You budget for advertising, insurance, office supplies, payroll, utilities and more for your small business; and hopefully you are budgeting for IT. IT can be a major category in a small business budget, yet many times, it is overlooked. How would your business run without computers, phones and internet? Technology is integral to your business and it should be accounted for in your budget. Technology needs to be upgraded, replaced, and maintained. If you do not budget for these expenses, your budget will take a hard-hit.
With that, what percentage of your total revenue should go towards IT?
For businesses with little reliance on technology, we suggest that anywhere from 2% to 5% is spent on technology, businesses with a medium reliance of technology should spend between 2% to 6% on technology, and companies with a heavy reliance on technology should spend 5% to 7% on technology.