2020 forced many businesses to rethink their budgets, with almost 70% of companies in one study slashing their ad spends. With 2021 also bringing some uncertainty to the market, many businesses are making critical budget updates to adjust to the current climate. Here are the 4 biggest budget trends in 2021, and how they can help keep money in your business.
Outsourcing IT Solutions
In a time when most staff are working from home, a company needs more than just one IT Support Technician to keep the company running remotely. But how do you do this while keeping within your budget? Many organizations are using a managed IT company in Indianapolis to handle their IT security, cloud solutions, and applications. Managed IT provides you with a team of professionals and experts, for a fraction of the cost of an internal IT team. SMEs and large businesses alike can benefit from expanding their IT team at a fraction of the cost.
Creating Multiple Budgets
2020 has highlighted that budgeting for risk is more important than ever before. This includes potential delays within product pipelines, seasonal revenue swings, and now, loss of revenue caused by local COVID lockdowns. This will be particularly necessary for entertainment or leisure businesses disproportionately affected by the pandemic. CEOs could create more than one budget, rather than merely extending their risk budgeting provisions. They could do this by having multiple budgets designed to adapt quickly to change if necessary. By looking at more than one scenario, Executives can be prepared for any sudden pivot in their business.
Investing In Decent Technology
Cybersecurity, decent hardware, and training around technology are going to play a vital role in the health of companies in 2021. 2020 had the highest figures for cyberattacks on record in 2021. In fact, someone is the victim of a cyberattack at least every 39 seconds. With the support of an IT company in Indianapolis, you can benefit from advice on how to protect your systems from cyber attacks, how to train your staff, and even how to invest in long-lasting hardware that will keep your team working for longer.
Focus Your Marketing Budget On Customer Retention
As 2020 saw a huge decline in ad expenditure, the focus needs to shift on retaining existing customers. Customers need to feel brand loyalty for companies, so they feel comfortable choosing them to spend with during the pandemic. Research suggests that by improving customer retention by a mere 5%, profits can see an increase of up to 95% for particular businesses. Loyal customer bases can be built on relatively small budgets, by focusing more on free resources, e-marketing tailored to the customer, and incentive schemes.
As company budgets may be slightly lower in 2021, businesses are focusing on developing what they have, by shifting the focus to existing customers. Cutting costs on internal IT teams might seem like a difficult choice, but the bonus is you will gain expert IT partners, as well as a consultant to advise on cybersecurity and technology training. Creating contingency plans with multiple budgets will allow you to adjust quickly to potential obstacles caused by the pandemic.