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For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Essential guide to specifying and buying IT

Investing in the suitable IT systems can improve business efficiency and reduce costs. The key is to be clear about what you want it to achieve for your business, now and in the near future.

Once you've detailed your requirements, you can identify suppliers who offer the right equipment at the best prices.

Your business needs

Performance

The specification

Budgeting

Suppliers

Contracts

1. Your business needs

Focus first on your business aims

  • For example, do you want to improve customer service or move into a new sector?
  • Is your business expanding?
  • What are the current limitations in your IT system?

Think about what you will use your IT system for

Examine your existing systems, both those that use technology and those you do manually. For instance:

  • managing your accounts, producing invoices and running payroll;
  • keeping track of customer contact details;
  • communicating with customers, suppliers and other contacts;
  • producing letters, leaflets and other printed material;
  • processing sales and stock control;
  • online marketing, via a website, social media or other channels;
  • allowing your staff to work flexibly.

Are there are processes that could be improved with technology?

  • For instance, you could use a customer relationship management (CRM) system to track every contact with customers and improve retention.
  • Connecting to supplier systems could allow you to order stock automatically.
  • Electronic invoicing could help you get paid faster and manage your finances more effectively.
  • Ask employees what they would like to be able to do but find difficult or impossible with your current systems.
  • A local IT supplier or IT consultant may be able to provide suggestions and offer new ideas.

Think about how people in your business communicate at the moment

  • You could introduce instant messaging (IM), online chat or collaborative workspaces.
  • Modern business phone systems can use your internet connection to make and take calls. You'll save money on the capital investment needed for hardware, and the system offers greater flexibility for your workforce.

Consider the potential for flexible and remote working

  • Flexible cloud services and powerful mobile devices make it easier than ever for smaller business to implement flexible working.
  • It may be possible for you and your staff to work from home, on the move or from client offices.
  • Enabling staff to work from home or remotely can increase performance and efficiency, reduce costs and improve morale.

Identify any unusual requirements

  • Do you need to run any specialist software to complete your work? For example, some custom software may only work with certain operating systems.
  • Does a staff member with a disability need particular hardware or software?

Map out your requirements, and plan 12-36 months into the future

  • It's impossible to plan for all eventualities, but you can build in some flexibility to your IT systems. For example, you may need to add extra capacity as you recruit more employees.
  • With some thought, you will be able to add capacity into your systems that supports growth, not inhibits it.

2. Performance

Understanding how you want your system to perform will help you (and your supplier) to refine your requirements.

Estimate the volume of work the system will need to handle

  • For example, how much data you need to store now, where it's located and how this might grow in the future.

Establish who will be using the system

  • How many staff need to access your IT system?
  • Will they need to access it from home or remotely?
  • How computer literate are your employees and what systems are they already experienced with? They may need appropriate training to use new systems or software.
  • Does your IT system have any other users? For instance, partners, suppliers or customers.

Consider when speed will be most crucial

  • Real-time systems, such as those used in customer-facing activities, will need to respond immediately.
  • Will you have to deal with any peaks in demand? For example, a relatively slow printer might be adequate for running off a short report, but not if you need ten copies of a 100-page proposal in a hurry.
  • A key factor in performance is the speed of your internet connection. Keep this in mind if the connection will be shared, or you need to transfer large amounts of data. Fast internet connections are commonplace now, but make sure you have enough bandwidth if yours is shared with other offices. At peak times, you can find your network slows down if shared with too many other businesses and organisations.

Reliability and security are of overriding importance for business-critical systems

  • Failures in your essential IT systems can cause huge disruption to your business that can impact your reputation and revenue.
  • It can be difficult or impossible to recover important records if they are lost or deleted.
  • You may be legally required to ensure good security. For example, you must store and use all personal information in line with GDPR.
  • Consider the consequences if a problem temporarily put your system out of action. How would you cope?

3. The specification

Set out what your IT system needs to do

Include:

  • a reminder of your overall business reasons for making the purchase;
  • a list of things that you want to use your IT system for on a day-to-day basis;
  • a list of capabilities that you might like to have if possible;
  • are your needs likely to change in the future?

Clarify what existing systems the solution should be compatible with

  • Do you need to install new software on your existing devices?
  • Will new equipment or services need to be compatible with existing parts of your IT system?
  • Do you need to share data with current software applications you use?

Do your own research

  • Check IT websites and search online for reviews and buying advice.
  • Trade publications will often review specialist hardware, cloud services and software for your sector.
  • Ask around. Your suppliers' and customers' experience could be useful, particularly if your systems need to work with theirs.

Take advice from existing or potential IT suppliers

  • If you're investing significant amounts or your requirements are complicated, it may be worth speaking to an expert. This investment could actually save you money in the long-term.
  • The right supplier should have experience helping businesses similar to yours.
  • Building a long-term relationship with a supplier will help them better understand your business needs.
  • Although the supplier will want to make a sale, it should also be in their interests to help you buy the best system for your business. Don't worry, they will be used to dealing with people who are not particularly technically minded.
  • Ask for references and speak to customers from companies they have worked with before.

Take time to understand and question suppliers' recommendations

  • It's important you fully understand what a supplier is proposing. If the supplier cannot explain their solution in simple terms, consider whether they are the right supplier for you.
  • Confirm the solution will meet your requirements and clarify all the costs. Ask why the recommended solution will be better than a cheaper alternative.
  • Don't get bogged down in technical details. Always establish what benefits the proposed solution will deliver.

