With a still-growing user base of at least 120 million, LinkedIn has become THE professional social networking tool of many businesses. While Facebook is still the major network on the personal side, LinkedIn’s importance in the business-to-business world is growing.

With LinkedIn, your social networking strategy doesn’t have to be complex, and smaller companies, in particular, can quickly see results with just a little effort. Here are a few pointers to help you maximize the positive effect of your LinkedIn connections.

Be comprehensive.
“Short and sweet” may be the rule of thumb in any other kind of forum, but for professional purposes it’s always best to include as many credentials about you and your business as possible. It’s helpful to give potential clients and connections the full story on your strengths – which means listing past employment and work experience, academic backgrounds, pertinent skills, competencies and certifications, and even educational backgrounds. It’s important to understand that many of the people who will enlist your services will only have your online credentials to go on, so give them a complete picture of what you’ve done and can do.

Customize your URL.
When you create a LinkedIn profile, the site auto-generates a URL for that profile. But did you know that you can customize and change that URL? By changing it to reflect your business, it makes you much easier to remember and find.

Be involved.
Much like in Facebook, a LinkedIn profile is useless if you simply post and forget. It’s essential to keep your info up to date, and interact with people by posting questions and comments. Proactive, educational input into the groups that serve your potential clients will build a good impression with professionals who are looking for the services or products that your company supplies.

We are always ready to help you build your business, so let us help you build your customer connections.

With a still-growing user base of at least 120 million, LinkedIn has become THE professional social networking tool of many businesses. While Facebook is still the major network on the personal side, LinkedIn’s importance in the business-to-business world is growing.

With LinkedIn, your social networking strategy doesn’t have to be complex, and smaller companies, in particular, can quickly see results with just a little effort. Here are a few pointers to help you maximize the positive effect of your LinkedIn connections.

Be comprehensive.
“Short and sweet” may be the rule of thumb in any other kind of forum, but for professional purposes it’s always best to include as many credentials about you and your business as possible. It’s helpful to give potential clients and connections the full story on your strengths – which means listing past employment and work experience, academic backgrounds, pertinent skills, competencies and certifications, and even educational backgrounds. It’s important to understand that many of the people who will enlist your services will only have your online credentials to go on, so give them a complete picture of what you’ve done and can do.

Customize your URL.
When you create a LinkedIn profile, the site auto-generates a URL for that profile. But did you know that you can customize and change that URL? By changing it to reflect your business, it makes you much easier to remember and find.

Be involved.
Much like in Facebook, a LinkedIn profile is useless if you simply post and forget. It’s essential to keep your info up to date, and interact with people by posting questions and comments. Proactive, educational input into the groups that serve your potential clients will build a good impression with professionals who are looking for the services or products that your company supplies.

We are always ready to help you build your business, so let us help you build your customer connections.

With a still-growing user base of at least 120 million, LinkedIn has become THE professional social networking tool of many businesses. While Facebook is still the major network on the personal side, LinkedIn’s importance in the business-to-business world is growing.

With LinkedIn, your social networking strategy doesn’t have to be complex, and smaller companies, in particular, can quickly see results with just a little effort. Here are a few pointers to help you maximize the positive effect of your LinkedIn connections.

Be comprehensive.
“Short and sweet” may be the rule of thumb in any other kind of forum, but for professional purposes it’s always best to include as many credentials about you and your business as possible. It’s helpful to give potential clients and connections the full story on your strengths – which means listing past employment and work experience, academic backgrounds, pertinent skills, competencies and certifications, and even educational backgrounds. It’s important to understand that many of the people who will enlist your services will only have your online credentials to go on, so give them a complete picture of what you’ve done and can do.

Customize your URL.
When you create a LinkedIn profile, the site auto-generates a URL for that profile. But did you know that you can customize and change that URL? By changing it to reflect your business, it makes you much easier to remember and find.

Be involved.
Much like in Facebook, a LinkedIn profile is useless if you simply post and forget. It’s essential to keep your info up to date, and interact with people by posting questions and comments. Proactive, educational input into the groups that serve your potential clients will build a good impression with professionals who are looking for the services or products that your company supplies.

We are always ready to help you build your business, so let us help you build your customer connections.

When it comes to Facebook, the usual default attitude of businesses is to shun it completely. And while there is merit to the argument that social networks, Facebook especially, can hamper and derail productivity in an organization, there is also a lot Facebook can do to help your business grow.

Reports cite that as many as 800 million people around the world are on Facebook – that’s a larger-than-life audience that makes marketing experts giddy with excitement. When you think about it, Facebook presents a huge marketing opportunity for you and your business to connect with a lot of people who may become potential clients in the future. Think of having a Facebook page as a mini-website of sorts, one that supplements and complements your main website.

Since it’s a medium to establish rapport with potential clients, experts suggest that a business Facebook page must contain more interesting content – related to your business, of course – designed to attract readers and visitors, rather than hard-sell information about your products and services. Your Facebook page serves as a complement to your website, not a duplicate of it. If you consistently serve up interesting and useful information, people will then go to your website to see what you’re all about.

