7 Technology Budget Strategies for Small Business

This blog post will guide your small business with valuable technology budget strategies as you look to your next fiscal year.

With a new year around the corner, now is the time to review your small business technology budget and make sure your resources allow you to grow and prosper in the coming year.

As small businesses transform to compete in a complex market, a digitized environment becomes the norm and a well-defined technology (IT) budget should not be an afterthought.

7 Technology Budget Strategies

These seven (7) strategies will help set your small business up for growth and success in the years to come as you create a budget on an annual basis.

Assess Business Needs

First of all, every business needs to review current state verses future state.  Small businesses fall into three categories:

• Currently, no technology with business processes
• Utilize some technology with business processes
• Fully implemented modernized technology-based business processes

Document your current state and list your goals and objectives.  Through documenting your manual or semi-automated processes, you will be able to understand requirements for future technology solutions.

For more information on the art of the possible, check out our blog on Microsoft 365 Business Premium: 7 Powerful Advantages and follow our social media links.

Pro Tip:  Only buy or invest in solutions that your business really needs.  Sometimes a simple process with an alert will suffice instead of adding another cloud solution.

Employee Resource Allocation

Someone in your small business needs to own the responsibility of your technology.  The question becomes to what extent.  It could be you, the business owner.  Then two questions need to be answered:

• Do you have time and knowledge?
• Would it be better to delegate internally or outsource?

Business Owner

As the small business owner, the value of time needs to be analyzed verses the tasks to be accomplished.  Even if you enjoy technology, it might be better to delegate or outsource.

Whether you outsource or delegate internally, set aside time to strategize how future technology will improve your business processes.

Employee or Outsource

For simple cloud-based technology environments, an internal employee will be able to handle the tasks required on a part time basis.  Clearly define their responsibility in the job description for the role assigned.

For complex environments, whether cloud-based or multiple on premises servers and network equipment.  The value of outsourcing the work makes the most sense unless your business lines up with knowledge required.

Again, read the Cloudz Biz blogs and news feeds to get the latest information to help make the right decision for your small business.

Routine IT Services

Know your routine Information Technology (IT) daily, weekly, monthly or annual requirements to maintain and run your small business.

Here are a few key information technology budget tasks to think about:

• If you have a high turnover of contractors or employees, make sure you use all the licenses you pay for.  Recommendation: Check your licenses once per month.
• Operationalize your risk assessment activity.  Recommendation: Annually
• Setup cybersecurity awareness training for all employees.  Recommendation:  Annually
• End user device refresh plan.  Recommendation:  3- or 4-Year Refresh Plan

Hardware Refreshes

First of all, minimize the amount of hardware in your business environment.  Most of your business transactions in a digital modern world will be handled in the cloud.

For most businesses, your hardware footprint will fall into these four categories:

End User Devices

End User devices are required in a digital modern world.  One simple strategy, buy a laptop on a four-year lease and refresh 25% of your devices every year.  For most cases, a laptop will hold up for 4 years.

One recommendation, make sure you buy the warranty associated with the hardware, this will save on support costs for small businesses.

Network Infrastructure

Quality network equipment will last for a good 6 years with proper updates and upgrades to the software.  Make sure your technology budget accounts for annual maintenance fees and license costs.

Video Surveillance

Quality video equipment will last for a good 6 years as well.  Like network equipment make sure you budget for annual maintenance and license costs.

Pro Tip:  Make sure you know how much video storage required for compliance to any regulations your business may be a part of.

Point of Sales (POS)

Currently with today’s POS equipment plan on refreshing every 4 years.  Potentially, depending on the equipment this may go longer.  Again, technology budget needs to include annual maintenance and license costs.

Pro Tip:  Make sure this environment seamlessly integrates into your cloud financial software.  You will save money in the long run and gain better reporting.

Emergency Planning

Every small business or any business for that matter needs to set aside an emergency budget in their technology budget.  Two exercises throughout the year will help you plan for the unexpected:

Incident Response Plan

Every business needs to walk through an incident response exercise.  In the event of an emergency this will help everyone know their role ahead of time.

Pro Tip:  Build into the budget a team event that centers around an Incident Response tabletop exercise.

Risk Assessment 

Set aside a bucket of money for the unexpected.  A clearer defined view of this can come from a Risk Assessment.

Project Planning

One fact in life, nothing happens well without a plan.  No matter what stage in your digital transformation journey you are in, lay out the plan for the next step.

A great plan will reduce business risks and ultimately help reduce costs.  So, take the time to build into your technology budget the proper costs for either an agile or waterfall type project.

Security Requirements

Let’s face it, in the world we live into day, security is a must.  There were days when you could leave your car parked out in the driveway unlocked and the keys left in it.  Those days don’t exist anymore.

Cybersecurity protection truly is a balance of good processes with the right technology and solutions implemented.  Don’t pay more than what you really need.

The first step in this process is to understand the value of what you are trying to protect.  Sensitive data requires more thought

Read our Top 7 Proven Security Strategies to learn more on what your business may need to consider for your next budget.

Technology Budget Closing Thoughts

If you want more information and guidance on technology budget ideas and thoughts, tune into Cloudz Biz social media channels.

For more Information technology budget categories and ideas, you can tap into these references below:

• Modernize your tech faster with a new cloud strategy (Forrester)
• Five major IT budget mistakes you never want to make (ZDNet)
• Simplify IT budgeting year-round with our template and tips (ZDNet)
• IT budgeting: A cheat sheet | TechRepublic (TechRepublic)

Stay tuned for more Information technology budget examples.