Spend-more

I’m going to stray from my usual love of making content about early-stage businesses and talk about SMEs generally.

You lot don’t spend enough on IT.

Ignoring if you will the fact we’re in a functional recession and no one is spending any money on anything at the moment, SMEs are ridiculously conversative on IT spending compared to bigger businesses.

Large enterprises spend 10% of their revenue on IT. Medium enterprises spend 7%, and SMEs allegedly spend 5%. I’ll clear that data up – in my experience it’s closer to 2%. It’s not that these organisations have more money in real terms – it’s as they grow up they realise the VALUE spending on IT brings.

The reason why I bring this is up is that non-technology founders fall into small business-style spending around IT. All small businesses, including brand new small businesses, need to actually invest, from day 1, in the information technology needed to support the business’ growth.

22/Sep/2023