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:
- The average small to mid-sized business will spend more than 6% of their annual revenue on IT costs.
- More than 80% of all IT costs occur after the initial purchase is made.
- Computers that are unmanaged can cost close to $5,000 a year.
- 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.
- 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.
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:
- 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.
- 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
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.