In either case, it pays to look at your long term goals when planning the purchase and implementation of technology for your company.
For example, if you are buying a new computer for your office you may be inclined to buy the computer with the lowest price, but that computer will probably be equipped Windows 7 Home Edition which is fine if you are working alone. If a business with employees is in your plan Windows 7 Proffesional is a better choice. That version offers greater networking capability allowing you to connect your computers and share information more easily which is essential to a growing business.
What Is Your Technology Plan?
I think we would agree that a well thought out business plan is essential to every successful business. A complete business plan should include sections for finance, personnel, marketing, production and technology. Technology affects and can improve the results of every other element of your plan. Do you think it is important to spend adequate time and perhaps get some professional help developing your plan?
We think it is. The decisions you make in regard to implementation of technology will have great impact on the success of your business. However, technology is often the last area of business we consider when planning for the future.
Andrea Peiro, President, Small Business Technology Institute, San Jose, California says "Many small-business owners are slow to adopt technology because of the expense and the time it takes to learn and install new systems. That's a mistake. Technology has moved from a plus — a competitive advantage — to a requirement."
Let’s consider some other examples. We all recognize that it is important to keep track of all your business contacts. When you have complete information on your clients, vendors, and other key contacts in an easy to access format your business efforts can be much more effective. The cheapest and simplest solution is to record this information in Microsoft Outlook. But as your business grows and you find that this information needs to be shared among you are your staff Outlook falls short. Robust contact management software like ACT! by Sage becomes essential. However, moving from Outlook to Act! can be a very difficult job. Purchasing and implementing Act! early in your business growth can be a wise decision. Yes it means additional cost and some additional effort but you will have a system that you can grow with instead of grow out of.
The same concept can be applied to your financial management software. Most businesses start with entry level software like Quicken or QuickBooks by Intuit, two excellent tools for tracking the financial aspects of your business. The next most popular option is Peachtree by Sage, which is a better choice for product based businesses.
But you should ask your self this question. Will your business soon grow out of these entry level solutions? Will the future success of your business be better served by a mid range solution like Sage BusinessWorks, Sage MAS 90 or Sage Accpac ERP?
Using more advanced systems provides many advantages. They can allow you to have your business information and your customer information connected in common or synchronized databases; they offer greater security and more control, they provide more advanced reporting and analysis capabilities, and they can be customized more readily to meet your unique business needs.
So what is the best system for your business?
To answer that question some research is required. What are the long terms goals of your business? How big do you plan to grow? What is the nature of your product or service?
Will you be doing business on the Internet? Will you need strong inventory management or project accounting? Good places to research the many options that are available to you are web sites like Find Accounting Software, Sage 360, or CTS Guides. Take a look at the Small Business Technology Resource List below.
Do you Need Help
Hiring an consultant with a strong track record, knowledge of your and current technology skills can be a very wise investment. This person should have expertise in application software -- business management systems -- a specialist in this area. A technology expert who is knowledgeable in hardware, operating systems, and networks will probably not have the expertise you need.
Your CPA may be able to help, or he or she may have someone in their firm or may be able to refer you to a qualified professional.
Once you have selected the financial management software that is right for your business there is another important decision to make. Do I just try and get by, using the program as nothing more that a fancy check book or do I set it up and use the software to gain maximum advantage for my business?
If you look to the future and have the goal of growing your business it really pays to get the help you will probably need to set up your software, whether it is QuickBooks or Sage MAS 90, to be a valuable asset, a tool that helps you grow your business.
Setting up your system so that it can provide timely information in a format that is useful to you is very valuable. It can mean the difference between flying blind and piloting your business with an effective navigation system that will lead you to your goals. No more going on hunches or making decisions based on how much money is in the bank; with real data your success can be assured.
Meeting the Challenge
Making these decisions and taking these actions will seem daunting to many small business owners. A worse case scenario may occur a few years later when you find your business growth choked by the wrong business software. Making a change at that point will be much more difficult and more expensive.
It is up to you, look to your future and make technology decisions that will serve you well.
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