. An appointment tool simplifies time management and provides the necessary overview. The area of employee management is closely linked to the digitalization of communication.
Digitalization of communication
As a company, you communicate with a large number of different people: These include customers, employees, suppliers and business partners as well as authorities. Most of this communication can take place digitally.
Email instead of letters
For example, you can easily send emails instead of letters on paper. This has various advantages: firstly, you can reach your customers free of charge around the clock. If you work outside normal office hours, you can still send invoices, payment reminders or invitations electronically.
Secondly, it saves paper if not all letters are printed out and sent by post. There is also no need to transport letters from A to B, whichsaves CO2 and benefits the environment.
File instead of folders
You also save space. It may be possible to rent smaller premises or you can use existing space reserves for other purposes, as file folders and filing cabinets are no longer needed to store documents.
Instead, all information is digitized and available in one place. Store product information, price lists and customer requirements for your employees. They can access and work with it from their computer at any time.
Simplified contact with customers
E-mails are also an effective means of customer communication and customer acquisition: with the help of e-mail marketing, you can build trust with (potential) buyers. For example, you can offer an information product for free download on your website.
In this way, you can obtain the email addresses of people who are interested in your products or services. You can send them regular newsletters, which underpins your expert status in your specialist area. You stay in contact with interested parties. These may turn into paying customers.
Simplified planning
Digitalization also includes the use of digital tools for project planning, scheduling and time recording. The advantage of this is that everyone involved can see the status of project planning in real time. They can contribute their ideas and work on them together. In the same way, deadlines and working hours are always kept in view.
Video conferences are a good alternative to business trips: With the appropriate software such as Microsoft Teams, Zoom or Skype, you and the person you are talking to can communicate face-to-face from anywhere in the world.
This also saves a considerable amount of time and money. Interviews can take place directly online. If you want to work with freelancers or contact business partners abroad, this can also be done quickly and cheaply in this way.
