Guide 9 min read
1. Introduction
The article IT for small businesses: the basics covered what an IT system is, how IT is essential for almost all small businesses to operate effectively, and summarised the key components included in an IT system such as:
● hardware including laptops, mobiles, printers
● software for core functions including email, bookkeeping and customer service
● network and internet access including routers and firewalls
● data storage and the cloud
● risk management around cyber security and legal risk.
Once you understand the key elements in a system, the next step is to define your needs and choose solutions and suppliers.
2. Simple IT systems
Sole traders and some small businesses will be able to set up their own simple IT system by:
● buying phones, laptops and printers direct from high-street retailers
● creating accounts for commonly used software such as online booking systems and email marketing
● using the business version of services offered by the standard home internet providers
● setting up a business account for the likes of Microsoft 365 or Google Workspace to store documents on the cloud
● following guidance around cyber security, business continuity and GDPR.
When you are acquiring hardware or software - by buying, leasing or subscribing - there are some key elements to consider.
● Compatibility and performance. All devices must be compatible with the software, apps, cloud systems and networks you intend to use, and vice-versa. For example if you are buying laptops, ensure they are powerful enough to run the programs you need and have enough storage space. Also check that different software solutions can be integrated, such as your point of sale system with your accounting software.
● Ease of use. Software or hardware that is complex to use or not intuitively designed can lead to frustration, wasted time and under use, so look out for reviews and recommendations from businesses like yours.
● Cost. All costs should be transparent. Buy reliable equipment suitable for daily business use, but don’t waste money on features and functionality you don’t need. Bear in mind that technology is a fast changing area. Regular upgrades may be needed so items may have a limited lifespan. You should factor in the cost of repairs and servicing. For software, look at the terms of subscriptions such as the cost per user and permitted level of use and establish if any staff training will be needed. Check the contract to understand any hidden costs, terms of use, copyright and sharing restrictions, cancellation terms and whether/how you can access your data and information if you do cancel.
● Scalability. If you intend to grow, ideally you will be able to add on extra devices as needed and add new users to your software or increase the volume of use. Many software platforms run as SAAS (software as a service), with monthly or yearly subscription costs, often based on the scale of your use and the number of licences needed for users.
● Security and risk. All elements should be able to be properly secured, (e.g. embedding robust account security such as two-factor authentication), be from a known and reputable provider, and support you to be compliant with all relevant legislation, including GDPR. Check that you own your data, can export it, can access it if you cancel, and know where it is stored and whether this is compliant with GDPR.
● Support. You need to know where you can find support for any issues whether that’s from the manufacturer, the supplier, or a separate service provider and you should look for information on any guarantees.
3. Larger IT systems
If you have a complex offering, handle sensitive data or your business grows and you take on more employees, you may need more help with setting up a robust IT system by engaging an IT supplier. This can give you confidence in your system and mean you are able to access ongoing support whenever you need it.
There are different types of IT suppliers.
● You can buy whole solutions direct from manufacturers or software developers which can work well if you know what you need.
● Agents that act as intermediaries between manufacturers and software providers are known as resellers who work on a commission basis, and may be able to help you with an overall solution and ongoing support (which will be limited to those suppliers they deal with).
● A general IT consultant or service provider might help you define your overall requirements and suggest a bespoke solution and provide help with installation.
● Specialist IT support companies may provide consultancy and system recommendations alongside 24/7 help desk support, onsite support where needed and advice around cyber security.
● If you operate in a niche or very specialist area, or have a very specific business problem, you may want expert consultancy around that particular element, e.g. integrating AI or managing sensitive customer data.
Unless you have some IT expertise in-house, it might be simpler to use a single supplier for all hardware, software, services and support. If you buy from multiple suppliers, you'll have to decide which one is responsible when there's a problem - unless you have a service provider prepared to support your whole system.
It will also give you some peace of mind that you can quickly access expertise to prevent and respond to any incidents such as loss of data, failure of any element of your IT or cyber attack.
4. Identifying potential IT suppliers
The first step is to document your IT requirements so you can give this to potential suppliers. This also provides a framework for you to compare different approaches to service delivery and estimates. Next, research the potential solutions and suppliers. Try to identify up to five suppliers who will be able to propose a solution for the budget you have set. To create a shortlist of suppliers:
● speak to other local businesses
● search online and read reviews
● speak to your business adviser.
