Financing Your Business Technology

Close to 75% of small to medium sized businesses are expected to purchase new equipment this year.  The total cost of ownership (TCO) maybe shocking – which is why many small businesses with limited budgets shy away from these very important purchases.

Computers require constant maintenance and some ongoing expenses include security measures, updates, and repairs.  These types of costs are unavoidable; however, the overall infrastructure can be simplified to increase productivity and significant reduce your TCO.

IT spending facts:

  1. The average small to mid-sized business will spend more than 6% of their annual revenue on IT costs.
  2. More than 80% of all IT costs occur after the initial purchase is made.
  3. Computers that are unmanaged can cost close to $5,000 a year.
  4. On average, employees spend 30 to 40 minutes a week attempting to fix problems associated with their PC or helping co-workers fix their PCs.
  5. When IT costs are considered, firms can spend an additional $600 per user, per month.

The initial cost is just the tip of the iceberg – for instance: a personal computer may cost $1,000 – but over the next 36 months, that $1,000 initial cost could turn into an expense over $15,000.  Therefore, an organization that has at least ten (10) employees and upgrade their PCs every few years – the company will spend $120,000 in computer maintenance.  This is why some businesses look to title loans in Mesa.

The truth is that the real financial IT investment comes AFTER the equipment arrives at your establishment and comes out of the box.  This is not only a true fact for PCs, but also for servers and other associated hardware and software relative to running a successful business.

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Tips for decreasing TCO:

1.       Having a strong PC management in place is the key to reducing overall IT costs.  For instance, the more finances allocated for administration and operations – the less money that will be spent on downtime and loss of production.

2.       Monitor current IT expenses to effectively reduce and control costs.

3.       Build and maintain an inventory list of all hardware, software, and licenses pertaining to all IT equipment as this will show you exactly what you have on hand.

4.       Standardize equipment to reduce cost and complexity.

5.       Spending money on security will save you money in the long run as you will be protected again hackers and computer viruses.

6.       Ongoing training of all employees, not only IT personal is important to avoid unexpected and unnecessary expenses.

Reasons that technology benefits your business:

  1. Better client communications.  Interaction needs to quick and clear.  Websites are one way that customers can find answers to common questions any time of the day as they will not be limited to hours of operation.  This type of 24 hour customer service can increase your profits.
  2. Enhance your marketing plan with technology that can be shared with everyone with a touch of a button.  Additionally, technology makes to easier to reach the public and promote your business by using platforms like Twitter, Instagram, and Facebook
  3. Improved security.  Most all businesses are subject to hacking and other types of computer threats.  Technology will protect sensitive financial data and protect your overall business.  An encrypted password is one way that technology is able to help keeping private data safe from prying eyes.
  4. An edge of the competition.  Technology will keep your business up-to-date as your business can travel the world without incurring the expense of an airplane ticket.
  5. Improved efficiency.  For instance, with the use of technology, money and time can be saved by holding meeting over the internet without having everyone travel to a central location.
  6. Improve flexibility.  Interoffice communication has changed significantly in the last couple of decade and with the technology today, you can connect with co-workers from anywhere at any time.  This type of technology allows questions to be answered quickly and effectively.  Additionally, teamwork is improved throughout the office.
  7. Communicating with your co-workers has been transformed over the last 20 years, with numerous technological advancements making the ability to work in other places possible.
  8. You can now connect with your colleagues at any given time from any location, improving your company’s flexibility to deal with queries quickly and efficiently. This improves teamwork across the whole business.

Final Word: Business technology financing should not cost you your entire revenue or savings.  We hope the above mentioned information and tips will allow you to get the best technology at the best price.

Create a Financial Plan for Small Businesses

Starting a small business does not require a lot of capital, but certainly still requires initial capital and the ability to overcome its operational costs before you can make a profit. In the meantime, perhaps you should check out the business opportunities in Littleton, CO, especially in the area near Chatfield State Park or Denver Botanic Garden.

Try a simple financial plan that estimates the costs you need.

For example, for your initial capital, you need business license fees, equipment, legal fees, insurance, branding, market research, storage, opening events, leasing business locations, and so on.

These costs are then followed by operational costs such as location rental costs, maintenance costs, marketing, and advertising, production costs, raw materials, employee wages, and so on.

Office equipment like desks, chairs, and copy machines are essential. However, copiers can be extremely expensive to buy. You can save on office equipment by leasing a copier instead.

