If an organisation is prepared to spend wisely now, then it can easily reap the benefits later on in terms of improved productivity, better customer relations and cheaper costs. However, while large corporations may be able to afford to update their technology whenever they feel the need to, it’s not so easy to do so when you’ve a limited budget.
Chances are you’re already stretched enough just coping with paying for the basics and therefore while you might like to be in the position where you can beef up your technology regularly, it may not be possible.
Never fear though because Smart Company is here to help. No, we’re not offering to pay for your next technology purchase, but we have come up with a number of great tips that will help you cut down on your IT spend. Moreover, our guide will enable you to squeeze those IT assets that little bit harder. So read on if you want to start saving….
1. Switch to broadband
If you’re still connecting to the Internet via a dial-up modem or through ISDN then make that switch to broadband as soon as possible. We may be forced to pay a ridiculous amount for the technology when compared to our European neighbours, but it will still work out cheaper than any other access method. Not only will you be able to save on phone calls but you’ll also be able to save time by being able to transfer data at high-speed.
2. Shop around for PCs
Many of the top PC manufacturers offer special deals to small businesses on new computers. While most of these PCs may be basic, it’s worth remembering that most SMEs don’t tend to need all the functions that home users do and therefore don’t need to purchase the most high-spec computer on the market. If your employees are primarily using basic office applications like Word or Excel, then opt for a ‘bare bones’ PC instead.
3. Tax breaks on your tech spend
Like other business expenses all IT spend can be fully offset against your yearend tax liability. In the case of capital spend (ie IT Equipment) you can write this off against your tax liability over 5 years (ie capital allowances granted at 20%pa). If you are upgrading your equipment, shop around as some distributors are offering interest free credit, so you may also get the CashFlow benefit of spreading the payments over a number of years. With Interest rates at a record low, even if you end up paying interest, remember the interest paid is also a write off against your taxes.
4. Don’t upgrade immediately
Don’t feel as though you have to upgrade just because a new version of software or hardware is released. While vendors are eager to have us all dipping in our pockets to pay for the latest releases, it can pay to wait a while if the product you’re using is still functional. Moreover, waiting a while means that by the time you do pay out for software products in particular, all the bugs should have been ironed out.
5. Take up virtual conferencing
As a result of the economic downturn more SMEs have begun to cut down on business travel. However, because companies still need to be able to meet with clients, conferencing is growing in popularity. Esat BT estimates that a two-hour conference call for six people with clients in Paris would work out at EUR158.40 compared to an estimated cost of EUR1,920 if those same six people had to fly out to France for a face-to-face encounter.
6. File your tax returns online
Small companies with a tax liability of more than EUR5,000 get a three week extension for their income tax returns by submitting them online through the Revenue Online Service website (www.ros.ie) and because the website includes built-in calculators that do the maths for end users, possible errors that can prolong the process are kept to a minimum.
7. Electronic marketing
If your company has yet to embrace e-marketing then now’s the time. It’s one of the most cost-efficient ways to advertise your products, get closer to your customers, and tap new markets. Setting up an opt-in e-mail newsletter will allow you to keep clients informed about your new products and services, while creating documents in PDF format (portable document formats) and then sending them out via email will enable you to cut brochure costs.
8. Consider switching telecom operators
Once upon a time if you wanted to get a phone line installed in your workplace there was only one company to call. Now, however, there are a number of suppliers out there touting for your business. In the light of this you should consider shopping around to see which provider is offering the most competitive deal. In order to do this there are a number of questions you should consider: firstly, how easy is it to switch provider? Is your proposed provider’s network resilient? Is itemised billing provided at no extra cost? And does the provider offer special deals on costs to Northern Ireland, the UK and the rest of Europe?
9. Buy legitimate software and the correct number of licences
Many smaller companies have mistakenly been under the impression that they can get away with using illegal software, or that they can just pay for a single licence and then use it on multiple machines. However, in recent months there’s been a concerted effort to track down and prosecute those who flout the law. So to avoid costly fines further down the road, be wise and only buy legal software and make sure that you have the correct number of licences for any packages you have currently installed.
10. Switch from Microsoft Office to StarOffice
Despite the fact that every company in the world seems to be using Microsoft Office there are cheaper alternatives available that are every bit as good as the ubiquitous office suite. Sun’s StarOffice for example, is a full-featured, software suite that will run on Windows, Linux and Solaris. Its fully compatible with other office suites (including Microsoft Office) and can cost as little as USD75 (EUR69). For a free evaluation of StarOffice 6.0, visit http://www.hos.horizon.ie/staroffice/index.html?AssociateID=SUNIE
11. Try before you buy
Before rushing out and buying software check to see whether it’s possible to download a free evaluation from the Internet. Many software manufacturers now allow businesses and consumers to download a 30-day version of the software in order to see if it’s suitable for their particular needs.
12. Bank online
If you haven’t started banking online yet, then your company is losing money.
Consider this, it is almost twice as expensive to made a credit transfer in a bank branch as it is to do it online. Moreover, banking online saves you the time it takes to travel to your branch, queue up and carry out your transactions.
13. Email instead of faxing
If you are still sending out large numbers of faxes to customers then chances are that you’re only blowing a fortune on fax paper and toner. Moreover, now that most companies rely on email, your fax is likely to go straight into the bin without being read. So, use the fax machine sparingly and switch to email instead.
14. Investigate e-procurement possibilities
Ordering and paying over the Internet can help your company seriously reduce administrative costs. What’s more, small firms can also now use the Net to request quotes from potential suppliers, thereby saving plenty of time and frustration.
