4 Major IT Budgeting Blunders Explained

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If the business owners and executives we have heard from over the years are anything to go by, IT budgeting isn’t something most business people enjoy. Many seem to have the distinct impression that they are spending too much and not enough all at once. That is, they wish they were getting more from their tech expenses, while simultaneously wishing they could decrease an area of the budget that often feels like a black hole.

Although we can understand why so many owners and managers feel this way, IT budgeting doesn’t have to be a headache or a hassle. In our experience, problems in this area can usually be traced back to one of four different blunders. Let’s take a quick look at each…

#1 Budgeting Too Little for Technology
It’s never a good idea to spend money you don’t have to when you’re trying to run a company. Generally speaking, the businesses that do well are the ones that operate in a way that is essentially “lean and mean.”

At the same time, though, technology moves quickly. If you simply refuse to spend money on new apps and devices, it won’t be long before you have fallen behind your competitors. Then, they have a productivity advantage that is difficult to overcome.

#2 Buying New Tech Your Business Doesn’t Need
While it’s important to keep upgrading your hardware and software on a regular basis, it’s dangerous to spend a lot of money on tech you don’t need simply because it’s flashy or interesting.

The occasional purchase isn’t going to hurt you, of course, but any business owner should be careful about spending too much from their budget on an upgrade that isn’t strictly necessary. All these expenses can add up, and can leave you without the cash you need to deal with real IT problems.

#3 Failing to Plan for the Unexpected
Technology isn’t entirely predictable. Sometimes, you have to buy something that you didn’t plan on investing in right away. And unfortunately, it seems like major replacements are usually needed when you least expect them.

If you fail to account for these occasional cash outlays in your IT budget, then they are going to hurt you more when they come along. That could leave you with a tough choice of spending money you need or being forced to work without an important piece of tech that your business relies on.

#4 Building an IT Budget on Your Own
An experienced IT consultant can help you put together a realistic budget that balances your needs for functionality and upgrades with the realities of keeping your bottom line as healthy as possible.

Conversely, when business owners and executives try to set IT budgets on their own they often overlook important details. They might not spot needed upgrades and renewals, or could miss opportunities to trim costs in a way that makes sense. You’ll always be in charge of your IT budget, but that doesn’t mean you should plan it entirely on your own.

Is It Time to Build a Real IT Strategy?
If you feel like it’s time to move past one-off IT purchases and quick fixes, and start getting expert help with your approach to technology, we can help. Contact the small business experts at Fantastic IT in Los Angeles so we can show you how easy and affordable it is to take the guesswork out of running this part of your business.

About Fantastic IT

Fantastic IT is more than just a managed service IT company – they’re trusted advisors and partners that diagnose, fix, and solve the toughest IT problems. Whether it is proactive tech management, real human customer service, or lightning-fast support, we’re here to make IT fantastic for just one flat monthly fee. Find out what Fantastic IT can do for you today.

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