Trimming on the small business IT budget

One of the most evident issue, Small businesses are juggling today with is the rising cost factors and therefore whopping budgets. The result is shrinking margins and reducing bottomlines.

When there is a mounting financial burden on an organization’s head , investments need to be recouped. Best suited alternatives are to prioritize on limited resources, and convert threats into opportunities therefore devoiding yourself from taking risks further than busting your budget.

Allocation of budget is what is required in this hapless period. Budget fixing and living with in the budget is a great learning experience.



There are many possibilities to alter and trim the budget. But, the best possible methodology is to bring about a change in the basic IT infrastructure. And, this requires the following.

Network technology – This involves combination of many servers and seamless migration by enabling resource vitualization. This results in dedicated, powerful servers with low costs of operation. Single servers results in high cost of operation and is difficult to maintain.
Follow Hardware Specifications – Whenever you intend to buy a laptop or a desktop for your office use, always take advice of the software manufacturers for required hardware specifications so that your machine does not give you incessant trouble compelling you to make frequent updates.
Compromise on a high-priced desktop/laptop – There is no need of buying the highest costing PCs when you can get the same benefits at a much lower costs. In any case you can always get it exchanged or replaced later on when you have a big budget.


Cheaper internet connection – Gone are the days, when internet connection was costly. There are now other alternatives such as having a Broadband or a cable connection. Private cellular operators now provide internet connection at lower rates with better connectivity.

Purchase low-cost but reliable printers – Earlier ink-jet printers and dot –matrix printers existed but with the inception of laser jet printers, they are no more in use. You should ideally look for a printer which gives a minimum printing speed of 360 cps and should be affordable at the same time.
Adopt a thin client - A thin client is a client software in client server architecture networks which for it’s processing activities depends on the main server with the primary aim of shedding off the extra load at each nodal point while farming out the computing functions to the main server. In this way, users can share a single server ultimately resulting in lower cost and better maintenance.

Apart from saving up on your budget on your IT infrastructure, you also need to take care of manpower planning .

Connectivity through RAT use - Most of the enterprises are geographically dispersed with their employees being mobile. In such cases, Remote Access Technologies is made use of. But, even you can make use of such technology so that much of the expenses on your employees can be saved, since they can operate from anywhere without any compulsion to drop in the office too often.
These technologies include : Telnet, dial-up remote access and other terminal services where the remote access server and remote access client are separated physically but are logically connected through a dial-up source.Also, cut down on your telephone bills by getting connected to your employees through e-mails or making use of web-conferencing option or the VoIP technology.
Design good IT statement – This means that you should save on your company taxes by showing expenditures in form of pay-rolls on your employees, your office equipments, group insurance of white-collar as well as blue-collar workers, key insurance of your enterprise etc. Take the help of good Chartered accountant so that he can prepare a good income-tax statement for your company.
Miscellaneous Expenses – Your other expenses might include other infrastructural facilities like lavatory, lighting and power facility, Canteen etc. You can not cut down on these expenses as these are basic facilities but you can keep a check on it so that it does not increase every month but rather should be consistent.


Virtual Working : The concept is pretty cheap in the sense that it makes you cut down your HR and infrastructural costs dramatically. The employees work from a virtual office and yet contribute efficiently to the daily workforce almanac. There are many enterprises practicing the same.

Apart from this kind of budget allocation, you can also think of outsourcing for some of your technology needs or to have employees for customer care and reviews, but do it if only this helps you in cutting down your costs.

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