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IT Service2020-02-26T02:30:07+00:00

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How Much Should a Small Business Spend on IT?

For most small businesses, in formation spending is always a bit challenging as they don’t necessarily have the budget available to hire an in-house IT team as well as all the equipment necessary to manage their own technology. On the one hand they need to make sure that their technologies are stable and protected, while on the other hand budget for various changes and advancements in technology as they happen throughout the year.
Spending on IT technology needs to be based on your business’s unique needs, which is why most business owners choose to outsource their IT support to a reliable company that specializes in affordable IT services. However, some very small startups may require almost no IT support initially, in which case they can handle it in-house, with business owners often handling this on their own until the business grows to a point where they can comfortably outsource their needs.

What Are Business Owners Spending On IT?

According to a recent study, the average spending on IT across all industries was 3%. This came as a result of considering many different industries, with the lower spenders being those in the construction industry, and the biggest spenders being those in the banking and securities industries.
Other studies focused on the size of a business and found that small and medium-sized businesses actually spend more on their IT, with small businesses spending around 7% of the revenue on IT, and medium-sized businesses around 4%. Larger businesses only spend around 3%, showing that small business owners often spend more on their IT compared to the rest of the businesses in their industry.

Deciding How Much to Spend on IT

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As a small business owner it is important to decide just how much you can afford to spend on your IT needs, and how to maximize it. Here are a few things to remember when determining your budget:
• Consider what you are spending on IT right now. Every business needs a budget and taking your current spending is a good starting point to see how much you are already spending and where you can improve.

• What are your business goals? With so many options available, it can be a little overwhelming to choose the correct IT services for your business. You should only spend on technology that can drive your business forward, and avoid unnecessary expenses.

• What specific spending can you improve to achieve your business goals? Every area of IT can be connected to your business goals. Make sure that your IT spending is driving your business goals or you need to make some changes.

• Is it more effective to outsource your IT needs? Assessing your IT needs as well as your budget may prompt you to consider outsourcing your IT services to a reliable MSP.

IT Services from Salient IT

Salient IT provides a range of IT services to support small and medium businesses. Our services include data backup and recovery, services, spam protection, cloud services, VoIP services, as well as Office 365 support. We provide tailored IT support for small businesses, and we are committed to providing each and every one of our clients with high quality service and support.
We also offer a reliable IT help desk system, which offers business owners the ability to have an experienced IT technician available immediately, to handle all their IT and technology needs. Our help desk allows you to access an incredible knowledge base, as well as increased productivity as you can focus on your core business activities while we handle all your IT support.
We also allow you to have access to more available capital because you won’t be paying us to work for your business full-time, but rather support all your IT and technologies needs for a fixed monthly cost.
Looking for reliable IT services to reduce your IT spend? Contact Salient IT today at (916) 545-9393 and see why we are a leading IT provider in Sacramento.

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