Your Business, the Internet and Your Computer

There has been some buzz out there about boomers starting internet based businesses.  It’s a variation on that working from home thing.  Personally I think it can be an excellent idea.  I’ve been in this technology since 1975 and I’ve applied it to 4 of my 6 startups.

The combination of personal computing, the Internet and high speed communications in the home brings a level of efficiency and leverage to an individual that is unprecedented.  The big thing to remember is that the Internet, your PC and all the rest of the technology are just tools to do a job or run a business.  The business matters not the technology.

I knew a guy 25 years ago who made a nice living selling auto parts for Austin-Healy cars out of his basement.  He did it over the phone with one high school kid working after school to do the shipping.  That business today would benefit from the technology convergence of the Internet, but I don’t think he would make much more money.

In other words the business would not be substantially better because of technology.  Why, because his market size would not have changed one bit.  He would have had more time for fishing and other things.  But, that’s a good reason to employ technology, too.

What does technology do for you as a small business person?

People use technology for two things.  First, you use computers and communications to do the dull, repetitive stuff of business efficiently; sending invoices, keeping accounts, ordering goods.  Second, technology allows you to improve your market reach.  You can expose your business to more people in more places with a relatively small amount of resources.

Note that I said relatively in the sentence above.  Technology is not free.  In relation to older mechanical methods of doing business it is very cheap.  You still have to spend time and money to make money.

Be advised that other people know this.  Big companies know this.  Other entrepreneurs know this.  How many gambling sites are there on the Internet?  Almost too many to count.  Technology may just make you equal to the other people in your market.

At a minimum you must use up to date, not cutting edge, technology to work with your customers.  It may be as simple as offering the quilts you made on e-bay or as sophisticated as linking directly with an auto manufacture’s host computers.  In both cases there is someone to provide you with support when the technological link to your clients breaks down.

This is the most important part of working in this technological business environment.  You must know who to contact when things stop working.  You must know who will get you back up and communicating with your customers.  No matter what services, software or hardware you are buying that is the most important question to ask.   I hope I beat that enough.

What does a small business need in the way of Internet technology?

It really depends on how big your business is and what you are doing.  If you are a franchisee your franchisor will tell you all you need to know.  If you are working with a large customer they will probably dictate what you need to do.  Considering the vast array of products and services it isn’t bad to have someone knowledgeable to help narrow down the field.

If you are small and out there on your own then you need to either know something about current communications and computer technology or know someone who does.  In any case keep it simple.  You may have no choice

Do I want to do business over the Internet?

If you do then you need to have access to the Internet through an Internet Provider or IP.  You can choose someone big like AOL or go with someone smaller and more local.  The big guys provide more packaged services.  The smaller ones offer unbundled services at better prices.  Which one to pick depends on how much of the nuts and bolts you want to know about the services your company uses.  If you are not in the computer technology business and want to concentrate on your real business then choose the big guys with the all inclusive packages.

An important name to remember is PayPal.  For a fee they will handle your money over the Internet.  Considering the risk they take out of your transactions they are worth the price.  There is more risk that you want to know handling credit cards.  Your liabilities can be astronomical if you loose a number.  Unless you feel comfortable about loosing everything you own over a stolen credit card number stick to PayPal.

How much security do I need?

All you can get and a little more.  Ask your Internet Provider about the security they provide and what they recommend for your personal devices.  If you can get them to provide very strong security at a price, take it.  The time spent chasing security holes will take a big chunk out of your day.

What about e-mail?

There ten thousand deals out there.  Pick someone who provides good spam and bug protection.  Stick with them.  Chances are your Internet Provider offers this service.

What kind of equipment should I buy?

Buy the newest and biggest you can afford, avoid the glitz.  Buy the on-site warranty.  You don’t want to be without your PC or printer or whatever for any longer than you have to.  Expect to upgrade this business equipment every 3 years.  Again, service is the most important part of your decision making criteria.  Cool is the stuff never break.

What software should I buy?

Depends on what you are doing.  At a minimum MicroSoft Office or an equivalent.  Apple has the equivalent.  These are the defacto standards.  You can go against the standard, but you’ll spend your time tweaking your system if you do.  On the other hand if you like that sort of thing it can be very rewarding.  Remember the time you spend tweaking is not spent on business.

There are many, many other things to talk about when it comes to applying technology to business and the other way round, but that’s it for now.