How Much Should You Be Spending on Online Database Software?

Spending money


Of course, all businesses want to keep their expenses to a minimum. Fewer expenses mean more profits, right? My answer is not that black and white. There are many points you should consider when it comes to taking in a new online database software into your business. Ask yourself these questions before proceeding to sign any contract, you could be surprised by your own answers.


How much cost each of your lead or potential customer?

Do you spend a lot of money to acquire the information about your leads? Do you care personally for each of your lead? From my point of view, especially if you are doing B2B, the more money and time you spend on each lead, the more care you want to put on minutely tracking your data about each of them. You sure want to see a return on your investment when spending big bucks on leads.


How much would it cost your business to loose a lead or forget to renew a contract?

Loosing a one hundred dollar sale because you forgot to call back a lead is sad but not deadly for your business. Loosing a hundred thousand dollar sale is a different story. If you will use your online database software to track data related to your leads and further on, your contracts, you are investing in peace of mind. Tracking data such as calls made, emails sent, all tasks and appointments, contract renewal dates and so on will save you money you would loose if you forgot any of the above.


How much can you fit in your budget?

This is the main question. How much your current budget is really allowing you to spend on an online database software? A startup may not have the same budget as an established business. You may not have budget to manage your tasks with an online database software during the first few years of your business. Along the way, sales will be made and the business will thrive. You will then be able to set aside some money for such a software. On the other side, your data may be of such an importance to your business that you need to track it efficiently from Day 1. How vital to your business is your data?


How many users and applications do you really need?

The price of an online database software is often based on the amount of users you will need and the number of applications and projects you will create. Do all of your employees need to access the software? Is this a way you could save to start with and then add the others later on? About the applications, you should know before buying how many you will need. For a small to medium business doing contact management and task tracking, less than five applications is the norm but if you consider using your online database software for more complex database applications, make sure to determine with the sales representative how many applications you will need.


What is the total cost of this investment?

Make sure you set money aside in your budget for setup and support if these are not included in your monthly or yearly fee. There should not be any surprise invoices popping along the way.


Bottom line

These questions should help you discover what are your needs in term of online database software and how critical such a software is to the success of your business.  You then have to call your accountant and determine if you have the means to meet your needs’ costs!



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