Time is Money: Measuring your Return on Technology

It might be a bit cliché, but, when it comes to your business, time really is money. When it comes to your Return On Investment (ROI) and technology you need to make sure you are not spinning your wheels troubleshooting useless tech. Remember: Technology should be there to help you conduct business, not deplete your time and financial resources.

Instead of wasting your time and valuable financial resources on aging and inefficient technology, you should consider swapping some of it out for newer, more comprehensive technical solutions. But what tech should you consider? What are some of the factors that play into a switch to new technology? How much would it cost and would it actually end up saving you any money in the long run? We’ll help you answer those questions and break down some ways to optimize your time and resources when it comes to your business tech.

Basic ROI Mechanics Breakdown

ROI comes down to value for what you spend. The main question is if the service you are getting is exceeding, meeting or falling short of the money you’re putting into it. You don’t need to be an accountant to work out your ROI. A little bit of some basic math will do the job. Your ROI equals your net gains against your costs. For example, if you spend $150 on a newsletter production service, but make $175 from ad revenue from those newsletters, your ROI is $25.

While the math is relatively simple, you need to be careful when assigning numbers to your cost and benefits because your initial benefit numbers will be approximations. As a result, you could end up either exceeding or falling short of what you initially expected, so you have to be ready to adjust your numbers on the fly. You also need any employees or organizations you’re working with to understand how to come up with a reasonable cost projection. Once you know how to estimate your ROI, you can properly examine the cost-benefit ratio on future tech-based decisions.

Judging The Overall Impact

Proper technology implementation can add a lot to your business, increasing staff productivity and helping to make the most of your money. For instance, subscription services like G Suite or Slack are great ways to use technology to better communicate with your colleagues and employees. The key when considering either implementing or replacing all tech is the cost comparison and cost-benefit analysis. You should consider the cost of the tech itself, any companion products, implementation and update costs, as well as training time for any employees using that new technology.

While it might seem like a secondary worry, you should also consider how the new tech will impact your employees. It’s likely they will work most directly hands-on with that tech, so you need to make sure they’re comfortable with it. Technology that happens to boost company morale and save valuable staff hours is a major plus.

The same goes for the general customer experience and interaction with your company. For example, any chance to reduce load time or make customer interactions with your company website better should be seized upon if at all possible.

With the abundance of tech services available for business owners these days, you have no shortage of options. Don’t settle for technology that might not fit what you precisely need or that costs more than you’re comfortable spending. Instead, pocket that cash and save it for something more important to you and your overall business goals.

Share on facebook
Share on twitter
Share on linkedin
Eric Mitchell

Eric Mitchell

Eric Mitchell is the CEO of LifeFlip Media, Focused on working with Celebrities, Influencers, and Brands to gain National Exposure. Eric is a Political Commentator, and Marine Corps Veteran.

More to explorer

3 Tips To Craft The Perfect Media Pitch

You too can appear on TV if you have a brilliant pitch. There are numerous public relations and media relations tips you should know to develop a worthy TV pitch.

New technology at small business

Using a Buyer Persona to Market Your Small Business

As a small business owner, not everyone is your customer. It’s almost impossible to achieve sustainable growth for your business if you do not know who your ideal customer is. Having adequate knowledge of whom you are selling to helps in maximizing return-on-investment, as far as advertising is concerned.

Cherry-picking with Social Media Giants

Your business is like a garden, it requires constant care and nourishment in reaching its fullest potential. In our age of digitization, a well-planned social media marketing strategy will provide you with the “fertilizers” for that special garden of yours.