USA Today
From smartphones to souped-up servers, a plethora of technological tools can help small businesses as they expand. Yet with so many options — and so many business demands that need to be met — technology can be daunting for even the most experienced entrepreneurs.
"It's this feeling that you're falling behind constantly," says Todd Thibodeaux, CEO of the Computing Technology Industry Association, the country's largest IT trade association.
"There is so much change out there," he says, and business owners often have much "fear and frustration" as they try to keep up.
There's the cost: Growing businesses often have to shell out big bucks for equipment that could quickly become obsolete. There's also the time factor: 43% of business owners spend more than two hours a week on technology problems, according to a National Small Business Association (NSBA) survey to be released this week.
In addition, many have the constant worry that pertinent information could accidentally be erased or fall into the wrong hands. Business owners must also be prepared to show that their data weren't changed or corrupted if audited, says Andy Monshaw, an IBM general manager who specializes in servicing small and midsize businesses.
"The big issue in the industry is the ability to respond to audits," he says. "Data protection and data security are very important."
With the rising popularity of LinkedIn, Facebook and Twitter, staking out a place in the social-media world is also an increasingly important part of meeting technological needs, Thibodeaux says. Most small businesses — even dry cleaners and restaurants — should create some sort of plan to "engage" customers, he says.
About one-quarter of small-business owners handle tech support for the entire company themselves, according to the NSBA report. They're taking on duties such as upgrading software, overseeing hacker- and virus-resistant e-mail systems and updating Facebook pages.
Consider seeking help
But IT experts say those already overburdened owners should consider seeking outside assistance.
Small-business owners often launch firms that capitalize on their strengths, whether it's baking pies or doing public relations, says Thomas Clancy, founding partner of IT consulting firm Valiant Technology. "But when it comes to doing technology, that's a separate skill set that goes on top of running a business," he says. "And it's something that many can't wrap their head around."
He says that in their bid for technological expansion, many business owners often get overwhelmed, overextend themselves and overspend.
"People get starry-eyed. They say, 'I'm not going to buy anything refurbished. I'm just going to buy new,' " he says. "And then they go to the Apple Store, and they plunk down the platinum card. Then that credit card bill is due."
He's been contacted by companies that have spent $100,000 on new equipment, only to realize that they can't afford it. They then want to pawn it off on someone else, but often, the equipment has lost half its value.
While there are many trying aspects of tapping into technology, when done right, it can rev up revenue.
Ed Eskew, chief information officer at apparel manufacturer Bernard Chaus, says his firm realized that it needed more detailed data on what was and wasn't selling at department stores, so it asked IBM to implement an improved data-tracking system.
"One of our biggest business challenges was trying to manage our retail point-of-sale information," Eskew says. The company wanted to know what styles were doing well and which weren't so it could respond by ordering more of the popular goods and discounting the duds.
Bar codes make things easier
In the past, Bernard Chaus employees traditionally spoke or e-mailed with department store buyers on a weekly basis to see how clothing was selling. But with an updated bar-code system, the firm now gets information on a daily basis.
"We're able to sort of deep dive under the covers," he says. "Now we've got a sense of what's hot and what's moving, and conversely, we know what's not moving."
He says the company is about to discount unpopular goods — and more quickly replenish the clothing lines that are selling well — "so we don't end up at the end of the season with all this inventory sitting in a store that's not moving."
Technological advances and competitive small business seo programs have helped his firm — and others — take on tough rivals, he says.
"It's made the smaller and midsize companies like (us) better able to compete with the bigger, billion-dollar operation," he says. "It's let us keep our doors open during one of the most competitive retail environments in probably 100 years. So we get to breathe another day."
TIPS ON TECH NEEDS
Talk with other owners: "Join a peer group, a local Chamber of Commerce or clubs in your area," says Thomas Clancy, founding partner of IT consulting firm Valiant Technology. "See how other people are doing it." Also ask those folks for IT staff suggestions. "Referrals are usually a pretty good way to find someone," he says. "That's why it's important to get connected into your local business community."
Go with a pro: Don't hire a tech-savvy college kid, an iPad-loving brother-in-law or the receptionist's boyfriend to tackle tough IT needs, Clancy says. Those without formal training don't have the skills to help a company grow — and if the receptionist gets fired, the company may find itself with a bunch of deleted information, he says.
Do some homework: A firm should do some sleuthing before contracting with an outside IT provider. Find out how long the company has been in business and ask to speak with current customers, says Todd Thibodeaux, CEO of the Computing Technology Industry Association, the country's largest IT trade association. Also, ask about their past "disaster recovery" efforts: "Ask them to think of a situation when their customer's (systems) went down and how fast they got it back up," he says.
Tap into IT's know-how: Disregard the false notion that most IT folks are geeks who only like to tinker with computer code and wire — and bring them into business discussions about forecasting needs. "An IT provider shouldn't just be serving your e-mail and making your printer work," says Clancy. "That's just the most basic level of service, and it's not going to help you grow your business."
Consider more than price:"Ask, 'What kinds of services can I expect?' " says Clancy. "You shouldn't think about price first. First find out what the company can do for you. Be open minded. In the end you may pay 10% more, but you could get 50% more capability."
