Understanding how your business is spending money is essential if you want to be able to save money. In our previous blog post, we discussed how important it is to review both OPEX and CAPEX costs. Now we will go over the importance of reviewing discretionary and non-discretionary costs. Both discretionary and non-discretionary costs are vital to look over if you wish to help your company save money. Furthermore, understand how your company spends these expenditures will help your business in the future as well. Discretionary and Non-discretionary Costs When it comes to saving money, it is important that you review all expenditures your business has. Usually, discretionary costs are the first ones to get cut, however, we encourage you to dig deeper when cutting costs. Looking at non-discretionary costs, such as infrastructure. Looking towards usage, service, and consumption levels is vital to making sure you are able to save money and cut spending on your IT department. Therefore, when cutting costs, make sure you inspect all your expenditures. It is vital to leave no stone unturned if you wish to truly cut costs. However, we understand that this can be quite difficult at times. Especially if you are unsure as to what is vital to the department on not. How Hammett Technologies Can Help We understand the difficulties many business owners face when dealing with their IT departments. It can be extremely difficult to determine where to cut costs and what to leave alone. However, with our help, you will never have to worry about that again. Hammett Technologies works with you to make sure you never have to worry about whether or not your business is wasting money on non-important items. Hammett Technologies walks with you to ensure that you understand all the ins and outs of how we are building your IT department.
When it comes to saving money, it is important that you focus your attention on the right areas. Last time, we spoke about how taking a holistic approach, covering both operational and capital expenditures were essential to making sure your business is efficiently saving money. However, at times, it can be difficult to decide where one’s attention should be focused when downsizing. Focusing on Rapid – Reductions Rapid reduction implies the idea of rapidly reducing the spending and cost of your IT department. In order to do this, one must refocus their attention away from already spent money. Instead, focus your attention towards areas that can be immediately downsized, such as hardware or software licenses. Downsizing hardware and software can result in immediate savings, allowing your company more breathing room. However, while it is important to focus on rapid reductions areas, this does not mean to ignore sunk costs completely. As we said earlier, taking a holistic approach to saving money is the best course of action. When reviewing the IT department, do not leave any stone unturned and review all possible avenues to save money. Therefore, even those the money has already been spent, ensure that you still review these sunk costs, inspecting them for possible termination in the future. Hammett Technologies Helps Your Business Reduce and Reuse Hammett Technologies understand how to help your business save money. We reuse your old hardware, upgrading and fixing issues to bring them up to date. We review and revise how we work with your company, ensuring you know exactly what you are paying for, and work with you to make sure you get the most cost-efficient payment plans. Through this, we strive to ensure that your company is able to stay up to date and secure, without breaking the bank.
When cutting costs in your IT department it is important to review all avenues of expenditures. If you begin overlooking certain areas of your IT department, you will be unable to accurately determine total expenses and possible savings. Having a holistic approach will ensure that you are able to properly and efficiently determine what best areas to cut back on and which to leave alone. Reviewing all Operating Costs When it comes to an IT department, there are two umbrellas of operating costs that one must review to ensure optimal savings. Operating expenditures (OPEX) such as Office 365 subscriptions, and capital expenditures (CAPEX) such as Servers and owned computers. Both areas, OPEX, and CAPEX need to be reviewed and understood if you wish to be able to efficiently cut costs in your IT department. Furthermore, it is important that you do not focus on one over the other. If you are to ensure that your IT department can maintain functionality without compromising security to your business, combing through both operating expenditures and capital expenditures is necessary. How Hammett Technologies Assists in Cutting Costs Hammett Technologies is not just your IT department, but also your business partner. All of our services are operating expenditures, ensuring that you are not holding onto depreciating hardware, losing money in the process. Furthermore, as your business partner, Hammett Technologies will work diligently with you to ensure that you are maximizing your profits while maintaining a secure network. We work with your business and budget to ensure you are receiving the best possible service that your money can buy, without hidden fees. When you choose Hammett Technologies you are not only choosing a top-tier IT department, but you are choosing a business partner who wants to see you and your company succeed.
No one ever said that cutting costs would be easy. In fact, it may be one of the most difficult things you will have to do when owning a business. Cutting costs means reduction, and reduction means people are sometimes let go. All of these can lead you to feel regretful, disappointed, and upset at yourself. However, as with any business, it is important that you maintain it so that it can remain healthy and sturdy, and that unfortunately means that costs must be cut at times. However, there is one useful tip to making cutting costs easier. On the First Try When it comes to cutting costs, attempt to do it all on the first try. Many, because of the negative feelings, do not go in as aggressive as they should when cutting costs, resulting in them having to do it repeatedly. Going about it this way ensures that you will never truly get to the root causes of monetary losses in your company, and will also force you to experience troubling, negative emotions more often. Therefore, going in as seriously as you can is vital to ensuring that not only are you saving money, but also avoiding future negative emotions surrounding the topic. Cutting costs is difficult. It is the harsh reality of the business world, but a necessary reality if businesses are to maintain their bottom-line. Do not be afraid of confronting and dealing with these harsh realities in your business. Hammett Technologies as a Partner Hammett Technologies understands that cutting costs can be difficult. As a small, family-owned business, we have had to deal with these harsh realities ourselves. However, through perseverance and patience, we have maintained our status and have proved that we can accomplish any tasks set out before us. We promise, as your business partner, to bring this same perseverance and patience to the table, ensuring that you not only understand our tactics to secure your cyber presence but also trust that we will have your back when you need us most. Hammett Technologies is your partner first, your IT Department second.
