by Anthony Bradley, include: GVP ofResearch, Capterra (NAPSA)—Because they operate + Governmentagencies (and those that owners and managers may be tempted to put technology expensesnearthe bottom ofanypriority list. Afterall, small businesses have manyfires to put out— and investing in a new technology tool can seemlike a problem that can wait. $50,000 for data security in the next 12 to 24 months. work closely with them) should plan on razor-thin margins, small-business on budgeting between $40,000 and + Those in the education industry shouldanticipate a $40,000 spend. + Retail, construction, health care and wholesale should expect to budget But technology is a double-edged sword: Usedcorrectly, it increases productivity, brings savings and gives you a competitive advantage. Ignored, it lets your competitorsuseit against you. And it’s worth remembering that business softwareis the driverof technology value; withoutit, your hardwareisuseless. Software can be a thicket of specialty areas and product names: Which tool should be purchased now and which can. be put off? Capterra recently surveyed small and midsize businesses (SMBs) and asked them about their 2019 and 2020 purchasingintentionsand budgets for businesssoftware. The 2019 Capterra SMB Spending Surveyillustrates four clear software categories that small-business lead- ersare prioritizing and can help other companies understand the competitive landscapeandprioritize technology in- vestments. 1. Finance and Accounting: This is the standout tech category, with 53.6 percent of respondents budgeting for it. If you don’t correctly handle your accounts receivable, accounts payable, sales taxes, income taxes, reporting and audits, you'll derail your business—it’s that simple. Among businessesinvesting in this technology, banking and construction lead the way, with over 60 percent of respondents budgeting for finance and accounting software. Transportation and wholesale industries have the highest average spend at $56,330 and $53,850. Morefindings include: Transportation and wholesale businesses should expect to budget between $50,000 and $55,000 for finance and accounting software in the next 12 to 24 months. Media, government, manufactur- ing, banking andretail should con- close to $20,000. ij f / Y @ Anthony Bradley sider budgeting between $30,000 and $40,000 for finance and accounting tools. + Otherbusinesses should consider bud- geting between $10,000 and $30,000 for finance and accounting software. 2.Cloud Computing: This year, cloud software is the second most prev- alent technology, with 47.8 percent of businesses surveyed budgeting for it. It delivers all the power of FAMGA (Facebook, Apple, Microsoft, Google, Amazon). Cloud-enabled Software as a Service (SaaS) gives small business- es subscription-based access to robust businesssoftware anddata storage technology.Industry experts suggest: Insurance and transportation businesses should expect to budget between $40,000 and $50,000 in the next 12 to 24 monthsfor cloud computing technology. + Businesses in the services, communi- cations, manufacturing, health care, banking and education sectors should consider budgeting between $30,000 and $40,000 software. for cloud business 3. Data and Information Security: Over 40 percentofall industries budget for data security. Research shows cyberattacks can cost small businesses $84,000 to $148,000 per incident and that 60 percent of SMBsthat are hacked go out of business within six months. ‘The average budget spend on data security takes a tiered shape for business size. Larger businesses with more data, more customers and more employees will need more software licenses and greater functionality. Expert findings + Other sectors may gain competitive advantage with a data security budget between $30,000 and $40,000. 4. Digital Marketing: This year, 45.1 percent of SMB respondents plan to budget for digital marketing campaignsandtools. This is natural, given that ROBO (research online, buy off- line) buying behavioris now the norm. Upto 88 percent of buyers do online research before purchasing in a store. The survey uncovered that digital marketing spend tracks with business size. At 60 percent and 50 percent, media companies andretail businesses have the highest percentage of smaller firms investing in digital marketing. Mostindustries are between 40 percent and50 percent. More findingsinclude: If you're a smaller business in the media orretail sector, plan to spend $10,000 to $25,000 on digital market- ing overthe next 12 to 24 months. If you're a midsize business in the media orretail industry, plan to spend $35,000 to $45,000 on digital market- ing overthe next 12 to 24 months. If you're in another industry (espe- cially insurance), you may gain a competitive advantage with digital marketing budget between $20,000 and $40,000. Businesspeople know it’s vital to find out where competitors are going. These results should indicate where yoursector is headed and whattechnology to prioritize. Detailed information on survey findings—and over 500,000 verified reviewsfor every type of software—is on the Capterrasite. Learn More For more information about how small businesses can make smart technology investments,visit www.capterra. com.
