How to pick a CRM system

How to Pick a CRM & Set It Up: A Quick 2025 Guide for Startups

Congrats! If you’re here, it means your startup has reached a point where managing customers on a simple spreadsheet just won’t cut it anymore.

You’ve been told it’s time to level up with a customer relationship management (CRM) system, but naturally, you’re wondering: Is it worth the cost? What exactly does a CRM do? How do I even start?

In this guide, we’ll cut through the jargon and show you what a CRM really is, why it’s essential for your business, and how to choose and set one up without blowing your budget or wasting time. 

By the end, you’ll know exactly how to get started and make the most of your CRM.

Say goodbye to spreadsheets (for now), and let’s dive in.


Table of Contents:

  1. What is a CRM & How It Works
  2. Why Every Business Needs CRM
  3. Comparing Popular CRMs for Startups
  4. How to Pick the Right CRM System
  5. How to Set Up a CRM System

What is a CRM & How It Works

Starting a business means juggling a lot — managing customers, following up on leads, and keeping track of sales. If you’re using a spreadsheet, you’ve probably noticed it’s getting harder to stay organized. 

That’s where a CRM (Customer Relationship Management) system comes in.

A CRM is like an ultra-organized digital notebook that stores all your customer details in one place. Instead of switching between files and emails, a CRM lets you see everything about a customer — who they are, what you last talked about, and what they might need next — all in one screen. 

It keeps you organized and on top of follow-ups and sales.

⌁ Example

Let’s say you just got a new customer and need to follow up with them next week. Instead of setting a reminder on your phone, a CRM will automatically remind you, so nothing slips through the cracks.

But a CRM does more than just store details. It’s built on a strategy that helps you focus on your customers and grow your business. 

Let’s break down the difference between CRM strategy and the software that powers it.

1. CRM Strategy vs. CRM Software

CRM Strategy

At its core, CRM is a strategy for treating customers like they matter. It’s about making decisions with them in mind — what products to offer, what services to build, and how to improve your business for them.

CRM Software

The CRM software is the tool that brings this strategy to life. It tracks leads, sales, and customer interactions. You can see who’s interested in your product, who’s ready to buy, and who might need a nudge. It also shows how your marketing is working and helps you keep your customers happy.

2. How a CRM System Works (Broken Down)

At first, a CRM might look complicated, but it’s just a better way of organizing what you’re already doing. Here’s how it helps:

✔ Contact Management
  • How It Works: Instead of flipping through spreadsheets or email threads, a CRM stores all your customer info in one place — easy to find and update.
  • Why It’s Awesome: Need to call a customer you talked to two months ago? The CRM will have all the details ready, saving you from digging through emails.
✔ Sales Pipeline Management
  • How It Works: Your sales process is like a pipeline, with stages like “Interested,” “In Talks,” and “Closed.” A CRM keeps track of where each customer is in the pipeline and what you need to do next.
  • Why It’s Awesome: You’re trying to close a deal. The CRM shows the client is in the “In Talks” stage and reminds you to follow up next Tuesday.
✔ Task Automation
  • How It Works: CRMs handle repetitive tasks for you, like sending follow-up emails or setting reminders. This frees up your time to focus on what matters most — growing your business.
  • Why It’s Awesome: If a customer hasn’t responded in three days, the CRM can automatically send a friendly follow-up email for you.
✔ Reports & Insights
  • How It Works: A CRM provides data on your business’s performance. It tracks closed deals, returning customers, and areas that need attention.
  • Why It’s Awesome: After using the CRM for a month, you can see how many deals you’ve closed, how long it took, and which customers are the most valuable.

3. Customize Your CRM

Most CRMs also let you customize things to fit your business. For example, you can set up specific sales stages, email templates, or even automate tasks based on your industry. 

When you’re talking to a CRM provider, ask about these customizations to make the tool work best for you.

