by Bruce McCracken

Are you running your business or is your business running you? In 2004, Carol Sconzert, a small business owner from Pacifica, Calif. had to ask herself that question. Her business, Osmosis Creative, started in 2002 providing full-service tradeshow booth graphics. Even though her profession involves computer graphics, the operation of the business was low-tech. "I was broke. I had experienced the frustration of inefficiency. It was a messy manual process," she said.

Sconzert had misconceptions about the role that technology could play in enhancing her business operations. "I didn't think that a lot of technology applied to me. I assumed incorrectly that you had to be in a product business to benefit from a lot of the technology. I didn't see the business value and opportunity that it presented. I discovered that a lot of the groundwork operations could be done easier."

In the past, hype about technology thrusting a small business into the 21st century was frequently a hollow boast. But today there are affordable, proven solutions for small businesses that enhance operations, save time, and increase opportunities for growth.

Know Where You're Going

Before buying technology, a small business needs to assess its shortcomings, such as:

• Problems in operations
• Processes that take too much time or cost too much money
• What customers desire that is currently unavailable
• Shortcomings in keeping up with competitors

After assessing the present situation, you need to decide where your company should be in one year, two years, or five years. Desired capabilities should be prioritized along a timeline to provide a road map for objectives that include:

• Savings of time and money
• Increased efficiency
• Competitive advantage
• Improved customer loyalty
• Growth
• Increased profitability

Denis Pombriant, CEO of Beagle Research, is a veteran technology analyst and researcher. "Consider your needs, then look for solutions — do not try this the other way around."

Do Your Research

Acquiring information from objective, neutral sources is imperative. You should not expect for a computer company to tell you that there are better solutions than their products any more than the car salesman at the Chevy dealership would recommend a Ford. Pombriant says, "many vendors view their product as a hammer and the world as a nail."

Get Professional Advice

Use all the brains that you have, can borrow, and hire in that order. Consult with a peer in your same line of business but who is where you want to be in the future. Ask them what works, what didn't work, and what they would do differently if they had it all to do over again.

"This is not getting a recommendation on a new hairdresser," says Sconzert. "This is something where you want to use experts, and there are experts available to small business people. You do not need to be an IT expert if you have a resource on your side."

An excellent resource to use is America's Small Business Development Center Network (SBDC). You can enter your ZIP code to locate the closest center. The SBDC offers the Technology Advisory Program (TAP), which offers free and low-cost consulting with training and tools.

"I started taking classes with the TAP program and at first did not think any of the topics provided would apply to me since I'm a service business rather than product sales," said Sconzert. She realized that the offerings and services could dramatically improve her business. "A major benefit of TAP to me was an onsite visit by a technology expert. He reviewed my equipment and infrastructure along with recommendations on what to add and why. He put a road map out as steps into a sequence with flexibility on where I wanted to go with the business."

Similarly, SCORE is an excellent resource for free small business advice. It also has a locator based upon ZIP code to contact a counselor, and questions can also be submitted through the web site.

Hardware Can Be Hard

As each business is unique, purchasing decisions for hardware will vary. Do the PCs need to be upgraded? It depends on what you need them to do, now and in the future. In general, a state-of-the-art PC can be counted on to deliver what is needed for at least three years. But if you just edit text and send email, then it could be useful for at least twice as long.

Over one billion PCs have been sold, and the offerings of manufacturers are largely reliable. The biggest change is found in processing speed. The newest processor will increase speed by less than 10 percent but push the cost of an otherwise identical PC up by as much as a third. For most businesses, purchasing the PC with the second-fastest processor will provide the most bang for the buck.

Much like buying a car, it is best to ask an owner how they like their new PC. A good source for objective reviews and comparisons on any products can be found at CNET.

The Two Flavors of Software

The models for acquiring software are similar to acquiring a vehicle: you can buy it or lease it. Purchasing software is called the licensed model as you buy a license to use the software. For example, you pay about $500 to buy a copy of Microsoft Office. It comes in a box with a CD, and you install the software on your computer. You have to pay additional fees for updates.

The other model is known as software as a service (SaaS). SaaS applications are accessed through the Internet. You don't install anything on your computer, and you never have to install updates. SaaS applications have been developed over the past six to seven years. Many were designed specifically for small businesses. Most are tried and true.

SaaS applications are offered on a subscription basis, but unlike leasing a vehicle, they rarely involve a contract or commitment to a lease. These are usually offered on a monthly basis, with a few requiring an annual fee.

A well-known SaaS application is salesforce.com, a sales and marketing contact application. Fees start at $600 per year for five users. Constant Contact, a permission-based targeted email provider, starts at $15 per month. Zoomerang, a survey application useful for customer satisfaction surveys, is free for up to 30 questions and 100 respondents.

For both licensed software and SaaS, you can almost always try before you buy. Licensed software usually comes in a free demo version, and SaaS applications usually allow a free trial period.

Additionally, there are many applications that are free. For example, in regards to software for developing a web page, Pombriant says, "You don't even need FrontPage because there are free web development tools out there."

A good starting point to look into for free applications can be found at download.com. The site includes valuable user reviews.

Overcoming Fear

Pombriant advocates getting outside help through mentoring at little or no cost and utilizing information available on the Internet. "Make life as simple as possible. Don't assume it's all too hard or that you don't need it. Understanding technology and how it works is a Darwinian test of your business chops! After all, if starting a company and running it successfully was easy, more people would be doing it."

Sconzert said, "As a small business owner, I had the ability to do something about it once my eyes were opened and I learned about the opportunities. I had the power to make the decisions. As a small business, I can be nimble and implement technology as the need arises rather than submitting a request for next year's budget."

"Technology has moved me into a different playing field as a small business owner to be able to compete with larger more established companies," Sconzert said. "I've automated parts of the data flow so that what previously took days to process can be done in an hour. As I have it automated, I don't have to pay someone to do redundant work."

"I would tell any other small business owner to not be afraid of introducing more technology into their business," Sconzert said. "My business has grown five times in volume. You don't need to think of technology as a never-ending revenue drain."

About the Author

Bruce McCracken is a journalist and senior analyst for FAO Research. He was born and raised in Long Beach, Calif., and attended Long Beach City College before earning an MA in communications from the University of North Texas.

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