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From marketing platforms to customer relationship management (CRM) tools to payment processing apps, your small business uses a wide range of software. When these platforms operate separately without sharing data, they often create extra work for your team.
With an application programming interface (API) integration you seamlessly link software, making it easy to exchange data and speed up business processes. In this article, we'll cover how API integrations work, share common use cases, and walk through how to get started with APIs.
An API integration connects software platforms, allowing them to work together and share data. It's a set of guidelines that define how the different tools communicate with each other, allowing them to transfer specific kinds of information automatically.
Think of an API as a waiter. In a restaurant, diners want to enjoy a meal—but they don't speak directly to the chef. Instead, the waiter acts as a messenger (i.e., the API) who takes orders from diners (i.e., a software platform) transfers them to the chef (i.e., another software platform), and delivers the meal to the table.
APIs matter for companies of all sizes. But they're particularly important for small businesses that need to connect multiple software programs without incurring significant additional expenses or manual tasks.
Here are some of the biggest benefits of API integrations for small business owners.
Once you set up an API integration between two software platforms, it automatically works behind the scenes. This reduces the amount of manual tasks you have to do, freeing up your time for more valuable work.
APIs typically transfer data between applications instantly. The process works much faster than a human team member could, helping you save time and work faster.
Once you implement an API integration and connect software systems, specific data syncs automatically. This keeps data consistent and accurate between platforms so you never have to question which is current.
APIs connect existing platforms so you don't have to pay for a custom software solution. Because they handle data transfer and reduce manual work, they can also help small businesses save money on staffing costs.
The more established your business becomes, the more processes, workflows, and standard operating procedures you'll develop. With APIs, you can integrate new tools and scale your business without having to start from scratch or purchase an all-in-one solution.
APIs securely transfer data from one application to another, protecting your information from beginning to end. Compared to manual data transfer, APIs are much more secure and avoid introducing human error.
The more connections you create between software platforms, the more you can analyze data and leverage business intelligence, allowing your team to work smarter. API is essential if your intent is to solve your core customer problems quickly and not waste time reinventing the wheel.
No matter your industry or the scale of your business, an API can integrate into your software applications, benefiting your team and your customers. Here are a few examples of API tools for small businesses:
As a small business owner, you have more than one option to incorporate APIs into your software systems. Let's walk through how to integrate APIs, including a simple method and a more complex option.
First, decide what you want to achieve with the API integration. Work with team members to answer questions like:
Before spending time setting up an API, confirm whether the software you want to connect has a built-in integration. If it does, explore whether it supports the needs you've defined. If no native option exists or if it doesn't meet your requirements, you'll need an API integration.
At this early stage, you should also define your budget for the project. Get clear on what you can spend upfront and what you can pay on a recurring (e.g., monthly) basis.
Next, register for access to the API for each system you want to connect. Then, choose the method that fits your needs and your budget:
No-code tools like Zapier and Make are good choices for businesses with less complex needs and smaller budgets. Plus, they don't require a developer.
Custom development is necessary for businesses with more complex needs that no-code tools can't support. They require an experienced developer and tend to cost more.
The timing of the setup process may vary depending on the method you choose. You can typically set up a no-code API integration in a day. And according to the 2024 State of API Report, 67% of teams take less than a week to produce an API.
Once you've configured the API, put it to the test. Try a few scenarios to make sure it works as intended.
Then, push it live so it begins working automatically. Check for errors regularly so you can address small issues before they become big problems.
API integrations simplify connections between software programs and automate data transfer, helping your business save time and work more efficiently. For small businesses in particular, they're cost-effective solutions.
Whether you want to improve productivity or scale your business, the right API integration can help. Get started with a low-tech no-code solution or partner with a developer to develop a custom solution for your business.