Delete. Automate. Delegate. How AI can free you up to actually run your business.

I've spent the last few months out on the road, listening to small business owners talk about what's keeping them up at night. Late payments and invoice chasing top the list, but role AI can play is now a recurring theme in our conversations. The conversation, however, is more complicated than the initial commentary suggests. Many businesses are using AI, but often unconsciously, as it is built into everyday tools they are using. There is also a challenge around confidence and knowledge in a constantly growing field.  

To get a better understanding of the current landscape we conducted a pulse survey and hosted a session with a group of business owners, advisors and sector representatives. We explored exactly how small businesses can use technology to work smarter, get paid faster, and claw back some of that precious time. The discussion was honest, practical and provided insight that we can act upon. Some of the highlights have been captured below.

The honest truth about AI adoption right now

Our own pulse survey tells a clear story. The number one barrier to AI adoption for small businesses isn't cost, it's knowledge. Businesses don't know where to start, who to trust, or how to make these tools work for their specific situation.

Right now, the most frequently quoted use case, by nearly 20% of small business owners is “to draft an email or social posts”. That's a start, but the real opportunity lies in something more fundamental. As one of our attendees put it, AI is the intelligence, but automation is the thing that actually does the work for you, 24 hours a day, without being asked twice.

A simple framework…

When a task lands in your desk, ask three questions:

• Can it be deleted? Does it need to happen at all?
• Can it be automated? Can a tool do this repeatedly shaped by your input?
• Can it be delegated? To a team member, a freelancer, or a specialist?

This mindset shift from operator to manager is one of the most powerful things a founder can do and a great place to start building a technology enabled business.

Invoices and payments, a critical starting point

Small businesses spend an average of 86 hours a year chasing debt. This applies to real founders, with real stress, and result in real businesses not succeeding.

At our session, business owners spoke candidly about why invoices go wrong. It could be errors in the invoice itself, complex supplier portals in large corporates, auto-reject systems bouncing invoices because they weren't submitted in the correct format.

Here's what's worked for businesses that have taken on these challenges:

• Invoice reminders: Many of the accounting software providers have automated invoice reminders built in. A polite nudge at 7 days, a follow-up at 10, and something stronger such as adding a note about interest at 14 days.
• The psychology of payment terms: It may be possible to consider different payment methods, dependent on your business type, such as an upfront deposit for a product-based business, or direct debit for recurring payments to reduce the need for invoice chasing. Think about rewarding the behaviour that you want to encourage such as discounts for multi-year subscriptions, faster payment or payment via direct debit. You need a clear value proposition to support this type of approach, but the businesses doing it say it can be transformative.
• Automate payment management: Tools are available to scan your inboxes, identify invoices and receipts, and send them directly to your finance person. This alone can remove a major source of error and subsequent delays.
• Cash flow forecasting: Consider one of the tools for cash flow forecasting, they connect directly to your finance system and let you model scenarios for the months ahead. At around £10 a month, they can be one of the best-value tools in a small business owner's toolkit.

Where to begin and what the government can do to help

At our session, every single person in the room, from a retail association to an edtech founder to a business support organisation, said the same thing, the biggest barrier isn't the technology. It's knowing where to start.

The advice that resonated most was don't start with 'how do I use AI?' start with a pain point. What task is costing you the most time or the most stress? Find the friction in your business and then ask could technology help?

The best way to start was discussed in detail and the conclusion was to ask AI. Start by describe your process, your skill level, and your budget and ask which tool would help you most. Then use a free trial to test it out before committing to the additional functionality of a paid solution.

The landscape changes quickly, and what works for one type of business may not work for another and what works now may need adapting in the future.

The goal of everything we do at the Office of the Small Business Commissioner is simple, to free up your time and your cash so you can focus on what you built your business to do. AI and automation, used wisely, are powerful allies in that business mission.

Thank you to everyone who took part in our AI discovery session. Your honesty and energy made for an exceptional morning full of insight that we know will inspire others.