Businesses are increasingly expected to have a strong online presence. At the same time, they are expected to use more and more software and hardware to work efficiently and productively. As such, many of the biggest initial costs of starting a business are for technology. You need to be careful and ensure your tech costs aren’t eating up more of the budget than it needs to. Here are a few key tips for doing just that.
Weigh your marketing budget
One critical use of the web is the need for businesses of all sizes, across industries, to use digital marketing. However, a lot of startups make the mistake of believing this means investing only in online marketing campaigns. They do have their place, helping you meet sales targets and highlighting big events like launches and sales. But when it comes to improving your online customer conversion rate, the organic method is often more effective in the long term, and easier. Learning about search engine optimization, content marketing, and getting engaged on social media costs nothing but time and effort. Doing so can help you grow a consistent, if not slightly slower, base of converting customers. And, it’s a great way to reduce or eliminate some of your tech costs.
Don’t do it all yourself
Another big budgeting error is believing that, because you have tech and the need for those who know how to use it, you have to hire them directly onto the team. However, hiring them is a costly and time-consuming process. You need to consider recruitment and training costs, benefits, and so on. While your business is still growing, outsourcing your IT support can be a lot more cost effective than hiring someone who costs more. They might not even have enough work to do to justify a full-time wage. Similarly, if you decide you need a social media manager for a big online campaign, you can just as easily outsource that too.
Use virtual technologies
When it comes to the digital tools needed to do their jobs, you don’t necessarily have to pay the full price to own the software your team is using. Rather, software as a service provider allows you to pay a smaller subscription rate for you to use those tools without the huge initial cost. As you grow, you may eventually want to invest in full ownership licensing for your most crucial tools. But, if you are a start-up business, this is a great alternative so you won’t risk going over your budget. Furthermore, many SaaS platforms are Cloud-enabled, meaning your team is able to use them anywhere, whenever they want. This opens opportunities to work more flexible hours which many employees are now looking for.
Your tech is an important investment, but that doesn’t mean there aren’t cost-effective ways to do it. From balancing what you can do yourself and what you need to pay for, knowing when you can outsource effectively, and what tools you should own or simply license, there are a lot of ways to keep costs down. By considering each of these you can ensure your tech costs are deleting your cash flow. Here’s to YOUR success!
Carolyn R. Owens has over 25 years of proven experience and serves as a Career Strategist, Leadership and Life Coach. She is the Chairwoman and CEO of Infinity Coaching, Inc. where they help you up-level your skills so you can up-level your income. Infinity Coaching, Inc. provides one-on-one and group coaching, organizational training, and personality assessments. Carolyn is certified to give both The Energy Leadership Index Assessment and Myers Briggs Type Indicator (MBTI) Assessment. You can find out more about both assessments and other products and services at https://infinitycoaching.net.
