10 Reasons Why Small Businesses Need Project Management Tools


Running a small business is not a small thing to do. Of course, small businesses have smaller operational costs and needs compared to large companies. But, make no mistake, they can have the potential to be launched on a much larger platform if they run it well. 

To set a business up for success, it will need project management tools to keep tabs on deliverables, hit goals, and reach objectives. In business, smaller does not mean easier. Regardless, small businesses need to have a functional project management system to deliver projects, campaigns, launches, and so on with more efficiency.

What are Project Management Tools?

Project management tools are systems designed to help individuals or teams coordinate and oversee their projects and tasks. It enables you to maintain a record of all tasks and projects in one company or department. They are cloud-based tools for planning your entire project from start to finish, managing your project’s schedule, and collaborating with your digital workplace.

Using project management tools has tremendous benefits for small businesses. Here are some of them.

Better Time Management

One of the most common benefits is that it helps employees have a solid time management system. In business, productivity affects profitability either directly or indirectly. That is why business leaders are always looking for the most effective and efficient way to do work. 

Time management is essential in achieving productive work because it allows you to do more things with little time. This allows employees to focus on other tasks that would add more value to the company.

Reduce Micromanagement

Another benefit of using project management tools in small businesses is improving workplace management by reducing micromanagement. For many years, micromanagement has been a concern to middle management until it was discovered that those who micromanage do not contribute positively to the company. 

Instead of being productive, micromanagement slows down work and affects employee morale. While there are many ways to deal with micromanagement, one effective and practical way is to set up project management tools. 

Time management and reducing micromanagement are two benefits of using the best project management tools for small businesses. When applied properly, online project management tools can bring small businesses to the next level. Sadly, only 35% of project managers feel they’re satisfied with their current systems, signifying there’s still room to improve.

One of the best examples of a project management tool is Service Hub. It is HubSpot’s most recent offering, and it provides you with a full complement of tools to help you engage, direct, and expand your customer base. 

You and your customer service teams can deliver the best customer experience with the new product line’s feature-rich package. Your marketing team, sales team, and service team can now all access a single, comprehensive customer record from which to provide the best possible support, thanks to the unified platform. You can check out the HubSpot Service Hub review to find out more about it.

10 Reasons Why You Need Project Management

So here are ten reasons why you should use small business management software:

1. Improve team collaboration

Team collaboration is a project management and communication strategy that prioritizes cooperation, creative problem-solving, and total representation to accomplish goals. Team collaboration is crucial in running a small business. Regardless of the size of one’s business, the condition of the team collaboration will always affect the overall status of the organization. 

The best project management software for small businesses allows you to improve collaboration within your small business. It clarifies communication lines, strengthens your ties, and solidifies your team chemistry. When you use online project management tools to run your small business, you can bring your team collaboration to the next level. 

2. Eliminate confusion

Confusion can hamper a small business’ daily operation or, worse, negatively affect your products or services. There are many potential sources of confusion in a small business, like messages, assumptions, and expectations. While it is the business leader’s job to clarify and eliminate confusion continually, it is also essential to set up systems to protect your small business from any brewing confusion. 

Online project management tools have certain features that would help in eliminating confusion in communication or execution. Some small business management software would require you to put all the possible details of a specific project or task assigned to an employee. 

3. Improve team effectiveness

Team effectiveness refers to the ability of a group of people, usually with complementary skills, to work together to achieve goals set out by an authority, team members, or team leaders. Highly effective teams can motivate and collaborate to solve problems, resulting in better outcomes.

Teams that oversee project management can become more effective simply by using the best project management tools. Using online project management tools can lessen the time needed for a team to spend time on a specific problem or concern and shift to the next pressing need. 

4. Cut on project costs

The total amount of money required to cover and complete a business transaction or work project is referred to as project costs. And small businesses can increase their profit by cutting project costs. 

The best project management software for small businesses allows you to track your project costs and help you make strategic decisions to minimize them. 

5. Keep your team aligned and focused

Even though small businesses have small teams, they still tend to deviate from the corporate mission, vision, and culture. While no team deliberately deviates from corporate objectives, it is essential to remember that they deviate because of subtle distractions. 

But using the best project management tools helps business leaders to realign their teams back on track and keep them dead focused on the goal of their small business. 

6. Reach goals faster

While it is true that faster is not always better, faster does help in running small businesses. The small business industry is very competitive, and sometimes, being fast can make you stand out from other industry players. 

One study shows that only 5% of small businesses reach annual goals. Project management software boosts team performance, allowing the organization to reach goals faster than before by making goals clearer, simpler, and more realistic. 

7. Provide objective evaluations for team improvement

Evaluation is one of the most commonly neglected aspects of project management. Sometimes teams just go about it without thinking through how to improve their products and services, not knowing that there may be gems that they have missed because they did not evaluate correctly. 

The best project management tools help you with evaluation by giving you thorough steps. It helps you pinpoint areas your team needs to work on next time. 

8. Onboard new team members faster

New team members bring fresh energy and ideas to the table but sometimes, onboarding them takes forever. This is why it is essential to use the best project management tools. The next generation workforce is dynamic and sometimes has little patience with much delay because they want to get into the action. Some online project management tools can help you orient and train new members quicker than the traditional way. 

9. Avoid team overwhelm

No matter how dynamic or high performing your team may be, they can still be overwhelmed by the demands of running a small business. When a team gets overwhelmed, it can cause the team to slow down, have low morale and make bad decisions. The best project management software for small businesses allows you to pace your team. Using a project management tool can prevent them from biting off more than what they can chew to function at peak performance. 

10. Mitigate project risks better

Mitigating risk is preparing for disasters and devising strategies to mitigate their effects. In any business venture, there are risks regardless of size, but this is not an excuse not to be strategic about the possible risks. Using the best project management tools allows you to have the foresight or a projection to make the best decisions for your small business. 


Small businesses may have more minor needs and demands compared to more prominent companies, but it does have a unique dynamic to it that requires the use of online project management tools. 

Those who have been in the business industry for quite some time would attest that business owners should not take their business lightly because they are capable of creating enormous impacts in the lives of their customers. Any small business owner who wants to grow and improve his company must strongly consider using online project management tools to bring his business to the next level. 

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