7 Effective Ways to Reduce Your Small Business

7 Effective Ways to Reduce Your Small Business’s IT Costs

There’s a reason why the world spends over $4 billion on IT services each year. Regardless of what you think of technology, things like computers and the internet have become permanently linked to the way we now conduct business.

As such, IT departments have become invaluable to both large corporations and small businesses alike. Unfortunately, many small businesses can’t afford the cost of their IT departments, especially with the economic hit from the pandemic.

Luckily, we’ve organized some ways you can decrease the IT costs of your businesses. So, if you’re ready to start saving money, then let’s get started!

Seven Ways to Try Reducing Your Small Business IT Costs

No one likes the idea of laying off valuable IT employees because you can’t afford them. However, the good news is that you might not have to. In this section, we’ll go over seven tips that can help you save a lot of money on your IT costs in the long term.

1. Virtualize Your Servers and Databases

Dedicated servers tend to come with low utilization rates. This means that the costs of your hardware are not being optimized. Similarly, databases can increase storage costs depending on how large they are.

Luckily, virtualizing both of these things is a good way to save some money for your IT department. For servers try either partitioning your servers or installing containers.

For databases try working in new virtual ones to your system. Both of these options will reduce the amount of hardware you need, which will save you money.

2. Try Open Source Software

Acquiring different types of software can be expensive, especially when you consider all the annual maintenance costs that come with it. As such, open-source software represents a much more affordable solution. However, the cost isn’t the only plus that comes with open-source software.

Open source allows you to make your modification. On top of that, multiple developers will release updates for open-source software. As such, the software can improve much faster since more than one support team is working on it.

Finally, if you experience a problem, then you’re not beholden to one company to help you. Instead, you can find assistance from a variety of different providers. 

3. Outsource Your IT Using IT Management 

One way to reduce operating costs is to outsource your IT operations to a company that specializes in these types of services. This helps cut costs since you no longer need to worry about training employees and supplying them with the hardware and software they need to operate.

On top of that, competent IT companies can provide expertise and experience that simply doesn’t exist in non-specialists. Most of them are available 24/7, so you can deal with problems that arise during non-work hours.

Dealing with these IT issues before your employees come in allows you to save time that could be wasted. Curious about this type of outsourcing? Check out this blog to learn everything you need to know about IT management services.

4. Cloud Storage

One of the biggest costs to IT departments in the past was the physical cost of on-site hardware and storage. However, the good news is that you no longer need to own or rent this equipment to benefit from a large storage solution.

Cloud storage allows you to utilize huge amounts of space without the high costs of equipment. And don’t worry if you’re worried about sensitive information being leaked.

Instead, try a hybrid that relies on dedicated on-site storage for sensitive info, and public cloud servers for data you don’t care about sharing. 

5. Standardize Your Hardware and Software

The more consistency between your hardware and software, the more money you’ll save. By providing everyone with the same type of applications and computers you make sure that everyone is on the same page.

That way, no one has a problem that’s related to a specific brand, like Apple or PC. It also makes training much simpler. 

6. Try and Reduce Turnover

Nothing is worse than putting in the time and money to train a new IT employee only to have them quit within a year for a different company. So, how do you reduce this type of turnover rate?

One thing you can do is talk with your employees. Make sure they know that they have an important role here. If you can, simple gestures that show you appreciate their services can go a long way.

You should also let them know that they have a future in small businesses. Communicate that there’s room for growth in the company if they decide to stick around. 

7. Hire Recent College Graduates

Recent college graduates are typically eager for entry-level IT positions. As such, they make a great addition to any department, especially because they’re usually willing to accept lower pay rates. However, more importantly, they’re likely willing to stick around the company, especially if there’s room for growth. This can reduce training needs in the future.

In some cases, you may even be able to take them on as interns that work mainly for the experience. If you’re interested, then look for local colleges near your company.

Then, contact the placement office and begin to develop a relationship with the people in the department. Eventually, ask them to send any promising tech graduates your way. That way, you get a constant supply of promising candidates. 

Want More Content? Keep Exploring

We hope this article helped you find some ways to reduce your small business’s IT costs with some long-term solutions. As you can see, downsizing isn’t always necessary when it comes to saving money on IT.

Instead, you can utilize smart management and equipment techniques to reduce costs. Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep reading to find more articles you’re sure to love. 

Christophe Rude
Christophe Rude
Articles: 15880