Getting high tech in business has never been cheaper

For anyone wanting to start a business, there is no better time from the perspective of cost. Thanks to the booming economy of China, the production of most electronic consumer goods, like PC’s, has moved offshore. Dell, Acer, Gateway, even IBM computers, all bear the label “made in China” now. It is now possible to have a fully equipped, computerized office, with a powerful PC, 17” flat panel monitor, and color multifunction printer, the whole package costing south of $1000. A color laser printer, which only 5 years ago cost $6000 or more, can now be had for under $500.

When it comes to software, the news is even better – most of it is free these days. Except for Microsoft, which has managed to buck the trend and still charge exorbitantly for its software, it is now possible to obtain nearly all your essential software tools off the ‘net for zero cost. Even the cost of internet is cheap, so setting up an office is significantly less expensive than it would have been ten years ago, I would venture to guess one tenth as expensive.

With ubiquitous internet everywhere, suddenly there are an endless variety of online services that can also save money. Online banking, online recruiting, online payroll are all easy-to-use, cost-reducing services. Services like Vertical Response and Intellicontact provide sophisticated marketing tools for as little as $10 p/month. One of my customers brought to my attention a service she uses called Virtual Assistant, which is a contracted employee who does computer tasks from a home computer. The virtual assistant concept makes a great deal of sense – a worker that you use only when needed, a worker that does not need to be supplied with a computer or workspace, who invoices only for work done (no payroll hassles), a worker that does not need to be provided benefits. The virtual assistant can work from any town, or indeed any country. Virtual assistants are not paid for cigarette breaks, sick days, powder days, whatever, and can be fired and replaced without hassle. My customer claims that virtual assistants are a higher caliber worker because they don’t need to be trained to use computers; this is a given. Virtual assistants usually have an entrepreneurial mindset too – if they aren’t good at their work, they won’t have any. The virtual assistant enjoys many benefits too – no commute, no transportation costs, no micro-managing boss; it’s a perfect fit for a stay-at-home parent. I just love win/win ideologies.

Most big businesses use Microsoft Exchange in conjunction with Microsoft Outlook and Blackberry devices. To set this up used to be very expensive because it involved the installation of dedicated file servers, expensive operating systems, expensive backup solutions, and expensive professional installation and configuration. Exchange Server systems usually require a full time IT staff to keep it humming along, and any downtime will cripple a company, as it strikes at the very heart of its communications. This type of system has also become virtualized, and now it is possible to use Exchange with a Hosted Exchange provider like AppRiver; all the server equipment and IT staff are already in place, and the user can “rent” Exchange on a monthly basis for as little as $20 p/month, and enjoy most of the same benefits as big corporations with deep pockets.

Don't waste time with networking problems

As we continue to investigate the role of technology in business, this week we’ll focus on computers, and describe a few simple things you can do to make you love your computing tools rather than hating them. It goes without saying that you need to protect your computers from virus and spyware infections, but I will say it anyway, and you should also be sure that you have a firewall of some kind to prevent unwanted intrusions.

Most small businesses, and many homes, have some kind of basic computer network with a shared internet connection, and though these small networks are pretty simple to set up, they are prone to failure for a variety of reasons. Internet failure is a very common problem, and it is usually very easy to fix, but most businesses panic and immediately call the help line. Use the “divide and conquer” methodology when troubleshooting this type of problem. If any type of failure is narrowed down to a single component, it is then very easy to diagnose. Learn to distinguish between your modem and your router and take a close look at the LED lights on each of these devices – they will often tell the whole story. If either of these devices has become unplugged (very common) or has a failed power supply, there will be no lights and the diagnosis is complete - plug it back in or replace the power supply. In general, lights solid-on is good, lights steady-blinking is bad. If all the lights are lit as expected, try unplugging the modem for 30 seconds. If this fails, unplug the router for 30 seconds, and try again. Check to see if all the computers are affected or just one. If only one computer fails to connect to the internet, it is probably not going to find shared files or printers on the network either, so now you can focus on the computer rather than the network. It’s all just common sense; don’t be afraid to solve your own problems.