Wherever possible, opt for simplicity

  • Most companies can function using standard, off-the-shelf products and services.
  • Try to use consistent software and services across the business, even if they have to run on different devices (for instance, some staff may prefer Windows, others may prefer macOS or even iOS). This makes it easier to manage maintenance, support and training. Modern cloud-based software should work seamlessly across platforms and operating systems.

Include your service and support requirements

  • If you intend to outsource, get estimates and quotations from two or three suppliers so you can compare value for money.

4. Budgeting

Establish your budget

  • Decide how much you can afford now, and what you will spend in future.
  • Be realistic. Don't underestimate ongoing costs and make sure you build in some contingency.
  • When comparing the costs of different options, look at the total lifetime expenditure.

Identify your initial costs

  • For around £300, you should be able to buy a suitable office desktop computer or laptop. £400 - £600 should get you a faster machine that will last longer and perform better.
  • If you require a computer with a fast processer, expect to spend £800-£1,200 for a computer with a high-speed processor and sufficient memory.
  • Laptops and tablets will enable employees to work remotely. Costs are comparative with desktop computers. Separate monitors might be required if people want to increase their screen while sat at a desk.
  • Smartphones span a range of budgets but can cost as much as a laptop.
  • Although less common these days, dedicated servers cost from £500 upwards. You may also need other networking equipment such as a router, firewall and network cabling. Installing your server can be complicated and may require specialist support.
  • You may face significant installation and configuration costs if you opt for an onsite server infrastructure. For example, setting up a network or customising more complex software.
  • A small laser printer for light use costs £50-£200. Heavy-duty printers can cost between £1,000-£1,500.
  • Consider any user training that may be required. Some training can be completed online, which can keep costs low.
  • Most subscription-based cloud services can be paid for monthly, or annually. In many cases, you aren't tied into lengthy contracts.

Consider ways to spread purchase costs

  • You can spread the cost of smartphones with a contract that covers your handset, calls, texts and monthly data usage.
  • Cloud services are arranged on a subscription basis. The subscription usually includes security updates and future upgrades, so can be cost-effective.

Budget for continuing costs

  • Check what support and maintenance are included with any purchases, and whether that is sufficient. An appropriate maintenance contract will give you peace of mine and if you experience a problem, can minimise downtime.
  • Establish what training your employees will need to use new IT technology effectively and how it will be provided. Errors caused by staff can be costly and damaging, and they are avoidable.
  • Estimate additional monthly costs that you may need to cover. For example, budget for your internet service, mobile phone costs, cloud services, software subscriptions and consumables.

Plan for future upgrade costs

  • You may need to upgrade your IT hardware to handle new software or provide extra storage. Some devices can be upgraded but most are now 'sealed' units, and it's often more cost-effective to replace them.
  • Software publishers may release new versions offering better performance or features. After a few years, they may stop supporting old versions of the software.
  • Opting for cloud services usually means you don't have to worry about upgrading your software. This is handled by the cloud provider, with updates often being installed automatically.

5. Suppliers

Most businesses purchase IT from local suppliers or larger resellers

  • The quality of initial consultancy and advice varies across suppliers. There are also differences in the quality and level of ongoing support that they provide.
  • A good local supplier should be willing to install and configure the system, and to take responsibility for transferring data from any existing system to the new one.
  • Some suppliers offer equipment they assemble themselves, at a lower cost than branded systems. Check that the dealer uses quality, industry-standard components and that you are satisfied by the warranty that they offer.
  • Ask around for recommendations and check references before committing to working with a supplier.

Other suppliers can be useful, particularly if you need little or no advice

  • Retailers often keep a wide range of products. Many offer advice, and maintenance and support contracts.
  • Some manufacturers can build equipment to your specification, giving you greater freedom to get the system you need.

You can purchase cloud services directly or via your IT supplier

  • Some IT suppliers combine a selection of cloud services into a single package.
  • This kind of 'fully managed' service can give you access to powerful technology without the headache of hiring IT staff and running it yourself.

Look for a supplier who places a value on building a relationship with you

  • Where appropriate, ask for references from customers with similar needs to you.
  • Some suppliers don't offer aftermarket support. In these cases, you may need to employ a consultant for continuing support.

Negotiate hard - but try to build a relationship with your chosen supplier

  • Your investment in an IT system will be significant, so don't be afraid to push for the best value and the lowest price.
  • Suppliers can often add value to deals through additional support and discounts - but will usually only do so if they believe they can build a long-term relationship with your business.
  • Buying from a reputable supplier you trust is recommended, even if they're not the cheapest.

6. Contracts

Aim to make the supplier responsible for ensuring the system meets your needs

  • Specify in writing how you intend to use the system and ask for written confirmation the system is suitable for you.
  • Buying an entire system from one supplier should ensure that all devices and software are compatible.

Be sure you are satisfied with warranties

  • Standard hardware warranties provide 12 months of cover against faulty parts or workmanship. However, you will usually be responsible for returning faulty items for repair or replacement.
  • Extended, on-site warranties are available at an additional cost.
  • Software warranties are generally limited. Licences typically exclude liability for damage to your system and limit any compensation to the purchase price.

Get a written agreement covering services

  • This should include the standard of service.
  • Agree specific measures for the standard of service, so you can hold your supplier accountable. For instance, the service should be available for 99.99% of the time over a rolling monthly period.
  • Ensure that the basis on which you will be charged is spelt out.

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