Top 3 Reasons Business Owners Make Bad IT Decisions

When it comes to buying business management software, part of the battle is thinking about why business owners make bad decisions so you can avoid falling into the same traps.

Here are the Top 3 Reasons Business Owners Make Bad IT Decisions:

1. They fail to plan, they plan to fail.

Though this seems like a no-brainer, it’s a crucial step that all too many business owners miss. Lacking an IT plan can be as damaging to your enterprise as not having a business plan.

By plan we mean creating a project team and conducting a thorough evaluation of the needs of your business, including an assessment of what your employees hate about your current system and their wish list for your new system.

If you think you can’t afford the time to make a plan, then you can’t afford to embark on a business management software project. Because inevitably, you’ll end up having to pay for the mistakes that could have been avoided with a proper plan

2. They make too many assumptions.

We all know what it makes of you and me when we assume. There are two key assumptions that will derail your decision-making process:

  • We can do it ourselves. Consider it this way: How many business software installations do you handle in a year? Any consultant worth their salt will handle several per year at a minimum. They have it worked out to a science. Do you?
  • All software is the same. The last time you bought a car, chances are you carefully considered different makes and models. You reviewed their features, created a short list, took test drives, then considered some more. Business management software is a significantly larger investment than a car. So do your research and comparison-shop accordingly.

3. They buy for the wrong reasons.

When you fail to make a plan and make erroneous assumptions, it’s all too easy to buy for the wrong reasons, such as:

  • It was cheap. If you buy a cheap pair of shoes that don’t quite fit, you’ll pay in pain. Software is the same. Rather than looking at price on its own, you need to examine the value each solution and software consultant will bring to your business. Experience and depth of knowledge don’t come for free. In the end, you get what you pay for.
  • It looks good. Your mother was right: it’s what’s on the inside that counts. Rather than buying based on a fancy interface, focus on evaluating the features, reporting capabilities, performance, technical design, usability and overall functionality of any solution you consider. After all, beauty is only skin deep.
  • My friend/family member told me to. While there is certainly value in good word-of-mouth, there’s greater value in working with a professional with experience. So unless that friend or family member is an experienced business software consultant, you’re better off thanking them for their input and then finding a qualified consultant to work with.

So with these reasons business owners make bad decisions in mind, get out there and make a good decision. After all, in the words of journalist and author Frederick Speakman, “Decisions determine destiny.”

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