Keeping on top of technology trends is one of the most important indicators of survival, especially for small and medium businesses. According to a survey from Couchbase and Vanson Bourne, most executives believe that keeping pace with digital transformation is the key to staying in business.
But despite this, the vast majority of SMBs simply don’t have access to the right level of technology to do their job effectively. According to a report from TalkTalkBusiness, for example, just 17 percent of British employees use instant messaging on a regular basis, and only 7 percent are using video technology.
To enable tools like instant messaging and video, as well as IP telephony, mobility and Internet-attached sensors, companies may have to invest in a more robust IT network that can improve connectivity and accommodate new devices like sensors, as well as the massive amounts of data all company networks will have to accommodate.
While necessary, many smaller businesses may not have the funds on hand to take the necessary plunge. Read on for some ways around this hurdle.
Invest cash in IT technology
If your company is lucky enough to be cash-rich, you could purchase the technology outright. However, technology investment is likely to be just one of your many strategic investment priorities competing for budget.
In addition, equipment starts to depreciate and age as soon as it’s purchased, and requires ongoing maintenance and upkeep. That’s why some companies choose to spend cash on hand on cloud-based options, such as infrastructure as a service.
Take out a bank loan to fund new IT technology
You could take a bank loan or similar financing option. This may require you to pay higher interest rates, inflating the actual cost. These options also eliminate the ability to easily upgrade or refresh the technology, but a small loan can get you started with cloud services.
Leasing your Small Business IT solutions
There is an increasing trend of companies leasing IT solutions. Leasing delivers an almost cost-neutral technology refresh capability, but more importantly avoids technology obsolescence.
According to the Equipment Leasing and Finance Association, 8 in 10 businesses finance equipment.
Why lease?
3 reasons why leasing IT solutions can be better than buying:
- Alternative source of capital: Focus on your business by investing your cash on other business priorities rather than spending it on acquiring new IT infrastructure.
- Better cash flow: Without the need of an upfront investment, you can spread your payments over predictable monthly instalments.
- Protection against outdated technology: Flexibility to renew your technology at the end of term, or within an existing term, in line with your business vision.
Find out more about why leasing is the best option for your next business technology upgrade.