"It's this feeling that you're falling behind constantly," says Todd Thibodeaux, CEO of the Computing Technology Industry Association, the country's largest IT trade association.
"There is so much change out there," he says, and business owners often have much "fear and frustration" as they try to keep up.
There's the cost: Growing businesses often have to shell out big bucks for equipment that could quickly become obsolete. There's also the time factor: 43% of business owners spend more than two hours a week on technology problems, according to a National Small Business Association (NSBA) survey to be released this week.
In addition, many have the constant worry that pertinent information could accidentally be erased or fall into the wrong hands. Business owners must also be prepared to show that their data weren't changed or corrupted if audited, says Andy Monshaw, an IBM general manager who specializes in servicing small and midsize businesses.
"The big issue in the industry is the ability to respond to audits," he says. "Data protection and data security are very important."
With the rising popularity of LinkedIn, Facebook and Twitter, staking out a place in the social-media world is also an increasingly important part of meeting technological needs, Thibodeaux says. Most small businesses — even dry cleaners and restaurants — should create some sort of plan to "engage" customers, he says.
About one-quarter of small-business owners handle tech support for the entire company themselves, according to the NSBA report. They're taking on duties such as upgrading software, overseeing hacker- and virus-resistant e-mail systems and updating Facebook pages.
Consider seeking help
But IT experts say those already overburdened owners should consider seeking outside assistance.
Small-business owners often launch firms that capitalize on their strengths, whether it's baking pies or doing public relations, says Thomas Clancy, founding partner of IT consulting firm Valiant Technology. "But when it comes to doing technology, that's a separate skill set that goes on top of running a business," he says. "And it's something that many can't wrap their head around."
He says that in their bid for technological expansion, many business owners often get overwhelmed, overextend themselves and overspend.
"People get starry-eyed. They say, 'I'm not going to buy anything refurbished. I'm just going to buy new,' " he says. "And then they go to the Apple Store, and they plunk down the platinum card. Then that credit card bill is due."
He's been contacted by companies that have spent $100,000 on new equipment, only to realize that they can't afford it. They then want to pawn it off on someone else, but often, the equipment has lost half its value.
While there are many trying aspects of tapping into technology, when done right, it can rev up revenue.
Ed Eskew, chief information officer at apparel manufacturer Bernard Chaus, says his firm realized that it needed more detailed data on what was and wasn't selling at department stores, so it asked IBM to implement an improved data-tracking system.
"One of our biggest business challenges was trying to manage our retail point-of-sale information," Eskew says. The company wanted to know what styles were doing well and which weren't so it could respond by ordering more of the popular goods and discounting the duds.
Bar codes make things easier
In the past, Bernard Chaus employees traditionally spoke or e-mailed with department store buyers on a weekly basis to see how clothing was selling. But with an updated bar-code system, the firm now gets information on a daily basis.
"We're able to sort of deep dive under the covers," he says. "Now we've got a sense of what's hot and what's moving, and conversely, we know what's not moving."
He says the company is about to discount unpopular goods — and more quickly replenish the clothing lines that are selling well — "so we don't end up at the end of the season with all this inventory sitting in a store that's not moving."
Technological advances and competitive small business seo programs have helped his firm — and others — take on tough rivals, he says.
"It's made the smaller and midsize companies like (us) better able to compete with the bigger, billion-dollar operation," he says. "It's let us keep our doors open during one of the most competitive retail environments in probably 100 years. So we get to breathe another day."
TIPS ON TECH NEEDS
Talk with other owners: "Join a peer group, a local Chamber of Commerce or clubs in your area," says Thomas Clancy, founding partner of IT consulting firm Valiant Technology. "See how other people are doing it." Also ask those folks for IT staff suggestions. "Referrals are usually a pretty good way to find someone," he says. "That's why it's important to get connected into your local business community."
Go with a pro: Don't hire a tech-savvy college kid, an iPad-loving brother-in-law or the receptionist's boyfriend to tackle tough IT needs, Clancy says. Those without formal training don't have the skills to help a company grow — and if the receptionist gets fired, the company may find itself with a bunch of deleted information, he says.
Do some homework: A firm should do some sleuthing before contracting with an outside IT provider. Find out how long the company has been in business and ask to speak with current customers, says Todd Thibodeaux, CEO of the Computing Technology Industry Association, the country's largest IT trade association. Also, ask about their past "disaster recovery" efforts: "Ask them to think of a situation when their customer's (systems) went down and how fast they got it back up," he says.
Tap into IT's know-how: Disregard the false notion that most IT folks are geeks who only like to tinker with computer code and wire — and bring them into business discussions about forecasting needs. "An IT provider shouldn't just be serving your e-mail and making your printer work," says Clancy. "That's just the most basic level of service, and it's not going to help you grow your business."
Consider more than price:"Ask, 'What kinds of services can I expect?' " says Clancy. "You shouldn't think about price first. First find out what the company can do for you. Be open minded. In the end you may pay 10% more, but you could get 50% more capability."
