Since working in the small business information sector I’ve been struck by how there is information out there that might seem useful to small businesses, but actually, it is often information intended for large business simply passed down for viewing by small businesses.
This approach works on the premise that what is good for large business is good for small business, but in reality the needs can be very different.
For example, when it comes to basic company financial information such as Credit Scores and Invoice Payment Data, the tendency is for data providers in this market to play back to small businesses a credit score as the most important value for a small business to be aware of.
But is this really what small businesses believe to be the most important indicator when dealing with customers or suppliers?
As a startup, you get into conversations with a large distributor who can help ship your product, or a multi-national who has a need for your niche service. Knowing that the large corporation has a credit score of 100 out of 100 might be reassuring and indicate that they aren’t going out of business very soon, but you probably knew that already. After all, they’re a huge company and they don’t go out of business every day.
What you might not know is that they pay all their invoices on average 60 days late. Now this is an important thing for a small business to know.
“If I work with this large corporation I won’t get paid until 3 months after I’ve done the work and can my cashflow survive this approach?”
So there’s the importance of different types of data that needs to be considered, and then there’s the complexity of the information to consider.
As a small business owner who spends 60 hours a week delivering my own product, do I really have time to become an expert in the ins and outs of financial data interpretation? Or would I really rather see some simple, important indicators, alongside some clear actions, which mean I can check and then decide, without having to spend hours interpreting different financial values in order to make a judgement.
The current raft of small business information systems out there are in need of innovation to right these wrongs, and we’re at the forefront of that with our CreditHQ product, where we’re trying to put actionable insight into a simplified user interface, giving small businesses the chance to see what’s important to them and allow them to take action immediately.
Our company, Ormsby Street, was born out of the highly successful small business focused cloud solutions provider BCSG, who are representing UK financial innovation at Finovate Fall, in New York on 23rd & 24th September, where they will be alongside other businesses who are seeking to bring innovation to financial products.
It is this high achieving, desire to innovate financial information for small business that we look to bring into our products.