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IT Budgeting

The Top 3 Reasons Why IT Budgeting is Critical to Your Firm’s Success

Somehow, December is upon us yet again, which can only mean one thing: a lot of businesses out there are currently trying to figure out how to hit the ground running as we move into 2020 in just a few short weeks.

Not too long ago, I sat down with a fairly new client of ours for a lunch meeting and we were discussing this very process. As someone who has been in this business for many years, it’s something I’m going through right now myself – so it was nice to commiserate with someone about all of it for an hour over a delicious meal.

But when the topic turned to budgeting, this client said something to me that I’d like to take some time to discuss with all of you today. He told me that the 2020 budgets for nearly all of his departments were accounted for, with the sole exception of IT. He said he didn’t really “see the need” to put too much thought in it because he saw IT as a way to “maintain the status quo,” so to speak. Other areas of the business were responsible for growth and innovation, so he’d rather focus his attention on those elements instead. He’d figure out his IT budget as he went along next year.

While he’s certainly entitled to his opinion… it is MY opinion that he is dead wrong. Because IT budgeting isn’t just critical to the health and well-being of your technology infrastructure. It’s absolutely critical to your firm’s long-term success for three major reasons that I’d love to take the opportunity to explore.

Remember Your Priorities

Truth be told, budgeting is important for literally every part of your business – but this is especially true when it comes to your technology.

The main advantage that you get is that the process itself allows you to prioritize what is important from an IT perspective. It forces you to sit down and take a look at EVERYTHING, during which you’ll identify those expenses that turned out to be more important than you realized and those that didn’t really pay off in the way you thought they would.

At that point, you can double down on the former and get rid of the latter – thus creating a more informed budget moving forward.

Maintenance, Maintenance, Maintenance

Another reason why IT budgeting is so important is because it helps you account for those routine, seemingly-mundane costs associated with asset maintenance that are actually far more important than you realize.

Think about it like this: when it comes to the car you drive to work every day, you just accept maintenance as a way of life. You get an oil change every 3,000 or so miles. Every 30,000 miles you go in for things like tire rotations and alignments. You’d never even think about skipping these things because you know if you do, your car is one bad day away from breaking down.

You need to think about your technology infrastructure the same way. IT budgeting therefore becomes critical to figuring out how exactly you’re going to pay for all of this, too.

Creating a Plan and Sticking To It

Finally, one of the biggest advantages that IT budgeting brings with it for your firm ultimately comes down to the strength of the plan itself.

Going into a new year you’ll know, beyond the shadow of a doubt, that a lot of the “difficult decisions” of the next 12 months have already been made for you. They were made not based on intuition or gut instinct but on cold, hard facts. Even in moments of doubt you’ll know that you’re headed in the right direction at all times – and the peace-of-mind that comes with this alone is often more than worth the effort for most people.

Never forget that as a business leader, you’re making countless important decisions on a daily basis. But unless those decisions are based on actionable intelligence and insightful analysis, you can never be truly confident that you’re making exactly the right move at exactly the right time.

Your IT infrastructure is critical to your firm’s success, which means that your IT budgeting is critical, too. Without the second element, it’s almost impossible to account for the first – which means that accomplishing your goals as we move into 2020 becomes far, far more difficult than you realize.

Ready to Create the Right IT Budget?

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So if you're ready to create the right IT budget that your own business needs to thrive in the new year, terrific - there's a solid chance that we'll be able to help. Please contact either myself or a colleague at NetLogix today for your free introductory phone call. It'll put us in an excellent position to make sure our organizations are a good fit for one another, thus allowing us to to help address all of your IT budgeting needs and more.

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