07/ 31/ 2008
by Megan Goodchild and Megan Pacella; intro by Rex Hammock
How does technology leap from trendy to mainstream? For small business owners, the answer can have a bottom-line impact: Adopt something too early, and you may discover where the term bleeding edge came from; latch on too late and an obvious opportunity may pass you by. The good news is that truly revolutionary technology rarely displaces the status quo overnight--even in the Internet age.
Paul Saffo, a technology forecaster and Stanford University professor, argues that a 20-year technology adoption cycle is still the norm. Often, technology we may think is new has actually been around a lot longer than we realize. If you doubt that, watch a movie from the 1980s: You’ll see mobile phones, personal computers and modems that allow users to connect all over the world. Obviously, the processing speed, bandwidth, storage and other advancements have marched forward, but the basic concepts of how information can be created, shared and stored were all in place more than 20 years ago--long before most of us had ever heard of the Internet.
In 2008 and beyond, the new frontier of technology has become the now frontier. The technology that enables many of the gadgets we use is slowly fading into the background. The fact that we think of a cell phone as a tool--not as a technology--signals that we have reached an era in which computer and networking technology is merely part of the plumbing of our business processes and relationships.
In this special report, we take a look at some of those technology-enabled practices that have taken 20-plus years to become an essential part of the way we’ll be doing business far into the future.
Social Networking
Alan Guinn isn’t afraid to put himself out there. A quick Google search of his name yields nearly 2,500 hits, undoubtedly a result of his unique approach to networking--social networking, that is.
"To some small business owners, networking means going to industry mixers on Thursday nights," he says. "To me, it means adding 10 new contacts on LinkedIn."
In 2004, Guinn started checking out online social networking services like LinkedIn to see what value--if any--they could offer Bristol, Tenn.-based Guinn Consultancy Group. He quickly got his answer, and today Guinn actively participates in social networking giants like Facebook, MySpace, LinkedIn and Second Life.
"Sites like these make it so much easier to expand your circle of contacts," he says.
Though he finds it hard to calculate, Guinn estimates his business has grown by about 40 percent since joining the online community.
"You can do only so much for yourself," he says. "What you can do for yourself--combined with what your network of friends and associates can do--is exponentially larger."
Guinn also discovered that while many small businesses now recognize the importance of being online and have created Web sites for their companies, they don’t necessarily understand how to use the Internet to its fullest potential. And that’s where he comes in.
"If you don’t market your Web site, nobody is ever going to find it," Guinn says. "The social networking opportunities give you that added ’oomph’--the opportunity to really market what you have."
One service that Guinn has become increasingly involved in is Second Life, a virtual world where users interact with each other much like they would in real life: They socialize, buy land, build homes and purchase goods. Both small and large businesses are setting up shop in droves in Second Life--and are seeing users purchase their products. Guinn has seen success in making real-world business connections through Second Life, and he is currently working with one client to set up a virtual shop where customers can view and order pieces of jewelry.
"Whether we like it or not, we’re becoming one connected world," he says. "We need to be able to cast a wider net, and that’s what social networking allows us to do."
While Guinn continues to see more businesses get on board with social networking, he still sees reluctance and fear, too.
"I see it in client after client--the typical fear of the unknown," he says.
Guinn doesn’t think businesses that ignore social networking tools will necessarily fail, but he does think they’ll miss out.
"There will always be opportunities for business growth," he says, "But the true top-end opportunities will be developed by the people who recognize and embrace the technology changes that are out there."
Five sites that will help your business grow
Facebook: Join networks based on your hometown and your schools and universities. Then, create and join groups based on your interests--your business, for example.
LinkedIn: Make professional connections on this business-oriented site. Users can specify their purpose for being there--from job hunting (or looking for the right candidate) to finding new business leads.
MySpace: Despite the site’s reputation as a service primarily for teens and bands, businesses have recognized its potential for distributing messages to a large number of people.
Second Life: Create an animated avatar to navigate this virtual world. Users socialize and buy items such as land, goods and pets. As more real-world businesses set up shop, they can buy real products and services, too.
