Small Business Technology Budget Tips

A staggering amount of small businesses that I have worked with in the past have made a major mistake year after year in doing their budget. They simply created no area in their budget for technology purchasing, maintenance and support. When you sit down to do your budget for your business, you must take in to account quite a few things. Don't ever treat IT as a "we'll just buy it when we need it" type of situation - plan for it and accommodate for the costs in your bill rate.

1. Purchases - Some will have to purchase new computers, some will have to make a larger investment in a server (this usually is a depreciated asset). In any case, you should always allocate fundage for the purchase of computers, printers and other equipment.

2. Software costs - More and more software today relies on renewable licensing. Software such as anti-virus will cost your company a certain amount each year. This type of software is the easiest to plan for. Other things to look at are newer versions of software you currently use or if you are making plans to migrate to a different package. Always keep in mind that software requires a license for everyone!

3. Maintenance - If you have any kind of technology investment in your company, then understand that those assets require maintenance in order to keep at their optimal performance level. Always keep room in your budget for maintenance costs. Maintenance minimizes costly down time and service costs.

4. Service - Even with maintenance, there will be times when you experience problems requiring the assistance of a technology professional. Typically, this is not a set amount but it is very helpful to accommodate for some type of reactive service cost. The better the maintenance plan, the less you will hopefully have to spend in service. Keep in mind, growth requires service!

Technology has a very real cost, one that the better you plan for, the less it will hurt when you are writing those checks. Don't skip over this part of the budget - realize the value of your technology and understand that technology deserves investment every year.