As the coronavirus pandemic and accompanying recession drag on, one question we’re hearing from our clients is: should businesses go forward with planned tech expenses and upgrades in 2020?
Unfortunately, there isn’t a simple blanket answer that will apply to every organization or situation. These are uncertain times, and what works for one business owner or executive won’t work for another.
That doesn’t mean we don’t have any advice to share, though. Here are some criteria we use to break these issues down for the companies we work with…
Assess Your Situation
The most important thing, when looking at plans and budgets right now, is to examine your current situation and outlook. The owner of a small, mostly dine-in restaurant will be facing different challenges than someone who runs a virtual consulting firm.
Ask yourself what you expect the next six months should look like in terms of revenue and expenses. Are things mostly going as they should, or are you facing struggles? If you feel like money is going to be tight, then that might be a good argument to put off any unnecessary upgrades even if there are good deals to be found.
Look Into the Near Future
Another important issue to consider is whether the investments you were planning still make sense. As an example, we noted in a recent blog post that more and more businesses are considering permanent work-at-home arrangements for their employees. That might mean less money spent on in-office hardware.
You might not be able to tell what things are going to look like for you in a few months. Try to make your best guess, though, and then decide whether your planned expenses will still move you towards your short-term business goals.
Consider the Discounts or Incentives
In some cases, hardware manufacturers and software providers are offering new products and incentives for business customers. In other words, you might be able to save money on a new upgrade, or get something you would have ultimately needed anyway, at a lower price.
You certainly don’t want to spend money just because a discount is being offered, particularly if you’re worried about revenue in the near future. However, if things are stable in your business it might make sense to splash some cash now while things are cheaper, if it’s the right call for your bottom line in the long run.
Weigh the Risks and Rewards
Ultimately, the question we always tell our clients to ask themselves is: will investing in this piece of technology make the business stronger in some meaningful way?
It’s easy to buy tech that’s new and flashy, or to keep paying for subscriptions out of habit. Now more than ever, though, it’s crucial to tie these decisions back to the bigger goals you have for your business and your future.
Need Help Making Better Business IT Decisions?
At Fantastic IT, customers rave about our service because we don’t just fix computers and install software – we help them to get the insights they need to stay competitive while keeping technology costs down. If that’s the kind of service you want from your managed services provider, contact us today to schedule a free consultation!