First Isn't Always Best

I just had to get this off my chest...

Being first to market doesn't guarantee anything. Apple had the first desktop computers but Microsoft dominated the market with Windows. Eiger Labs' MPMan was the first mass produced MP3 player but iPod's dominate the market.

Being first doesn't mean anything, especially when someone can learn from your mistakes, develop a better product and capture market share. Pay attention to the competition, learn from their failures, identify their weakness and develop accordingly.

Stop racing to be first. Instead focus on developing remarkable products, exceptional customer service and fanatic customers. The rest will take care of itself.

Technology Enabled Micro Business

A micro business is defined as any business with 1 or 2 employees. With the power of modern technology these businesses have an equal chance to achieve lasting success. Hard work, dedication, quality, exceptional service and exceeding expectations are still required.

The internet has leveled the playing field. A new startup doesn't have to create a bigger and more expensive product or service than the competition. Actually, current internet success stories argue for the exact opposite. The most successful new internet companies are not engaging in the traditional business cold war of feature escalation.

These companies are focusing on providing fewer features to control their costs. But they are also ensuring that the features they do offer are well executed and easy to understand. They are taking the time to distill the actual useful essence of the product into a viable competitive product. Focus on solving the simple problems that people have and leave your competition to choke on the complexities.

For example, in the book Getting Real, by 37signals, the developers of Basecamp write how they chose Microsoft Project as their software "enemy." A good project management software should not be about charts and graphs, they argue, but about collaboration between team members set on completing the task at hand. The top-down dictatorial approach embodied by Project was not the ideal way to operate in the new web enabled world.

With the wealth of available tools and the power of direct outsourcing, micro businesses are proving to be capable competitors. With the amazing tools available online, it is now possible to do the impossible. What is clusmily called Web 2.0 has opened the floodgates for new businesses to provide remarkable products at low costs and still exceed customer expectations. The old business models required enormous overhead to, hopefully, achieve these goals. The old ways are dead; it's time to embrace the new paradigms.

When to Spend

I don't believe in spending money just for the sake of it. Too many of my customers are either in a rush to spend money on extravagance or are so tight fisted they paralyze their business. Somewhere in the middle is smarter. I only recommend the purchase of a product or service when it:

• increases sales
• increases competitive advantage
• decreases costs

Those are the only two reasons to spend money. Obviously these are large and open-ended criteria and virtually everything can be qualified as either or. However, knowing when a purchase genuinely falls into one of these categories is the key.

When It Increases Sales

This criteria includes salaries, marketing costs, customer service, web sites and anything else that supports your sales efforts. Some are more obvious than others. The beauty of this criteria is that everything is quantifiable. Because you can measure the results of your expenditures, you are able to measure the benefits of each expense. Any underperforming expenditures should be reduced or eliminated.

Salaries are the most obvious because there is usually a direct relationship to outcomes. A salesman either closes sales or doesn't. A graphic designer either produces top quality artwork or doesn't. There are logical and straightforward metrics that can be examined to check productivity. Anyone that doesn't perform should either be moved into another position or fired.

Be cautious because some are not as clear cut as they would seem. For example, a website that provides useful and actionable information to your prospective customers can easily be mistaken as a pure expense with insufficient returns. However, if your customers are using this information as part of their purchasing decision, it would be a mistake to eliminate the expense.

You can easily measure the importance of these harder to quantify expenses with customer surveys. Another great use of the internet is to get feedback from your customers. Use your existing customer base and gather as much information on how they buy as possible. Offer them an incentive (10% discount on next order, a free gift, a free report, etc.) to fill out the survey and click the submit button. If you don't bribe them, they won't answer.

When It Increases Competitive Advantage

Your business provides either a product, a service or both. Everything your employees do should be focused on facilitating the sales, fulfillment and collection process. Anything else in your company that is not focused on these goals should be outsources. You must focus on your core competency.

What do you do better than the competition? How can you expand your lead? What do you need to do to react to changes in the economy, industry, technology and society to increase your competitive edge?

It's not enough to beat the competition. Your goal should be to annihilate them. Your goal must be to crush them totally then swoop in and pick over the carcass for any remaining valuables.

Don't be afraid to spend money on products or services that will increase your competitive advantage. More often than not, technology will be sold as a solution to sharpening your competitive edge, but you must be cautious. We all know someone that has been burned by buying into a technology that died shortly afterwards. The key when buying technology is to measure the true benefits derived for your business. That means understanding how any new gizmo will change the way you work and quantifying how it will improve things. Don't just take the salesman's word for it!

When It Decreases Cost

This is a no-brainer. If a product or service will help you save money then buy it immediately. The key is to examine not only direct costs but also the hidden costs. Hidden costs come in all shapes and sizes so get as much information as possible. You need to know what's involved.

True cost reduction is the Holy Grail for your business, especially during hard times. Always take the extra time to verify that no hidden costs will end up costing you more. After you have all the information you can make an informed decision.

Working to decrease costs is your constant goal as a business owner. Every penny of costs you cut is another penny in profit. Just don't go wild trimming costs! It is too easy to start cutting and get carried away. Focus on the areas of you business that are not related to your core competencies. Outsource whatever does not add direct value to your sales efforts, but only if you can find it cheaper.

Spend, Baby, Spend!

