Operating a successful business can be expensive. Paying employees, marketing expenses, and overhead can take a big bite out of your profits and might even lead you to wonder when you’ll ever get ahead. There’s a reason for the saying “you have to spend money to make money,” though, and it’s especially true when it comes to technology.
“But we are operating on a shoestring budget!” you might be thinking. “How can we possibly justify spending money on new technology?” If what you have in place is working, you’re probably taking the approach of “If it’s not broken, don’t fix it,” but the fact is, that attitude can actually set your company back. This isn’t to say that you need to run out and purchase every new gadget and gizmo or upgrade that comes down the pike, but well-planned investments in necessary technology can help keep your business competitive and efficient, and ultimately, profitable. In fact, there are multiple reasons that this is the case.
Reason #1: Security is Top Priority
By now, entrepreneurs should realize that even if their business is small, they are still are target for hackers. And even if they aren’t specifically targeted, many malware attacks are crimes of opportunity that can lead to major losses – including your entire business. Surveys indicate that about 60 percent of small businesses go out of business within six months of a cyberattack, mostly because they do not have the resources to recover. At the same time, more than half of small businesses don’t actually allocate any resources toward reducing risk, even as they engage in risky behaviors.
Because cybercrime is such a major issue for small businesses, it is absolutely vital to stay abreast of the latest threats and risks and invest in technology to mitigate them. Tools like Trend Micro network security, for example, can help protect your business against threats and reduce the likelihood of a devastating attack. There is simply no excuse for failing to take every precaution to protect your business and relying on old or outdated protections is only putting your company at risk.
Reason #2: Technology Improves Efficiency
When you’re first starting out, you and your employees will find ways to work with what you have to get work done. Over time, though, it becomes clear which processes are working and which are taking more time than they need to. Investing in technology that allows you to be more productive and use your time wisely, while providing the best quality product possible is a must if you expect to remain competitive. When you have the right tools and equipment for your needs, your work becomes easier and faster, and your company benefits in the long term.
Reason #3: You Need to Remain Competitive
Technology is closely tied to innovation, and chances are, if new tools are on your radar screen, they are on your competitors’ as well. Whether it’s tech that allows you to communicate more effectively, speed up the processes, or create higher quality products, investing in technology helps you stay ahead of the curve, or at least on the same playing field as your competition. Adopting the attitude of “what we have gets the job done, so it’s good enough” is eventually going to land you well behind the competition. Spending money on the tools and equipment you need will help you continuously improve and offer better products and service, which will ultimately increase profits and keep you at the top of your game.
Reason #4: New Technology Ultimately Saves Money
Finally, when you make wise investments in new business technology, it will ultimately pay for itself, not only in terms of the increased productivity and profits, but in terms of the maintenance costs as well. Upgraded technology can help reduce costly errors, for example, while also increasing workloads. You’ll spend less time attempting to fix or upgrade your existing tools, and more time focusing on business priorities and innovations.
In the end, for the best evidence of the need for technology, consider those companies that attempted to maintain the status quo and paid the consequences. Blockbuster, for example, never adapted to customer demand for streaming media, and as a result, no longer exists. Had they invested in a more tech-focused business model, and followed the trends, they may still be around today. Your business is no different, so spend the money and stay ahead of the curve to keep growing well into the future.