Twitter: Twitter has gained attention recently as a micro-blogging service used to relay information quickly or in times of emergency. Updates are displayed on the user’s Twitter.com page and can be delivered as text messages to users who "follow" you.
Software as a Service
Michelle Hatmaker knows up-to-date technology is crucial to running a real estate business--especially when you’re trying to grow in the midst of a slumping housing industry. To help Galveston, Texas-based Hatmaker Group battle the slowing economy, she invested in a customer relationship management program that her company uses to organize contacts and coordinate marketing efforts. The program also syncs to Microsoft Outlook and Excel so Hatmaker’s employees can track client contacts and set reminders to ensure no client gets overlooked.
"In real estate, he who acts quickest accomplishes the most," she says. "We have to employ good software that will help us meet our customers’ demands."
But at what cost? Very little, actually, thanks to the concept of software as a service (SaaS). As opposed to costly and hard-to-maintain applications that are loaded onto a user’s computer, SaaS is Web-based, meaning that when something goes wrong, it’s not your problem (unless you’ve lost your Internet connection, of course). SaaS frees users from the hassles of software maintenance, support and upgrades, which is helpful to small business owners who can’t always afford a full-time IT staff.
The Hatmaker Group has caught on quickly to the SaaS trend. Before the company added the CRM program, employees had already been downloading necessary real estate documents, contracts and addendums from anywhere they could get Internet access. Another application the Hatmaker Group uses allows clients to log into a Web site and follow every stage of their transaction online. A detail-oriented office management program tracks each of the Hatmaker Group’s listings, contracts, advertisements and appointments to keep the back office running smoothly.
But SaaS programs like these are only as effective as the people using them. "Most of our sales partners are excited, and they feel it will help them provide a higher level of customer service," she says. "But there are always a few people who are apprehensive about new technology--that’s where in-house training comes in. You need to help employees gain confidence so they feel comfortable using new technology."
How to run a business without Microsoft applications
Microsoft applications are perhaps the most ubiquitous products in the small business world. It’s hard to imagine a company that doesn’t have at least Microsoft Word, Excel and PowerPoint up and running on a Windows--or even a Mac--computer. But will the day come when you can run a small business without Microsoft?
It’s hard to tell, but in the next few months and years you’ll have plenty of chances to experiment (for free, in many instances) with alternative ways to create, store and share all the types of documents you currently work with using Microsoft applications. There are several browser-based software competitors, but the two most significant commercial ventures targeting the small business market are Google’s Docs and Zoho. And OpenOffice is an open-source project supported by several major technology companies.
Using your computer’s Web browser, these online services allow you to create word-processing documents, spreadsheets, presentations and a wide array of other work-related applications--for free. There are some obvious barriers that will keep most small businesses from going without Microsoft anytime soon, since virtually everyone with whom you do business uses Microsoft software. But there are also a few advantages. For example, running Web-based software can back up important data seamlessly, decrease your dependency on IT personnel and allow you to work remotely--not to mention increase the cash you’ll save by using free programs.
Mobile Technology
In the window treatment business, if you’re not exact in your measurements, you’re in trouble.
"One of the biggest problems with window treatments is transposing numbers," says Richard Guthrie, owner of Budget Blinds of Lee’s Summit and Blue Springs in Missouri.
So Guthrie was intrigued when he heard about a new technology package offered by Solatech, a window treatment technology company, that would streamline the estimate and ordering process--and help eliminate mistakes.
"We’re getting a tablet PC, new software, wireless printer and laser measurer," Guthrie says.
Capable of performing the same tasks as a desktop or laptop, tablet PCs provide added flexibility with touch screen and graphics-tablet features. And as their price tags continue to drop (a middle-of-the-road configuration costs about $1,200), tablet PCs are becoming increasingly popular. Combining the portability and functionality of a laptop with the convenience of an old-fashioned notepad, tablet PCs offer a technology solution that fits small business owners’ busy schedules.
When Guthrie and his employees go into a home to provide an estimate, this new technology will allow them to pull up available window treatment products on the tablet computer and give the customer a quote immediately, including a cost comparison among treatment options.
