It’s pretty well known that 90% of small businesses fail within the first 5 years of operation. Among the reasons that small businesses struggle or fail is lack of strategic IT decision-making. The majority of small businesses aren’t being run by a technical co-founder or engineer that has the knowledge and experience to make key IT decisions. Small businesses either ignore big IT decisions or often make honest mistakes that can cost their business significantly in the long run. The first step in fixing this is to acknowledge why IT decision making is so important to the success of a small business
Why is IT decision making important for a small business?
At its core, IT decision making is basically the oversight and application of how technology is used in your business. Depending on the niche your business operates in, IT can be used in various ways. For example, if your business is primarily e-commerce, the main IT decision making would include how to leverage technology for shipping, customer returns, inventory management, etc.
For a small business, especially in its early stages, the right IT decision making can propel the business exponentially. If a business has all of their IT infrastructure (sales, marketing, support, etc.) set up, they can manage growth efficiently. In contrast, a business with poor IT infrastructure can be devastated by quick growth even if the main operations are run well.
What can CIO services do for small businesses?
If a small business were to hire a CIO, it would require a high six figure salary in addition to equity depending on the experience of the CIO. With CIO services, you can leverage the expertise of a CIO without the financial drawback. Clients who use CIO services have their business operate similarly to how the business would run if there was a full-time CIO.
Flexibility: When a small business hires for CIO services, they can dictate how much help they need. This offers incredible flexibility because if a small business is in a tough quarter or is gearing up for big changes, they can hire based on the demand needed.
Immediate impact: CIOs come with the knowledge of best practices from the previous organizations they have worked with. Within the first few projects/weeks of working with a CIO, a small business can have many best practices for data management and other technology-based practices implemented immediately in their business. This can lead to direct increase in revenue, increased profitability and a more lean business operation overall.
Executive guidance: When a small business hires a CIO service company, they can fill a much-needed void for executive guidance. A CIO has dealt with businesses of all sizes and is experienced at knowing the main objectives a small business should focus on.
Click here to talk with our experts about how we can help you with your technology strategy and planning.