Have a Growing Midsize Business? Where to put your Money Next?

Startup companies have become more and more common with people striving to make their company the next big thing. But what happens when your company has actually survived the trialing years of being a startup and is finally taking off and growing into the company you want it to be?

Most entrepreneurs have struggled to get the cash in hand to support their growing company and ensure that all major functioning areas are maintained in order to get them to their next step. It seems more apparent that, when afforded so much, you put the little money that you do have where it is most needed. Hoping everything else just works out, you anticipate the day when money will no longer be an area of concern.

The transition may not be such an easy ride. Once the money starts coming in and there is room to spend, where then should an investment be made to help sustain the company’s growth? There is one department that tends to be overlooked. One that is rarely thought of for small startups, since they have gone so long without it: Information Technology or IT.

When developing your IT department, there are two basic options: 1. Bring on a vendor or 2. Bring in your own in-house IT staff. You will find that most companies bring on a vendor. Unless you are a functioning IT company, or have the means to run an in-house IT department, you might want to leave this one for the professionals. There are many solutions from which to choose to help get you started. There are the out-of-box packages, which usually saves a penny and offers an easy transition, with room to customize as the company continues to grow. Then there is the trending cloud solution. The cloud allows you to run your IT virtually, allowing you to invest more in the software rather than having the extra cost of hardware - which includes maintenance fees, and the cost of the hardware itself.

Each company, based on their industry, size and growth will want to carefully evaluate the type of IT they will ultimately need. There is value when investing in IT, especially when looking at the long term cost and efficiencies. Whether it is virtual or not, the investment in IT should not be shorthanded. Choosing to invest in a little bit more now may benefit for a solution that will not only offer you what you need “today” but will also offer you what you will need to adapt for “tomorrow”.

Once you have your IT in place, better decision making can be made with a better understanding of where funding is needed throughout your company. When you have a growing business, having a strategic approach to how, where and when to invest in your company is vitally important. A lot of growing companies may scare off at the idea of investing in IT before investing in a different department. However, building your IT may be the key to building your growing business.

By Michelle Vos