13 Business Technology Mistakes Many Startups Make

Technology can be an incredible asset for a small business when its uses are carefully considered and researched. Some business owners, however, may feel overwhelmed by the amount of technology they do or don't need to succeed. To help you avoid making poor decisions around business tech, we asked Young Entrepreneur Council members to weigh in on the common business technology mistakes startups make that you should definitely steer clear of.

What's one mistake a lot of new business owners make when it comes to technology, and what can others do to avoid making the same mistake?

1. Letting technology control you

Technology is a tool and should be treated as such. Too many people let technology drive the way they do business and they become subservient to it. Take a step back and analyze how the technology is helping you accomplish your goals. This means you probably don't need every email pushed to your phone or to spend countless hours perfecting data entry unless it is something truly worthwhile. —Tony Scherba, Yeti

2. Not including your team

Make sure you include the team and create the processes needed to support the new tool or technology. If you just turn on the tool without working through how it will be used in the organization, you are likely to get less than optimal adoption. Training, buy-in and support processes can make all the difference in achieving the intended performance gain. —JT Allen, myFootpath LLC

3. Only planning for the short term

You must consider the growth you project your company will have when purchasing tech software for needs like inventory tracking, customer purchases, or project management. Many businesses opt for a plan that works initially, but then are faced with the nightmare of switching everything over once they’ve outgrown the program's capacity. —Matthew Podolsky, Florida Law Advisers, P.A.

4. One business technology mistake startups make is ignoring security

The biggest concern with new technology is downtime. If your operating systems, storage space, or software malfunction, it will have a tremendous effect on your revenue. When it comes to older technology, security is a greater concern, and being exposed to a data breach can also negatively impact your bottom line. Look for a compromise between security and uptime when choosing your business tech. —Bryce Welker, Beat the CPA

5. Not accounting for long-term debt

When new technology comes into the company, many owners don't understand the long-term technical debt that may be incurred. Sure, setup is easy, but what about maintaining the technology in years two, three, or five? Do you have a plan in place to keep the technology updated? Do you want to be tied to that software for years to come? —Peter Boyd, PaperStreet Web Design

6. Neglecting free tools

Many owners think that they need the industry's best tools to do things correctly, and many sophisticated tools also need advanced skills to make the best use of them. However, there are free or cheaper alternatives that provide exactly what you need for your business, and you're better off starting with a simple or free tool. If you use them well and find you need more, then buy an advanced tool. —Blair Williams, MemberPress

7. Implementing AI too fast

One mistake many new business owners make is trying to implement AI across an entire website at once. The truth is, this will lead to confusion and unhappy customers. If you want to maximize the value of AI software, I suggest implementing tools one step at a time so you can fine-tune their performance along the way. —Chris Christoff, MonsterInsights

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8. Relying too much on AI is another technology mistake startups make

People don't like interfacing with robots. Keep your technology and automation to the “no human touch” parts of your business. Customer service and sales are both “human touch” aspects of business. Use tech tools that make the lives of your people easier, but don't force your customers to bring their complaints to a program rather than a person. —Tyler Bray, TK Trailer Parts

9. Lacking technological knowledge

I've noticed many new business owners lack general knowledge about technology. My suggestion is to learn and get comfortable with whatever technology your company will use. —Kristin Kimberly Marquet, Marquet Media, LLC

10. Focusing only on the price tag

Many new business owners avoid adding new technology to their processes because it's too expensive, but this could harm their brand's growth. As technology advances, it's important to keep up with it so you can cater to all your customers, instead of only the ones who don't plan on using the new technology. —Stephanie Wells, Formidable Forms

11. Neglecting to use a tool's full capabilities

A common mistake that many entrepreneurs make is to pick tools and not use them to their fullest abilities. This happens when you don't do a thorough study into how a product works. There are often helpful features that never get used, and business owners end up buying new products to add to their tool kit. Take the time to study your tools, and you'll save money and get work done. —Syed Balkhi, WPBeginner

12. Choosing a technology with no benefit

I've run into business owners who want to use things like augmented and virtual reality to promote their products. The thing is, they don't really benefit from these additions. Instead of jumping on the latest marketing bandwagon, think carefully about how new tech can make things easier and increase your profitability. If you can't come up with an answer, the tech addition may not be worth your time. —John Turner, SeedProd LLC

13. Skipping the hardware update

I have seen many small businesses buying new software, but skipping the hardware update. Many software programs need you to upgrade your hardware to run the latest version, so not upgrading your hardware can only prevent you from using the latest version of the software. Consider keeping your hardware updated at all times. —Thomas Griffin, OptinMonster