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Reinvesting in Business Technology
Should Your Business Reinvest in Technology? Technology advances fast and before you can wrap your head around the latest tech, a new and improved version is right around the corner. As a business owner, you probably want to have the latest version of any technology that your business uses, but this isn’t always logical or smart financially. One of the biggest and the most important reasons for you to invest in new technology is because it will give you an advantage over your competition.
However, your competitors may have this advantage, so you will need the new technology just to catch up. Either way, you and all of your competitors will all have this tech eventually, so it is wise to get the jump on your rivals and begin to implement any sort of new technology as soon as possible, so your business is not left behind. So how often should you reinvest in technology? Here are a few tips to help you decide.
Updating your software and hardware should be synonymous with the growth of your business. You’re not going to make it to the top with old equipment. Software updates are the easiest. These updates are usually free so it’s smart to update your software as often as possible.
Updating equipment can be a little more complex because it’s not free. First, assess whether your current equipment is enough for your business. If it’s not, then you need to update. You should also consider the age of your equipment? If it’s past its prime, you probably need to skip an update and go with replacing it.
Replace Faulty Tech Quickly
Procrastination is your enemy when it comes to technology. If you find a problem with any of your software or hardware and it can’t be fixed, you should replace it immediately before your network goes out. When dealing with technology, keep in mind that at some point, something is going to go wrong. You should have an emergency fund set aside to pay for repairs and replacements immediately.
Think of the fund as an investment. Of course, you should also invest in learning the technology, as you don’t want to throw away good technology without giving it a shot. Doing this reduces the frequency that you replace technology.
Everything Has an Expiration Date
If you’ve had the same computer for the last ten years, you can go ahead and replace it without guilt. Technology has an expiration date, becomes obsolete, and it’s usually a short one because technology rapidly evolves. You may notice that your computer won’t function right. It may be slow, and it could crash at times. Any technology that’s past its expiration date is going to let you know in the form of lowered performance. When this happens, it’s time for an upgrade.
We know many business owners put off investing in new technology and there’s a number of reasons why:
- The cost – updating and replacing old technology requires financial investment.
- Perceived loss of productivity – updating hardware/software or replacing devices takes time. The team will also need to be brought up to speed with new technology.
- If it works, don’t change it – if old technology seems to be working correctly, many business owners opt not to replace it until it’s broken in a bid to save money.
- Fear of change – it’s human nature to be reluctant to change things out of fear of upsetting the balance of your business, so many business owners opt to stick with old systems until they eventually fail.
Should Your Business Reinvest in Technology
Growing a small business is also now easier than ever thanks to small business technology. Knowing when to reinvest in technology takes a lot of observation. The three tips above are all great indicators of a necessary upgrade or replacement. By paying attention to what your business needs and what your equipment can handle, you’ll easily determine when it’s time to reinvest.
Need some capital to help with your business technology? Click here to learn about business funding options!