Also, don’t hesitate to establish more personal relationships with people who visit your Facebook page – the ‘likers’ and the people who comment and ask questions. Answer queries promptly and make yourself visible. One of the points of having a Facebook page is so people won’t feel intimidated by a stiff corporate front – a Facebook page tells them that you’re a company that’s willing to hear them out and listen to what they want.

If you want to know more about how to use Facebook pages to help your business grow, please give us a call and we’ll be happy to sit down with you to draw up potential strategies to increase your online presence and potential client base.

When it comes to Facebook, the usual default attitude of businesses is to shun it completely. And while there is merit to the argument that social networks, Facebook especially, can hamper and derail productivity in an organization, there is also a lot Facebook can do to help your business grow.

Reports cite that as many as 800 million people around the world are on Facebook – that’s a larger-than-life audience that makes marketing experts giddy with excitement. When you think about it, Facebook presents a huge marketing opportunity for you and your business to connect with a lot of people who may become potential clients in the future. Think of having a Facebook page as a mini-website of sorts, one that supplements and complements your main website.

Since it’s a medium to establish rapport with potential clients, experts suggest that a business Facebook page must contain more interesting content – related to your business, of course – designed to attract readers and visitors, rather than hard-sell information about your products and services. Your Facebook page serves as a complement to your website, not a duplicate of it. If you consistently serve up interesting and useful information, people will then go to your website to see what you’re all about.

Also, don’t hesitate to establish more personal relationships with people who visit your Facebook page – the ‘likers’ and the people who comment and ask questions. Answer queries promptly and make yourself visible. One of the points of having a Facebook page is so people won’t feel intimidated by a stiff corporate front – a Facebook page tells them that you’re a company that’s willing to hear them out and listen to what they want.

If you want to know more about how to use Facebook pages to help your business grow, please give us a call and we’ll be happy to sit down with you to draw up potential strategies to increase your online presence and potential client base.

When it comes to Facebook, the usual default attitude of businesses is to shun it completely. And while there is merit to the argument that social networks, Facebook especially, can hamper and derail productivity in an organization, there is also a lot Facebook can do to help your business grow.

Reports cite that as many as 800 million people around the world are on Facebook – that’s a larger-than-life audience that makes marketing experts giddy with excitement. When you think about it, Facebook presents a huge marketing opportunity for you and your business to connect with a lot of people who may become potential clients in the future. Think of having a Facebook page as a mini-website of sorts, one that supplements and complements your main website.

Since it’s a medium to establish rapport with potential clients, experts suggest that a business Facebook page must contain more interesting content – related to your business, of course – designed to attract readers and visitors, rather than hard-sell information about your products and services. Your Facebook page serves as a complement to your website, not a duplicate of it. If you consistently serve up interesting and useful information, people will then go to your website to see what you’re all about.

Also, don’t hesitate to establish more personal relationships with people who visit your Facebook page – the ‘likers’ and the people who comment and ask questions. Answer queries promptly and make yourself visible. One of the points of having a Facebook page is so people won’t feel intimidated by a stiff corporate front – a Facebook page tells them that you’re a company that’s willing to hear them out and listen to what they want.

If you want to know more about how to use Facebook pages to help your business grow, please give us a call and we’ll be happy to sit down with you to draw up potential strategies to increase your online presence and potential client base.

Differentiate your company and increase your profits—with IT

It’s easy to think of IT as a tool that comes with a cost—but doing so is a big mistake. That’s because IT, when used properly, can be a strategic asset. It can make your information more accurate, improve your employees’ response time, and even differentiate your company in the marketplace.

To make IT a strategic asset as opposed to a tool, it needs to add value. To determine where to make improvement, you’ll want to look at your value chain, which includes all the activities your business performs, and ask which ones earn profits. For example, if you’re a manufacturer, better IT could result in more efficient supply purchasing. If you’re a retailer, better IT could result in fewer units needing after-sales service and repair. Focus on improving IT in those areas and you’ll likely improve profits.

An added benefit of this exercise: The use of IT in a new way may create even more opportunities for your company. For example, the Internet allowed Apple to invent iTunes, and now mp3 downloads have overtaken CD sales. Even small businesses can experience this. Case in point: The invention of iTunes has given many startup software companies a distribution channel for apps that otherwise may not have been invented. But the idea doesn’t have to be visionary in this way: YourLittleFilm.com, a small business that creates custom short films, used customer relationship management (CRM) software to help follow up on business leads, and got a 10 percent response rate.

How and where you add value with IT developments will depend on your business model. There is little point, for example, in automating production if your customers cherish hand-made products. However, you might find that investing in a CRM system might give you a more efficient way to track your customers’ preferences and provide them with a more personalized service.

Using your IT as a strategic asset gives you tools to manage clients worldwide, increases your visibility, and lets you compete with much larger players. Contact us to find out how you can use technology to gain an edge.

Differentiate your company and increase your profits—with IT

It’s easy to think of IT as a tool that comes with a cost—but doing so is a big mistake. That’s because IT, when used properly, can be a strategic asset. It can make your information more accurate, improve your employees’ response time, and even differentiate your company in the marketplace.

To make IT a strategic asset as opposed to a tool, it needs to add value. To determine where to make improvement, you’ll want to look at your value chain, which includes all the activities your business performs, and ask which ones earn profits. For example, if you’re a manufacturer, better IT could result in more efficient supply purchasing. If you’re a retailer, better IT could result in fewer units needing after-sales service and repair. Focus on improving IT in those areas and you’ll likely improve profits.

