Most business owners fall into two categories when it comes to technology purchases such as software, computers and telephones. Either they have too much of it and they are frustrated, or they are confused by it and they are frustrated. If you are in either category, you are probably frustrated!

While technology is important to your business, you might find that you put off purchases because it seems too expensive, you don't know how it works or you think it's faster just to do it yourself. If you don't know the right questions to ask when you are purchasing the product, you probably will spend too much money for not enough results.

Here are three questions to ask yourself and your potential providers (always get two to three estimates) the next time you are thinking about making a technology purchase.

What do you need?

Before you start looking for software and hardware, begin by sitting down and writing out a list of features and functions that are important to you. Be very specific. Ask someone you know, what they like and dislike about similar products. Keep a list handy of hardware and software that you already have, noting the versions that you have. Break the list into two categories: Required, and Nice to Have.

Keep this list handy as you talk with the product representative. They may offer to provide a list for you, but it's important that you do this list yourself. Only you can define what is really important to you.

What does it do?

While this may seem like an obvious question, it's common to settle for a simple answer. For example, it's obvious that shopping cart software manages your software, but many shopping carts also provide the ability to send out newsletters and autoresponders. So keep asking the question, "What else does it do?" until you have really exhausted the answers.

As you go through the conversation, make check marks on your needs list. Be sure to ask if the software or hardware works with software and hardware versions you already have.

How does it do that?

This question requires a great deal of patience on your part. You can hone in on whether something works automatically or manually. You can ask how long something takes to set up. You can also find out if something requires an expert with the product, or if a mere mortal can struggle their way through it.

This is also the perfect time to ask about customer support and help. Ask to see a sample page of the manual, if there is one. Can you read it? Does it make sense to you? If you have to pay extra to talk to a live human being, note that in your list.

Delay your purchase

(A bonus tip!) Wait until you have finished collecting the information about each product before you make the decision. And then, wait another week while you consider if you really need this product. What will it add to your business? Does it fit in with your marketing plan, budget and business plan?

If the answer to all these questions is "yes," then pick the product that most meets your needs at the best price. Have a great night's sleep knowing you have done the best job you can for your company.