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What does great IT look like for a small business? A complete guide

By Jig Mehta, Digital Marketing Manager | Published 27 Aug 2025

When you hear IT, you might think of big corporate data centres and sprawling tech teams. But for small businesses, IT looks a little different, more compact, more budget-conscious, and often more hands-on. Whether you run a coffee shop, a marketing agency, or a small manufacturing business, your IT setup can be the silent engine that keeps things running smoothly.

The key difference between IT in small vs. large companies

Large companies might have entire departments for IT. Small businesses? Sometimes it’s one or two techie employees or an outsourced provider juggling everything from fixing the Wi-Fi to setting up accounting software.

What are the core components of small business IT?

Making sure that you have the right hardware is important for small businesses. They should be selected with the capacity to grow with your business. A typical small business IT setup starts with the basics: reliable laptops/desktops, possibly a server (physical or virtual), and devices like printers and point-of-sale systems.

Read our blog post on how to choose the right laptop for your business.

Selecting the right software for your business is a balance between, cost, usability and scalability. For most small businesses the best choices are between Microsoft 365 or Google Workspace, however some businesses will need to look at specialised industry software, as an add-on to ensure that they are able to run their business.

A stable internet connection is now a must! With significant amounts of software browser-based, you will want to make sure that you have a stable connection and secure networking equipment (routers, switches, firewalls), or productivity will grind to a halt. 😱


Common threats small businesses face

Phishing emails, ransomware attacks, and weak passwords are among the most common risks small businesses encounter, and as 95% of breaches involve human error, it is important to make sure that you train your team to identify risks, and test them regularly.

Affordable cybersecurity measures

A simple and cost effective starting place is to enable two-factor authentication, use password managers, and keep all software updated.

Check out our Cybersecurity Golden Rules for more information.

Cloud computing offers small businesses access to significant infrastructure savings, without the upfront costs of servers, installation, configuration. Small businesses can also store data securely, and collaborate in real time. Choosing the right provider depends on your budget, security needs and your business requirements.

Pros and cons of outsourcing IT

Outsourcing offers access to expertise of an entire team, without the cost of a full-time hire. However, you will need to work closely with your provider to maintain transparency and accountability.

When to consider hiring in-house IT

If your operations rely heavily on custom software or sensitive data, having dedicated in-house IT staff may be worth the investment. There are options on the market to create a hybrid model, allowing outsourced IT to take on the day-to-day issues, allowing your in-house hire to manage the relationship and focus on high value projects.

Industry averages suggest 3 – 7% of annual revenue for IT. This varies based on your business size and tech dependency. Leasing equipment, buying refurbished hardware, and fully utilising software subscriptions can help reduce your costs.

AI, automation, and digital transformation

From AI-powered chatbots to automated inventory tracking, small businesses can now tap into tools that were once reserved for large enterprises, especially if you have a Microsoft 365 Business Premium licence.

Preparing for scalability and growth

Your IT should be flexible enough to handle more employees, higher data loads, and evolving customer demands.

IT for small businesses doesn’t have to be complicated or expensive. The key is to focus on reliable, scalable, and secure solutions that fit your specific operations. With the right mix of hardware, software, and support, even the smallest business can run with big-leagues.


Frequently asked questions about IT for small businesses

Do I need a server for my small business?

Not always – cloud services often replace the need for physical servers.

What’s the biggest IT mistake small businesses make?

Skipping proper cybersecurity measures due to cost concerns.

Should I outsource IT or keep it in-house?

It depends on your size, budget, and tech needs – many start with outsourcing, and as they grow they often take advantage of a hybrid model.

How often should I upgrade hardware, like laptops, desktops and printers?

Typically every 3 – 5 years, depending on performance and security requirements. For example, upgrading from Windows 10 to Windows 11 required devices to have specific technical levels, therefore upgrading becomes a security requirement.

Is cloud storage safe for small businesses?

Yes – choosing a reputable provider is important, ensuring that they match your industry requirements. Microsoft is highly rated in the public sector, however Google Workspace is just as good for small businesses.

How do I budget for IT?

Aim for 3 – 7% of annual revenue, adjusting for your tech dependency.


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