Hammett Technologies is quite familiar when it comes to uncovering hidden fees and costs in contracts with third parties. We have, on multiple occasions, been brought in to assist a company whose IT department was failing them, leading us to discover that their previous IT department was poorly managing their security, hardware, and software. Therefore, it is important that, after hiring any outside sources, you regularly review the contract you have with them. You may uncover that they are not living up to their promises, something Hammett Technologies finds deplorable. Targeting and Reviewing Contracts When it comes to saving money, businesses must keep a close eye on contracts they have with third parties. If you are the owner of the company or department, consider investigating and renegotiating current contracts your business has. Doing so may lead you to uncover hidden charges or fees or may lead you to finding out you no longer require their services. It is important, especially today, to keep track of every dollar that is spent by your company. During unprecedented times, ensuring your company is able to save money where it can be vital to surviving as a business. Therefore, when it comes to saving money, we recommend reviewing contracts for renegotiation or possible termination. This is where you can expect to save the largest sums of money for your company. How Hammett Technologies Can Help By choosing Hammett Technologies as your IT department and business partner, you are ensuring your business is able to save money and remain secure digitally. Hammett Technologies prides itself on its ability to provide cutting-edge, professional IT support without hurting your business economically. We review out contracts with your company on a quarterly basis to ensure that you are kept in loop regarding how we are interacting with your business. Through our upfront, honest behavior, to our professional team who are determined to help your business with all its IT needs, Hammett Technologies is a partner you can trust.
Hammett Technologies understands how important it is for businesses to save money, especially during a global pandemic. Remember that when it comes to cutting costs, it is vital to remove expenses that will not only permanently bring down the company expenses, but also ensure money is being saved. Hammett Technologies hopes to be able to, as a partner to your company and as a reliable source of information, guide you and your business on the road to saving money when it comes to your cybersecurity, efficiency, and accessibility. Cash Reigns Saving money and cutting costs can be difficult. It is hard to find areas where you can remove expenditures from your company without compromising departments and their ability to provide services to your company and your customers. However, in order to ensure that your company is able to save money where it can, it is necessary to remove expenses that are either no longer needed or seem unnecessary. While most businesses focus on removing hardware expenses, when it comes to cutting costs around the IT department, focus your attention to software as a service (SaaS) and infrastructure as a service (IasS). SaaS and IasS are expected to grow 17% in the coming year, up from 227.8$ billion in 2019, according to Gartner. Therefore, if you are expecting to make a dent in your business’s expenses and begin to cut costs. How Hammett Technologies can Help When it comes to saving money, Hammett Technologies is the king. We understand how expensive it is to run a business, and on top of that, run an IT department. Therefore, with both business experience and IT experience, we perfectly grasp how much it takes to run a secure, efficient, and accessible IT department. We never cut corners but always ensure that your company never feels a heavy hit when the bill comes. Hammett Technologies ensures that your company’s IT department runs smoothly, discussing and explaining every potential purchase with you to make sure that you fully understand and know you are not wasting money.
As an MSP, Hammett Technologies understands how important it is to save money without degrading the quality of service. However, when it comes to saving money, businesses often aim to “freeze” current subscriptions for a short while, going without services for a short time in order to save money. What is often overlooked is that this is a short-term money-saving strategy and will ultimately do nothing to help your business. Instead of “freezing” assets, look for areas in your IT department that can be reduced and cut back on permanently. Similar to our last post discussing how your business should target immediate impact areas, it is important to assess the importance of anything you are “reducing” from your business. Don’t Freeze, Reduce When it comes to saving money, it can be easy to cut back on some subscriptions and licenses that are not immediately necessary. However, this tactic often overlooks that that money-saving strategy only solves your business’s monetary concerns for a short time. You are not removing those subscriptions from your docket, rather you are “freezing” them. This means that, unless you are able to increase your business’s monetary income substantially, by the time it comes to renew those subscriptions and licenses, your business will be seeing red again. Hammett Technologies recommends that you begin to look for areas in your IT department that can be reduced and removed completely. This strategy, while more difficult, will result in your business being better able to track its profits and losses without worrying about “frozen items”. We understand that it can be difficult to track down and eliminate areas your IT department may not need any longer, but in order to ensure the safety of your business and those who are working for you, you must be able and willing to reduce, not only freeze assets. A Business Partner You Can Trust Ensuring that your business can stay afloat through pandemics, economic crises, and other serious situations is not only important to you, the business owner but to Hammett Technologies as well. As a family-owned, self-started business, we understand the lows and highs of the business world. We want your business to succeed, and we believe that by following these tips, it will not only succeed but thrive.
When it comes to saving money, it is vital that you have an overview of all your company’s expenses. While this may seem obvious to some, there are many who believe they already have a good idea of their company’s expenses. We cannot stress enough, no matter how much of an idea you believe to have of your organization’s expenses, consult with your financial partner. You may be surprised with how much money your organization actually spends. Consulting with Your Financial Partner Even though you may feel certain that you have a good idea of how much money your organization is spending, it is important to ensure that you are accurate in your estimates. By consulting with your business’s financial partner, you can ensure that your company’s funds are being spent accordingly and efficiently, without leaving anything up in the air. When getting the big picture of your company’s expenses, leave no stone unturned. Review all expenses, making sure you know exactly how much money is being spent and which areas need to be focused on the most in order to save the most money. By doing this, you can ensure your company can remain in good financial standing, without the worry of unnecessary expenses. Hammett Technologies is Your Company’s IT Department As we have stated multiple times before, when it comes to understanding cybersecurity and technology, Hammett Technologies is the expert. Our team has worked with numerous organizations, from government contracts to small, family-owned, businesses. We understand how important it is to balance the budget to ensure that a company, regardless of size, is able to operate efficiently and securely. Therefore, by choosing Hammett Technologies, you not only gain a powerful cybersecurity team and IT support, but you also gain a partner who is conscious of your business budget and will work with you to obtain the best materials that are within your price range.