An added benefit of this exercise: The use of IT in a new way may create even more opportunities for your company. For example, the Internet allowed Apple to invent iTunes, and now mp3 downloads have overtaken CD sales. Even small businesses can experience this. Case in point: The invention of iTunes has given many startup software companies a distribution channel for apps that otherwise may not have been invented. But the idea doesn’t have to be visionary in this way: YourLittleFilm.com, a small business that creates custom short films, used customer relationship management (CRM) software to help follow up on business leads, and got a 10 percent response rate.

How and where you add value with IT developments will depend on your business model. There is little point, for example, in automating production if your customers cherish hand-made products. However, you might find that investing in a CRM system might give you a more efficient way to track your customers’ preferences and provide them with a more personalized service.

Using your IT as a strategic asset gives you tools to manage clients worldwide, increases your visibility, and lets you compete with much larger players. Contact us to find out how you can use technology to gain an edge.

Differentiate your company and increase your profits—with IT

It’s easy to think of IT as a tool that comes with a cost—but doing so is a big mistake. That’s because IT, when used properly, can be a strategic asset. It can make your information more accurate, improve your employees’ response time, and even differentiate your company in the marketplace.

To make IT a strategic asset as opposed to a tool, it needs to add value. To determine where to make improvement, you’ll want to look at your value chain, which includes all the activities your business performs, and ask which ones earn profits. For example, if you’re a manufacturer, better IT could result in more efficient supply purchasing. If you’re a retailer, better IT could result in fewer units needing after-sales service and repair. Focus on improving IT in those areas and you’ll likely improve profits.

An added benefit of this exercise: The use of IT in a new way may create even more opportunities for your company. For example, the Internet allowed Apple to invent iTunes, and now mp3 downloads have overtaken CD sales. Even small businesses can experience this. Case in point: The invention of iTunes has given many startup software companies a distribution channel for apps that otherwise may not have been invented. But the idea doesn’t have to be visionary in this way: YourLittleFilm.com, a small business that creates custom short films, used customer relationship management (CRM) software to help follow up on business leads, and got a 10 percent response rate.

How and where you add value with IT developments will depend on your business model. There is little point, for example, in automating production if your customers cherish hand-made products. However, you might find that investing in a CRM system might give you a more efficient way to track your customers’ preferences and provide them with a more personalized service.

Using your IT as a strategic asset gives you tools to manage clients worldwide, increases your visibility, and lets you compete with much larger players. Contact us to find out how you can use technology to gain an edge.

In this day and age, few businesses (if any) can survive without an IT arm. Every business, big or small, needs someone, or preferably a group of people, on hand to fix computer problems, check networks, monitor software – to generally make sure that their operations are running smoothly.

One question, though: have you ever stopped to consider whether the cost of maintaining your in-house IT system is worth it? For instance, consider your internet connection. Let’s say that a conservative estimate of the efficiency of your business without an internet connection is at 50%. And if your business makes a $1 million a year, then $500,000 depends on your internet connection. If your monthly bill for that connection is $500, or $6,000 annually, you earn $500,000 – $6,000 = $494,000. Now, if you decide to switch to a cheaper DSL connection, which is about $50 per month or $480 a year, you get a much higher figure: $499,520.

You could argue that the DSL is the wiser option, but when you look at a deeper level, a slower internet connection may also hamper your company’s productivity – let’s say, by 10%. So with only a DSL connection, your business operates at 90% of its total possible productivity. Considering the previous figures, a loss of 10% in productivity means a loss of $100,000. Subtract that savings from the DSL connection, $5,520 – you get a whopping loss of $94,480. So when you think you’re saving by getting a cheaper internet connection, you are actually losing more money. Inversely, if you subscribe to an even better connection that costs you $10,000, productivity can increase by $15,000.

The same principle applies when your IT infrastructure is not up to date, with slow computers, outdated software, and other problems. In a company with 10 employees who bring in an annual average of $65,000 each, even losing productivity for just 35 minutes a day due to IT handicaps can cost you $47,000. Hardly chump change! But hiring an IT provider who charges $20,000 a year can offset that lost productivity and even make your business run better, by as much as $27,000. It’s also noteworthy to mention that employing an IT firm can count as a legitimate business expense, thereby lowering your tax liability to about $8,000 if you peg corporate tax at 40%.

IT is important to a business. If you doubt that, just try doing without it for a week – just shut the whole thing down. For most, that’s out of the question, but operating with old software and hardware is almost just as bad. However, many businesses cannot spare the resources to continually upgrade their IT systems.

Enlisting the services of an IT firm changes all that. IT Service Providers are constantly on the lookout for better technologies – both hardware and software – that can make your business function much more efficiently and cost effectively. It’s what they do. And the costs are minimal. If you’re wondering how much better your company might operate with an IT Service Provider, we’ll be happy to sit down with you and run some numbers.

In this day and age, few businesses (if any) can survive without an IT arm. Every business, big or small, needs someone, or preferably a group of people, on hand to fix computer problems, check networks, monitor software – to generally make sure that their operations are running smoothly.

