What Every Entrepreneur Should Know About IT Cost in Business

What Every Entrepreneur Should Know About IT Cost in Business

Written by Deepak Bhagat, In Technology, Published On
September 11, 2021

The technology costs for small businesses continue to rise. That’s largely due to the increase in cybercrimes. Small businesses spend about 12% more on cybersecurity alone than in previous years.

The technology cost line item in your budget becomes harder and harder to predict. At the same time, a security flaw could destroy your business.

Plus, there are other costs of technology in your business beyond security. If you’re looking for a way to keep those costs in line, keep reading.

This guide shows you what to consider when managing IT budgets.

What Every Entrepreneur Should Know About IT Cost in Business

The Cost of Technology in Your Business

  • Technology costs fluctuate from one month to the next for small businesses. You have standard software costs. You also have to consider time to maintain computers, fix printers, and update software.
  • Your business is likely to have a website, which needs regular maintenance as well. Domain names, website hosting plans, and plugin subscriptions are part of IT costs.
  • Do you have IT employees on staff? You know that they command high salaries, plus benefits. Add up these costs and you’re spending hundreds or thousands of dollars every month.
  • That doesn’t include times when you have to replace and upgrade hardware. These replacements are expensive and cause your IT spending to explode.
  • Add up these unexpected expenses over the last couple of years and create an average. You can then set aside funds each month for these technology costs.

Should You Outsource IT?

  • How can you lower those costs? Outsourcing can help. You can control costs and save time.
  • It doesn’t mean outsourcing IT department or every part of your infrastructure. You can hire an outside IT company to handle one aspect of your IT needs.
  • For instance, you can outsource IT security. You might need a help desk for your employees to solve tech issues quickly. Small businesses do have the option to outsource the entire IT department as well.
  • Take the time to analyze your business needs and decide what’s best for you.
  • What does outsourcing add to your technology cost? IT management companies have a few different pricing models.
  • Many charge a flat monthly rate for a specified set of services. Be sure to know what those services are because anything outside of the contract carries an additional fee.
  • Companies also charge based on the number of people or devices in your company. This is an important distinction because your small business may only have three people, but there are 15 devices to manage.
  • If you only need to have someone on standby to help with occasional needs, then get a retainer contract. You pay for a set number of hours each month.
  • Control the Technology Cost Budget

How can you control the technology cost in your budget? The best way is to figure out your business needs and budget for the regular expenses. By the end of the process, you’ll have a clear path to save money and control your costs.

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