IT costs for small business

Breakdown of common IT costs for small business
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Understanding IT costs is critical for small business owners who want to budget smartly and avoid surprises. This post outlines the core IT expenses you should consider, whether you're starting out or scaling up.

Key IT Cost Categories

Category What’s Included
Hardware Computers/laptops ($700–$2,000 each), servers, switches, routers, printers, monitors, peripherals, warranties, replacement cycles (3–5 years).
Software Operating systems, office suites, line-of-business software, security tools, PDF editors, backup software. Common costs: Microsoft 365 ($8–$16/user/mo), Adobe Creative Cloud ($70/mo), antivirus ($3–$6/device/mo).
Cloud Services Email hosting (Google/Microsoft/Zoho), file storage (OneDrive/Drive/Dropbox), collaboration tools (Slack), SaaS subscriptions: CRM (HubSpot/Salesforce), accounting (QuickBooks/Xero), project management (Asana/Trello). Expect $5–$50/user/mo depending on apps.
IT Support On-call tech ($80–$150/hr), managed service providers (MSPs) offering monitoring, patching, helpdesk ($60–$150/user/mo), remote troubleshooting, onsite visits, incident response.
Internet & Communication Business internet ($70–$150/mo), static IP fees, VoIP lines ($15–$35/user/mo), mobile data plans for staff, video conferencing subscriptions.
Security Firewalls (hardware $300–$2,000), endpoint protection (EDR $4–$12/user/mo), intrusion detection, MFA solutions, password managers, VPN services, penetration testing (annual or per engagement).
Data Backup & Recovery Cloud backup (Backblaze/Carbonite $7–$12/device/mo), offsite storage, disaster recovery plans, external drives, automated backup systems, Business Continuity (BCDR) appliances.
Website & Hosting Domain registration ($10–$20/yr), managed hosting ($10–$40/mo), VPS/cloud hosting ($20–$80/mo), maintenance, CMS updates, SSL certificates (free–$100/yr), website redesign (one-time cost $1,000–$10,000 depending on complexity).
Training Staff onboarding, cybersecurity awareness training, phishing simulations ($2–$5/user/mo), software training, documentation creation.
Compliance (Often Overlooked) PCI, SOC2, HIPAA (if applicable), security audits, policy development, logging/monitoring tools. Costs vary widely but typically $50–$200/user/mo for tools + services.
Replacement & Lifecycle Costs Scheduled upgrades for devices, peripherals, software renewals, warranty extensions, and hardware lifecycle planning every 3–5 years.

Hidden or Unexpected IT Costs

Small businesses often overlook:

  • Shadow IT usage (staff subscribe to unauthorized tools)
  • Licensing creep (unused but billed subscriptions)
  • Data migration fees during platform changes
  • Cyber insurance premiums (increasing annually)
  • Emergency support outside business hours
  • Storage overages from cloud providers
  • Email security add-ons (DMARC, advanced threat protection)

Conclusion

Takeaway: Every small business has unique needs, but planning for these standard IT expenses helps avoid budget overruns and ensures smooth operations. Budget for equipment lifecycle, software renewals, backups, and security—these are not optional in 2025. Review your IT budget annually, because as your business grows, your technology needs and recurring costs will grow with it.

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