1. Assess your business needs

1.1. Identify the business functions that you want to carry out electronically.

There are many aspects of your day-to-day business that can be managed with an IT system. The most common include:

• Accounting and book-keeping.
• Contact with customers and suppliers via email.
• Word-processing (for correspondence and basic marketing materials).
• Creating sales presentations and running a company website.
• Stock control.
• Customer database management.
• Setting up and running a customer website.

1.2. Consider other business functions that you could carry out electronically.

As you will be making an investment in an IT system, it makes sense to get as much benefit from it as possible.

• Are there any other tasks that might benefit from being part of your IT infrastructure? For example, would a contact-management system be useful to your business? Do you want to manage your banking and tax online? Would it be useful to access your suppliers' IT systems?

1.3. Think about what you might want to do in the future.

It is a good idea to think ahead so you can easily add to your system, rather than having to start again when your business develops.

Remember that you don't have to be exact with these requirements - but they are worth bearing in mind from the start.

• For example, you may need to connect a single personal computer (PC) to others if you take on employees. Or you may want your system to be portable.

1.4. Create a list of functions that you want your IT system to handle.

This will form the basis for your specification and budgeting.

Ideally you should have:

• A list of things that you want to use your IT system for from day one.
• Some functions that you might like to have if possible.
• A rough list of things you might want to do in the future.

1.5. Consider how important portability is to your business.

If you are going to be out on the road a lot and need access to your data, you might need to consider buying a notebook or laptop computer.

2. Identify the software you need

2.1. Bear in mind that your system will only be effective with the right software.

Whatever PC you buy, you will need software to enable to it do what you want it to do.

There are thousands of software packages available - each is designed to carry out a specific task. Spend some time assessing the best software option for your business to make your IT system as efficient as possible.

2.2. If you are not sure, ask around.

Word of mouth is often the best way to find the right software. Ask your customers and suppliers - they will be able to give you an honest assessment of the software they use. It is also important that you will be able to communicate with their systems.

Check with your accountant for accounting software. Accountants will usually deal with a variety of programs and they can make recommendations.

2.3. Remember that you might get free software with a PC.

Most PCs come with software pre-installed. If your needs are not complex, this might be sufficient for you.

2.4. Check the operating system.

Most computers use Microsoft's Windows operating system. But check if your industry uses other platforms (such as Apple or Linux) to make sure you will be compatible.

2.5. Get mainstream software if possible.

If yours is the only business using a piece of software, it is likely that you will find it difficult to share your data with customers or suppliers.

• For example, if you use Microsoft's Office software for word-processing, spreadsheets and presentations, it will be easier for you to communicate electronically, because most of your contacts will have these programs, too.

3. Add extras

3.1. Consider any extras you will need for your system.

Most businesses will need more than just a PC and a monitor. Common additional requirements include:

Each business will have its own requirements, but a back-up method is essential to safeguard your business data (see section 8.1).

• A printer.
• A scanner to get images or documents onto your system.
• A router and cabling to connect multiple machines.
• A central server to create a network of linked machines.
• Equipment to back up data in case of crashes or IT disasters.

3.2. Add these items to your list of requirements asappropriate.

4. Join it all up

4.1. Make sure that all the elements will connect to each other.

There are many ways that the components of your IT system can communicate with each other.

When specifying your computer and add-ons, make sure they have the same kind of connections.

USB is standard for keyboards, mice, scanners and low-end printers.

Ethernet is usually used to connect computers and printers shared by many users.

Also consider wireless connections. These will add to the cost, because you will probably require extra equipment such as wireless cards and a transmitter. And - remember, not all devices will be able to connect wirelessly.

• For example, if you want to connect your PC to a simple printer, scanner and another PC, you will need at least two USB ports and one Ethernet port on your PC.

4.2. Consider a server-based system if you have employees.

Especially if you need a PC for most or all of your employees. A central PC stores all of your data in one place.

Dedicated servers can cost between £600 and £2,000, depending on your data-processing power and storage requirements.

• This should mean that your system will be more efficient, because all your data will be stored in one place and will be accessible by everyone.
• You can also make some savings on each individual PC because the server will handle much of the work.
• Ethernet connections are usually the most suitable for server-based systems.

5. Set a budget

5.1. Let your requirements dictate your budget.

If your needs are simple - such as a system that can handle basic accounts, occasional letters and managing a small database - set aside between £500 and £800 for a low-end PC, monitor and scanner/printer.

If your business will need to process a lot of data - for example a large customer database or complicated accounting processes - set aside between £800 and £1,200 for a mid-range PC and monitor.

If you are in a field that processes complex data - such as computer-aided design, data analysis or scientific research - you will need as powerful a system as possible. Set aside at least £1,200 for a PC and monitor, or £1,750 for a Mac.

5.2. Work out how much your software will cost.

It is likely that you will need to buy additional software, unless your needs are very basic.

Most 'off-the-shelf' PCs include word-processing and spreadsheet software. You might also be able to buy packages that include basic accountancy functions.

• Shop around to find the best prices for the specialist software you need.

5.3. Work out your printing requirements.

If you need to print large volumes, budget for a laser printer. These cost between £80 and £1,000, depending on the volume of printing and the number of people that will use it.

If you need to print occasionally, an inkjet printer will handle small amounts. These cost between £50 and £300.

5.4. Combine your requirements with your budget.

Before you start the buying process it is a good idea to have your requirements and what you are prepared to spend presented together

If you want your system to be portable, bear in mind it will probably cost around 30 per cent more than an equivalent system that stays in your place of work.

• For example, a basic PC that can handle simple accounts and word-processing, email and Internet access and occasional printing. You might want to connect it to a network in the future, so you set a budget of £1,000.

