5 Rules of Wise Spending for Purchasing Software

If you have a small business or you’re a first-time entrepreneur, then you might face a problem related to issues of scalability of technology software in general, but specifically purchasing software. SMBs face a variety of challenges involving start up costs and getting the software they need for today that fits today’s budget while allowing room for growth as the company expands sales and operations. With a limited and finite budget you cannot simply buy the biggest and best of everything. That’s why it is important to utilize wise spending for purchasing software. Software that will both meet your needs, be affordable, but have a high quality and offer upgrades and scalability as you grow.

Let us go through the five rules of wise spending for purchasing software:

1. Be forward thinking

Consider the long-term performance. Rather than buying more than what you need some may make the error of buying only what they need today and then 6 months or a year later have to reinvest by buying a completely new system that can handle the growth. Look at your business projections and timelines and see if you can find a company and product that will grow with you. One that will give you what you need today at a price that fits your budget, but provides for add-ons and additional services without having to invest in a new system is wise spending.

2. What is the bottom line final cost?

A low-priced product that fits your immediate need can actually cost more over time. The total cost to consider is not only the initial price tag, but all the additional costs such as IT, programming, staff, training, modification and everything you may need to do to get this product in workable condition as it interfaces with your other systems. You may also try to put band-aids on through additional modifications over time to try and keep the system going longer. Bottom line is you may be better off going a step up with a slightly higher initial cost for the purchasing software that will work better for you over a given time frame.

3. Should you trust your first impression?

When we consider buying purchasing software it may be tempting to go with your first impression. The trouble with that is some software is designed to impress and wow the potential client on the front end, but once you get into the actual software and its use, you may find that it is severely lacking. First impressions are good, but you should not necessarily trust that as a basis for making a decision on purchasing software. Consider more than the first impression and dig a little deeper so you can make a wise decision.

4. Keep training and tech-support in mind:

As an SMB or new business you may not have a huge staff with a variety of talent to pull from. Many SMBs lack the proper knowledge for purchasing software; as they tend to laser focused on their product or service and making it the best it can possibly be. That’s why they are in business because they are experts in that industry. That being said there are experts in purchasing software so be sure the company you choose to do business with offers the training and tech-support you’ll need to make the most of their software.

5. Check the company’s financial stability:

A wise spender will also consider the financial stability of the company. If you follow all of the above steps and invest in purchasing software that can grow with you over the years you want to know the company you are buying from will be with you in the years ahead. A young company with lots of hype may stand the test of time, but it may be better to consider a company who has been around for decades so you can have that peace of mind that going forward they will be there decades more, walking side by side with you and your business as you grow.