If you are a typical small business, your IT budget should be somewhere between 3-7% of your total revenue according to Deloitte. This includes all technology expenses, whether it’s for equipment, licenses, cloud subscriptions, or support services.
There’s no magic number for what you should be spending, so long as your business is getting a good value out of your investments in IT.
When you consider your IT budgets and prior investments, consider these 5 questions:
- Is your spending giving you a competitive advantage, such as increasing your customer’s delight or your team’s ability to be more productive each day?
- Are you considering risks to your business, and looking to technology to help you mitigate them?
- Are you aware enough of technology trends to ensure you are using the right mix of cloud services and next-generation security protections?
- Do you believe your IT is in alignment with your overall strategy, making your business more agile, flexible, and resilient in the face of disruption?
- Do you go through a regular Technology Roadmap exercise and align that with a multi-year spending plan?
Each of these questions should lead you to consider, if you haven’t already, that IT spending should be viewed as a strategic investment, not as just a cost.
Make sure your IT solution provider is someone like Net Friends who can bring all your technology expenditures together into a single, predictable monthly bill. We will regularly help you assess whether you are getting sufficient value out of your IT, from reducing your security risks to giving you a competitive advantage. These assessments will be at least every few months, and more frequently if needed.
Reach out to us to start planning for your 2021 IT investments.