Pr ac tical Te ch for Your Business Using Today’s Technology to Make Your Business More Efficient, Creative and Flexible Michael J. Mar tinez Pr actical Te ch for Your Business KIPLINGER’S BUSINESS MANAGEMENT LIBRARY Business 2010 Cash Rules Customer Once, Client Forever Fast-Track Business Growth Hunting Heads Parting Company Raising Capital Taming the Paper Tiger at Work You Can’t Fire Me, I’m Your Father OTHER KIPLINGER BOOKS But Which Mutual Funds? Buying &Selling a Home The Consumer’s Guide to the Experts Dollars &Sense for Kids Financing College Home•ology Kiplinger’s Practical Guide to Investing Kiplinger’s Practical Guide to Your Money Know Your Legal Rights Making Money in Real Estate Next Step:The Real World Retire &Thrive Retire Worry-Free Switching Careers Taming the Paper Tiger at Home Kiplinger offers excerpts and tables of contents for all of our books on our Web site (www.kiplinger.com). For information about volume discounts contact: Cindy Greene Kiplinger Books &Tapes 1729 HStreet, N.W. Washington, DC 20006 e-mail: [email protected] 202-887-6431 [email protected] Pr actical Te ch for Your Business Using Today’s Technology to Make Your Business More Efficient, Creative and Flexible Michael J. Martinez Associate Editor, Kiplinger’s Personal Finance Kiplinger Books Washington, D.C. Published by The Kiplinger Washington Editors, Inc. 1729 H Street, N.W. Washington, D.C. 20006 Library of Congress Cataloging-in-Publication Data Martinez, Michael, 1972– Practical tech for your business : using today’s technology to make your business more efficient, creative and flexible / by Michael Martinez. p. cm. Includes index. ISBN 0-938721-96-8 (pbk.) 1. New business enterprises. 2. Information technology. 3. Business planning. 4. Internet marketing. I. Title. HD62.5 .M3655 2002 658.5’14--dc21 2002023592 © 2002 by The Kiplinger Washington Editors, Inc. All rights reserved. No part of this book may be repro- duced or transmitted in any form or by any means, electronic or mechanical, including photocopying, record- ing or by an information storage and retrieval system, without the written permission of the Publisher, except where permitted by law. This publication is intended to provide guidance in regard to the subject matter covered. It is sold with the understanding that the author and publisher are not herein engaged in rendering legal, accounting, tax or other professional services. If such services are required, professional assistance should be sought. First edition. Printed in the United States of America. 9 8 7 6 5 4 3 2 1 Contents Author’s Preface ix Introduction xiii CHAPTER 1: In the Beginning 1 Your First Office • Buying Your Computer • Your Business Powered By Software • Getting Plugged In • Thinking About Peripherals • Cost Breakdowns (The Budget Office; The Expandable Office) CHAPTER 2: Your Business on the Web 33 Homesteading on the Internet • Getting Your URL • How to Register Your Business Name • Finding a Host for Your Web Site • What Will Your Web Site Do? • Some Good Examples • Hiring a Web Designer • Do You Need a Webmaster? • Do-It-Yourself on the Web • Seeding Your Business on the Web • Keep Your Web Site Fresh • Cost Breakdowns (Basic Do-It-Yourself Package; Professionally Designed, Hosted Site; Professionally Designed, Hosted, and Webmastered Site) CHAPTER 3: The Networked Workplace 57 Welcome to the Networked Business • What’s a Network? • A Computer for Every Desk • Choosing Server Hardware and Software • Putting the Pieces Together • Getting Your Network Online • Picking the Right Computer Consultant • Cost Breakdowns (The Small Office Network; The Large Office Network; The Large, Hosting Office Network) PRACTICAL TECH FOR YOUR BUSINESS CHAPTER 4: Your Business Runs on Software 87 I Have a Network—Now What? • Databases: The Work- horses of Business •Using Databases in Your Business • Inventory • Personnel • Sales • Management of Customer Relations • Your Hardware Options • Getting Everything Installed • Some Thoughts on Security • A Final Word on Databases • Cost Breakdowns (The Basic Network; The Retail Network; The Manufacturing Network) CHAPTER 5: A Cautious Look at e-Commerce 111 How to View e-Commerce in Your Business • The eBay Way • Managing and Expanding Your Auction Business • eBay Alternatives • Selling via Both Auction and Store • Move Your eBay Auction Home • Piggybacking Onto Amazon.com via zShops • Yahoo! Stores: A Flexible Hosting Option •Branching Out Beyond Amazon and Yahoo • You Have Online Orders, Now What? • Managing Fast Growth • A Last Word on e-Commerce, For Now • Cost Breakdowns (The eBay Seller; the zShops Seller; The Yahoo! Store Owner) CHAPTER 6: Mobile Technologies 139 Rethinking the Pager • Don’t Overindulge in Cell Phones • Life on a Laptop •Personal Digital Assistants • Options for Mobile Internet Access • Integrating Mobility Into Your Existing Framework • Identifying Mobility Opportunities • Cost Breakdowns (Emergency Pagers and Cell Phones; The Fully Equipped Sales Force) CHAPTER 7: Better Business Intelligence 161 Your Business Is Data • Know Your Customers • Looking Inside Your Business • Financial Intelligence • Network Intelligence • Communicating Your Company’s Policy • Managing Inventory • Data Mining: Weaving Disparate Threads of Information • A Final Word on Business Intelligence Contents CHAPTER 8: How to Scale Your Technology 187 Managing Hardware Growth • Replacement Schedules • Managing Software Upgrades • When to Bring in the Experts • Hiring Your First IT Specialist • Scaling Down • Cost Breakdowns (Years 1 through 5) Index 213 Preface M y grandfather never sat down in front of a computer. He never sent an e-mail, surfed the Web, or, to the best of my recollection, played a video game—even when, as a kid, I’d thrust an Atari 2600 joystick in his hands. Yet his im- print is all over this book. Pop was an extremely smart guy who worked with his hands his entire life, beginning as a Pennsylvania coal miner in the 1930s and ending his career as director of the physical plant at a private school. He retired in 1976. He knew tools, and always picked the right tool for the job. He was innova- tive and flexible in his work, and rarely either hesitated too much before tackling a task or rushed into it. “Sit and think a minute,” he used to tell me. “Then get what you need and do it right. Work smarter, not harder.” He loved that phrase. I like it too, especially in the context of technology—mostly because so many people aren’t doing it. This book is called Practical Tech for Your Businessfor a reason. Practical technology is only a tool—nothing more. Practical technology helps you do your job faster, better, and easier. It doesn’t break the bank, it doesn’t monopolize your time, and it definitely doesn’t create more stress in your work life. Who needs more stress? When Pop sat and thought about the task at hand, he was drawing on his experience and knowledge of tools, and apply- ing both to the requirements of the task. Applying the lessons of experience and your knowledge of tools is easy. Gaining the experience and mastering the tools are harder. You may have had very little experience working with technology. You’re an accountant, a landscaper, a restaurateur, an architect, a retail- er, or a consultant, not an information technology specialist. ix PRACTICAL TECH FOR YOUR BUSINESS That’s where Practical Tech for Your Businesscomes in. Contrary to what other books may tell you, you’re neither an Idiot nor a Dummy. It takes more than the brain of a chimpanzee to start a business, after all, so you’ve obviously got some smarts—you just need infor- mation. You may not have had much experience with technology, but many other business owners have, and I’ve interviewed a great many of them and recorded their experiences and their hard-won lessons. You prob- ably don’t know what a variety of tools are out there for you to use, or even where to look. These subjects are covered here, too. Your Technological Evolution This book is laid out more or less in chronological order, starting in your home office, where most businesses take flight. Chapter 1 discusses the basics of getting your first computer, loading it with the business soft- ware you need, and getting hooked up to the Internet— everything you’ll need to start your business off on the right foot. Chapter 2 takes you to the World Wide Web, where you can quickly and inexpensively promote your busi- ness. We discuss how to obtain a Web address, create Web pages, and find a home for your Web site. If you get nothing else from this book, I hope that at least you stake your claim on the Web—establishing a Web ad- dress is too easy and too effective not to. Chapters 3 and 4 discuss expanding your business from your home and into an office—or into a retail or manufacturing environment, depending on what your business is all about. Chapter 3 talks about the comput- ers and hardware you’ll need, while Chapter 4 intro- duces you to powerful software tools that can make it easy to expand your business, create new sales, and im- prove efficiency. Chapter 5 returns to the World Wide Web to dis- cuss electronic commerce, cautiously. After all, a lot of x