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For small businesses in St. Louis, navigating the labyrinth of information technology spending
can feel like a tightrope between financial prudence and staying ahead of the curve.
Striking the right balance is paramount. After all, you want to allocate your resources wisely
without sacrificing competitiveness. So, how do you determine your IT spending? The answer
lies in a tailored approach around your unique business needs and objectives.
Crafting Your IT Budget: A Personalized Approach
While benchmarking against industry standards can offer valuable insights, it’s crucial to
remember that your business is unique. Rather than blindly following the crowd, take the time to
assess your specific circumstances, objectives, and growth trajectory. This personalized
approach ensures that every dollar spent on IT delivers tangible value.
Surveying the Landscape: What Are Others Spending?
Understanding industry norms provides a helpful starting point. Research indicates that, on
average, businesses allocate approximately 3.28% of their budget to IT. However, dissecting
this figure reveals nuances. For instance, while construction companies may allocate less than
2%, banking and securities firms may invest up to 7%. Moreover, studies suggest that small and
mid-sized businesses often outspend their larger counterparts, allocating around 6.9% and
4.1% of revenue to IT, respectively.
Key Considerations in Determining IT Expenditure
To fine-tune your IT spending, embark on a strategic journey guided by targeted questions:
- Assess Your Current Spending: Take stock of your existing IT expenditures over the past year
to establish a baseline. - Define Your Business Goals: Clarify your overarching business objectives to align IT
spending with strategic priorities. - Evaluate Alignment: Scrutinize your current IT spending to ensure alignment with business
goals. If certain investments aren’t contributing measurably, consider reallocating resources. - Identify Strategic Investments: Pinpoint IT areas that offer the most significant potential to
enhance business outcomes, whether bolstering collaboration tools, fortifying cybersecurity
measures or harnessing data analytics for informed decision-making. - Explore Delegation Options: Recognize that navigating the IT budgeting process can be
complex and time-consuming. Consider enlisting internal or external expertise to streamline the
process and maximize outcomes.
Unlocking Your IT Potential with Managed Services
Intrigued by the possibilities of optimizing your IT strategy? Our managed IT services team
stands ready to guide you through the maze of IT solutions. With a focus on understanding your
unique needs and objectives, we’ll help you chart a course towards IT excellence. We have
helped hundreds of businesses in Missouri just like yours to navigate the minefield of IT
decision making.
Ready to elevate your IT game? Contact us today to embark on a transformative journey
tailored to your business’s aspirations.
