Everybody has heard the old business adage, “You must spend money to make it money.”
Have you ever heard the expression, “Invest in project management technology to grow your company”?
Okay, that’s a lie. But it doesn’t mean that the second saying isn’t true. Although every small business leader must be aware of their budget, it is possible to lose your business by cutting back on training and tech in the long-term.
This is how much and what benefits can you expect from project management technology.
Spending more on project management technology will help you keep up with your competitors. We’ll be looking at how many small- and medium-sized businesses (SMBs), are investing in PM technology, how much they’re spending, and the impact technology investments have on project management success.
What should I spend on PM Tech?
Last month, we addressed part of the spending equation by writing about how to set your annual budget for project management software.
These are some of the key takeaways (based on Capterra’s 2018 Top Technology Trends Survey):
As a rule of thumb, the higher your revenue, the more project management technology you should invest.
If your company is making $80m per year but only spends $5,000 a year on project management technology, then you are in the minority and could be at a competitive disadvantage.
It is important to consider the size of your company, as most project management software is sold per-user. Project management software typically costs $50 per user per month. However, there are cheaper and more affordable options.
Below is a chart that shows how much you can expect to spend on project management software for your company.
Based on the number of users and license cost, 2018 PM Budget*
*Budget estimates don’t include costs associated with setup and maintenance, support, etc. (Source)
Now that you have an idea of how you compare to your peers in project management technology spending, let us take a look at the reasons why you should spend so much on PM tech and how it can benefit your business.
Three ways PM tech can help you grow your business
While growth is a worthy goal for small businesses, it shouldn’t be at the expense or quality of life for your employees and business practices. Revolut, a British fintech company, is a good example of what can happen when business growth is rushed and things are not done right.
It can sometimes be difficult to put things back together when you “move quickly and break things”. Isn’t it more sensible to build things and move carefully?
Don’t be afraid. This article will show you how to use project management technology to grow your business in a healthy manner through better collaboration, better scheduling and better budgeting.
1. Collaboration and communication are key to growth
As your team grows, it will be increasingly difficult to keep everyone in the loop about your projects.
Poor communication is the leading cause of failure in almost a third of doomed projects (29%). (Source)
Good collaboration is still key to growth, even if your projects are on a steady footing.
Gartner webinar: Effective communication is key to success for enterprises, according to Gartner clients
All those numbers will show that teams that don’t collaborate effectively will have lower market share, lower shareholder returns and higher turnover. You can find out more about the o