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Small businesses often have to make do with limited resources, and this is especially true when it comes to IT. Software, servers and other hardware can be extremely expensive, so many startups are forced to get creative when it comes to working within a tight budget. If you’re starting an IT company from scratch, the last thing you want is for money to become the primary bottleneck. In a small business, every dollar counts. That said, there are several things you can do to keep your costs down without sacrificing quality or efficiency. This article will walk you through the ins and outs of how to budget a small IT startup. Keep reading to discover everything you need to know about keeping expenses low while simultaneously maximizing ROI – no matter what stage of planning and implementation your company is in right now.

What You Should Know Before You Start Budgeting

You might find yourself wondering how to budget a small IT startup if you don’t have any experience doing so. Fortunately, there are a few things you can do to prepare yourself before diving into the numbers. First, you should do a thorough initial assessment of the needed infrastructure, licensing, hardware/software, subscriptions, insurance, etc. This will vary depending on the type of IT business you’re starting, but it’s important to be realistic about how much you’ll need. Next, you’ll want to consider your financial situation. How much cash do you have available to spend on IT equipment? What are your long-term financial goals? Will any of the items on your budget cause a strain on your finances? Once you’ve answered these questions, you’ll be ready to start budgeting like a pro.

Which Technology Should You use?

One of the most important factors when budgeting for new tech is determining which technology you should use in the first place. Depending on the size and scope of your business, you may have the flexibility to try a few different solutions. Or, you may need to select a single option and make it work as best you can. In any case, there are a few things to consider when choosing which technology to use. – Scalability – Will this tech scale with your business as it grows? If so, that’s a great sign. Whether you’re planning for a small team or you hope to grow into a large corporation, you want your tech to be able to scale with you. – Compatibility – How compatible is this tech with the other systems you plan to use? Is there any sort of integration you can take advantage of? – Cost – What is the total cost of ownership associated with this solution? – Risk – How risky is this solution? What are the chances of it causing problems for your business?

Which Employees Should You Hire?

Depending on what you do, you might need to hire employees to help out with the work. Whether you need IT specialists, on-site tech support or a combination of both, hiring the right people for the job can quickly become expensive. Fortunately, there are a few things you can do to keep those costs down. First, determine what type of employees you need to hire. This will dictate which positions you should focus on hiring for. After that, determine what the average salary is for each position. This will help you get an idea of how much each person is likely to cost. Finally, you’ll want to consider the benefits package you provide for each employee. This includes everything from the health insurance to the holiday schedule and paid time off. Doing this will help you keep your costs under control while still retaining great employees.

Which Equipment Will You Buy?

Depending on the type of business you’re starting and the technology you’re using, you may need to purchase a variety of different equipment. From workstations to routers and beyond, the list of potential expenses is long. Fortunately, there are a few things you can do to keep those costs as low as possible while still acquiring equipment that will last. First, determine what you actually need. Do you need 2 or 200 workstations? What sort of router will you need? What other equipment do you absolutely, positively need to acquire? After that, shop around to find the best prices. Finally, you’ll want to find ways to extend the lifecycle of your equipment. This can include anything from replacing parts that are in danger of breaking to repurposing old equipment for new uses.

How to Save on Infrastructure Costs?

One of the first things you’ll want to look at when trying to save money on your budget is your infrastructure costs. This includes everything from your internet connection to the servers hosting your website and applications. Fortunately, there are a few ways you can keep these costs down while still providing a high-quality experience for your customers and employees. First, determine which type of connection is best for your company. This will depend on what your business does, where you’re located and who your customers are. Once you’ve settled on a type of connection, shop around for the best provider. Finally, you’ll want to optimize your setup for the best performance for the cost. This includes things like optimizing your website for speed and ensuring you have the right programs installed on your servers.

How to Save on Software Costs?

The second major area you’ll want to focus on when saving money is software. While it may not be as important as your infrastructure, it can still make a big difference in your bottom line. Fortunately, there are a few ways you can keep your software costs down while still providing the functionality and features you need. First, determine what software you actually need. Do you need accounting software or project management software? What else do you hope to accomplish with software? After that, you’ll want to shop around for the best deals on the software you need. Finally, you can save money by extending the lifecycles of your software as well. This can include things like updating your software to the latest version and repurposing old software for new uses.


When it comes to budgeting a small IT Startup, the most important thing to remember is that you can’t cut corners when it comes to important areas like infrastructure, employees and equipment. Yes, you’re trying to save money, but you can’t do so at the expense of your long-term goals. Instead, you need to find ways to lower costs without sacrificing quality. This will allow you to spend money where it’s needed and still keep your company running smoothly.