Businesses often look for tools or ways to run their business better. This becomes of utmost importance for small businesses as they lack resources as compared to large enterprises. Every customer gained, every rupee earned to make a difference in the overall business. Invoices, UPI, payment links, cash flow reports all help make any business better. Similarly, one such interesting billing tool is estimates.
In this blog, we will know in detail how estimates help small and micro businesses in managing their business better. But let’s first understand.
What are Estimates?
An estimate or quotation as popularly known in the Indian market is a business document that provides an approximation of the product and its price. This is used by most businesses for their potential customers so that both parties are aware of the product offerings.
For example businesses before giving an actual invoice provide this estimate/quotation with the product name, quantity, and price of the product in it. So eventually customers can make purchases based on the estimate provided.
Benefits of using an Estimate
Here are 5 benefits on why small and micro-businesses should create and provide their customers with estimates:
- Build better customer relationships: Estimates provide even minor details about the product and items involved along with their prices. This is something that both business owners and customers agree upon, thus building transparency and integrity.
- Easier in managing inventory: Based on the requirement of the product from the customer, business owners can make sure the availability of items at the time of delivery. This also helps in maintaining the quality of the products as promised by the business owner.
- A better understanding of the budget: The estimates provide a better understanding of the budget for any particular sale. Cost price, sale price, discount, profit, etc becomes quite clear for businesses before doing the actual transaction.
- The clear expectation on delivery dates: For any business keeping one’s word is important, thus the estimate also provides the customer’s expectation in place. Helping them towards delivering at the promised time.
- Helping in informed business decisions: All this information can help a business owner understand in detail how any sale can give them profit. This also gives insight into the availability of the product to deliver at the given date. So accordingly can go ahead with the business transaction or not.
Create Estimates easily on OpenBook
OpenBook understanding the requirements of micro and small businesses has brought everything that your business needs. From billing, banking, accounting, taxes, and more all at one place. It’s a really simple process to create an estimate on OpenBook.
Steps to create an estimate:
- Click on the estimate icon on the OpenBook dashboard
- Add party name
- Select item
- Mention the amount and any additional details
- Save and send it to the customer
See it takes less than 2 minutes to create an estimate on OpenBook. Now that you have understood the importance of estimates and how they can benefit your business.
What are you waiting for?