Maintaining smart spending habits can be a challenge in the IT world. According to Gartner Inc., IT spending worldwide is predicted to total around $4.5 trillion in 2023. Although inflation continues to decrease consumer purchasing power and device spending, IT enterprise spending is expected to continue climbing.
Many companies know they need to spend more but need help making the right spending decisions. You want to ensure your business has all the necessary, up-to-date technology to succeed. Still, you also have a budget and want to invest wisely. We understand the importance of spending your money securely and confidently. At Usherwood, we have experts that assist our clients with budgeting and planning for all their IT needs, both short-term and long. This article will highlight our top five IT spending tips and how they can help your business succeed.
Top 5 Spending Tips for IT
You Need to Know Your Current Business Assets
One of the first steps to organizing your budget is knowing how much you have to utilize. It would help if you understood from an IT perspective what types of computers, servers, switches, routers, etc. you have and how old they are. You will also need to have an idea of whether they are under a 1-3 year warranty or not. Having this knowledge will better help you prepare and have an idea of what you will need in the near future and what you initially need to focus more on. We suggest prioritizing upholding a record of the types of assets your business utilizes.
Don't Buy the First Thing You See
We advise you to avoid getting caught up in the first thing that catches your eye. Whether it be computers, cybersecurity plans, or even software and apps, properly evaluate all available options before making the jump and spending your money. Try to gather at least two or three comparisons and look at entirely different products. Feel free to also ask for demos of certain products. Ask about longevity, dependability, and performance details. You want to ensure what you're buying is best for your business and that you are getting your money's worth, so take your time before making an informed decision.
Budgeting 101 Knowledge
Having a general sense of budgeting knowledge will positively impact your IT spending process. Your company should create a five-year cycle of expenses. By utilizing a documented five year plan, you ensure that your equipment is always within industry standard parameters and you're not going to be wasting money on obsolete technology. This will keep your uptime, efficiency, and productivity high and ensure you have an organized plan. If your computers are two years old, you will probably look to replace them in three years. This is where it’d be helpful to have an estimate of yearly costs for consistency, you’ll know when it's time to organize the funds for those upcoming computer replacements.
Don't Purchase Things All At Once
Purchase your IT needs a little at a time. We understand the desire to deal with everything at once to get it over quickly. Still, from a budgeting perspective, there may be a better strategy. There's a saying; how do you eat an elephant? One bite at a time. It's the same when it comes to purchasing all your IT needs. If you have 150 employees and they all need new computers, the price would be high to buy all those employees a new computer at once. If you stagger replacing those computers over a year or multiple years you can spread out that cost both in the short term and long term when they hit their lifecycle replacement.
Bring On a Trusted IT Advisor
Whether it be a local IT provider or someone who is IT knowledgeable, having a resource you can seek advice from is essential. Every business needs an IT sherpa to lean on to guide them in the right direction of what they need to do and at what times. Someone who understands company IT needs will benefit your business by being able to provide you with guidance on what service platforms are worth investing in, when you should make particular decisions involving purchasing updated devices, or even when you should concentrate on specific aspects of budgeting and when you shouldn't. One example of a topic we at Usherwood help advise clients on is leasing or purchasing in full. We evaluate your budget, compare and contrast the prices of the two, determine which would work more long-term for your business, and help you make an informed decision. Having an IT expert in your corner is always recommended and helps you to feel better prepared for whatever comes your way.
Why Properly Managing Your Spending is Important
If you don’t take the time to properly invest in your IT needs on a regular, consistent, basis, you may spend more money in the long term. You could experience network failures, security vulnerabilities, large unexpected costs, loss of productivity, etc. just by not being prepared or making your budget plan a priority. If you only deal with the problems as they’re happening, you could add unnecessary stress and hardships to your business.
Managing your spending will be one of your business's most critical aspects. You want to maximize what you can out of your budget and make informed choices. There are so many products, hardware, and overall things that work better than others. There will be things that are more worth the money and time of your organization than others. Find what's best for your organization to ensure its growth and prosperity.
Usherwood Helps Our Clients Budget and Plan
Usherwood's role is to be an advisor to our clients. We're a company that can help you steer the ship when making IT spending decisions for your business. We have a team of experts to assist with what you need to spend money on, how much, and when. We look at our client's assets from a team perspective and plan what will need replacing in the next few years, what equipment will be required, how long it will last, etc.
We offer complete transparency and advisory and can help your business organize a technology roadmap to plot everything out in more detail, so you know what to expect. That doesn't necessarily mean things won't change, but that's why we have our team to assist when that happens. Our team services users and the network itself, determining whether things can be fixed or if replacements should be made, what should be budgeted for the fixing or replacement in the next six months, and even simply what needs a closer look in the near future.
Usherwood is an IT provider and support system for all our client's needs and inquiries. No one should feel alone in managing their business IT needs.