Very often, computer networks are thrown together without giving any thought to cable management. There is nothing more frustrating for me than finding a mass of tangled, knotted network cables stuffed behind a desk, right next to a baseboard heater, with a bunch of cheap power bars interconnected to each other, and the modem and router just tossed into the tangle. This situation makes troubleshooting very tough, if not impossible, and is probably best approached by ripping the entire mess out and starting over. If your office is not pre-wired for networks, get an expert to make your wire runs so that they remain neat and tidy; troubleshooting, if ever necessary, becomes much easier and subsequently less expensive. Keep network cabling well away from baseboard heaters, or the cable will become brittle over time and ultimately fail. If your “computer guy” is confident that there is no problem with the cabling, he can very quickly troubleshoot a network problem. If the cabling is suspect, such as cable runs that lie next to heaters, intermittent symptoms are often the result, and they are a nightmare to troubleshoot.

Having a rock solid network with tidy cabling provides many benefits and ensures minimum down-time. Internet will be dependably delivered to all the computers on the network, and resources on one computer can dependably be shared by others. If you build your network on a well-designed, solid foundation, you can expand your network and add more computers with confidence; if you don’t, you’ll waste a lot of time wondering why they don’t work right. Time is money! Don’t waste it; have it done right from the beginning.

Making technology work for you — not vice-versa

As a computer consultant, I very often find myself privy to the frustrations and concerns of the many entrepreneurs and business owners in our community. Most of my clients are self-employed, and like me, few of them have any kind of formal training in business. In other words, they are just winging it. The results vary widely – some seem to have a natural gift for business, and do very well right out of the gate; others seem to be constantly putting out fires, juggling phone calls, expenses, customers, staff, payroll, appointments etc, without any clue how to prioritize. These people have let their businesses take control of their lives, and they merely react to the day’s events instead of doing what is important – growing their businesses.

One thing that stands out with most businesses is that their owners have little idea how to effectively utilize the technologies that they have invested in. I have some personal experience with this dilemma. My own store, which closed in 2003, was typical of a business which had taken control of its owner. Our phone traffic was a big problem; our phones rang so often and with such persistence, I found it very difficult to get anything useful done because the phones were constantly interrupting me. My ill-found solution was to purchase a very expensive, and as it turned out very cumbersome, phone system. It was a case of “I have a big problem, and I will spend whatever it takes to solve it”. Unfortunately, I was shooting from the hip, I did virtually no research, and I invested in the wrong solution. The vendor was inexperienced, and I was sold a system that was utterly unsuitable for my business. Additionally, the system never worked as expected, due to the inexperience of the installer. The result was that my customers began abandoning ship and taking their business to the competition, simply because their calls got lost and I never knew that they had been trying to contact us. I know now that that phone system cost me many times more than its very substantial cost.

Since closing my store, I made a decision to re-invent my business from the ground up, eliminate unnecessary expenses and distractions, take control of my finances, and focus on my core abilities. As a result, I have become more skilled at what I do, I have more time, I make more money, and I have virtually eliminated the stress that I believe was slowly killing me. I am happier, healthier, and more abundant than ever before.

Technology is a great interest of mine, and I utilize it to my advantage every day; however I have come to understand that many technologies are only vaguely understood by those who invest in them, and in many cases the technologies are hurting business-owners more than it is helping them.

My parents ran a Dairy Queen in the sixties and seventies, and there were no computers in those days. My mother kept all the records in the form of manual journals and ledgers, they had no email, no faxes, no book-keeping software, no voicemail, no cell phones, and they yet did just fine without all the technology available to us today. It’s one of those things that makes you go, “Hmmm”.

Next week we’ll continue with the topic of technology as a tool of business; meantime, if you have a story about how technology has helped you, or hindered you, please drop me a line.

Blessings and Hazards of Technology in Business

As a computer consultant, I very often find myself privy to the frustrations and concerns of the many entrepreneurs and business owners in our community. Most of my clients are self-employed, and like me, few of them have any kind of formal training in business. In other words, they are just winging it. The results vary widely – some seem to have a natural gift for business, and do very well right out of the gate; others seem to be constantly putting out fires, juggling phone calls, expenses, customers, staff, payroll, appointments etc, without any clue how to prioritize. These people have let their businesses take control of their lives, and they merely react to the day’s events instead of doing what is important – growing their businesses.

