The most common challenge I run into while working with small- to medium-sized businesses is often cash flow. As a small business owner myself, I understand the struggle of reducing expenses while maximizing profits – but the more important question is, what can we afford to cut? Surprisingly, technology is one of the first to go in these decisions. While there are several reasons a business does not prioritize technology, here are our top five most common (and dangerous) misconceptions we often encounter:
- Technology is an Overhead Expenditure.
Consider the costs of staff time spent trying to troubleshoot technical issues on a daily basis, the potential customer base you have not reached because of a lack of proper online marketing, the partnerships, collaborations and business relationships you have not maintained because of a deficit in communication tools such as an online database, eNewsletters, blogs, social media strategy, etc. Worst case scenario? What would happen if your server, with more than 10 years of data on it, went down without any trace of a backup? (We’ve seen it; it’s not pretty!)
- We Don’t Need a Technology Plan.
What exactly IS a technology plan? A strategic technology plan is similar to a business’s strategic plan in that it reflects organizational technology objectives, goals, addresses challenges and remedies them. Each technology plan should be facilitated by an IT expert to provide a prioritized list of projects, budget estimates and timelines. The goal of a technology plan is to proactively monitor an organization’s infrastructural state, identify capacity-building initiatives through technology that will achieve specific business goals and objectives, and provide a plan of action that allows for a business to properly budget for maintenance, projects, or identify outside funding opportunities to fund a specific technology project.
- We Only Need Technical Assistance on an As-Needed Basis.
For some smaller “mom and pop shop” entities with only one or two workstations and no server, it may make sense to have an on-demand support model in place versus a more proactive support model. However, for most organizations, it is much better to take a more proactive approach, especially if you have multiple workstations, a centralized file storage, a website and email.
Taking a more proactive approach to maintaining and sustaining your technology investments is comparable to maintaining your car. For example, in order to avoid a breakdown that leaves you stranded in the middle of nowhere, you have to make sure that your car has its routine check-ups, oil changes, tire changes, any pressing issues resolved – all to ensure your precious investment won’t end up costing you 10 times more what the cost of regular maintenance would have cost.
- Outsourcing Managed IT Services is More Expensive than Hiring In-House.
By hiring more than just an IT vendor – rather, a technology partner – it is an investment that extends beyond technical infrastructure – your business is investing in the building blocks to grow and play a vital role in attaining both short and long-term goals. This investment is typically a smaller budgeted amount as your business pays for the time it takes to maintain the environment, rather than a full-time staff member with benefits, payroll, office space and more.
Once an environment is stabilized and secure, your business is able to reap the benefits of capacity-building initiatives that will leverage technology to attain your business goals. Aside from increased productivity, streamlined operational processes, and enhanced communications, this is where a business will begin to measure the return on investment. For example, if your business invests $8,000 a year in a technology partnership and your business’ revenues increase by $50,000 because of it, your return on investment calculates to $42,000.
- Technology is Peripheral to our Business Goals.
When you think of technology, what do you think of? Workstations, servers, scanners, things like that? There are so many facets of technology that when properly integrated with your business objectives and goals, can actually expand communications and outreach, increase the number of new customers, promote customer loyalty, enhance brand awareness and increase revenues to help you grow. This can range from constituent relationship management systems to mass-mailing lists, to online marketing and communications strategies, to more specific and creative uses of technology like text-message reminders for doctor’s appointments, an online store to increase your revenues, and so on. Think of technology as a friend, not a foe. QCBN
Chalease Linderman is co-owner and community development director of a Prescott-based small business called CommunIT. CommunIT is an IT managed services partner serving the non-profit and business sector of the Quad Cities area by strategically and creatively integrating technology to build organizational capacity and achieve both short and long-term business goals. Linderman can be reached at 928-443-8433. For more information about CommunIT, visit azcommunit.com.
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