One question, though: have you ever stopped to consider whether the cost of maintaining your in-house IT system is worth it? For instance, consider your internet connection. Let’s say that a conservative estimate of the efficiency of your business without an internet connection is at 50%. And if your business makes a $1 million a year, then $500,000 depends on your internet connection. If your monthly bill for that connection is $500, or $6,000 annually, you earn $500,000 – $6,000 = $494,000. Now, if you decide to switch to a cheaper DSL connection, which is about $50 per month or $480 a year, you get a much higher figure: $499,520.

You could argue that the DSL is the wiser option, but when you look at a deeper level, a slower internet connection may also hamper your company’s productivity – let’s say, by 10%. So with only a DSL connection, your business operates at 90% of its total possible productivity. Considering the previous figures, a loss of 10% in productivity means a loss of $100,000. Subtract that savings from the DSL connection, $5,520 – you get a whopping loss of $94,480. So when you think you’re saving by getting a cheaper internet connection, you are actually losing more money. Inversely, if you subscribe to an even better connection that costs you $10,000, productivity can increase by $15,000.

The same principle applies when your IT infrastructure is not up to date, with slow computers, outdated software, and other problems. In a company with 10 employees who bring in an annual average of $65,000 each, even losing productivity for just 35 minutes a day due to IT handicaps can cost you $47,000. Hardly chump change! But hiring an IT provider who charges $20,000 a year can offset that lost productivity and even make your business run better, by as much as $27,000. It’s also noteworthy to mention that employing an IT firm can count as a legitimate business expense, thereby lowering your tax liability to about $8,000 if you peg corporate tax at 40%.

IT is important to a business. If you doubt that, just try doing without it for a week – just shut the whole thing down. For most, that’s out of the question, but operating with old software and hardware is almost just as bad. However, many businesses cannot spare the resources to continually upgrade their IT systems.

Enlisting the services of an IT firm changes all that. IT Service Providers are constantly on the lookout for better technologies – both hardware and software – that can make your business function much more efficiently and cost effectively. It’s what they do. And the costs are minimal. If you’re wondering how much better your company might operate with an IT Service Provider, we’ll be happy to sit down with you and run some numbers.

In this day and age, few businesses (if any) can survive without an IT arm. Every business, big or small, needs someone, or preferably a group of people, on hand to fix computer problems, check networks, monitor software – to generally make sure that their operations are running smoothly.

One question, though: have you ever stopped to consider whether the cost of maintaining your in-house IT system is worth it? For instance, consider your internet connection. Let’s say that a conservative estimate of the efficiency of your business without an internet connection is at 50%. And if your business makes a $1 million a year, then $500,000 depends on your internet connection. If your monthly bill for that connection is $500, or $6,000 annually, you earn $500,000 – $6,000 = $494,000. Now, if you decide to switch to a cheaper DSL connection, which is about $50 per month or $480 a year, you get a much higher figure: $499,520.

You could argue that the DSL is the wiser option, but when you look at a deeper level, a slower internet connection may also hamper your company’s productivity – let’s say, by 10%. So with only a DSL connection, your business operates at 90% of its total possible productivity. Considering the previous figures, a loss of 10% in productivity means a loss of $100,000. Subtract that savings from the DSL connection, $5,520 – you get a whopping loss of $94,480. So when you think you’re saving by getting a cheaper internet connection, you are actually losing more money. Inversely, if you subscribe to an even better connection that costs you $10,000, productivity can increase by $15,000.

The same principle applies when your IT infrastructure is not up to date, with slow computers, outdated software, and other problems. In a company with 10 employees who bring in an annual average of $65,000 each, even losing productivity for just 35 minutes a day due to IT handicaps can cost you $47,000. Hardly chump change! But hiring an IT provider who charges $20,000 a year can offset that lost productivity and even make your business run better, by as much as $27,000. It’s also noteworthy to mention that employing an IT firm can count as a legitimate business expense, thereby lowering your tax liability to about $8,000 if you peg corporate tax at 40%.

IT is important to a business. If you doubt that, just try doing without it for a week – just shut the whole thing down. For most, that’s out of the question, but operating with old software and hardware is almost just as bad. However, many businesses cannot spare the resources to continually upgrade their IT systems.

Enlisting the services of an IT firm changes all that. IT Service Providers are constantly on the lookout for better technologies – both hardware and software – that can make your business function much more efficiently and cost effectively. It’s what they do. And the costs are minimal. If you’re wondering how much better your company might operate with an IT Service Provider, we’ll be happy to sit down with you and run some numbers.

A few weeks ago, Microsoft announced the release of Windows Mobile 7, officially named Windows Phone. The announcement, made at the Mobile World Congress in Barcelona, came soon after the debut of Apple’s iPad. Early hardware partners were announced, including Dell, Garmin-Asus, LG, Samsung, Sony Ericsson, and HP. While hesitant to give any specific dates, Microsoft says to expect Windows Phone handsets to hit the shelves “in time for the Holiday season of 2010.″

Business users will find the ”Office” particularly interesting: a center where users can access Office, Outlook, OneNote, and SharePoint Workspace on their mobile device. A feature called the “Marketplace” will also be useful, allowing you to easily find and download certified applications and games.