How you spend money is as important as how you make it. If you spend it faster than you make it, you are on the road to failure (unless you qualify for a government bailout!). Spending money wisely will ensure the long term success of your business. Just remember, if you do not absolutely need it - don't buy it.

Hidden Costs

Hidden costs lurk in every possible purchase. They lie in the shadows waiting for the unsuspecting. Suddenly that product or service that is supposed to save you money, suddenly costs you double. We have all experienced the torment of fees, costs, taxes, fines, honorariums, markups and surcharges. Know before you buy and you will avoid these nasty surprises.

Hidden costs include changes to your business processes. This means you will need to change how you work in order to use the new product or service. There are always significant costs involved with a process redesign so make sure you map out all the necessary changes and the associated costs before you make a decision.

For example, large software purchases are typically laden with hidden costs. The implementation of an Enterprise Resource Planning (ERP) software can quickly turn into a neverending money pit. Hidden deep in the fine print of all ERP product literature is the warning that a significant redesign of company processes is a fact. If you don't plan ahead and include the costs of these changes, you will be in for a nasty surprise. You would think that the steep price tag on ERP systems would be all inclusive. Don't get caught by surprise!

Hidden costs come in all shapes and sizes so you must spend the necessary time examining all the elements involved in implementing the new purchase into your business. If you are cautious and work dilligently, you will find them and know what you are getting into. Don't rush in blind and never let someone force you into an untimely decision. The best salesmen are experts at forcing an early decision. The more money you are looking to spend, the longer you should study it. Take your time; if it's a good buy today, it will still be good tomorrow.

Free is Good

There is something that always makes us cautious about the word "free." We hear that ancient mantra that proclaims: You get what you pay for. A solid and ringing warning from wise ancestors that knew to be careful when someone offered something for nothing. The real warning isn’t about freebies, however, it's about hidden costs!

Nothing is really free. There is always a price. In the computer world, the price might be spyware, a return web link, a virus, a botnet zombie, your email address or your ZIP code. I think you'll agree that some of those prices are too high, but others are perfectly reasonable depending on what you get in return. Some hidden costs are perfectly acceptable.

We all know what it's like when money is tight. There's never enough cash and every chance to cut costs should be embraced. The key is too understand the hidden costs and to decide if they are too expensive for you.

The internet is full of free software and services that can reduce your costs substantially. With smart strategies you will be able to virtually eliminate your software costs!!! We will always be clear with you about the costs involved, and we will only recommend you safe products that have been Certified R-Squared Safe by our expert staff of engineers. How much money would you save if you got all your software for free?

Contact us today!

Announcing Wired Gecko

Are you aware that most computer failures are largely preventable?

Any complex machine with moving parts needs routing maintenance. You take care of your car (hopefully), why not your computers?

Most PC users do not perform the necessary maintenance to keep their computers running at top performance. But who has time to run all those tedious applications? We have work to do and cannot be bothered with these headaches.

That's what Wired Gecko is all about! Let Wired Gecko run anti-virus, anti-spyware and security updates for you. Wired Gecko saves you money!

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• Sleep well knowing your computers are protected against known threats.
• Focus on getting work done and not on PC maintenance.

We hope to roll out the service within the next two weeks. Everyone that signs up on the Wired Gecko website will receive a specially priced introductory offer. No obligation to buy, but once you see the advantages and the savings you will want to get Wired Gecko today!

Another quality product by

Start Rethinking PCs

With the tough economy, people are giving netbooks a serious second look. A netbook is a small to medium sized, light-weight, low-cost, energy-efficient laptop, ideal for online services like web browsing and e-mail. These are phenomenal alternatives to more expensive computers since they normally run under $500!

Small business owners looking to save money should definitely look at netbooks as a serious alternative. When moneyt is tight you have to make every dollar work twice as hard.

With netbooks, you win a serious advantage. You get all the power you need for most work. If you are running CAD software or you are editing movies, this is not the device for you. But most don't perform those kinds of high intensity jobs. For your standard computer user, the netbook provides all the capability they will ever need.

But more importantly, netbooks are a preview of what to expect. The era of being tied to a single computer is over. The computer will very shortly become a cheap appliance that connects us to the internet. Information is what matters, or as they say, content is king. Who cares what computer you use to get your information?

Every computer could be your computer.

Managing Your Skunkworks

The key to a successful skunk works is the right kind of manager. It takes a special person to manage a department completely dedicated to innovative thinking. He or she must be able to nurture and foster a creative atmosphere but also be able to rein in excesses. In short, you need a real corporate maverick that isn't afraid to bend the rules to get results.

The perfect skunk works manager:

• is not an obsessive bean counter but understands the relevance of budgets.
• follows a laissez-faire management style.
• encourages freedom to persue odd ideas.
• encourages constant discussion and friendly argument.
• uses equal parts of positive and negative reinforcement to motivate.
• understands the needs of creative people and works to provide the needed resources to foster innovation.
• provides guidance instead of strict adherence to company policy.
• focuses on the overall business strategy not departmental tactics.
• knows when to break the rules.
• is willing to put his neck on the line to protect his workers.

Obviously, this isn't a position for everyone. Very few managers will actually have the right combination of skills needed to manage a department of highly intelligent and creative workers. However, the wrong manager will wreak havoc and will ruin any benefits you may derive from your skunk works.

Take your time and choose wisely. The person you are looking for may not fit the standard management mold that your company employs. True mavericks are hard to find, but are worth their weight in gold.