If the customer accepts the estimate, the employee can use the wireless printer to print a work order and have it signed on site.
"If you’re going into a house with 18 to 25 windows, that can take two hours," Guthrie says. "This new technology should save us up to 30 percent of that time."
Besides saving time, the system’s software program has checks and balances to ensure no step is overlooked and all data is entered appropriately.
"If you forget something, it will flag it," Guthrie says. "It has certain fail-safe systems that come in when a person overlooks something." With the tablet computer, Guthrie will no longer have to struggle to read sloppy handwriting, which can potentially lead to mistakes. "This will make everything more legible," Guthrie says.
Guthrie is looking forward to launching the new system to see how it helps eliminate mistakes on the job, and he’s excited that his business will look more professional, too, he says.
While Guthrie admits he isn’t always up on all of the latest technology, he does recognize its importance in the business world.
"If you don’t have new technology, you’re not going to be in business," he says. "You won’t be able to keep up with the trends."
Equipping your mobile office
A portable computer: A laptop or tablet PC is a staple of any mobile office. Look for a lightweight, durable model to cut down on strain and stress.
Cell phone: Chances are it’s time for an upgrade. Today’s cell phones--like the BlackBerry or iPhone--go beyond talking; most function like handheld computers.
Headset: Hands-free talking is a must while driving.
Printer: Forget the boxy dinosaur you have back at the office. Mobile printers today offer high quality pages at a light weight--and low price. (Check out page 18 for a look at one of the newest ones on the market.)
GPS device: Never get lost again with a GPS device from Garmin, TomTom or Magellan. Just type in the address and wait for the device to calculate the route.
NFIB.com
What kind of mobile technology best suits your business? Is there such a thing as too much communication from the field? What products can help you set up shop when you’re away from the office? Find the answers to these questions and more in the "Office" section of www.NFIB.com/toolsandtips.
Paperless Office
Joe Colopy doesn’t like a lot of paper floating around the office. That’s why Bronto Software, his Durham, N.C.-based e-mail marketing company, has done away with its dependency on filing cabinets and invested in technology that helps employees not only reduce the need for paper--but also work faster. "The days of people carrying briefcases stuffed with every document and contract they need to work with are over," says Colopy, Bronto’s CEO. "Today people can access everything they need online with a computer."
Transforming your business into a paperless enterprise may seem like a daunting task, but it starts with just a few small adjustments. For Bronto Software, the path to reducing paper use started when the company began uploading hard copies of old documents onto a central server. Soon, the new filing system evolved into a way of doing business.
Without tons of paper shuffling around the office, Bronto Software is "wildly more productive," Colopy says. The company largely communicates with clients through e-mail, and as a result, their information can be accessed quickly by employees--no matter where they are. "We used to have what I call the dentist’s office method of filing, with manila folders for every client," Colopy says. "Now it’s all organized on the server to make it usable and accessible for everyone. If our employees are traveling, attending a trade show or visiting a client, it provides the flexibility they need to keep their clients happy from the road."
Besides helping Bronto offer clients better customer service, cutting paper use has helped the company maximize its resources. "Since we moved everything online, it’s really helped us grow the business," Colopy says. "The No. 1 expense for us is people, so if we can make them more efficient, we save money and serve our customers better."
Ready to trim paper consumption in your office? Here are a few tips for every kind of paper cutter.
Beginner: Make smart decisions that trim down your paper use and set an example for employees. Instead of printing and filing e-mails, articles and memos you need to work with, put them in a special folder on your computer for easy access.
Intermediate: File cabinets are a thing of the past. Scan all hard copies of contracts and important documents--just be sure to back up the files in multiple locations in case of a computer or software mishap.
Advanced: In most cases, document management software is necessary for a completely paperless office. Steer away from low-end versions of this software. Instead, look for products that offer individualized training and are modular, allowing you to purchase only the components you need.
NFIB.com
Going paperless makes regular backups and ironclad data security all the more important. Get tips on both at www.NFIB.com/object/IO_38076.html.
This article is from the August/September 2008 issue of MyBusiness.
