Technology can quickly drain your budget without you being aware of it. Just when everything seems under control, unexpected expenses arise that you need to account for - as running a small business is far from easy!
Your IT expenses won't become an obstacle when partnering with an expert who can manage them properly, and this guide will help you better understand this aspect of IT expense management.
How to Manage IT Spend Strategically
Step One: Know Your Business Expenses
First and foremost, become mindful of all of the expenses related to your business. Ask yourself: "What am I paying for?" You should then pose this question:
- What equipment does your team rely upon daily?
- How many different software applications do you utilize?
- Do any tools have similar features?
- Are You Required to Continue Paying After 2021?
Your cleaning costs may not require spending any money. It is crucial that you understand your costs in running your business.
Step Two: Put Your Money Where it Helps.
The difference between investing and spending lies in what constitutes spending versus what constitutes investing: buying gadgets just because they look cool is spending, while spending on tools to make your job simpler, faster or safer is investing.
These places typically offer the best value for your money:
- Cybersecurity : Installing basic firewall and antivirus protection can provide vital defenses against a breach in which recovery costs could prove more expensive than prevention.
- Cloud Tools: Leverage the power of cloud tools from anywhere with your team and reduce server issues.
- Automation : Save time for yourself and your team by automating repetitive tasks with automation software.
Training is of utmost importance; otherwise, investing in new tools won't pay off if your team cannot utilize them effectively.
Step 3: Establish your Budget
It can be hard to accurately gauge what costs are working when all IT expenses are lumped together. To better monitor expenses, break them out into categories - for instance:
- Hardware: Laptops and monitors.
- Software: All subscriptions and tools your team relies upon.
- Password managers, antivirus software, and VPNs.
- Where to Call If Something Breaks
- Training: Assisting your team members in understanding what technology they have access to.
Provide peace-of-mind when technology fails with backup solutions that offer peace of mind.
No longer are you simply creating a budget; now you are creating a system which you can monitor and optimize over time.
Step 4: Reduce expenses you don't require
That dusty treadmill in your garage has likely been collecting dust since New Year, while there are likely expenses in your IT budget that you overlooked.
How to Clean Up the Mess:
In order to clear away clutter, cancel subscriptions that are no longer in use; it is safest to do this after three months have elapsed.
Combine tools: One solid platform can serve the same function as three lesser ones.
Renegotiating your contracts with vendors can save hundreds of dollars each year. Just five minutes of time on the phone with them could yield huge results!
Are full-time IT staff always necessary? Not necessarily - managed IT partners often deliver more for less.
Reducing clutter doesn't mean settling for less; rather, it means getting rid of items no longer necessary.
Step 5: Be Flexible
Your budget must be flexible enough to meet your needs without becoming so flexible as to collapse under strain.
Backup plans are crucial in case of emergency situations.
Budget your money every quarter.
Compare your expenses against those that are unneeded.
Like a comfortable pair of jeans, a good IT budget will fit you like a glove - snug now but extensible when necessary.
Step 6: Plan For Tomorrow and Not Just Today
Budgeting for today may seem simple enough, but what happens if your company needs to hire two new people or move into larger offices in the coming months or years?
Are you anticipating needing additional storage or licenses in the next quarter?
Are You Opening a Store and Exploring Hybrid/Remote Control Options (HVC/RCOs)
Your IT budget should reflect the direction in which you want your organization to expand.
Step 7: Don't Go It Alone
Hiring an IT partner can make all the difference for staying organized, reducing costs, and making sure everything runs smoothly. They understand your systems well so problems don't arise unexpectedly and have solutions on-hand; offering smart yet hassle-free support.
Budget for Plan B Not everything goes to plan. Your internet may go down during an important meeting, or your laptop might decide today is its last day working properly. For these instances and others that can arise unexpectedly, having an additional internet connection or spare device ready can keep things moving smoothly when things go south - think of it like having an emergency charger ready just in case something unexpectedly goes wrong! Even though you won't use it every day, being prepared now could save a great deal later on.
Smart Budgeting:
Every Dollar Matters! Proper financial planning goes beyond simply spending less. Understanding where your money is being allocated and whether it aligns with your business goals are crucial aspects of smart budgeting.
Everything operates more smoothly when you know which tools add real value to your business and can create an environment that supports rather than constrains growth.
Are You Struggling with IT Budgeting? Don't Worry...We Are Here To Help!