6. Buy your hardware and software

6.1. Shop around.

The IT retail market is very competitive, so it pays to explore all of your options.

• Many suppliers offer short-term discounts or add free software or other extras.
• Check IT suppliers' websites and advertisements for the latest deals.

6.2. Do some research.

Check IT websites for reviews and buying advice. Trade publications will often review specialist hardware and software for your sector.

Ask around - your suppliers' and customers' experience could be useful.

6.3. Use your list of requirements and budget.

Make sure that the systems that you are looking at can handle all of your requirements and that they are within your budget.

• You will be wasting your money if the system you buy is not capable of meeting your needs.

6.4. Ask as much as you need so that you feel confident before you buy.

If you are not comfortable buying IT do not be afraid to ask potential suppliers as many questions as necessary. While the supplier will want to make a sale, it should also be in their interests to help you buy the best system for your business. They will be used to dealing with people who are not particularly technically minded.

6.5. Do not get distracted by 'technobabble'.

Stay focused on what you want to use your system for. There is little benefit in your buying a top-of-the-range PC that can process billions of calculations per second if you are only going to use it for writing letters.

6.6. Bear in mind how you will connect your system.

There is a variety of connection types used by IT equipment, so make sure all the elements you are going to buy can be easily connected to each other (see section 4).

6.7. If you are confident, consider buying online.

Online IT retailers can often offer lower prices in return for lower levels of customer service. If you know what you want and what you are doing, you can make significant savings. Obviously you will need access to someone else's PC to do this.

Check the level of post-sale support the supplier is prepared to offer you in case you run into difficulty.

Ask for a demonstration, so you can see the system in action before you buy.

6.8. If you are not confident about buying online, buy face-to-face from a dealer.

7. Get connected to the web

7.1. Decide what type of connection suits you best.

If you will only use email and the Internet infrequently, for short periods of time and to transfer small amounts of data, a 'dial-up' connection will probably be sufficient.

For more frequent email and Internet use, an 'always on' connection and the ability to transfer larger amounts of data at reasonable speed, you should consider a broadband connection.

• Most PCs have a modem built-in - this connects to your phone line and transmits and receives data. While you are online this way, your phone line will be tied up.
• You can either pay for the time you spend online or pay a flat fee per month for unmetered access.
• Broadband is at least ten times faster than a 'dial-up' connection and doesn't tie up your phone line.
• Broadband services are slightly more expensive than 'dial up'.
• You will need additional equipment to get the signal into your system. Check if your broadband supplier offers this equipment before you sign up for the service.

8. Keep it secure

8.1. Protect your business from an IT disaster.

If your system fails, is damaged or stolen, it can have disastrous effects on your business.

Make sure you have some way of backing up all your data and storing it safely.

Get into a regular back-up routine - daily or weekly is best, depending on how critical the data is to your business.

You may want to consider buying specialist software that can make back-ups automatically.

• This could be on another disk drive that you take off your premises each night.
• You can back up to external computers via an Internet connection. Some companies offer this as a paid-for service.
• If you don't have a large amount of data, you could copy it to a CD or DVD and store it somewhere safe.

8.2. Install anti-virus software.

Viruses can be transferred from computer to computer without your knowledge. They can damage your data irreparably.

• Anti-virus software is cheap and can monitor your system in the background, stopping a virus before it can cause any harm.

8.3. Avoid damage and disruption spread across the Internet.

There are many malicious people and programs that use the Internet to gain access to other people's systems.

• A firewall will stop unauthorised access to your system from the outside. This can either be a piece of software or something built-in to the hardware you use to connect to the Internet. Check that you have either (or both) before you buy.
• Anti-spyware software will stop programs from monitoring what you do on your system and reporting it to a third party without your knowledge. This can be as harmless as checking which websites you visit, but it can report passwords and secure details to outsiders without your knowledge. There is a variety of anti-spyware software and much is available free via the Internet.

8.4. Consider physical security.

Make sure your premises are secure.

You can also buy security equipment to make it more difficult for your hardware to be stolen.

Security marking your equipment can also act as a deterrent.

9. Get the right training

9.1. Assess what training you need.

Your IT system will largely be as effective as the person who operates it.

If you are technically minded and you have the time, you might be able to train yourself. However, it might be more suitable for you to invest in some professional training for you and any employees you might have.

9.2. Get training from software suppliers

Many software manufacturers organise training courses on using their software. Some are free, while you will have to pay for others.

9.3. Use professional trainers.

Often, these can be expensive, but the cost can be more than recouped through the greater efficiency that results.

• Try to find a professional trainer who specialises in your industry sector and your specific software package.
• Many software manufacturers run accreditation schemes for trainers - check if your potential trainer is accredited.

9.4. Find a general course if you are not confident.

Consider general computer training run by local authorities and Government agencies. This training is usually very basic and often not specific to software, but it can provide a cost-effective introduction.. Increasingly, specialist courses are offered too.

9.5. Consider teaching yourself.

If your budget is tight and you are reasonably proficient, you could teach yourself. Many commercial publishers offer self-teaching books and manuals. Software manufacturers often provide training resources for a fee. Distance learning courses are also available.

Make sure the books or courses you choose address your needs.

10. Get technical support and maintenance

10.1. Check with your supplier.

Many IT suppliers offer technical support and maintenance contracts when you buy equipment from them.

• Ask if there is a free period of technical support when you buy.
• Make sure you have some kind of guarantee on the equipment you purchase. One year should be the minimum.

10.2. Consider using a specialist.

This will often be a more costly option, but you can develop a long-term relationship with a support specialist.

• Find a specialist in your sector and your specific software if you can.
• Check if the specialist is accredited by the manufacturer of your hardware and software.