Why Every Business Needs a CRM

As a small business owner or solopreneur, you’ve probably been managing your contacts and sales manually — whether it’s through emails, spreadsheets, or sticky notes. 

But as your business grows, this becomes more challenging. That’s where a CRM can make a big difference. 

Let’s break down exactly how it helps:

1. Streamlines Your Operations

We’ve all experienced being bombarded by emails from a company, and it’s frustrating. A CRM helps you avoid that by keeping all customer info in one place, so you can send the right messages to the right people at the right time.

⌁ Example

Imagine you’re launching a promotion and want to send an email to potential leads, not existing customers. With a CRM, you can quickly pull up the right list, ensuring you don’t accidentally spam people with irrelevant messages.

2. Boosts Customer Retention

Communicating too much can annoy customers, but not communicating enough can be just as harmful. A CRM helps you strike the right balance by showing you the last time you connected with each customer and letting you anticipate their needs.

⌁ Example

You notice one of your customers hasn’t heard from you in a few months. The CRM reminds you to follow up with them, offering a personalized discount or support, which keeps them happy and coming back.

3. Improves Your Sales Process

You may not have a formal sales process yet, but that’s okay. A CRM helps you create one by tracking where each prospect is in the sales funnel and highlighting where they tend to drop off. By understanding and improving your process, you can close more deals.

⌁ Example

Let’s say you have 10 leads, but only 2 are converting to sales. Your CRM shows you that most leads drop off after your first email. You can then tweak your follow-up strategy to improve your chances of success.

4. Provides Data-Driven Insights

Your CRM doesn’t just store data — it helps you make sense of it. By tracking your customer interactions, sales, and communications, a CRM gives you the data you need to make smarter business decisions.

⌁ Example

After a few months of using your CRM, you see that customers who receive follow-up emails within 24 hours of their initial inquiry are twice as likely to buy. You adjust your process accordingly to boost sales.

5. Makes It Easy to Scale

As your business grows, so does your workload. A CRM allows you to scale without losing track of your customers or missing out on sales opportunities. It ensures that everyone on your team (even if it’s just you for now) has access to the same customer info.

⌁ Example

You’re expanding your team and hiring a new salesperson. Instead of handing them a messy pile of notes, you give them access to the CRM, where they can instantly see everything about your current customers and pick up where you left off.

As a startup or small business owner, you need a CRM that’s easy to use, affordable, and flexible enough to grow with you. There are a lot of CRM options out there, but we’ve narrowed down the list to the best tools that won’t overwhelm you with unnecessary features. 

Here’s a look at some of the most popular CRMs that are ideal for solopreneurs and small teams:

HUBSPOT

1. HubSpot CRM

HubSpot is perfect for beginners. You get access to contact management and email marketing tools at no cost, and you can add advanced features as your business grows.

  • Ideal for: Startups and solopreneurs looking for a free CRM with essential features.
  • Key Features: Free plan, drag-and-drop interface, sales pipeline management, integrates with Gmail and Outlook.
  • Pricing: Free plan; paid tiers start at $15/month.
SALESFORCE CRM

2. Salesforce

Salesforce offers a high level of customization, making it a great fit for businesses that need tailored solutions and powerful tools like AI-driven insights.

  • Ideal for: Small businesses with plans to scale quickly.
  • Key Features: Customizable CRM, AI-powered analytics, extensive third-party integrations.
  • Pricing: Starts at $25/user/month.
ZOHO CRM

3. Zoho CRM

Zoho CRM is budget-friendly without sacrificing functionality, making it ideal for bootstrapped startups needing automation and customer management.

  • Ideal for: Startups needing affordable and feature-rich CRM tools.
  • Key Features: Lead management, customizable dashboards, social media integration.
  • Pricing: Starts at $14/user/month.
PIPELINE LOGO

4. Pipedrive

Pipedrive is simple and helps you focus on closing deals with its easy-to-use visual sales pipeline.

