When it comes to running a business, it all boils down to finances in one way or another. Obviously, every company needs to make a profit, or they wouldn’t stay in business very long. However, in recent years with the cost of literally everything skyrocketing, many businesses had to throw in the towel.
They just couldn’t keep up with the rising costs involved because that would have forced them to raise their prices which would also have led to their demise. Thankfully, a new business paradigm has taken over and that is doing business in the Cloud. If you haven’t done so already, you may want to consider the financial benefits of transitioning your business, partially or totally, to the Cloud.
1. Reduction in Overhead
One of the biggest expenses when running a land-based business would be overhead in terms of what it actually costs to run that business, parts and supplies withstanding. Not only is power a major concern with the cost of electricity continually on the rise but just think about how much the cost of fuel for vehicles has risen within the past several months. In many states, the cost of gasoline has gone up over $1.50 per gallon and is closer to an increase of $2 in many parts of states like California.
Any business with a mobile sales force is surely suffering. A reduction in overhead is one of the leading reasons why so many entrepreneurs are seeking to buy out existing cloud-based businesses rather than starting a land-based business from the ground up. For this very reason, Poe Group Advisors has seen a rise in interested cloud business buyers this year alone.
2. Wider Market Reach
It stands to reason that the wider your market reach, the easier it is to grow a customer base. Here, we are not talking about marketing but rather firms who could benefit from your SaaS, cloud-based platforms. According to Gartner in a press release dated November 10, 2021, at least 85 percent of today’s businesses will be unable to function in the digital realm outside of the cloud within the next three years. If you are among those companies that rely on digital technology, this is an extremely important financial reason to begin transitioning today. It’s either transition or be left with defunct digital technology no longer supported outside the Cloud.
3. Scalable Costs
Another main motivator for transitioning to the Cloud is the scalability factor. If you need more bandwidth and storage, it’s a simple fix and within mere moments, you are good to go with those additions. A land-based business, on the other hand, would need to find ways to grow space in their physical location, which could take months and at prohibitive costs.
There are so many financial benefits to be aware of in transitioning all or part of your business operations to the cloud that it would take chapters to even outline them. Suffice it to say that cloud computing offers more than just financial benefits. Ease of access from any location is another motivator as well, but that’s another story for another day. Today we are all about a reduction in costs to grow in profits – and that’s business in the cloud.
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