One thing that stands out with most businesses is that their owners have little idea how to effectively utilize the technologies that they have invested in. I have some personal experience with this dilemma. My own store, which closed in 2003, was typical of a business which had taken control of its owner. Our phone traffic was a big problem; our phones rang so often and with such persistence, I found it very difficult to get anything useful done because the phones were constantly interrupting me. My ill-found solution was to purchase a very expensive, and as it turned out very cumbersome, phone system. It was a case of “I have a big problem, and I will spend whatever it takes to solve it”. Unfortunately, I was shooting from the hip, I did virtually no research, and I invested in the wrong solution. The vendor was inexperienced, and I was sold a system that was utterly unsuitable for my business. Additionally, the system never worked as expected, due to the inexperience of the installer. The result was that my customers began abandoning ship and taking their business to the competition, simply because their calls got lost and I never knew that they had been trying to contact us. I know now that that phone system cost me many times more than its very substantial cost.

Since closing my store, I made a decision to re-invent my business from the ground up, eliminate unnecessary expenses and distractions, take control of my finances, and focus on my core abilities. As a result, I have become more skilled at what I do, I have more time, I make more money, and I have virtually eliminated the stress that I believe was slowly killing me. I am happier, healthier, and more abundant than ever before.

Technology is a great interest of mine, and I utilize it to my advantage every day; however I have come to understand that many technologies are only vaguely understood by those who invest in them, and in many cases the technologies are hurting business-owners more than it is helping them.

My parents ran a Dairy Queen in the sixties and seventies, and there were no computers in those days. My mother kept all the records in the form of manual journals and ledgers, they had no email, no faxes, no book-keeping software, no voicemail, no cell phones, and they yet did just fine without all the technology available to us today. It’s one of those things that makes you go, “Hmmm”.

Next week we’ll continue with the topic of technology as a tool of business; meantime, if you have a story about how technology has helped you, or hindered you, please drop me a line.

Starting a Business from Scratch

Entrepreneurs are a unique breed. They are people who have decided to buck the status quo and quit working for somebody else. Most have acquired some type of marketable skill, and have come to believe that their bosses are exploiting their skills and making most of the dough. Rarely is this the case, but it’s a common perception. So they bravely quit their jobs and optimistically announce their new business idea to family and friends. This is a frail first phase, and human nature being what it is, family and friends, with the best of intentions, may knock down the dream before it gets off the ground.

If the would-be entrepreneur can handle the probable initial negativity, she will bravely go out and start her own business. She is confident of her skills, but she has no idea how to handle the other myriad aspects of running a business. She will need to learn about advertising, marketing, hiring staff, understanding contracts, legal considerations etc. Many business startups ignore the single most important first step, and that is to find a paying customer. A few years ago, a friend of mine came up with an original but unproven business idea, and he was determined to hire an accountant and a lawyer before doing anything else. He essentially had decided to take on two major expenses without ever proving that his business concept was viable. He didn’t understand the most critical first step in starting a business – finding a customer. If you can find someone who is willing to pay you for your skills, you are well on your way – the other challenges of running a business are important but secondary.

Another important aspect of succeeding in business is to be unafraid to fail. I would venture to say that it is absolutely impossible to run a successful business without first experiencing some failure. Failure is a bonafide, essential component of success. Without failure there is no way to learn the right way. Scientists, inventors and athletes are all well aware of this. If you are strong enough to endure failure, sooner or later you will succeed. Don’t be afraid to copy others who are successful.

Something to be wary of is the temptation of the get-rich-quick fantasy. I don’t know how many MLM’s I have been lured into, believing the righteous promoters (who usually have no money to quantify their claims) who will promise the world. If you become wealthy in MLM, you’re one in a million, and those aren’t good odds.

But if you have a skill that’s in demand, and a relentless urge to become your own boss, there is nothing more rewarding than running your own business. It is deeply satisfying if you can get past the initial hurdles.

A great way to start is to launch a home-based business, but don’t quit your day job right away. With a home-based business you can get started right away without spending a fortune. You likely already own a telephone and a computer, maybe a fax machine as well. Try to avoid selling products to begin with, sell your skills. That way you eliminate the cost of inventory, which can overburden your business in very short order, particularly if you find that you can’t sell the products you’ve bought. Add products to the mix (cautiously) as your SERVICE business takes off. Control your spontaneous tendencies, and carefully think through each step as you grow your business.

Next week we’ll take a closer look at some of the finer points of running a small business, and we’ll examine the role of technology and its relevance in the small business environment.