8 Ways Managed IT Services Can Cut Small Business Costs

We get it. Budgets are tight. As a small business ourselves, Acme Business is well aware of the daily grind and tough decisions needed to survive and thrive in a competitive marketplace. Adding to our perspective, many of the great clients we serve with managed IT services and cybersecurity protection are often aiming to cut small business costs.

Because we care so deeply about your business success, here are some more helpful resources:

Today’s fast-paced digital age requires even the smallest businesses to be tech savvy and digitally connected to work well. But managing IT can be daunting and expensive to tackle in-house, especially without the direct experience and expertise. That’s where managed IT services come in – with the added benefit of being able to cut small business costs.

Cut Small Business Costs by Choosing a Managed IT Services Provider

Here at Acme Business in beautiful Olean, NY, we know that partnering with a Managed Services Provider (MSP) can significantly slash your IT expenses while boosting efficiency and security. Here are 8 essential ways managed IT services can help small businesses like yours save money:

1. Streamlining Operations & Cutting Waste

The median annual salary of a full-time information technology (IT) manager in the US is nearly $170,000. If you have additional IT staff working under them, the payroll costs and taxes increase exponentially. That’s A LOT of overhead. For a mere fraction of that cost, your small business can enjoy the benefits of an expert technology team.

By investing in managed IT services, you dramatically cut small business costs in an key area of operations to successfully and safely navigate the digital realm. Outsourcing IT management to an MSP allows you to optimize your workflow. MSPs bring specialized expertise and economies of scale, often delivering services more efficiently than in-house teams. Focus on your core business activities and eliminate unnecessary IT expenditures.

2. Minimizing Downtime

Downtime is expensive when systems are hamstrung due to digital catastrophes like data breaches and network crashes – which are often caused by human error by in-house tech teams.

(Helpful hint: every minute of downtime is a minute your small business is NOT being productive. Halted productivity is lost revenue.)

Managed IT services focus on preventive maintenance, continuous network monitoring, regular data backups and rapid issue resolution to keep your systems running smoothly. By avoiding unexpected breakdowns and ensuring maximum uptime, you cut small business costs that would otherwise be allocated to disruptions and emergency fixes.

3. Enhancing Budget Predictability

It’s nice as a small business to know how much you have in the coffers – especially when you meet or even come under that budget. That level of foresight allows you to budget effectively in other areas critical to your business and to effectively set aside for that “rainy day.”

Managed IT services provide a consistent and predictable pricing model, typically through a fixed monthly fee. This allows you to forecast your IT expenses accurately and avoid unexpected costs. With clear visibility into your IT budget, you can make informed financial decisions.

4. Lowering Labor Expenses

We already mentioned how expensive just one annual information technology professional salary can be. In a similar light as the section above, it can be hard to predict a budget for highly paid in-house team members who’ll likely request substantial pay raises each year. With consistent pricing models from a managed IT services firm, you’ll know you can cut small business costs for human resources.

But here’s what we haven’t discussed. Maintaining an internal IT team doesn’t only cost salaries. It also costs benefits and ongoing training. Managed IT services eliminate these expenses by providing comprehensive IT support remotely. A reputable firm like Acme Business assumes its own HR and training costs, greatly increasing our capacity to provide expert-level services to many different clients.

Without such a burden, you can focus on strategic initiatives that drive business growth.

5. Cutting Recruitment & Training Costs

In keeping with cutting HR-related costs, businesses and organizations spend loads of money on recruitment and training of qualified in-house IT staff. In 2022, the average cost per hire was nearly $5,000 in recruiting, according to the Society for Human Resource Management. Those expenses come EVEN BEFORE a hire is made.

With managed IT services, you gain access to a team of experts without the overhead costs. This allows you to leverage top-notch IT support while freeing up resources to invest in other areas of your business.

6. Limiting Capital Investments

Purchasing and maintaining both physical IT infrastructure and software can also strain your small business budget. Managed IT services offer a cost-effective alternative by providing access to cutting-edge technology and data centers without the need for significant upfront investments.

This shifts your spending from capital expenses to predictable operational costs, improving cash flow and financial planning.

7. Bolstering Security

Normally, we wouldn’t put this so far down the list. Cybersecurity threats are a significant concern for small businesses. Data leaks due to shoddy cybersecurity protocols and inexperience of in-house IT teams cost businesses and organizations billions every year.

Attacks aren’t limited only to giant companies. The average financial hit of a data breach at a small business has risen to $2.98 million! (And that doesn’t include damages to operations and business reputation that linger long after the attack.)

Managed IT services offer advanced security measures including firewalls, regular security audits and 24/7 monitoring to protect your data and systems. By proactively managing security and data compliance, MSPs help cut small business costs of data breaches and running afoul of regulatory requirements.

8. Access to the Latest Technology

Staying current with technology trends can be challenging and expensive. Who has time for that when you have a business to run?

Managed IT services provide access to the latest tools and technologies without requiring substantial investments. MSPs continuously update their tech offerings to ensure you benefit from the best available solutions, helping you stay competitive and agile in a rapidly evolving digital market.

Do You Want to Cut Small Business Costs? Start By Investing in Managed IT Services

Choosing managed IT services isn’t just about cost savings. It’s about driving your business forward with enhanced efficiency, security and innovation – all of which add to cost savings in the end. By partnering with an MSP like Acme Business in Western New York, small businesses can focus on their core strengths while leaving IT management to the experts.

Ready to see how managed IT services can build your competitive edge and cut small business costs? Call Acme Business at (716) 372-1325 and connect with us on LinkedIn. Our experts can tailor managed IT services to your unique business needs.