Business Plans for IT Businesses

Whether it’s in the market of developing software or providing cloud services, launching an IT business requires a business plan. Due to the rapid evolution of the IT industry, experts advise that an intricate business plan is even more of a necessity for an IT company than an average business. Conditions such as government regulations, intense competition, and evolving market conditions host a difficult setting for an industry to do well in. Although, if you work with an effective team and several consultants that plan for these situations, you will greatly improve the chance of your business succeeding in the long run.

 

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Government Regulations

The IT industry is littered with government regulations. A recent study, by Cloud Security Alliance and ISACA, polled several enterprises and found that government regulations surrounding cloud computing was a big problem. Greg Grocholski, an international president of ISACA, an international association of informational systems professionals, stated that, “Cloud users recognize the value of this model, but are wrestling with such questions as data ownership, legal issues, contract lock-in, international data privacy and government regulations.” In the modern world, cloud services will continue changing. So, it’s important that we work collaboratively in this industry in order to provide feedback and educated opinions on these issues. Thus, we can allow solutions providers to produce what the cloud services market needs to go forward and what enterprises require to thrive.

Something else that needs to be taking into consideration is IT organizations that work alongside healthcare providers. As an example, if IT businesses offer data analysis services then they’ll have to work with the Health Insurance Portability and Accountability Act (HIPAA).  This act is a mandate that spreads across all of the health care system and it regards storing and securing patient information. If a company fails to abide by these policies and guidelines, they will be open to penalties and lawsuits.

All relevant governmental regulations that your company will be required to follow must be focused upon. Simply overlooking some of the vital components of these guidelines can show an unprofessional lack of understanding to the industry’s investor. Consequently, this can lead to a loss of funds to get things in order.

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Competition

In general, the IT industry is enormous and contains numerous subsectors. Although, most of these areas are filled with business of many sizes that are hoping to get a fixed market share. For example, there are over 8,000 firms in the data processing and hosting services area alone, according to the 2010 census. Concerning software publishers, the quantity of firms in the United States is a little bit above 5,000. Since so many companies actively use combative tactics, it’s extremely difficult getting started in the IT industry. Business plan writers that have experience in the IT industry can give you an edge that other start-up businesses don’t possess. Business plan writers will be very helpful and informative in developing a business plan to use your company’s unique qualities to create strengths that the competition doesn’t have, thus making your business better prepared for the first day.

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The Evolving Market

The IT industry is rapidly evolving and parallels other industries, such as fashion, in the sense that it is like an evolving entity and one must constantly stay caught up in the changes to function well within it. According to Gartner, highest priority for CIOs in 2010 was virtualization. After reaching 2011, the leading priority was cloud computing. During 2012 and even in 2013, the leading preference of focus for the leaders of IT corporations was analytics and business intelligence. What remains to be in focus at the front of the IT industry continues to rapidly evolve, thus making it a monumental task to stay up-to-date. For example, the large drop of Blackberry’s presence — in the recent past they were the leader of technological innovation. Blackberry is now fighting to reorganize their company’s structure in order to stay relevant.

IT companies will always be fast-paced and will always have to work hard to maintain a presence, especially with the rate at which technology advancements become commonplace. We strongly urge that your company does, at least, quarterly reviews regarding market trends so that you can take advantage of things before they become prevalent. Part of staying up-to-date with the evolving industry and changing market trends is a structure that allows your company to be capable of implementing newly made changes into flow of business.

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Matthew Khalili – MBA Business Consultant

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