Meanwhile, news has been circulating recently on websites such as The Wall Street Journal, Mashable and VentureBeat about Google’s plans to sell third-party software for its Android mobile platform. While an app store for their smartphone OS has existed for some time, many have criticized it for not being business ready, with its lack of a more stringent review and vetting process for apps. However, all that’s expected to change with the launch of a new app store completely filtered for business-ready apps.

You can be sure that Symbian, through its sponsor Nokia, is not taking all of this sitting down. Soon, you’ll be able to download the popular VoIP product, Skype, for free from Nokia’s Ovi Store. The app will work over a Wi-Fi or mobile data connection – GPRS, EDGE, and 3G – and you’ll be able to call, instant message, text message, share photos and videos, receive alerts when your contacts are online, and import a phone’s address book.

Not to be left behind, RIM also made a recent announcement of its plans to develop a new browser for its Blackberry products. Many have felt that the company’s products has been outperformed by the competition in terms of its web capabilities and UI. With this announcement, it’s believed that the Blackberry will finally have support for websites with AJAX, CSS, and HTML5, although no mention of flash was made.

It’s truly exciting times for mobile device users. If you spend your day connected to customers, partners, and employees, you can see the value in these capabilities, with even more useful useful devices that really help you stay in touch and work on the go.

This is a clear indicator that the Internet has become an important source for many businesses to generate and manage their business. Potential business can come anywhere – from their website, queries in search engines, online ads, and lately even social networking sites. According to the study, for businesses that track lead sources, the percentage that does so using the Internet has increased from 22 percent in 2008 to 30 percent in 2009.

Although the Internet can often be a scary for many SMB’s and their prospects place with threats such as spam, malware, phising, and more, this study reveals that it is still a source of tremendous value for those who know how to use it effectively.

Related Information:

• If you’re a Microsoft Partner you can access my 5W50 Webinar “Building Your Online Marketing Engine” If you’d like a copy of the presentation don’t hesitate to drop me an email and request it
• Online Media Ad/Promo Use Eclipses Traditional Among SMBs

There are an astronomical number of variables that are involved in any business success, certainly, but there are also some truisms that seem to apply always and everywhere. The primary ingredient in success, of course, is not genius, creativity, a college education or a lot of working capital. The key is persistence, pure and simple.

• Read more at SB Informer…

In the past, the Canadian government has required that assets be depreciated over their useful life. For computers, that could be many years.

Under Budget 2009, any computer equipment purchased between January 27, 2009, and February 1, 2011, can be fully depreciated in the first year of use.

This reduces the cost of computer ownership, making it easier for small businesses to acquire the e technology they need to stay competitive in today’s challenging economic environment.

As a result, now might be a good time to consider upgrading your computer technology. Your financial advisor can help you determine if the tax cut applies to you.

• For more information about Budget 2009, please visit www.budget.gc.ca/2009/home-accueil-eng.asp.
• For more information about depreciating computer technology, please see the “Capital Cost Allowance” section at www.knv.com/resources/pdf/publications/jan09_KNV_federal_budget_memo.pdf.
• or details about Canada’s budget cycle, please see www.parl.gc.ca/compendium/web-content/pdf-e/financialprocedure-e/c_d_financialcycle-e.pdf.

Building a brand has everything to do with capturing the hearts and minds of consumers. Building a brand is much more than just promoting an image. A brand incorporates and conveys the values and traits that a company wants associated with their product or service. It sounds like building a brand is a simple task, but the marketers must do more than just create a brand image. The magnitude of branding encompasses all aspects of a product. With this in mind, we’ve put together a guide for marketers on the journey of brand building…

• Read more at SB Informer…

I love technology, and in fact, the particular blue tooth headset I’m using is made by one of the premier brands.

• Read more at Small Biz IT…

Part 3: Analyzing ROI

As we explained in Part 1 and Part 2 of this series, today, more than ever, small businesses considering a technology investment should analyze not only the costs of that investment, but
the expected ROI as well. Unfortunately, few models exist to guide you through that analysis,
and with good reason: Determining ROI involves looking at many components, then applying those components to your particular situation.

Doing this requires making many choices, so first, let’s look at the things one must consider—from both a cost and benefit perspective—when considering the ROI of a technology investment.

• Your existing technology infrastructure. There are few companies without existing technologies in place—and any new solution will need to work with these systems to be effective. There will likely be costs associated with the new technology’s impact on existing systems—but there will also be benefits. For example, a new technology might offer more efficient automation of workflow or improved information collection, storage, and access.
• Your business processes. A new technology can clearly improve your businesses processes as described in Part 2 of this series—by reducing downtime, improving productivity, and lowering costs. But implementing the new technology will likely involve training staff in using the technology—and that can have associated costs.
• Your external relationships. Finally, no business is an island: Your systems may link to customer and vendor systems. As a result, any new technology may impose constraints or require changes of external organizations or individuals—in the way information is delivered or received, for example.

To solve this puzzle, it can be helpful to ask three different but related questions about the technology solution’s cost,effectiveness,andefficiency.

