If you are contemplating a startup and researching business plan templates, I need to warn you, most plans leave out a key essential priority must have important section: technology. Most young companies try to limit their expenditures in that area, and that is a shame, since technology is an easy tool for start-ups to differentiate themselves from competitors. In this article, our Small Business IT Support Budget Tips will provide great insight relating to your IT budget.
Having a solid technology plan will not only quickly save you money across other areas, it will also put you on the path to success, give you an immediate edge, and leave your competition behind – out of the gate. Simply put – [Tweet “Technology is a critical component to a successful start-up”].
Small Business IT Support Budget Cost Overview
Everyone plans on starting with laptops and computers, right? Since only 20% of the cost of computers are from the initial purchase, it is critical to get a business class system. The other 80% are indirect costs. Expect to pay $700 to $1,500 per unit. Don’t be tempted by the $200 to $400 home systems. Sure, they are cheaper up front but you’ll spend more time trying to keep them operating. Nothing is more frustrating to new start-up employees than malfunctioning computers. This emphasizes the importance of Small Business IT Support Budget.
Normal Small Business IT Support Budget Related Costs
Start-Up
| Laptops/Tablets/Computers | $700 to $1500 | per person |
| Network Printer/Scanner | $500 | per office |
| Wireless Office | $500 | per office |
| Network hardware | $1000 | per office |
| Office digital phone system | $400 | per person |
On-Going
| Internet (Business) | $300 | per month |
| Office digital phone service | $360 | per month |
| Applications/backup/support | $400 | per person per year |
| Server or cloud (if needed) | $250 | per month |
| Support services | $40 | per person per employee |
Industry Based Small Business IT Support
So, how much do businesses spend on technology after initial start-up purchase? Here is the break-down by industry and size as a % of revenue:
| By Business Size | By Business Type |
|---|---|
| 3.2% Enterprise 4.1 % Medium 6.9 % Small | 3.3% Average business 4.7% Education 1.5% Retail 6.3% Financial 1.7% Manufacturing 4.2% Health care |
Of course, this is just the basic stuff to get you started. Many new businesses are making technology part of their core business to distinguish themselves from competitors. This Digital Transformation allows small businesses to move quickly and take advantage of new digital products, services, marketing, fulfillment, and an enhanced customer experience.