Start With Expenses, Not Revenues

April 6, 2009

For managers in the small business space, an excellent article on the importance of budgeting in your business is on the E-Myth blog

As it states, your budget is a combination of;

past trends and future predictions

I wanted to bring this up, because there is one area that many SMB’s are often losing information on these past trends and future predictions.

And that is in their IT spending

Sure, you accounted for the capital expense of that ERP system years ago.

But how about it’s annual maintenance, licencing and support costs?

Are you accounting for that expensive service that used to be used a lot – but one person is the only one using it now?

Probably Not.

The SMB Takeaway

As a business manager in the Small to medium business, make this year the year that you start that IT spend as a zero based budget. Look at each and every hour, and dollar.

You may find that you don’t know as much as you thought you did about your IT spend.

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