• Cost: Can you afford the technology—and will it pay for itself? To answer these questions, you’ll need to know the cost of the solution itself and the monetary value of the resources used to implement it, measured in standard financial terms. You’ll then compare the dollar cost of all expenditures to the expected return (in terms of the projected savings and revenue increases). You may need to project the cost and return over a multi-month or multi-year time span in order to show a payback period.
• Effectiveness: How much bang for your buck will you realize? Now the analysis becomes more complex. Analyzing the effectiveness of a technology solution requires you to look at its costs in relation to how effective it is at producing the desired results—in essence, to expand your measurement of ROI beyond cost savings and revenue increases to include performance relative to your company’s goals. To do this, you’ll probably want to look at unit cost or activity cost.
• Efficiency: Is this the most you can get for this much investment? Finally, you’ll want to ask whether the technology will produce the greatest possible value relative to its costs. That can present difficulties, as it will require you to conduct a similar analysis on many alternatives, perhaps simulating the performance of the alternatives in some way.

These three types of measurements differ in several ways. While the first is based simply on
Financial metrics—i.e., cost in pure dollar terms—the other two include production output metrics, including the quality of goods or services and customer satisfaction. These production output metrics may even extend to employee morale, or in the case of some companies (such as manufacturers of “green” products or non-profits), social or political benefits.

All of these measurements, however, help you answer the same basic question: whether an economic downturn is a time to reduce technology spending, or a time to examine priorities
and decide which technology investments will pay off in the long-term.

Every business wants a hot niche, and Starr Tincup had one. In 2003, the Fort Worth marketing and advertising startup decided to cater to software makers in the human resources industry—and quickly signed 20 customers. Then the growing pains set in. By 2005, staff had ballooned to 80 from 4, plus more than 200 contractors. But revenues were just $2.5 million, and soon Starr Tincup was $500,000 in debt. SaaS made the difference in the turnaround.

• Read more at Business Week…

• Read more at Entrepreneur…

Part 1: Understanding ROI

There are two ways to look at the value of technology: total cost of ownership (TCO), which quantifies only the cost of a project, and ROI, which quantifies both the cost and expected benefit of the project over a specific timeframe.

Traditionally, businesses have used TCO when analyzing the cost of internal infrastructure projects such as upgrading an e-mail system. But even with internal systems, ROI can be a better method: If your old e-mail system goes down, for example, your sales team can’t contact customers electronically and must spend more time making phone calls. If your employees spend two more hours on calls than they would on e-mails, you’ve actually lost money by not upgrading your e-mail system.

When it comes to any non-internal technology, however, ROI has long been the gold standard. That’s because technology can drive profit growth by increasing revenue.

Looking at ROI is particularly important when an economic downturn limits your budget. Indeed, an economic downturn may be the best time to assess your technology spending—because by investing wisely during a downturn, you can strengthen your future.

As an example of how ROI works, consider the case of a small, high-end electronics boutique. The current point-of-sale (POS) software program is beginning to show strains from the company’s expansion and increasing inventory, and customer service issues are arising—a problem since the company’s mission is to provide exceptional customer service. The company’s owner believes implementing a new POS software program will help address these issues, but deploying it will be costly.

The key question is which will cost more in the long-term: spending the money to provide a solution—or the losses the boutique will incur by not doing so?

That question may be easier to ask than to answer. As important as determining ROI is, there is still little consensus about how to measure it accurately. ROI, it seems, is in the eye of the beholder. That’s because ROI has many intangibles—things that don’t show up in traditional cost-accounting methods but still maximize the economic potential of the organization, such as brand value, customer satisfaction, and patents.

For example, a knowledge management system may not reduce your costs in obvious ways, so how can you justify it in a tight economy? You probably can’t if you measure ROI by asking what a project will do for your bottom line in a year. But if the new system leads different parts of your company to collaborate, which in turn produces better goods and services that lead to top-line growth, then your ROI is strong.

In Part 2 of this three-part series, we’ll go into more detail about how a technology investment can provide a high ROI.Later, in Part 3, we’ll offer some guidance for conducting your own ROI analysis.

Part 2: How ROI can Justify a Technology Purchase

In Part 1 of this series, we examined the basics of ROI—and also noted that ROI is in the eye of the beholder because it has many intangibles. This month, we’ll go into more detail about the different ways a small business can realize a ROI on technology investments—even in an economic downturn, when the conventional wisdom is to cut expenditures.

There are three ways that a technology investment can pay off:

• Reduced downtime. Some downtime is clearly associated with lost revenues: When your website is down, for example, revenue will be lost as a result of customers not being able to place orders. But when internal computers and networks fail, employees are idle—and this, too, could ultimately cost you money. Businesses that have upgraded and efficient IT systems, and those that have managed services vs. a break/fix model (also known as service on demand), simply have busier employees—and busier employees bring in more revenue.
• Increased productivity. Technology allows employees to do more work in less time. For example, a new database management application might improve timely access to accurate information (which would result in less time spent searching for data) or reduce errors (which would result in less time spent revising work or handling customer complaints). Or, a network with remote connectivity might result in less lost time when employees are traveling,
• Lower costs. Technology allows small businesses to spend less. For example, a new inventory management application might reduce inventory costs. A new teleconferencing system might reduce travel costs. And a new process management system might reduce headcount, which can lead to lower labor costs.

