4 reasons why business owners make bad tech investments
Always speak with your team members and do plenty of research before you start writing checks.
New technology is always exciting. However, new tech products aren’t always smart investments for small businesses. Indeed, plenty of capable entrepreneurs have decided to shell out a significant amount of capital on a software upgrade or new tech feature, only to find the investment to be a poor choice that delivers little-to-no value. But why?
Why do successful business owners consistently make bad tech investments? We’ll explore four main reasons here –– so that you can avoid the same fate:
Lack of Research
Pulling the trigger on a big purchase decision without thoroughly researching the product in question is practically criminal in this day and age. Considering the number of online reviews and resources available to customers, all business owners should be able to do their homework on a new tech advancement before they buy it. Yet, the sad reality is that plenty of entrepreneurs simply don’t take the time to vet their purchase decisions.
Insufficient Training Planned
What’s the point in investing in a new set of gadgets if no one in your office knows how to use them? True, professionals are more tech-savvy today than they’ve ever been in the past, but business owners can’t assume they’ll immediately understand how to best make use of new technology. Whether you’ve recently bought call center technology upgrades or a top-of-the-line analytics tool, make sure you have a training regimen in place that will properly educate your staff and enable them to apply new tech advantages in meaningful ways.
Keeping Up With the Joneses
It’s true, even successful business owners can feel pressured into buying new products if they notice their competitors investing in them. As silly as this sounds, no entrepreneur wants to be left behind, and many would rather spend money to emulate their rivals than risk falling behind due to ignorance.
Sometimes, business owners do need to purchase a metaphorical “band-aid” to help their team get through a difficult period. Short-term solutions themselves aren’t always bad. However, when business leaders consistently value short-term returns over long-term improvements, they’ll naturally make inefficient investments. Plus, by their very nature, you have to continue to replace short-term solutions to maintain productivity levels.
One bad investment decision could wreck the progress of a growing company. And while some tech-investment choices might seem relatively minor –– like whether you should replace your Mac-book –– the most successful business owners are also the ones who sweat the small stuff. As such, always speak with your team members and do plenty of research before you start writing checks. Trust us, you’ll regret it if you don’t!
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