Creating a new startup is a stressful endeavor, especially if it’s your first time and you’re doing it with limited capital. So, while the purpose of every startup is to grow and develop, for many people it feels like a fight for survival.
In such a situation resource management is crucial and many startups choose to focus on cost reduction. This is generally a smart strategy, however the wrong things are often cut in order to save costs.
One of the best examples of that is CRM (Client Relationship Management) systems. Many people view CRMs as tools for medium-sized and large companies but they are actually essential for small startups as well.
So, why does your startup need the best CRM software to succeed?
Here are the top 5 arguments in favor of finding the best CRM for startups:
1. Organizational tools are crucial for any startup
The reason most people think startups don’t need CRMs is that startups are still small. What’s key to note here, however, is that startups also tend to be messy and disorganized in their early days.
Creating and developing a startup often involves a lot of moving parts, random relationships, new clients, new processes, lots of events, new inventory, and much more. The best CRM for startups can keep you organized as you try to get the ball rolling.
2. Fund management pays off
The reason many startups choose to put off using a CRM is exactly why they need it – limited funds. Good CRM software can help you manage the often fluid and dynamic funds of your startup much better. This allows for both better investments and smarter management.
Don’t make the mistake of thinking that CRMs are just for maintaining client relations – any good CRM should also have excellent funds, contacts, and inventory management tools, as well as integration options for accounting platforms. All that helps you manage your capital as best as possible.
3. Spreadsheets and notepads are not free either
The main argument against using a CRM for a startup is that you just can’t afford it. But the alternative to a CRM system is much less cost-effective. Maintaining all your data on notepads, external hard drives and spreadsheets is not just archaic– it’s also more expensive and less efficient.
4. CRMs let you find and keep customers
The fact that startups don’t have customers yet is not a reason to postpone getting a CRM. By using the best CRM software available for startups, you’ll be able to reach more customers and keep a larger percentage of them. This is crucial for all businesses but it’s especially important for startups.
5. Contact management is just as important
Probably the make-or-break factor for the success of most startups lies in the networking contacts they manage to establish early on. Countless startups have gone under not only because they failed to find the right contacts but because they weren’t able to hold on to them.
A good CRM system can help you retain and manage your contacts, and further expand your business with their help.