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How much should I spend on I.T.?

How much should I spend on I.T.?

This is not an easy question to answer. I like to start by referring to some research and surveys conducted by the Gartner Group, TechTarget, or other analysts. The most common range they talk about is 4% to 8% of Gross Annual Revenue for small to medium retail or distribution businesses.

I’m not convinced this applies to every business, and there are many variables to consider, but if we use these numbers as a starting point, with annual sales of $250,000, the budget range is between $10,000 and $20,000.

To reiterate, for a business with sales of $1,000,000 annually, that’s between $40,000 and $80,000 for information technology spending every year.

I tend to make more conservative recommendations. In my experience, especially because technology is a moving target, I believe a company should overhaul their I.T. systems every 3 years using those numbers as a guideline, and then spend about half of that amount in years 2 and 3 on maintenance and support. To clarify, with sales of $250,000 that’s $10,000 to $20,000 in year 1 and $5,000 to $10,000 in each of years 2 and 3.

The thing that trips up a lot of business decision makers (especially entrepreneurs, who by nature are incredibly shrewd) is that this can’t be looked at as discretionary spending… in 2014, I.T. is a crucial part of most businesses. What we really need to do is quantify the benefits of that spending– analyze the Return on Investment if you will. We can help you to do just that. To have a deeper conversation about this, give us a call– one of my most important services for our clients is Mentoring. My background in Accounting, Auditing, Business Analysis, and Technology can help provide answers to these questions.

Out of Office – 02/07 to 02/12

Out of Office – 02/07 to 02/12

It’s important to keep learning. I recommend ongoing training to all my clients, and I practice what I preach.

I’ll be away on training from February 7th, 2014 to February 12th, 2014. If you need to reach me, email is best. And I apologize in advance, but I’ll only be able to respond in the evening.

How Much Is Your Data Worth?

How Much Is Your Data Worth?

As a business person, you have lots on your plate. What would happen if your key computer, server, or POS was stolen, destroyed, or suffered an irrecoverable hard-drive failure.

We have the complete solution. Today, we’re delighted to announce the general availability of clarity™, our proactive support service.

For more than 6 months, with several of our clients, we’ve been testing the reliability and simplicity of our service that provides absolute peace of mind.

Our clarity™ software carefully monitors the health status of numerous aspects of your Mac. From drive capacity, to disk health, to RAM health. If something is not in perfect health, we reach out proactively to you.

To read more, or to sign up, please visit our clarity™ page.

Accounting on Apple

Accounting on Apple

Switching your business to Apple? We can help automate your financial systems. From planning, to training, to network configuration, to “rolling up our sleeves with data-input”, we make it easy.

Our background in business analysis and our knowledge of the Apple eco-system helps deliver systems that give you up to the minute information about the health and efficiency of your business.