If your main focus is to sell to government, non-profit or educational institutions, your computer consulting firm might be used to working with on-the-fly IT spending and the next steps.  However, when you are working with mainly small businesses, you probably don’t want to ascribe to the “use it or lose it” IT spending concept.

IT Spending and the “Use It or Lose It” Philosophy

With educational institutions and non-profits, if you don’t spend money during a fiscal year, leftover funds may not carry over into the next year.  The board of education will probably also feel that your department doesn’t need the full amount they’ve been giving you for IT spending needs and will cut your budge.  Often then, there is a year-end rush to get rid of the tech account, regardless of whether it is the right time of year for this type of IT spending.

The IT Spending Trap for Small Businesses

Many small businesses often practice the “use it or lose it” philosophy, even though it’s not the best option.  Should clients just rush out to get a great PC gadget because they are having a great year, quarter or month?  

No.

You are your clients’ virtual CIO, and you need to be the “grown up” every once in a while and rein in some IT spending.  Remind them of their priorities (gently) and their annual technology plan (and keep in mind, there IS a definite “plan” involved!).  

Planned IT Spending

You should have a written plan for your clients’ projects.  This will help keep your clients’ IT spending priorities on the right track and give you a steady consulting income throughout the year.

Added By:  Computer Consulting 101 Professional Kit