Just how much could you benefit financially from a technology solution? As just one example, Microsoft surveyed 25 small businesses that used Microsoft Windows Small Business Server 2003, a network operating system that provides small businesses with secure Internet connectivity, an intranet, file and printer sharing, backup and restoration capabilities, a collaboration platform, and more.The average cost of the package was $11,650—which included $3,341 in hardware, $2,003 in software, $4,561 in installation, and $1,477 in downtime, plus incremental support. The 25 users surveyed saw a payback of total costs in just 4.9 months. The total average annual benefits were $40,409 and total three-year benefits were $121,227. The software resulted in an average ROI of 947 percent, with some companies realizing a ROI of as much as 2,000 percent.

Getting at those numbers, however, may be the greatest challenge of ROI analysis. Because ROI is not one simple thing, there isn’t one simple way to measure the costs, returns, and benefits of a technology solution. In Part 3 of this series, we’ll look at the many different questions one must ask during a ROI analysis.

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The R&D tax credit, first enacted under the Economic Recovery Tax Act of 1981, provides certain companies with a tax credit for R&D expenditures used to introduce new products and services, improve current products and services, or simply enhance processes.

The tax credit reduces the cost of capital, thereby mitigating the risks of R&D investment and allowing companies to “push the envelope” in the development of new products and services. In other words, your company might get a tax break simply by making its products or processes better.

The R&D tax credit likely applies to more companies than you think it does. Contrary to popular opinion, the tax credit is not just for scientific research done in a large laboratory setting. Thanks to recently relaxed regulations, it applies to companies of all sizes in many industries, such as manufacturing, technology, software, and engineering.

Examples of small companies that could potentially use the R&D tax credit are a 10-person company that designs and manufactures disk drives for personal computers, or a five-person company that develops software for streamlining real estate companies’ billing operations. And the list goes on. Companies involved in any of the following activities may also be eligible for the R&D tax credit:

• Manufacturing new products, processes, or formulas
• Developing new, improved, or more reliable products, processes, or formulas
• Developing prototypes or models (including computer-generated models
• Designing tools, jigs, molds, or dies
• Applying for patents
• Conducting certification testing
• Testing new concepts and technology
• Trying to use new materials
• Acquiring new equipment
• Conducting environmental testingDeveloping or improving manufacturing processes
• Developing, implementing, or upgrading systems or software
• Building or improving manufacturing facilities
• Using outside consultants or contractors to do any of the above activities

If your company is eligible, you can generally claim a 20 percent credit against your taxes for qualified expenses above a base amount. Qualified expenses include in-house costs for wages, supplies, and a percentage of any contract costs. However, you must provide certain documentation showing that your projects are not just part of the ongoing cost of doing business.

That’s where the tax credit gets tricky. For example, unqualified expenses include (but are not limited to) internal-use items, such as the installation and customization of software used by your company internally. In one case, a company increased efficiency and reduced costs with an administrative software package. It claimed the R&D tax credit for the wages of its computer programmers and analysts working on the system during its installation and customization. The IRS denied the claim.

If you think you may be eligible for the R&D tax credit, you may want to contact your accountant now. The credit has expired and been extended many times—most recently in October 2008, when President Bush signed into law a retroactive two-year extension of the tax credit, from January 1, 2008 through December 31, 2009. In some ways this is good news. Because it is retroactive to January 1, 2008, eligible companies can take advantage of a full year’s credit in a single quarter. However, if it’s not renewed again, you only have a year left to take advantage of the credit.

Finally, note that you may also be eligible for an R&D tax credit offered by your state. Your accountant can provide you with more information.

In today’s world you’d be hard pressed to find a company that does not use computers, the Internet, and other information technology on a daily basis. In fact, there is hardly a company that does not rely on computers and networks for its mere existence. Whether we like it or not, IT plays a significant role in every business, and if you don’t ensure that your information system is working properly, your business is at risk.

Do You Really Need an IT Consultant?

Since your information system is so crucial to your business, you can’t afford to compromise with its quality. Technology is a pretty complex field, and unless you are a tech guru you might not be able to handle it on your own. But even if you can, you most likely have better things to do. As a small business owner your time is spent more productively focusing on your core business activities than on desperately trying to keep your network up and running. Additionally, downtime is not cheap, and it costs far less to hire a good IT consultant to maintain your network for you than to experience the losses of downtime.

You are lucky if you have not already learned the hard way that relying on amateurs in IT, medicine, law, and many other fields is very dangerous, so you will hardly want to experiment in your own company with trying to become a first-class IT expert.

While there are small business owners who do have the skills (and time) to manage their network, the majority prefer to have somebody else do it for them. Keeping in mind the speed at which information technology develops, it is quite understandable that many small business owners, even if they are IT-proficient, aren’t able to keep up with this constantly changing field. Therefore, many small business owners agree that the best solution is to hire a specialist.Employ an IT Specialist Full Time — or Hire an External Consultant?
After you have decided that you need to hire somebody to maintain your information system for you, the next step is to decide whether you need an in-house expert or an external consultant. Depending on your specific situation, both alternatives have their pros and cons.

