What IT equipment do startups need to start trading?

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IT security

This is vital to protect your intellectual property and to ensure you can serve your customers.

Startups need to protect themselves from hackers, malware, data loss and accidents caused by human error. Firewalls protect systems from online threats. They can be built into routers to protect hardware. Separate software firewalls should be applied to each computer.

Use a virus protection programme and ensure systems are backed up, either to the cloud or an external hard drive. Encrypt all data sent online, including on mobile devices.

Make sure employees use strong passwords and can only access and edit data and programmes they need for their job.

Setting up a network

This connects computers and other devices to your IT system. Having them all online allows employees to share files, access the same systems, work together on shared documents and connect to one printer.

For startups with less than five people, create a simple network, connected to a router and the internet.

For more than five employees you need a more advanced network. You may need external help to set this up.

For larger businesses, you may even need to set up your own server to manage your network. This supports using centralised products, like CRM systems. Use an IT contractor to install, configure, operate and maintain the server.

IT management

Your IT system is an integral part of your business, so employing an IT manager or outsourcing its management may be a sensible investment.

It will help your business source and install new equipment, set up servers, install cabling, connections, routers and other equipment, install and customise software, integrate it with existing systems and train staff.

An in-house resource can help develop your IT strategy and training costs will be lower. Initially, this may be too costly, so research external providers, read reviews, check online forums and talk to other businesses to find the best options.

An external IT support package should have a service level agreement (SLA) that includes an online helpdesk, phone support and call outs. It should be tailored to your requirements and budget and include a maintenance contract to specified industry standards.

Sourcing

For a basic set up, you can use high street providers. This provides instant access to products, and a guarantee, but after sales service can be poor.

Specialist wholesalers offer a wider range of equipment, at lower prices, with more expertise to tap into.

You could go directly to manufacturers. Prices will be competitive and they will offer after sales service. Online resellers can be even cheaper but service levels vary. IT consultancies may not sell products directly but if you have a maintenance contract with them, they should provide expert, unbiased advice.

How much will it cost?

This depends on the nature and size of your business. Create an IT budget to plan and manage costs after researching what equipment you need.

It can be a false economy to buy entry-level equipment that does not provide the quality and capabilities you need, because you will soon have to upgrade or buy alternatives.

You spend more on maintaining and managing IT equipment than on the initial purchase, so buy quality equipment to save money overall.

A laptop typically costs between £400 to £2,000 or more. Apple Macs are more expensive, usually between £850 and £3,000+. There are options to rent monthly. Printers cost between £50 and £500+. Most other IT equipment is billed monthly. Dedicated business software systems and licences vary in price.

Cloud services are billed monthly or annually, based on the number of users and level of service required. For all monthly IT costs, consider any financing costs. Select low or interest-free options if possible.

If you use an IT support provider, ensure the basis for extra charges is clearly defined in the contract. Also budget for ongoing maintenance and support costs.

How do you set it up?

Setting up new equipment takes time and resources, so, if possible, use an experienced internal resource to reduce costs.

When setting up for multiple users, use system imaging. It works by copying how the software is set up on a device and then using a master image each time. This allows you to duplicate settings, avoiding manual set ups for each installation, where possible.

For online software each app must be installed individually. You could train employees to do this themselves if it’s straightforward.

When updating business software, decide how to switch user data and settings from one version to the new version of the software.

Do you need after sales support?

Most IT equipment costs come from needing to maintain, update and repair equipment you already own. IT hardware and software is continuously updated, so this is an unavoidable, ongoing cost.

Hopefully, most IT equipment will be reliable, but you will likely need some external support, though many tasks can be performed by your team for very little cost.

New equipment should come with a guarantee and some free support. Insure all IT equipment through business insurance.

Following an IT maintenance programme means your IT equipment should last longer, perform effectively and reduce support costs.

Conclusion

IT systems are vital for startup businesses to operate effectively and serve their customers. The IT equipment required will vary depending on the nature and size of the business.

Research, source and buy quality equipment as this will save time and money overall. Ensure it is flexible to meet the ongoing needs of your business.

Benjamin Salisbury – business journalist

Benjamin Salisbury is an experienced writer, editor and journalist who has worked for national newspapers, leading consumer websites like This Is Money and MoneySavingExpert.com, business analysts including Environment Analyst, AIM Group and written articles for professional bodies and financial companies. He covers news, personal finance, business, startups and property.

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