Money. Ultimately, investors want a guarantee that investing in your small business is a worthwhile use of their money’s time. They want to be as sure as possible that, not only are they getting their money back, they’re going to see a good return on it. In order to cut down on the time, they need to investigate each opportunity, most investors or investment companies have a checklist by which they can grade start-ups.
No one element can make your small business seem like the perfect opportunity, and there’s not just one checklist to measure your company against. But outsourcing your IT can make your company look better in multiple categories, and it’s a good sign across multiple variations of an investor’s checklist.
Here’s what outsourcing your IT signals to investors:
1. You have processes.
When you’re starting your first business or you’re stepping into the middle of an already existing entity, everything is going to be chaotic. Some things take a while to smooth out. If you have a one- or two-person operation, a madcap organization might be good enough because you’re in constant communication.
But if you want your business to expand or you want to bring investors onboard, everything needs to be organized. They’re looking for you to have plans at the ready for if something goes wrong and for you to know what happens next without having to think about it or consult your business partner.
When it comes to processes, the only thing that matters more than IT is your sales pipeline. A third-party IT service can guarantee that you have your network protected, scaled to size, and protected in your office. Many IT companies can also help you create disaster plans and advise you on IT security problems.
2. You’re focusing on your core business and sales.
Your business isn’t valuable because of an internal employee’s potential mastery of small business IT practices. Your business is going to be appealing to investors because you’re marketing the right product the right way to the right target market. So as close to 100% of your attention and time as possible needs to be spent on making that happen. When you outsource your IT functions, that’s a signal to potential investors that you know what you and your employees should be focusing on.
A third-party IT service also makes it more likely your business will succeed. You won’t lag behind because of preventable outages, malware, or administrative delays. Whether your business has a live customer support or needs to be cranking out marketing content, dependable IT services around the clock is part of that.
3. Someone is handling the IT, and it isn’t you.
A big red flag to investors is when no one is handling the IT. That means your company has avoided disaster because of good luck and a series of coincidences. More likely, there’s an incipient network crash on its way or your company hardware has already been infected with malware your employees haven’t spotted yet. A lack of IT support tells investors that you don’t know what infrastructure a strong business needs, and it also shows you aren’t prepared for emergencies. Whether that’s true or not doesn’t matter: it will scare off investors.
4. You can scale without scaling up your labor costs.
Employees cost a lot of money. If your company is running off of manpower instead of programs, that’s a lot of unscalable bulk. While that doesn’t necessarily mean your company won’t be successful, many investors will assume your company either won’t turn a profit quickly or that the profit will be smaller than they can find elsewhere.
Outsourced IT means a flat fee that matches the tiers of (i) services your company gets and (ii) the size of your company. That’s a lot more predictable and scalable than hiring more IT employees as needed.
If your small business needs IT, go to IT Networks Australia Pty Ltd to get started.