  • Ideal for: Solopreneurs needing a sales-focused CRM with a visual pipeline.
  • Key Features: Sales pipeline, automation tools, integrates with over 150 apps.
  • Pricing: Starts at $24/user/month.
COPPER CRM

5. Copper CRM

Copper is built specifically for Google Workspace users, so it integrates seamlessly with Gmail and Google Drive, making it easy to manage customer relationships right from your inbox.

  • Ideal for: Startups that use Google Workspace heavily.
  • Key Features: Google Workspace integration, contact management, deal tracking.
  • Pricing: Starts at $12/user/month.
LESSANNOYING CRM

6. Less Annoying CRM

Less Annoying CRM focuses on ease of use, letting you manage contacts, tasks, and pipelines without unnecessary features.

  • Ideal for: Solopreneurs who want a simple, no-frills CRM.
  • Key Features: Customizable CRM, all-in-one contact management, built-in calendar and tasks.
  • Pricing: $15/user/month.
NIMBLE LOGO

7. Nimble

Nimble integrates contacts, calendars, and emails into one platform, offering an intuitive solution for building deeper customer connections.

  • Ideal for: Businesses looking to build stronger customer relationships.
  • Key Features: Contact management, social media integration, email marketing tools.
  • Pricing: $29.90/user/month.
PIPELINE CRM

8. Pipeline

Pipeline’s customizable sales pipeline and deal tracking help you manage every stage of your sales process.

  • Ideal for: Teams that need a CRM focused on detailed pipeline management.
  • Key Features: Customizable deal list, sales pipeline management, real-time updates.
  • Pricing: Starts at $29/user/month.
INSIGHTLY CRM

9. Insightly

Insightly offers powerful, affordable CRM tools with a focus on managing customer experiences throughout the sales process.

  • Ideal for: Startups looking for a CRM that scales with their business.
  • Key Features: Sales pipeline management, lead tracking, customizable dashboards.
  • Pricing: Starts at $29/user/month.
CLOSE CRM

10. Close CRM

Close integrates calling, SMS, Zoom, and email into one platform, making it ideal for teams needing quick and easy communication tools.

  • Ideal for: Remote teams that want an all-in-one CRM for communication and deal management.
  • Key Features: Built-in calling, SMS, and email tools, reporting dashboards.
  • Pricing: Starts at $59/user/month.
SALESFLARE CRM

11. Salesflare

Salesflare automatically pulls customer data from emails and social media profiles, making it easy to manage leads without manual data entry.

  • Ideal for: Solopreneurs who want an automated CRM.
  • Key Features: Automated contact management, email and call sync, data enrichment.
  • Pricing: Starts at $35/user/month.
NUTSHELL CRM

12. Nutshell

Nutshell combines CRM features with marketing automation, making it a great tool for managing both customer relationships and marketing campaigns.

  • Ideal for: Growing businesses that want a powerful yet simple CRM.
  • Key Features: Pipeline management, email marketing, team collaboration.
  • Pricing: Starts at $19/user/month.
NOCRM.IO

13. noCRM.io

noCRM.io is a CRM built for action, helping sales teams focus on converting leads rather than just managing data.

  • Ideal for: Sales teams that want a lead-focused CRM.
  • Key Features: Lead management, visual pipeline, team collaboration tools.
  • Pricing: Starts at $27/user/month.
onepagecrm

14. OnePageCRM

OnePageCRM is designed around a task-based approach, ensuring that you always know what action to take next with each lead.

  • Ideal for: Solopreneurs who want a simple CRM for task management and follow-ups.
  • Key Features: Task management, sales pipeline tracking, email templates.
  • Pricing: Starts at $29/user/month.

These are just a few of the top CRM options for startups. If you need more recommendations or want a deeper dive into other CRMs, check out our Ultimate Guide to CRM Systems for Small Businesses. This guide will help you compare even more tools and choose the best one for your business.

