Starting a business is never an easy task. If it was, everyone would do it and be an entrepreneur. Having an idea is one thing. Creating a start-up is another. But budgeting long-term for the entire project is a whole new world of obligations and tasks. You need to be prepared for it. Having a budget and taking care of your finances are vital for your company. One of the departments that are essential for the growth of any start-up is of course IT support. People tend to neglect it at first and underestimate it later.
Don’t be one of those people. IT consultancy services are quite important these days, and once you decide on one, ensure that you’re dealing with professionals in the field. It doesn’t matter in which sphere or industry you are launching your start-up, it will depend on technology. That’s the world we’re living in. no business, company, or operation these days can’t be imagined without a computer, a smartphone, or any other electronic device. You know that we’re right. IT support is an essential part of any business and so is your start-up. You need to think about it from the first day.
Of course, you need to take a few things into account. While a valuable asset, you need to take budgeting seriously, especially early on. This is one of the top dilemmas start-up owners have – how much should you spend on IT support? This is a fair question, and if you’ve been asking yourself this, you’ve come to the right place to seek answers. In the next few paragraphs, we are going to divulge this subject for you and our other readers. So, fasten your seatbelts, and start reading. Once you finish, you’ll have more ideas than before, and a few answered questions. What more can you ask for?
Let’s Talk About Averages
Source: nfd.ca
First thing first. No one can calculate your budget for IT by just looking at your start-up. Everyone, including you, needs to know what you’re up to. Which sector are you attacking, and which industry are you prioritizing? Also, it is important to know if you are planning to have this type of support within your company, or if you are looking to outsource it. Either way, a few factors come into the equation. First of all, it mainly depends on the industry you’re embracing. After that, it is vital to know how many investments have you made into this particular field or if there are even any. Last but not least is if you have already created a functional network, or there is not any, and you’re not even planning to put too much money into it. If the latter is the case, you’re not in a good situation, as having no network will cause additional costs, and it will be a burden to your employees.
We are sure that you’re looking to invest heavily in IT support. Considering that you’re reading this article we are sure that you already have this idea. To push you towards its realization, let’s talk about the averages that we mentioned in our subtitle. Let’s talk about massive organizations. Our first idea is banks. Do you know how much banks put into their IT departments? The number will sweep you off your feet. We’re talking about 7% of their entire revenue. They are the leaders in this sector and with a reason. Banks can’t afford to have their IT support working lazy or not working at all. Inexcusable! After that, we should look at companies that deal with technologies and telecommunications. Can you guess how much of their entire revenues go into this sector? The number is lower when compared with banks but we’re talking about 4% which is still quite a high number. If we go deeper into companies that do real estate or construction this number goes even lower to 2% of their revenue. By seeing these numbers, you can tell how much you need to invest in IT support. All you need to know is your niche, your goals, and the field you plan to cover in the future. The rest should be a piece of cake.
Additional Expenses
Source: insight.com
By knowing what your start-up is, you can calculate how much of your revenue should be directed there. The important thing to know is that no business these days can’t function without proper support in this department. But, don’t think that you’re finished once you have a dedicated part of your budget sent towards the IT sector. In many cases that’s just the unchangeable part. You will have additional expenses and that shouldn’t worry nor surprise you. They are usually tied to various subscriptions or purchases of needed hardware or software all depending on the fact that you’re doing the IT support in-house or are outsourcing. Furthermore, considering that we’re talking about the IT sector you’ll probably have to cover the expenses of a couple of domain names and registrations, not to mention other important aspects of IT support such as security certificates. Beyond that, we shouldn’t forget small things that are vital but easily overlooked, such as internet connections, Wi-Fi systems, various e-mail protections and filters, backup plans, data management plans, and of course antivirus protection.
Is There a Universal Formula?
Source: bitrebels.com
No, there is not. We need to remain clear on this subject. You can’t know how much you’re going to spend before you calculate your expenses. But we gave you quite a clear picture of where you could stand in this department based on the industry you plan to cover, and the type of IT support you’ll be seeking. To get closer to the exact number you’ll need to have your company set in place, with a budget in mind. What you need to know is that this data can’t be replicated. There are no two identical companies in the world. Also, trends change every day. That’s nothing new. One day you’ll be focusing your budget on mobile device management, while at another moment your priority will be Windows server management. If you don’t have an idea where you stand, and how to start handling this part of your business, talking with professionals as we suggested might be a better idea.
