How to Manage Your Small Business Technology Costs

For a small business, information technology is an expense that requires planning. When purchasing or financing, have a good warranty, consider total cost of ownership, plus computer and technology equipment disposal.

Effectively manage the cost of technology throughout the lifecycle of the technology. Servers, desktops, software, networking equipment and peripherals add up, but you do need them to keep your business running. Follow these steps to make cost-effective decisions.

1. Purchase, Finance or Both?

Aside from purchasing, financing and leasing are viable options for a small business. Consider a combination of the three when going through the buying process. Installing and configuring the technology could also be financed and bundled into regular payments. Does the company you're buying from provide "new and authorized by the manufacturer" sales? After you've got the equipment up and running, this could enable your company to get updates or enhancements directly from the manufacturer--and dealing with problems will be much simpler.

2. Warranty

For financing or leasing, consider aligning the term of the agreement to the warranty period for the technology. This guarantees that you are protected from the manufacturer during the period of time you intend to own the technology. Calculate a timeline based on the amount of time you plan on owning the technology to the time that this technology is considered useful for your business. Anticipate growth and business changes and decide whether or not the technology you are selecting today can carry you through these changes.

3. Consider Total Cost of Ownership

Prepare and budget for other costs to support your technology. For example, toner cartridges typically cost the owner or a laser printer two to three times the initial cost of the printer. Consider a program such as a Managed Print Service to include these costs in the monthly price. Typically this will lower the total lifetime cost.

4. Disposing of the Equipment

Considering your company's strategy around technology disposal or recycling at the front end. There are basically 3 ways to properly dispose of technology at the end of the useful life:

1. Sell the equipment

2. Donate the technology to a school, non-profit, etc.

3. Formal Disposition - Certified companies will assure your computers or other hardware and software will be properly disposed of, including recycling and reuse of components. Another benefit: Your data is destroyed and made unrecoverble by professionals rather than relying on inexperienced staffers.

The total cost of ownership of technology includes more than the upfront price tag. Consider the total lifecycle costs of IT for your business, plan ahead and you'll make sure you're maximizing your investment.

Nick Pegley is a marketing expert with All Covered: Technology Services Partner for Small Business, providing information technology consulting and IT services in 20 major U.S. metro areas. Outsource your procurement, installation and technology disposal headaches..