How to Pick the Right CRM System

With so many CRM options out there, choosing the right one for your business can feel overwhelming — especially when you’re just getting started. But don’t worry, picking the right CRM doesn’t have to be complicated. 

Here’s a step-by-step guide to help you make the best choice for your growing business.

1. Does It Fit Your Budget?

Let’s face it: as a solopreneur or startup, you probably have a tight budget. But that doesn’t mean you can’t find a great CRM. The key is to look for affordable options (or even free plans) that offer enough features to meet your needs.

✔ Pro Tip

Free plans often include essential tools for managing contacts and tracking sales. As your business grows, you can upgrade to paid plans for more advanced features like automation or analytics. However, beware of hidden costs!

2. Is It Easy to Set Up and Use?

You’ve got a lot on your plate already, so you don’t have time to spend days learning a complicated new tool. Look for a CRM that’s simple to set up and easy to use right out of the box.

✔ Pro Tip

Test out the interface during a demo. If it feels too complicated, or if you think you’ll need a manual every time you use it, move on to something simpler. The best CRM is one you’ll actually use every day!

3. Can It Help You Manage Leads and Customers Efficiently?

The main reason you’re getting a CRM is to stay organized and keep track of your customers, leads, and sales. The CRM you choose should make it easy to add contacts, track where they are in your sales process, and set reminders for follow-ups.

✔Pro Tip

Look for CRMs with simple sales pipeline and customer management features. If it takes more than a few clicks to check on a lead or send a follow-up email, it’s not the right tool for you.

4. Does It Integrate with Tools You’re Already Using?

You don’t need a CRM that works in isolation. It should work with the tools you’re already using, like your email provider, calendar, invoicing software, or marketing platforms. This way, everything runs smoothly without adding extra work.

✔ Pro Tip

During your CRM demo, ask how it integrates with your existing tools (e.g., Gmail, Outlook, Google Workspace). The easier it is to sync with what you’re already using, the more time you’ll save.

5. Is Customer Support Reliable?

In the early days of using a CRM, you might need help getting things set up or troubleshooting an issue. Responsive and reliable customer support can make all the difference.

✔ Pro Tip

Check reviews to see how the CRM’s support team handles customer inquiries. Choose a CRM that offers live chat, email, or phone support, so you can get help when you need it.

6. Does It Have the Features That Matter Most to Your Business?

No CRM is one-size-fits-all. Think about what matters most to your business right now. Is it automating follow-ups? Is it tracking sales more efficiently? You may need a tool that grows with you as you hire more team members.

✔ Pro Tip

Make a short list of the features you absolutely need (e.g., lead tracking, task reminders) and features that would be nice to have. This will help you stay focused when comparing CRMs.

7. Can You Try It Before You Buy?

Most CRM systems offer free trials or demos, so you can test them out before committing. Take advantage of these trials to see if the CRM fits your workflow.

✔ Pro Tip

Use the trial period to set up a few contacts, try out the sales pipeline, and get a feel for the interface. This hands-on experience will help you make a confident decision.

Make It Work For You

By asking yourself these questions and focusing on what your business really needs, you’ll be able to pick a CRM that’s both functional and affordable, saving you time and headaches in the long run. 

Remember, the best CRM is the one that makes your life easier, not harder.

How to Set Up Your CRM System

Now that you’ve chosen a CRM, it’s time to set it up and start using it to manage your leads, customers, and sales. While CRMs may vary in their exact setup process, most follow a similar sequence of steps. 

Here’s a beginner-friendly guide to setting up your CRM, using HubSpot as an example. Don’t worry if your CRM looks slightly different — the basic steps should still apply.

Step 1: Sign Up & Log In

The first step is signing up for a free account.

  • Head to your CRM’s website (e.g., HubSpot), enter your email address, and follow the prompts to create a new account.
  • After registering, look for a confirmation email to verify your account. 

Step 2: Complete Basic Setup

After logging in, you’ll be asked a few simple questions about your business. This helps the CRM tailor its features to your specific needs.

