Knowing where to invest your company’s budget can be challenging. Technology allows businesses to automate, optimize, and simplify the way they do business. The way these tools are implemented, used, and maintained will of course come with a cost that needs to be considered with any business strategy. Understanding what is going into your IT budget will allow you the opportunity to find ways to maximize your mileage and how far you can get with it.
When building an IT budget for your business, planning ahead and assessing your strategy regularly will save you from unnecessary expenses and lost man hours. If you’re looking to maximize your budget, these tips will be a great place to start.
Here are 3 quick ways to maximize your IT budget:
- Make sure you have the right items in your IT budget. This should be for everything that is core for your business to function (internet, servers, workstations, email). For things that are designed for specific departments (like a CRM system for sales & marketing) – you have to decide if it is part of your core IT budget or if it should be assigned to the specific department that is using it.
- Review all of your current expenses. One of my clients checked and figured out they were spending $2,254.60 every month in recurring subscription software. After a review, they were able to cut 55% off their monthly bills. BONUS TIP: Use a single credit card for subscription software AND do not allow any employee to put any recurring charges on their business credit card.
- Review your current services. I’ll assume you’ve performed step #2 and now you will want to discuss (or visit the website) of your vendors and find out – should you upgrade, downgrade or stay where you are. Perhaps there is a savings either in decreased expenses, or more value for your spend.
A company’s IT budget may be where success is won or lost. Spending that money in the proper place could help foster new ideas or innovations that propel your company forward. But out-of-control spending could bring a company to its financial knees. If you haven’t reviewed where your IT dollar is going this year, now is the time to take a close look at where your company stands to ensure you have a solid technology strategy that works.
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