Not every supplier will be interested in every new business enquiry. This is because the way they need to be organised to provide proper support to a small business is likely to be very different to the approach needed to service a large enterprise. It won’t be often that a supplier can cover any size of business in any sector. Therefore it’s very important you refine your list by looking for those:
● with experience in your sector and size of business
● providing expert knowledge in the type of IT you need
● able to expand the level of support as you grow, for example from occasional support to a helpdesk or full external IT department.
Some businesses will also have an informal ‘chemistry’ meeting with potential suppliers to see if there could be a good cultural fit.
5. Requesting estimates and proposals
Having identified a shortlist of potential suppliers you can ask them to provide you with:
● an estimate - more formally, this is known as a request for quotation (RFQ)
● or a suggested solution with an estimate - sometimes referred to as a request for proposal (RFP).
Request for quotation
If you already know exactly what you need then you would submit a RFQ and provide potential suppliers with key information such as:
● detail of the service you require including any technical requirements
● quantities of any hardware or number of software users
● any staff training needs
● summary of any terms and conditions that are critical to your business.
You should also include:
● your deadline for receiving the quotation
● when you expect the work to begin and any delivery deadline
● proposed length of contract
● a rough budget
● if you’d like the estimate broken down in a particular way
● if you’re looking for evidence of the suppliers’ credentials, e.g. case studies
● how the supplier can raise any queries with you.
Request for proposal
If you haven’t established the details of your technical requirements and you need the supplier to help define these, or if you are requesting an ongoing or variable support service, then you will need a proposal rather than a simple estimate.
The RFP should include similar information to an RFQ as covered above, as well as:
● overall statement of requirements, such as whether you are looking for support just with hardware, software or systems, or with setting up and maintaining your entire IT operation
● what format the proposal should follow
● the level of detail required in the proposal
● any information you need about their business such as the roles and responsibilities and team structure of those you would be working with
● how you will evaluate their proposal - e.g. any scoring system and weightings that will apply to different elements.
Remember that it is very time consuming for suppliers to submit formal quotations and proposals, especially if they are tailored to your individual requirements. So show respect for the process by:
● only requesting quotations and proposals if you are serious about needing a service
● providing as much detail as you can in the brief
● ensuring the process is run fairly and you share the same information with all potential suppliers
● keeping them informed through key stages of your decision process
● treating their submissions in confidence, as they are commercially sensitive
● providing feedback, if requested, to those who were not successful.
6. Selecting the right IT supplier
Thoroughly review the estimates or proposals you have received with the aim of shortlisting to two or three. Map the responses against your framework of requirements that you defined at the beginning and how well the response maps to what you requested in your RFQ or RFP.
Consider elements such as:
● how well they demonstrate their understanding and interest in your business needs
● whether the estimate is properly broken down, which helps to evidence whether they have thought about it carefully rather than just pulling a figure out of the air
● if they have explained technical concepts in plain language, avoiding jargon
● if they have evidenced project management capability and technical knowledge and expertise
● the cost of the proposed solution.
Also carry out some due diligence by looking into any publicly available information on their financial stability, and their reputation with customers and other stakeholders and the extent to which they are established and stable.
You are then ready to eliminate those that do not meet your technical requirements or fall outside your agreed budget.
Once you have chosen your preferred supplier, you can move to the contract stage and negotiate details such as the levels of system maintenance and support, and final costs.
7. Finalising the contract
Avoid unexpected costs by properly understanding the contract and check:
● whether proactive support is provided such as remote monitoring and identification of system problems
● how reactive support will be delivered remotely and/or on-site, and the hours it will be provided - e.g. working hours or 24/7
● the level of preventative maintenance, e.g. anti-virus software and firewalls, annual servicing
● how routine upgrades and repairs are managed for hardware and software including patches
● what warranties, if any, are included
● whether any user training is offered and if so, how.
You should agree a service-level agreement (SLA) which covers your requirements, such as:
● scope of the services that are covered
● expected availability of the service and response times
● how service performance is reviewed and when
● responsibilities and obligations of each party
● escalation and complaint process
● payment terms
● contract renewal and termination - notice periods and process.
Read more about choosing and managing suppliers and business continuity planning.