Avoid These 5 Common IT Investment Mistakes
Investing in new technology is a great way to drive business growth. For instance, purchasing new servers can boost your employees’ ability to multitask and their productivity, while subscribing to a project management solution can help everyone meet their deadlines. However, you can only enjoy these business benefits if you avoid the following mistakes when purchasing new IT.
1. Failing to align new tech with business goals
While many advertisers sell new technologies as the ultimate solution to all your problems, the truth is that not every IT solution is a good fit for all businesses. That’s why you need to clarify your company’s needs and goals, so you can make the right investments.
2. Not doing your homework
Before investing in a new IT solution, you should ask for IT recommendations from people you trust. Read reviews and case studies about these recommendations and similar IT solutions. Check if those IT solutions will work well with your existing IT systems and if they can accommodate your company’s future growth.
By conducting research, you can better understand how those IT solutions work, what short-term and long-term benefits they can bring, and which IT solution is the best fit for your company.
3. Failing to do a cost-benefit analysis
Before purchasing a new IT solution, you must conduct a cost-benefit analysis. This means comparing the costs of the investment (i.e., the price of the IT solution and the costs related to the training, infrastructure, and maintenance required) against the benefits it can bring to your company. Doing so will help you make an informed decision on whether to proceed with the purchase.
4. Not considering your cash flow
When you’re evaluating the costs of a new IT solution, it’s important to consider your company’s cash flow. If you’re tight on cash, you may want to wait until your financial situation improves before making an IT investment. While you can always finance the purchase through a loan or line of credit, remember that interest rates will add to your overall costs.
A great way to manage your cash flow is to pick an IT solution that requires a monthly subscription fee rather than a huge upfront cost. But be sure to draft a budget first, as recurring costs can still exhaust your finances.
5. Failing to train the end users
Investing in a great IT solution is pointless if your team doesn’t know how to use it. That’s why you must set aside time and money for user training. It’s best to ask an IT specialist to conduct the training, as they would know how to simplify complicated steps and take advantage of the IT solution’s features. They may also offer tips on getting the most out of your new IT investment.