Running an SMB: Where You Can Expect to Spend in 2015

With 47% of SMBs having more confidence in the current state of the economy, we were curious as to where business owners are planning to spend their hard earned cash this year. Based on results from our 2015 State of Small Business Report, here are three areas your small business can expect to spend money in 2015:

Three Areas of Spending for Small Businesses in 2015

1)    Government Regulations - There are more than 3,300 federal regulations, with nearly 1/3 of those affecting SMBs directly. Just over 33% of SMB leaders anticipate their credit needs will rise in 2015 as a result of Obamacare, new tax laws and more. 33% may not seem like a significant percentage; however, 40% of small businesses don’t need to borrow additional funds because they don’t need to, the increased revenue and profits they earned in 2014 have made that possible;

2)    Investments in Technology - Over half of the respondents replaced computer hardware in 2014, yet hardware still remains a major priority for Small Business in 2015. For the New Year, 39% plan to replace computer hardware, 27% plan to upgrade sever infrastructure and 22% plan to upgrade network security.

No longer will IT spending only be allocated for hardware infrastructure but next tier IT priorities will receive the benefit of additional working capital – with investment in new initiatives and projects for 2015 at 52% and ongoing maintenance at 48%.

The path a small business’ IT department takes implementing new technology varies; here are just a few investments respondents reported on:

• The Cloud: web and email hosting; file sharing
• Virtualization: productivity and industry-specific apps; development
• BYOD: smartphones, tablets & laptops
• Security: protecting both business and client sensitive data
• Marketing: social media platforms (LinkedIn, Facebook, Twitter

3)    Business Intelligence – Business intelligence tools—including software that helps businesses to analyze, transform and report data—are likely to be an area in which SMBs look to spend money. Our study concluded that investment in business intelligence tools are a need among SMBs; up 10% from 2014. Small business IT departments are no longer planning to just replace old equipment, maintain infrastructure and implement strategic policies such as BYOD and disaster recovery as they move into 2015.  They are looking to invest in new business trends, such as big data, Gathering data through more effective business intelligence tools like customer relationship management systems can help businesses identify the best prospects and how to best reach them. Although only 71% of small businesses currently use a CRM, implementing this BI tool is listed in the top-half of IT priorities for 2015.

As a small business owner, there are always places you need to spend money, but anticipating these expenses can help you budget for new tools that will provide the greatest value to your business. With larger investments in computer hardware and focus on government regulations, Wasp Barcode can provide tools to help keep track of your assets and inventory, preventing costs associated with lost items and fines. Learn more about Wasp Barcode’s products for small businesses and get your New Year started right.