15. Introduce Teleworking
The benefits of teleworking far outweigh any possible negatives there may be. A recent study found that employees given the freedom to work outside of the designated workplace increased their productivity levels by as much as 30 percent. But that’s not all; allowing your employees to engage in remote working can enable you to cut down on utility bills, move in to smaller premises, and can also increase employee satisfaction and thereby is helpful as a staff retention tool.
16. Think about your Ink
You may not know this, but most printing manufacturers sell printers cheaply because they can make their money back via consumables. Ink is ridiculously expensive and if you’re trying to reduce expenditure in your organisation, then this should be one of the first things you look at. When looking to purchase a new printer consider the total cost of ownership (TOC) before buying. Also try to reduce the number of pages that employees print out and if you simply can’t do this, at least attempt to save on ink by adjusting your default printing settings so that your printer prints copies at draft quality unless otherwise specified.
17. Outsource IT maintenance
Do you really need a full-time IT technician working for your organisation? If you’ve a large number of employees, or if the company you run is involved in the high-tech sector, then the answer is probably yes. But, if not, then it may be worth outsourcing IT maintenance to a third-party who will be able to look after all your needs at a fraction of the cost of employing a full-time IT professional.
18. SMS instead of calling
SMS messaging shouldn’t just be the preserve of teenagers because it’s a handy, cost-effective means of communication that we can all take advantage of. Companies should encourage ‘on the road’ employees with mobile phones to contact the office via text in order to substantially reduce phone bills. However, be aware that not all of the special business packages on offer from the mobile networks allow users to send SMS messages at a cheaper rate than personal calls.
19. Leasing IT equipment
Instead of buying outright, why not consider leasing IT equipment? Not only will you save on having to purchase new products but leasing also means that you can estimate your IT spend in advance. Moreover, leasing ensures that your company needn’t be stuck with obsolete equipment because many leasing agreements give options for upgrades within the lifetime of the contract.
20. Desktop versus Laptop
A laptop may be the ideal piece of kit for your on-the-road sales staff, but if you’ve got employees that stay rooted in the office then you may be better off opting for the traditional beige box instead. Desktops may look cumbersome when compared to their lightweight counterpart, but for the same price you’ll get a much better spec for a standard PC.
21. Get the most from your accounts software
According to Sage Ireland, many organisations don’t get beyond using 20 percent of the features in their accounts package. Learn to use your software in depth and you’ll be able to cut down on admin costs and get a better handle on your creditors and debtors ledgers and the cashflow in your company at any given stage. A good integrated business system will allow you to transfer information across applications, maintain a comprehensive contact history for all of your customers, suppliers, prospects and business partners, allow your sales staff to access customer credit status in real time, eliminate the need for re-keying of data, consolidate all vital data into key management reports and share cross departmental knowledge.
22. Disaster Recovery Plan
Have you ever thought what would happen if disaster struck at your workplace? Many small organisations are reluctant to invest in safeguarding vital information. What would happen if you lost all your data in a fire or flood? Think about it, information is power and if your company doesn’t have a contingency plan in place then you’re potentially risking huge financial losses in the future if you lose your data. Be smart and plan ahead so that you can safeguard all your vital information. A good contingency plan will reduce downtime and keep your business infrastructure functioning even if disaster strikes.
23. Elearning
In order to stay ahead of the competition you need to ensure that you’re staff are up-to-date with the latest technology. But with more companies being forced to tighten their budgets as a result of the downturn, few firms are in a position to pay for classroom training. The solution? E-learning. Not only is it considerably cheaper than traditional forms of training, but it also enables employees to study when they have time to spare.
24. Switch to Linux
Microsoft Windows has become the default operating system for most organisations, but it comes at a price. Linux on the other hand is an alternative OS that costs nothing and yet is believed to be much more reliable than Windows. Making the switch from Windows to Linux can result in significant savings, however on the down side, Linux is not for the feint-hearted. Unlike Windows, its not user-friendly and therefore is really only suitable for those who know their way around a computer.
25. Buy office supplies online
Whether its staplers or filing cabinets you’re looking for, you’ll probably find it cheaper via the Net. Companies such as Viking Direct (www.vikingdirect.ie) have made it incredibly easy to buy supplies online and in an attempt to encourage more firms to do so, many include special offers on their websites that allow savvy shoppers to save even more.
26. Pool your printers
Do you find yourself buying a new desktop printer for every new employee? If so, then you should consider pooling your printers instead. By allocating printers to groups of people within your organisation you’ll be able to cut down on printing purchases.
27. Multifunction devices
Are you looking to buy a new printer, scanner, or fax machine? Well, save some money and space by opting for an all-in-one solution. Multifunction devices are a godsend to those working in small offices who want convenience at a good price.
28. Source the Net for royalty-free images
If you’re putting together a new brochure or a PowerPoint presentation, turn to the Net to get a hold of royalty-free images. One of the best royalty-free websites is www.istockphoto.com
29. Pick a small business mobile package
Hard to believe but there are a still a large number of small firms who haven’t availed of the special mobile deals offered by the major operators. With Meteor, Vodafone and O2 all offering special deals for small businesses which include free calls, group rate billing and more, now’s the time to manage your mobiles better.
30. Invest in a good anti-virus software package
Despite the horror stories we hear of companies falling victim to computer viruses, many small firms still tend to take risks by not having good anti-virus software installed on their PCs. Anti-virus software will not only save you money by catching dangerous viruses before they hit, but it also saves face by ensuring that you don’t forward on viruses to your customers.
08/05/2003
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