While technology can give your small business a competitive advantage, getting the necessary technology and keeping up can be costly. Investing in technology, however, usually results in a return on investment, but cash flow and budget can still limit how much business owners can put into it. Here are five ways to get around this problem and save money on technology.
1. Go with third-party solutions.
While building an in-house project may be favorable due to security and customization options, it is often more cost effective to find third-party software as a service company that provides the tools you need. These software solutions are often priced at low monthly options or cheaper annual prices. Both will still often be cheaper than build your own system.
2. Look for quality free applications.
There are still many great applications that your business can use for free whether it’s a collaborative app, project management program, cloud storage solution, etc. You may have to go through a few bad apples until you find a great app, but you’ll find that there are many that suit your standards if you look hard enough.
3. Go fully digital.
Going digital can really save you a lot of money on hardware. Turning your office into a paperless one, relying on a cloud provider rather than a server, and electronic invoicing (email receipts) are all great ways to pass on hardware. You can quickly realize a savings of anywhere from 10 to 30% per year in your expenses.
4. Purchase refurbished electronics.
While many small business owners feel secure buying new electronics, refurbished electronics like PCs and tablets can be a smart and frugal option. There are many companies that will provide a warranty on refurbished items for as long as two years. It might be a great decision if you’re in need of electronics but don’t have the budget for new products.
5. Skip on the newest models and buy at the right times.
You may think that you need the newest technology but the difference in performance often doesn’t justify the price difference. It’s best to keep your technology one more generation before making the upgrade. It also helps to purchase during holidays and sales events. Many companies offer specials to small businesses, as well as consumers, during events like Black Friday.