  • Provide your business name, industry, and company size. 
  • These details will help customize the CRM’s structure (e.g., setting up deal pipelines or lead stages).

Step 3: Import Your Contacts

A CRM is only as useful as the information you put into it. Start by adding your existing contact list, whether it’s stored in a spreadsheet, email account, or another system.

  • Import your contacts by manually adding them one at a time, uploading a CSV file, or syncing with your email provider (e.g., Gmail or Outlook). 
  • Many CRMs offer import wizards to guide you through the process.
  • Double-check that your contact information is accurate before importing — clean data helps avoid errors down the road.

Step 4: Set Up Your Deal Pipeline

Your deal pipeline tracks leads as they move through your sales process, so it’s important to customize it to fit your business.

  • Create stages in your pipeline that reflect your sales process, such as “New Lead,” “Qualified,” and “Closed Won.” 
  • Most CRMs will have default stages that you can adjust to fit your business.
  • Don’t overcomplicate it — keep your pipeline stages simple and focused on key milestones in your sales process.

Step 5: Integrate Your Email, Calendar, and Other Tools

To keep everything in one place, integrate your email and calendar with the CRM. This way, you can track communications, schedule meetings, and log conversations automatically.

  • Follow your CRM’s instructions to connect your email account (e.g., Gmail, Outlook) and sync your calendar. 
  • You can also connect other tools you already use, like invoicing or marketing software.
  • Test these integrations to confirm that emails and calendar events are syncing properly. This will save you from having to log interactions manually.

Step 6: Customize Your Dashboard

Your CRM dashboard is your control center. Customize it to show the most important information so you can keep track of tasks, sales goals, and upcoming activities at a glance.

  • Personalize your dashboard to display metrics that matter most to your business, such as upcoming tasks, recent sales, and pipeline progress.
  • Keep it clean and simple — too much information on your dashboard can be overwhelming. Focus on your daily priorities.

Step 7: Set Up Basic Automations (Optional)

Automation can save you time by handling repetitive tasks like sending follow-up emails or setting reminders. Many CRMs offer basic automation features for free, while advanced features may require a paid plan.

  • Set up automations such as task reminders (e.g., follow up with a lead in 3 days) or drip email campaigns that send emails automatically based on specific triggers.
  • Start small — automate just one or two tasks at first to get the hang of it, and expand as you become more comfortable.

Step 8: Get to Know Key Tools (Including AI)

Your CRM comes with many features to help you manage customers and streamline communication. Take time to explore its tools, like contact management, task tracking, and email templates. If your CRM has AI-powered tools, learn how they can help you make smarter decisions.

  • Explore tools like contact management (where you store customer info), task management (to-do lists), and email templates (pre-written emails you can use).
  • If your CRM has AI tools (like HubSpot’s AI suggestions), experiment with them to see how they can improve your follow-up process and customer outreach.

Step 9: Use Learning Resources and Tutorials

Most CRMs provide learning materials such as built-in guides, video tutorials, and webinars. These resources help you get comfortable with the system and maximize its features.

  • Take advantage of these resources — go through tutorials, attend webinars, or watch walkthroughs to better understand the platform.
  • CRM providers often send onboarding emails with helpful tips and invitations to webinars. 

By following these steps, you’ll be able to set up your CRM and start using it to manage your leads, customers, and sales more efficiently. 

Taking the time to set it up properly now will save you time and help your business grow in the long run.

You Got This

Running a business is tough, but staying organized shouldn’t be. With the right CRM, you’ll keep track of customers, automate follow-ups, and spot opportunities without breaking a sweat. It’s like having an extra team member who never forgets a task.

By choosing and setting up the right CRM, you’re setting your business up for growth. You’ll be able to focus on building real relationships with your customers while your CRM handles the heavy lifting.

If you’re thinking about a CRM, you’re already ahead of the game. The sooner you get started, the sooner you can turn leads into loyal customers — and keep them coming back.