Patrick Kershaw is a business partner in Horizon Pacific, a nationwide specialist in providing technology solutions for SMEs.
It's hard to know where to start. Can you give me any tips? Depending on your cash-flow situation, stop all unnecessary projects. This will curb spending and provide extracash immediately. This includes any consultancy costs for technology you may be incurring.
Should I be talking to my provider about our contract? Definitely. Re-evaluate your budget for the year with your technology
provider. If you don't have a budget, get one. If you can, renegotiate with your technology provider on service rates or shift to a more Opex (operating expense)-based model. This would include investigating Software-as-a-Service and hosted options, which should cost less to run and ensure you aren't left behind. Investigate open-source software if it fits your business model. Avoid a variable-cost model, unless you have strict guidelines in place with your providers, as it has the
potential to blow out.
Should I make staffing cuts? What about staff who aren't so IT savvy? Look into outsourcing your technology staffing for fixed fees as this should be cheaper than having on-site technology staff. The best way to leverage existing infrastructure is by asking your technology provider
for free manuals or training they can provide. A little training can improve staff output which will add to your bottom line.
Can you recommend the most efficient hardware? Get rid of unnecessary hardware. For example, dump the three faxes and
scanner and move to centralised high quality, multi-function devices.
Xerox, although the most expensive, will save you the most in the long run. Negotiate favourable contract terms - your technology supplier should be involved in this and any hardware redundancy planning.
What about the telecommunications aspect? Disconnect unused lines. Your technology provider can organise telephony reporting, which has a one-off cost of $20-$50, and will
show where you can make cuts. Avoid new phone contracts as Voice Over
Internet Protocol (VOIP) will save you money in the coming 18 months.
