Generally, we like to make the argument that nothing about your small business is too small. We do say it a lot in relation to cybersecurity — no size of business is immune. For example, In 2020, 47% of small businesses experienced some type of cyberattack, with 44% seeing more than one.
While you’re not too small for a cyberattack or to benefit from the use of technology, there is the chance your IT budget is too small.
Every business wants to be cost-conscious. Saving money in one area can make funds available to expand, develop new products, or pay people more. That all makes sense.
Yet technology is the lifeblood of business success today. When you have the best tools available, you gain productivity, efficiency, and transparency. Plus, your people are likely to be happier, which helps retention, too. At the same time, with cyberthreats on the rise globally, IT isn’t the best area in which to flex your thrift muscles.
Not spending enough on IT today can mean high costs in the wake of a ransomware attack or downtime later.
Some costs facing businesses that don’t invest enough in their IT:
- Ransomware remediation costs now average $1.85 million per attack (up from $761,106 in 2020)
- IT downtime costs for a business can range from $140,000 to $300,000 per hour.
Are you shortchanging your IT budget? How can you know you need to pay more now to avoid spending an exorbitant amount later? Look for these warning signs.
Employees Are Losing Time to Tech
The right hardware and software make employees’ jobs easier. Robotic process automation can improve workflow to avoid effort spent on mundane tasks. But people struggling with slow, outdated technology are wasting valuable time.
If your people must find workarounds to get that project done on deadline, that’s only a short-term fix. It is frustrating for them, which impacts morale and retention. Plus, the band-aid approach to getting the job done can backfire in the long run.
There are Important Things You Can’t Do
You may be putting off upgrades to save on your IT budget. Yet in your effort to spend less on tech, you’re undermining your business interests. You put off an operating system upgrade because your current system is working fine, except that choice could make you more vulnerable to cyberattacks.
You recognize the value of integrated customer relationship management (CRM) software but don’t want to splurge on that valuable tool. Still, you don’t want to save money on IT spend at the expense of business needs right now.
Keeping up with your customers manually by stringing together email messages often costs more in productivity time and loss of efficiency than using the automation capability of a CRM.
Customer Experience Is Suffering
You may not immediately connect IT budget and customer satisfaction, yet consumers today want convenience and personal attention. These can be difficult for the overworked human employee to do. Providing improved data and analytics makes it easier to offer individual attention. Plus, chatbots and mobile apps can transform the customer experience because they save time and effort.
68% of consumers like chatbots because they offer quick answers to their questions.
You’re Struggling to Meet Industry Standards
Businesses face different industry standards to manage and protect personal and proprietary data. There can be requirements for backup practices, infrastructure testing, monitoring threats, and more. This can make the job of IT more complicated, but not spending to safeguard data or intellectual property risks a financial hit.
Improving operational efficiencies is a priority, of course, yet security spend needs to be part of the IT budget, too. Address risk exposure with recurring risk assessments and a strategic security framework.
Good Employees Are Leaving Due to Frustrating Technology
When people are held back by the technology tools they’ve been given to work with, they not only feel frustrated, they also often leave for more promising horizons.
Good employees want to do their best, and in today’s world, that means having the software and hardware support they need to do that. If a company has outdated software that is two versions behind or doesn’t provide the types of technology tools that other companies have, it can mean the loss of valuable employees.
In a survey for the Annual State of Work report by Workfront, 49% of US workers stated they would leave their job due to frustrations with the company’s technology.
Better Budgeting for IT
Many businesses looking to bounce back from the pandemic are struggling with tight budgets. Still, technology can improve remote work, increase productivity, and enhance customer satisfaction. IT can also save you money, thus providing a payback on your investment and ongoing ROI.
Not sure where to direct that IT spending? Our IT experts can get to know your San Jose / Silicon Valley area business and its objectives. We’ll identify cost savings and suggest transformations for the best return on investment. Call us today!
To schedule a consultation, call 1-866-433-5411 or reach us online.