make sure you have a budget

I have been in IT sales for about 10 years now, in a capacity as a business owner and working for other companies. The biggest thing that I have found in the market is that people find it hard to define their IT budget.

When looking at implementing new software, employing a managed services company or even just buying a new server, you really need to know where this fits into your IT budget and what the cost/benefit analysis is before you go ahead with any IT strategy.

Many people will tell you "you need a website" or "get Vista"; however these people don’t know your business the way you do.

Yes there are always advantages to having the latest technologies; however there are also costs involved which need to be considered. There is no point in spending the money on this software / hardware /solution until you know how long it's going to take to pay for itself.

Let’s look at a website:

Someone has told you that you need a website.
You know that it’s a standard for a business these days and that you should probably comply – however what is the cost and how is this going to put money back into your business?
A website – as in this example – has measurable and immeasurable benefits.

Tangible
· Revenue
· Online shopping
· Advertising
· Clicks

Immeasurable
· Public relations
· Status
· Image
· Networking

For many, it’s a no brainer to get a website, however how much should you spend on this?
My formula is to work it out over a year and this is how long it should take to pay for itself.
Look at what money you will make or save as a result of your website.
Do you:

· Take calls about your products?
· Take calls about your location?
· Have people asking how they can email you?
· Have people asking where they can buy your goods?

These are all things that a website can take out of your hands and automate for you.

Alternatively will you:
· Sell goods online?
· Advertise for your suppliers (paid for by them)?
· Improve your lead base through online information?
· Source leads through online advertising campaigns?
· Use your site as a brochure?

These are all things that will make you money online.

What is everything worth?

Costs:
1. Phone calls
2. Email enquiries
3. Advertising
4. Posting documents

Revenue
1. Online sales
2. PR
3. Networking opportunities
4. Lead qualification

Simple calculation: revenue - costs = $+ or $-

Once you have worked this stuff out then look at the overall benefit. If you can pay this over 12 months then your second 12 months is 100% cream. In 12 months time you are using your time more effectively doing what you do, and the site will be getting a steady stream of traffic.

you can apply this method to anything you need to implement in your business. Work it out, calculate the benefit and weigh this against the costs. Then buy it - or look for another option.

GOOD LUCK!!!!!