How Budgeting for IT Can Help You Boost Revenue
A whopping 66% of companies are gearing up to boost their IT budgets in 2024, reflecting a growing reliance on technology to increase efficiency, adapt to market changes and encourage innovation.1 In this blog, we’ll cover why budgeting and IT services for small businesses, particularly, are a must-have — and how to create one of your own.
A well-crafted IT budget is a roadmap for aligning technology investments with business goals, ensuring that every IT dollar spent contributes to the bottom line. To achieve this, consider the following:
Potential ROI of Technology Investments: Identify and prioritize projects based on their potential ROI. Focus on initiatives that promise the highest ROI to maximize the impact of your IT budget.
Scalability of Technologies: Ensure chosen technologies and initiatives can grow with your business. Investing in scalable solutions prevents the need for larger, unplanned investments down the road.
User Support and Training: Make sure new technologies offer adequate user support, and ensure your employees are well-trained to leverage them. Having a proper implementation plan in place further increases the efficiency of your IT investments.
Consider Outsourcing: Strategic outsourcing can be a valuable component of optimizing your IT budget. By outsourcing, you can focus on your core business activities and growing your business instead of spending time on complicated administrative tasks.
Remaining Competitive Through Innovation
Competitiveness is the lifeline of small businesses aiming not just to survive but to thrive. Strategic IT budget planning ensures better resource allocation, enabling businesses to stay competitive.
This is especially true when it comes to investing in cutting-edge technology. Allocate budget resources for technology such as AI, machine learning and IoT. These innovations empower businesses to stay ahead of industry trends and gain a competitive edge in the market.
Strengthening Cybersecurity for Sustainable Growth
Perhaps nothing is more important for small businesses these days than proper cybersecurity protection. After all, 43% of all cyberattacks these days are on small companies.2 Attacks like ransomware, phishing attacks and malware can leave small organizations without the proper security measures vulnerable to financial losses, reputational damage and even legal fines and penalties.
A strategic IT budget allows for investments in robust security measures and risk management strategies. Organizations can protect their assets and reputations by proactively addressing security threats and compliance requirements.
How to Determine the Right IT Spending
Understanding the average spending patterns provides valuable insights into how much a small business should allocate to IT. According to Gartner, small businesses tend to spend over six percent of their revenue on IT, a higher percentage compared to larger organizations.3
To decide how much your organization should spend on your IT budget, assess your business goals, consider long-term benefits and align spending with your business objectives. Moreover, regularly review and adjust your IT budget based on changing priorities and technological advancements.
For help with your IT budget management, schedule a free consultation with Sawyer Solutions.
- The 2024 State of IT
- 51 Small Business Cyber Attack Statistics 2024
- MSBA Tech Minutes: How Much Do You Need to Spend on Technology?