While the demand for services continues, the imperative to adapt to modern, digitally-driven expectations is increasingly clear.

For many, digital transformation has meant a shift towards online marketplaces. These platforms help businesses reach more customers, but the drawback comes in the form of substantial fees. From the prohibitive costs of card processing to invoicing software that often fails to align with small businesses’ needs, navigating the tech landscape is fraught with issues.

So how can businesses – such as yours – build digital strategies which avoid the pitfalls and meet your needs? Here are some top tips to help you thrive in a digital world:

1. Understand your cash flow

Cash flow is the heartbeat of every business, especially when times are tough. Ideally, you’ll have a healthy cash reserve, but let's face it, that's not always possible. Getting paid quickly is crucial, but with customers moving away from cash, the frustration of waiting for invoices to be settled and dealing with high point-of-sale transaction fees has become all too common.

The good news is that there’s now an answer, in the shape of a new wave of cost-effective payment technology which offers minimal to no transaction fees, and rewards loyalty.

Consider this scenario: to fix a problem, a plumber needs to order an expensive part. A costly outlay. But with the right payment technology, they can send secure payment links via WhatsApp, text or email and get customers to pay for materials or parts in advance - a smart way to help manage cashflow. When work is completed and it’s time to take the final payment, the latest tech means you do not even need a card reader, you can simply allow the customer to tap their card or phone on your mobile to take instant payment.

Or how about this: A customer wants to pay for the job but hasn’t got cash, or the ability to make a bank transfer. Instead of dusting off an old card machine (which may or may not work), new payment technology allows you to effortlessly send a secure payment link via email, text or WhatsApp, enabling them to complete the transaction conveniently.

Forward-thinking businesses are taking the digitalisation of cash flow a step further by using financial management software. These tools automate everything from invoicing to expense tracking, providing real-time cash flow insights and allowing them to navigate the financial landscape more easily.

2. Create a detailed budget

So, we know that tech is a crucial part of improving cash flow, but it's equally vital for effective budgeting. Every business should keep a solid budget that covers all the financial bases. But the next step is to transform that budget into a dynamic, living document, hosted online and remotely updatable, aligned with actual income and expenses. This approach turns a budget from a file on a desktop into a living financial tool.

Real-time budgeting also helps avoid overstocking – which ties up cash in inventory that isn’t immediately generating revenue. A clear view of your finances allows you to implement inventory management practices that align with your sales patterns to avoid excessive stock levels.

Crucially, keeping track of your budget can also help you keep better track of relationships with suppliers, empowering you to negotiate more favourable terms, including extended payment terms, and helping avoid protracted contracts that may not deliver long-term value.

3. Stay flexible and adaptive

The business environment is dynamic, so your financial strategies need to be too. Take advantage of data analysis tools to get a deep understanding of how your business works, making forecasting more efficient – and be ready to tweak your financial plans as things shift in your business or goals.

Expand your toolkit with digital tools that let you look beyond your business and see the bigger picture of market trends. Check out analyst reports, gather insights, and consult with financial experts when needed. This way, you're not just in tune with your internal workings but also well-equipped to navigate external changes.

4. Collaborate with industry experts

No business operates in isolation—sometimes you need to lean on the expertise of others.

In the tech-driven online landscape, knowledge-sharing is easier than ever. By using social platforms to build strategic partnerships, you gain the ability to say, "I can't do that, but I know a company that can" opening doors to a broader range of services and untapped customer bases. The collaborative approach significantly enhances your business's overall value proposition and helps you keep going for the long term.

5. Be where your customers are

In today's world, making your presence known isn't just about having a physical storefront or a business card in a local shop—it's about actively engaging with your audience on the platforms they use most.

Whether it's through popular messaging apps, social media platforms, or other communication channels, the key is to meet your customers where they’re already active. By doing so, you not only make your business more accessible but also demonstrate a commitment to a customer-centric approach which will help you keep customers (much more cost effective than winning new ones).

What does this mean in real terms? It’s about initiating conversations, providing real-time updates, sending invoices or addressing queries directly on platforms WhatsApp.

The goal is to create a seamless experience for your customers, making it more likely that they will choose your business when they need your products or services.

So, the digital age poses challenges for local businesses, but there are smart ways to succeed. It's about using technology wisely to improve how you operate while keeping in mind what you need today, and tomorrow. Whether it's adopting affordable payment tech or making budgets that adapt to real-time changes, there are now plenty of options out there which can make a real difference to how you manage cash flow, budgets, relationships with suppliers – and crucially, your customer communications.