Hiring an in-house IT specialist — This is a good choice if you have 30-40 or more computers or use complex applications that require ongoing maintenance. However, generally speaking, hiring an in-house IT specialist is rarely the best option for small companies who don’t need the level of IT attention to justify a full-time IT expert on payroll. Having a part-time IT expert is also an option, but very often it’s difficult to find a good IT expert who is willing to work part time. Also, for many people, a part-time job is only a temporary solution until something more permanent comes along. Because of this, part-time employees often leave when you need them most. And even worse, they leave taking important information about your systems with them, so when you finally replace them, it takes the new person valuable time to become familiar with the configuration of your network and applications.

Hiring an external IT consultant — This could be the better choice, and not only in terms of money. The advantage of hiring an external IT consultant is that you call them only when you need them, avoiding costly full-time salaries. Hiring an experienced and knowledgeable IT Consultant gives you the best of both worlds: part-time, highly specialized help, and the consistency and reliability of a full-time employee.

However, In most cases, it’s best to have an IT Consultant on a monthly fee – and that’s certainly what our clients prefer. Companies that get out of the ”fix-it-when-it-breaks” mode of thinking benefit from relying on an experienced IT Consultant as a trusted advisor, performing preventative work and helping them plan for the future. This is known as Managed Services.

What to Look for When Hiring an IT Consultant

Hiring an IT consultant is not that different from hiring in-house employees, but it certainly has its advantages. To get an idea of what to look for when hiring an IT consultant, you may want to read this article. You don’t handle complex legal issues without your attorney – do you want to entrust the smooth functioning of your business to chance or unqualified hobbyists?

What Next?

• Review your business plans, and determine if you are happy with your current IT capabilities and performance.
• Talk to other businesses and associates and learn how they are using IT to better manage their business.
• Get their recommendations for IT Consultants and interview a few until you find one that meets your needs and standards.

Maintaining your small company network in good shape is not an easy task, and you are probably perfectly aware that doing it on your own is not the best way to invest your time. When you want to hire somebody to maintain your company network for you, basically you have two choices – to employ somebody onsite (as a full-time or part-time employee) or to outsource the task to an external IT Consultant.

After you have decided that your small company does not need onsite IT staff and you will need an IT Consultant, the next step is to choose one. Choosing an IT Consultant is not so different from choosing an onsite employee, but still there are specifics you need to be aware of. Sometimes this task is a very easy one when you can ask your business associates to recommend somebody. But if you want to choose the IT consultant on your own, here are some points to consider:

5 Key Steps in Choosing an IT Consultant

• Technical competencies. Needless to say, this is the most important factor because if you hire somebody whose technical competency is not satisfactory, this will certainly lead to a lot of trouble. If you are a non-technical person, you are hardly in a position to judge the technical skills of the candidates, but if you ask them about the certificates, degrees, diplomas, and other similar documents they possess, this will give you a clue if they are technically competent or not. For instance, IT Consultants with Microsoft Small Business Specialist certification have passed rigorous exams on small business technology.
• Ability to work with people. Sometimes technical people are not the best communicators. But IT Consultants are supposed to be half techies, half business consultants, so for them being technical is not an excuse for lacking basic business and communication skills. That is why it is key to choose someone who can communicate with you, explain things in a way you understand, answer all your questions, and not just talk in jargon — someone who can help you understand how technology matters to your business and can help it grow.
• Availability. Availability is a key factor for your decision because if you hire somebody who is not available when you need him or her most, what’s the point of having an IT Consultant if you can’t rely on him or her? Usually it’s best to hire locally, because when their office is near, they are more likely to be able to arrive quickly on your premises an emergency. Also, very often problems can quickly be solved remotely, so it is equally important that the IT Consultant you choose provides remote support as well.
• Recommendations from clients. It’s always good to know how the candidate has handled previous clients, so feel free to ask for recommendations from their clients.
• Can they handle all your IT needs? When you choose an IT Consultant, you would like him or her to be the single point of contact for all your IT needs. While it’s not always possible for your IT Consultant to necessarily complete all of your technical needs him or herself, he or she should be able to manage the process on your behalf. (For example, if you want a software application to be developed especially for you, you’d better contact a dedicated software development company, but your IT consultant could be the one to handle the process for you.) Therefore, it’s best if the consultant you choose can meet all (or at least most) of your IT needs – from purchasing new hardware, to maintaining the network, to providing support for the applications you use on a daily basis.

Wrapping Up

These are some of the points you need to have in mind when choosing an IT consultant. It is important to choose carefully. If you want to establish a long term “trusted advisor” relationship with your IT Consultant, just like with your attorney or accountant, you must choose the best — not necessarily the cheapest — IT Consultant. Remember, your IT Consultant is a key partner in the viability of your business and your success!

What Next?

• Sit down with your team and become clear on your IT needs and goals.
• Ask associates or key advisors such as your accountant for recommendations
• Interview and select carefully. The best IT Consultant should be a trusted advisor just like your accountant or attorney. Take your time and find someone you can trust and work with for the long term

• Read the story on Inc Technology

REDMOND, Wash. — Nov. 13, 2008 — Microsoft Corp. today announced 0 percent financing for 36 months for new, qualifying customers of Microsoft Dynamics ERP and CRM solutions. The limited time offer is available to Microsoft Dynamics customers who receive Microsoft Financing credit approval on all purchases of $20,000 (U.S.) up to $1 million (U.S.).

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