Startup Depression Spawns Spike in Demand for Hosted CRM

Times like these can be especially tough for small and medium-sized businesses. To help SMBs weather the storm, business blogger Jason Calacanis has put together a list of ten things smaller companies can do to get through the credit crunch. At the top of his list is a challenge to “execute better.”

To me, that means making more of every opportunity, taking care of your existing customers, and looking harder for new sources of revenue. At the same time, there’s no easy business credit or venture capital floating around to cover the cost of expensive marketing campaigns or custom databases.

Hosted CRM systems offer tremendous ROI potential when they’re used effectively. Here are three of my favorite tips for business owners who want to save money by firing up a hosted CRM system:

• Don’t try to reinvent the wheel. Instead of spending tons of money to customize your CRM application with exactly the data fields you want right now, do what the folks at 37signals recommend: use simple workarounds and catch-all text fields to keep things moving. Capturing and using the data is crucial right now. Getting it to look exactly the way you want is something that can wait until you’ve got positive cash flow and angel investors banging down your door.

• Price your CRM application for today’s team and for tomorrow’s expansion. I love hosted CRM apps because many vendors will let you purchase licenses either by the employee or in small blocks. You don’t have to spend a huge amount of money up front to get the powerful tools your team needs right now.

• Make it work anywhere. If you’re looking at holding on to some of your team’s hardware for another year (or more), choose a hosted CRM system that runs on nearly any platform. That way, as you gradually replace desktop and laptop computers over the next few years, your entire team will still be on the same page.

Whatever industry you're in, an inexpensive, hosted CRM application can help bring more money in the door without tying up your credit lines or your cash flow.