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What are the consequences of not
spending your total technology budget?
For starters, any funds left over will not carry
forward to next year. And, the board of education probably will
believe your department no longer needs the full annual $500,000
budget for computer products.
Your department’s allocation likely will be
reduced going forward. So there’s a year-end rush to deplete the
technology budget account, regardless of whether the timing is right
for getting the best purchase value or controlling computer support
costs.
All too often, small businesses fall into a
similar trap, ignoring the entrepreneurial instincts that got them
on the map in the first place. Don’t feel that just because
you’re having a “great” year, quarter or month, that you need
to buy every PC gadget and gizmo you’ve ever dreamed of
having or heard someone gushing about.
Good Mood Buying Binges
Along the same lines, resist the temptation to
compress all of your PC-related purchases into a brief window, when
the owner of the company may be in a good mood and approachable
about technology spending.
Cost-effective use of small business technology
comes about through detailed planning and execution.
Heading down to the warehouse club or local
office supply superstore and splurging impulsively on a $20,000
computer shopping spree with your corporate credit card may feel good.
But without proper planning, these sudden tech
asset purchases actually may increase your company’s computer
support costs.
The purchase price of hardware and software is
only a fraction of what these assets cost your company to own and
operate.
You need to consider all the related expenses,
such as installation, customization, training, support,
troubleshooting, maintenance and upgrading, as well as many other
related soft costs.
Tip:
Be sure to carefully research how your PC vendor handles
warranty service and technical support. Both areas are
discussed later in this chapter and can have a huge impact
on your computer support costs.
Action Items
Do you have a written technology budget for
the year?
If so, what happens if you don't use up
your technology budget during a given year?
What kind of advanced planning goes into
how your company acquires PC-related hardware assets?
Do you consider anticipated support costs
before purchasing new PC hardware assets?
Do major technology purchases usually
follow on the heels of a great year or great quarter?
Have you regretted making a hasty PC
hardware purchase, because it turned out to be an extremely
unreliable system or very difficult to support and troubleshoot?
How does your PC vendor handle warranty service and technical
support?
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