Many businesses are put off using technology because it’s expensive. Take a reliable computer that can run some important business software: it’s likely to set you back US$1,000 at a minimum. Or, if you’re looking for a number of software packages to help you perform your work quicker, you may be looking at hundreds of dollars in subscription fees each month. Over time, that adds up to thousands of dollars you’re spending on technology. So, is it all worth it? That’s what this short article aims to determine for you.
Time Versus Money
One way in which to look at this dilemma is to ask yourself what time you’re saving when you invest in expensive technology as a one-off investment. If you’re per day, then you should be able to draw up fairly speedy equationsthat will show whether you’re getting a decent return on your investment in your technology. Here’s how you’ll perform that estimation:
• Make an educated guess of the amount of time you’ll save using technology. Let’s place it at one hour per day.
• Now, use your hourly wage to see what that hour is worth to you. Let’s say you’re paid $20 an hour.
• Now you just need to take the cost of your tech (let’s say it’s $1,000) and divide it by your hourly wage. That’ll show you how many days you need to work in order for your tech to pay for itself. In this case, it’s just 50 days.
As you’ll see, tech pays for itself rather quickly, on the whole.
In a Business
When you expand the findings from this short thought experiment out to your larger work force, the savings can actually be remarkable. Businesses often report that their digitization moves are saving them upwards of $10,000 per month in wages.
It’s the same for software companies that actually deal in saving hours across different parts of the business world. Take , for instance – an HR software package that helps save HR professionals time on looking up employee hours. Their software removes hours of labor from a working week – saving time speedily in a specific department.
At the end of the day, cost savings are all about competition. You might be averse to making a one-off investment of many hundreds – or sometimes thousands – of dollars. That’s understandable. But you cannot ignore the fact that your competitors will be doing it – and they’ll be making their whole firm more profitable by doing so.
In the long-run, what does this mean? More profits to your , and more reinvestment in better tech by them, too. They’ll be streaks ahead of your firm before you know it, outcompeting you on every metric, while you remain in the physical, tactile world – but without all of the digital consumers who nowadays shop online, rather than in store.
Using technology will always save you money in the long-run, and avoiding those investments will set you behind your competitors – which is why it’s worth investing in technology as soon as possible for the survival and growth of your firm.