How to Build a Powerful Tech Stack for Small and Medium Businesses
In today’s digital-first world, setting up a robust tech stack is essential for small and medium-sized businesses (SMBs). A well-designed tech stack keeps operations smooth, improves efficiency, and helps reduce overspend, which is a growing concern in the UK business landscape. With smart choices, you can set up a tech stack that grows with your business and avoids common pitfalls such as bloated technology stacks and duplicated expenses.
This blog will walk you through building a tech stack suited to SMBs in the UK and includes the latest statistics to illustrate the value of a well-optimised stack.
What Is a Tech Stack, and Why Does It Matter for UK SMBs?
A tech stack is the combination of digital tools and software solutions that a business uses to manage its operations. For SMBs, a tech stack can range from essential tools like customer relationship management (CRM) software to marketing platforms, finance tools, and communication systems. Each of these tools can automate processes, streamline operations, and ultimately free up more time to focus on business growth
The importance of a right-sized tech stack in the UK is apparent from recent statistics: approximately 20-30% of annual SaaS budgets are wasted on unused or duplicated software licences CFO Dive
Overspending on software without a clear strategy can quickly eat into budgets, with recent studies highlighting that more than half of UK businesses report struggling with managing overlapping tools Tech Monitor
Key Benefits of an Optimised Tech Stack
- Cost Efficiency: Avoids overspend on redundant software and cuts down on licencing waste.
- Improved Productivity: Reduces manual tasks and improves team collaboration.
- Future-Proofing: Scales with your business as it grows, without the need to overhaul systems.
- Data Security: Streamlines data protection by using integrated systems with robust security features.
Essential Components of a Tech Stack for UK SMBs
Here’s a breakdown of essential tools suited for SMBs in the UK, each helping to reduce unnecessary spending and improving efficiency.
1. Customer Relationship Management (CRM)
Purpose: CRM systems store customer information, track interactions, and support email marketing.
- Suggested Tool: Clockwork CRM – provide a wide range of features within their CRM, including Contact Management, Automations, Project Management, Sales Tracking, a Knowledge Base, plus much more.
- Other Options: Zoho CRM and Freshsales provide affordable CRM plans with features like sales automation and customer journey mapping, popular with UK SMBs.
2. Marketing and Sales Tools
Purpose: Marketing tools automate outreach, track leads, and nurture customer relationships.
- Suggested Tool: Mailchimp – Mailchimp is a widely used platform with accessible email marketing tools, automations, and integrations with social media.
- Other Options: Constant Contact and ActiveCampaign offer robust marketing tools, including SMS marketing and detailed analytics that can help streamline UK marketing campaigns.
3. Financial Management and Accounting Software
Purpose: These tools track income, manage payroll, and simplify tax preparation.
- Suggested Tool: QuickBooks Online – QuickBooks is user-friendly and designed for SMBs, helping to manage invoices, track expenses, and integrate seamlessly with other software.
- Other Options: Xero and FreshBooks are popular in the UK for their straightforward payroll and invoicing tools, along with scalable options as businesses grow.
4. Communication and Collaboration Tools
Purpose: Simplifies team communication and improves collaboration.
- Suggested Tool: Slack – Slack’s messaging platform keeps communication organised through channels and allows quick file sharing and video calls.
- Other Options: Microsoft Teams and Google Workspace are great for remote or hybrid
5. Project Management Tools
Purpose: Tracks tasks, deadlines, and overall project progress.
- Suggested Tool: Trello – Trello’s board view is easy to use and visually track project stages, making it a go-to for small teams.
- Other Options: Asana and Monday.com are popular for UK SMBs needing more advanced task management features like due dates and team assignments.
- CompareYourTech has its own built-in Project Management Platform that is available in your Dashboard for Free, which you can use throughout the Solution Procurement Process.
6. E-Commerce and Point of Sale (POS) Solutions
Purpose: Supports online sales, order management, and smooth customer checkouts.
- Suggested Tool: Shopify – Shopify is easy to use, offers various customisation options, and is great for SMBs in the UK looking to get started with online sales.
- Other Options: Square and WooCommerce are ideal for smaller budgets. Square offers a reliable POS system, while WooCommerce integrates well with WordPress sites.
7. Cloud Storage and Backup Solutions
Purpose: Safeguards files and data while making them accessible from anywhere.
- Suggested Tool: Google Drive – Google Drive offers affordable storage with a generous free option for smaller teams.
- Other Options: Dropbox and OneDrive provide secure cloud storage solutions with strong encryption and are trusted by SMBs in the UK for document management.
The Future of Tech Stacks in the UK: What Trends to Expect
SaaS Cost Optimisation: SaaS solutions now make up a large part of the UK business tech landscape, and with overspend on unused licences, businesses are expected to focus on cost optimisation. This focus is reinforced by statistics showing that SaaS licence waste is one of the largest sources of inefficiency, especially as demand for these services grows CFO Dive
Adoption of Big Data and AI: Big data and artificial intelligence are becoming increasingly common in tech stacks, providing insights that improve decision-making. While only about 20% of UK tech leaders currently feel equipped to make the most of these technologies, there’s a growing emphasis on skills development and access to tools that enable AI-driven insights Tech Monitor
Increased Cloud Investments: The shift to cloud-based solutions is strong in the UK, with investment in tech growing to support digital transformation. In 2022 alone, UK tech saw a record £7.6 billion in equity investment, which reflects a commitment to future-proofing and optimising business tech The Stack
Building and Maintaining a Lean Tech Stack: Dos and Don’ts
- Do Choose Integrated Tools: Choosing tools that work together saves time and prevents data silos.
- Do Conduct Regular Audits: Routinely check for unused licences or overlapping tools.
- Don’t Overlook Security: Prioritising security across your tech stack is essential as SaaS solutions become more central.
- Don’t Skip Training: Make sure your team is equipped to use the tools efficiently to avoid underutilisation.
Wrapping Up
A well-designed tech stack will help your business operate efficiently, save costs, and scale sustainably. By starting small, evaluating overlapping tools, and keeping an eye on cost-effective integrations, UK SMBs can avoid the common pitfalls of overspending and underutilising their tech stacks. Investing in the right tools now ensures that your business is ready to grow, adaptable to changes in the SaaS landscape, and protected from unnecessary expenditure.
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