There are several ways to get funding for this small business, including:

Financing.
Small business loans.
Small business grants.
Angel investors.
Crowdfunding.

You can also try by minimizing as much as possible your initial capital.

The goal is to make a plan that suits your financial condition and minimize the number of loans.

The structure and name of the business must be chosen carefully

Small business You can be independent, partner, or in the form of CV or Limited Liability Company. Therefore, determine from the start what your business structure will look like, then reevaluate and change if it is not appropriate. Aside from that, perhaps you should check out the business opportunity at Littleton, CO, especially in the area around Arapahoe Community College.

Depending on the complexity of the business, you are usually advised to discuss with experts such as lawyers to make sure you take the right business structure.

Besides that, do you know that business names have an important role in almost all aspects of business?

Be sure to think about all the potential implications before you decide on a business name.

Once you determine the name of the business, you need to check the patent, is there a business with the same name?

If you have a business structure for a Limited Liability Company, then there must be no business name in common.

If it doesn’t already exist, then you can register a business name submission. This submission also depends on the structure of your business.

When using a website, don’t forget to register your domain name after determining the name of the business.

Determining the financing system and the location of a business

Small businesses will run effectively when there is a system in place. .One of the most important systems for small businesses is the financial system. Accounting systems are needed to create and manage budgets, determine prices, harmonize businesses, and file taxes. Apart from that, check out the business chance in Littleton, CO, especially in the interesting area like the one around Englewood.

You can create your own financial system or hire accountant services so that the system is made clearer and more secure.

Then, location is one of the important factors that can affect your business. Why?

Because usually the strategic location or not influences the smooth running of your business.

You can open an office, or rent a shop (shophouse), even make a store. But you need to think about what is the strategic location? Is the area suitable and can accommodate existing machinery and equipment? As well as other points.

This will help you in determining whether the location is right for your type of business.

The second consideration is determining the financing of the business location, will you rent or buy it?

This goes back to your financial condition, so look again at what conditions are possible and profitable for you.

The first step is pioneering and starting a small business

For those of you who want to start a small business, where do you already know? In fact, the business can start from something small first, so it does not require too much capital. Well, what is the right first step to start a small business? Meanwhile, check out the business opportunities in Littleton, CO, especially for the busy area just like around E Mineral Ave, which is close to several medical centers.

We will discuss in the following detail:

Do Research

Generally, someone who will start a small business already has the main idea but has not managed to balance it with reality.

So it’s important to always check and do research to find out if your idea has the potential for success.

You can do research, focus group discussion (FGD), and trial and error.

To find out whether your idea is valid or not, you can do a little research to answer the following questions:

Has the idea been in accordance with the needs and interests of the community?

Who needs it?

Are there companies that offer similar products or services today?

How is the competition?

How can this business enter the community well?

This research is a validation process for your idea. Because if it’s not valid, you’re just wasting your time.

One tip for you, a product or service that usually succeeds success is a product or service that can solve

community problems, or may fulfill needs and offer what interests the wider community.

Make a Plan

You need a plan before making a business idea come true.

An idea that is not equipped with careful planning can lead to failure, even though previous research has been

done.

A business plan is a picture that will guide your business from the startup phase to developing.

Certainly, this is a must for all businesses, no matter what type of business you are.

There are several types of business planning for different types of businesses.

For example, traditional business planning is needed if you are constrained by costs and need financial support

from investors or financial institutions.

The traditional type of business planning is usually very detailed and has sections that explain the business well

so that the debtor can consider supporting your business idea.

If you don’t need financial support, you can make a simpler business plan. But there still must be!

Thus, the business you want to achieve will be clearer, along with what steps must be taken to achieve that goal.

Preparing the team and promotion for your business

If you want to recruit employees, now is the right time to do it. Determine what positions are needed and what are the appropriate qualifications for each of these positions. On the other hand, you might need to see the recommended business opportunities in Littleton, CO, especially in the area in Englewood.

If you choose to find part-time workers, then consider also the job description and qualifications.

If you are an independent businessman who runs a business alone, you might not need to recruit employees.

But try to keep a support team that can be your business mentor. It could be a family or a close relative to you.

In addition, no matter how good the product or service offered, the business will fail if consumers do not know or know your product/service.

This is where the importance of marketing or promotion, where you have to start attracting consumers and clients.

Make a marketing plan then see and learn how similar businesses undergo marketing.

From here you can determine which is the most effective way to market your product or service.