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  • Ian MacRae

How to Cut Your Small Business IT Budget

Person working on budget. Text over image: How to Cut Your Small Business IT Budget

As the year comes to an end, businesses must finalize their budgets for the coming year. Ian MacRae and his team at E-N Computers suggest that companies should assess their IT expenses to ensure that they are necessary and provide value to staff and customers. To achieve this balance, businesses must have a clear understanding of the purpose of their IT systems, which is to control costs through automation and eliminate tedious tasks.

How to Cut Your Small Business IT Budget: There are three primary reasons why companies often pay too much for IT, including IT staffing, complex solutions, and cloud software. While small companies might employ one IT person in their early days, a functional IT department requires a variety of skills that can be unaffordable for most small businesses to employ full-time. Instead, businesses should consider managed IT services, which offer several benefits, including improved cybersecurity, a team of experts, and greater stability for critical systems.

Companies can also reduce unnecessary IT costs by avoiding customized solutions that require highly skilled professionals and seeking the opinions of industry and IT experts to improve their processes and technology stack. In addition, businesses should develop an IT strategy that supports their goals to ensure that they are investing in tools and processes that meet the needs of their staff and avoid duplicate efforts, confusion, and security risks.

One way that IT becomes overly complex is when businesses do not budget for appropriate solutions, leading to employees patching together their own system of free tools. This proliferation of unapproved hardware and software in a business is called shadow IT, and it can increase frustration, reduce employee productivity, and lead to security risks. To avoid the problems of shadow IT, it is critical to adequately invest in IT and be proactive about planning and implementing the tools and processes that staff will use.

Finally, cloud services can be an attractive option for businesses due to their low upfront costs and convenience. However, businesses must carefully assess their needs and the costs associated with different cloud services to avoid overpaying for features they do not require. By following these steps, businesses can optimize their IT budgets, ensure that they are investing in the tools and processes that meet their needs, and achieve cost savings without sacrificing value.

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