Auto-Renewal: Friend or Foe?
Remember the days of paper files? Sure, they were tangible, but they could get lost or misfiled, and accessibility out of the office was a nightmare. If you forgot to take it or left it somewhere there was no going back! The cloud has made it much easier to manage our business data from where ever we are, in a way that can be shared across our business but that convenience comes with some challenges not all of us are ready for…
As small business owners, we all love a good software subscription. The promise of automating tasks and making life easier is just too tempting, right? But here's the thing: we often end up paying for tools we barely use—or worse, tools that do the exact same thing as something we already have! Before you know it, auto-renew kicks in, and there goes more of your hard-earned cash. The trick is staying on top of your subscriptions before they run away with your budget, but if it's at the bottom of your to-do list, it can be an expensive oversight.
So, to help you to get smarter about managing them, I wanted to share a few tips.
Your App Inventory - The Golden Rules
Map Out Your Software Landscape
Do you know what each app in your arsenal is doing for you? Take a little time to map them out, understand what you're using them for, and what data they hold. It can be in a spreadsheet or using a mapping software tool (if you have one - don't get another new app! 😂) If you've got someone tech-savvy on your team or an IT service provider, get them involved. Knowing the purpose of your apps and how they talk to each other is powerful and will help you avoid duplication.
Keep a Log of Your Subscriptions Costs
When mapping, take stock of the subscriptions. What level do you pay? What functionality does it offer? You might find you're paying for two tools that do the same thing. Or worse—you've already got an app that could solve a problem, but you're not using it to its full potential. A quick comparison could save you from doubling up on costs!
Try to track costs vs. business value. It's all too easy to sign up for apps that have the potential to help, but if they're too time-consuming to maintain, you might not be getting your money's worth, so it could be time to say goodbye!
Set Reminders for Renewals—No More Sneaky Auto-Charges!
Nothing is worse than seeing a charge for an app you forgot you had or meant to cancel but didn't. To avoid this, set up reminders at intervals before your renewal date. It's invaluable to have plenty of time to figure out whether the app is still doing something useful for you or if it's time to pull the plug. It does take time to set up the reminders initially, but if it helps you avoid unnecessary charges, it's worth it!
Block Out Time to Review Subscriptions Quarterly
Life gets busy, but it's worth carving out a little time every few months to review your subscriptions. What's working? What's gathering digital dust? If you've heard about a new, better app, take a moment to research it—or better yet, have your VA or IT support do it for you. A quick review could reveal opportunities to save money or find a more efficient solution. Just be sure you're not signing up for something new on impulse!
When you think you need something new.
Be Wary of Sponsored Reviews
There are tons of YouTube reviews out there comparing software, but be cautious—many of them are sponsored. Before you trust someone's glowing recommendation, ensure the review isn't influenced by the company behind the app. A little extra research can save you from falling for a shiny new app that doesn't fit your business needs.
Free Trials Are Great (Especially When They Don't Ask for a Credit Card!)
We all love a free trial, right? It's the perfect way to try out a new tool without any upfront commitment. But then—whoops!—you forget to cancel, and suddenly, you're paying for something you didn't want - there is a reason why software companies make you add your credit card! Finding free trials that don't require your credit card info upfront is magical but not always possible. So, if you do need to provide a card, no worries; just set a reminder in your calendar to review the app before the trial ends. There's no need to get stuck paying for something you'll never use.
Start Free, but Really Commit
Systems can be huge time-savers, but only if you have the time to set it up correctly and know your team is on board to use it. It's smart to start with the free version of an app to see if it works for you. But here's the catch: don't just dip your toe in—really give it a proper go. We often think a new app will solve all our problems, but it only works if we thoroughly test its capabilities. Give yourself time to get to grips with the tool before deciding if it's a keeper.
Think Before You Switch Apps
Switching to a new app can seem like a great idea—until you realise how much data and time it'll take to make the move. Will you lose information in the transition? How long will it take to set up the new system? How long will it take to learn how to use it? Consider if it's easier to finish what you've started in your current app, especially for something like CRM, where you may need to keep workflows running. Switching apps midstream might mean paying for two subscriptions for a few months, so think carefully before you commit.
Don't Feel Pressured to Use Every Feature Right Away
Have you ever signed up for an app and gotten overwhelmed by all the shiny features? It's easy to think, "Switch it all on now; we'll use all of this eventually!" But here's the thing: you don't have to. Start with what you need right now and grow into the extra functionality later. Just ensure you're not paying for features you won't use for a while. There's no sense in throwing money at fancy tools you don't need just yet.
Sometimes, those extra tools are more hassle than help, especially when you're a small business. It can feel tempting to automate everything, but if your current manual process works, you don't need to rush into changing it. Wait until it's really going to benefit you before diving into the more complicated features.
When is a monthly subscription, not a monthly subscription?
No, it's not the start of a Dad joke! It's a sneaky way of guaranteeing maximum income for software companies. So, when you do decide to sign up for something new, buyer beware! If you have the idea that you want to try something out for a few months and you don't mind paying a premium for the monthly subscription, it's a good way of getting more time to consider whether it's the right app for you. However, check those T's and C's with a fine toothcomb. Sometimes, what you think is a monthly subscription can turn out to be an annual subscription broken into 12 equal payments rather than a rolling monthly subscription that you can cancel at any time. If you decide to cancel after three months, you might find that you are tied in for a year, and even though you have clicked that cancel button, those monthly payments will continue to haunt you.
Summary
I am a big advocate for letting software take the pain out of your business, leveraging it as a time-saving tool or a sales aid, but it's clear that it's not always as straightforward as it seems.
Managing your software subscriptions is yet another boring admin task you didn't anticipate, but it is necessary to help you keep costs down. Stay on top of renewals, give free trials a proper go (especially those that don't ask for your credit card!), and don't be afraid to cut the apps that aren't pulling their weight. With a little bit of planning, you'll keep your business lean and your tools working for you—not against you.
