Understanding BizIT
There are those who say that in order to start a business, all you really need is a
table, a chair and a telephone, along with some writing materials and a calculator.
This may be true in the very beginning – depending on what sort of business it is
and what it is you’re selling – but (hopefully!) your needs will expand along with the business.
For example, if your business involves doing research for second and third parties,
local libraries, universities and colleges and state and county government offices
are great places to access, and may be necessary.
However, as more and more information is posted online, you’ll find it possible to
save a great deal in travel costs by accessing the information on the Web, or at
least confirming that the information you’re seeking is there and the trip is justified.
(You could call on the phone and ask, but anymore, chances are you’ll spend
considerable amounts of time wading through menus and trying to get to the
person with whom you need to speak.)
Basically, information technology is about two things: (A) saving time and (B)
providing secure access to data.
Assessing Your I.T. Needs
There are certain needs common to every business, regardless of what product or
service it’s offering. At a minimum, every office will need:
A desk and a comfortable chair
At least one good-sized bookcase or shelving unit
A table
A telephone
A computer and good monitor
A printer, copier and FAX machine
Let’s look at these one by one:
Desk and chair
This is where you’re going to be spending a great deal of time, and if you don’t
choose wisely, you’ll find yourself getting aches and pains in places you didn’t know
existed. While it may not seem to have much to do with your I.T. equipment needs,
it has everything to do with your long-term chiropractic health – and without that,
the best I.T. and electronic equipment in the world won’t help you.
Bookcase/Shelves
You can probably get away with starting out small, here – but chances are good
that your storage needs will expand substantially over the years. It may be
tempting to go with a lighter model simply for ease of movement. If your business
is a success however, those shelves will soon be groaning under the weight of
reference books, ledgers, and more.
If portability is an issue, there are models available with casters – or you can add
some prior to filling the shelves. Just make sure that the shelves and the casters
are of sufficient capacity; plan on about 100 lbs. per shelf.
A word about office supplies (including writing and computer supplies): shelves can
be a great storage place for these as well. Just make sure they’re organized into
small boxes, and store these items on the top shelves (since they’re lighter in
weight).
Table
A table – aside from your desk – is an infinitely useful place for holding
brainstorming sessions (by yourself or with others), meeting with clients, having a
“working lunch,” or doing any work involving pen (or pencil) and paper away from
the computer (which is probably taking up most of your desk space in any event).
One caveat: there’s a real danger that a table will turn into a “catch-all” for books,
important papers, and more. Resist this temptation by making sure that (A) your
desk has sufficient drawer space, (B) you have a decent file cabinet, and (C) you
have enough shelf space (and you’ve made a habit of using it).
Telephone (And Phone System)
This is something to think about. If you plan on being able to talk on the phone
while having your hands free, you’ll need either (A) a headset or (B) a speaker
phone, or (C) both. Having both affords you a bit of flexibility, as you can conduct
both a private conversation and a conference with yourself, the person on the other
end and whoever is in the office with you.
Other elements of this system include answering machine, message forwarding and
paging. There are numerous ways to set this up.
The easiest and most economical is to simply have an answering machine (and be
sure to get one that allows the caller to leave a message longer than 30 seconds –
or you’ll have a lot of abbreviated and unfinished messages), then provide a cell
number in the outgoing greeting. That way, if it’s important enough, your clients
and/or customers can always reach you, and you can avoid the expense of a
paging/messaging service.
If you plan on taking cell phone calls while on the road, a “hands-free” set-up is
absolutely necessary. Many auto accidents are caused by people attempting to talk
on a cell phone while driving, and many states are beginning to crack down on the
practice, issuing stiff fines.
Such “hands-free” set-ups are available at many electronic and even automotive
stores. Top-of-the-line set ups will run no more than $150, and there are many (of
varying quality) that cost less than that.
Another thing to think about is whether or not you want a second phone line. If you
have teenagers, this is practically a necessity. There are now numerous companies
on-line who can provide your business with a toll-free phone number. Typically,
you’ll be charged a monthly fee ranging from $9.95 to over $80 depending on what
features you choose, plus a per-minute charge that can vary between .02¢ and
.08¢.
Many companies offer a set amount of “free” minutes (that is, minutes included
with the monthly charge) before you wind up paying for additional minutes. As with
every other service and tool, it pays to shop around.
Computer and Monitor
Here is the heart and soul of your operation. You’ll spend a great deal of time with
this machine – which will probably be obsolete within two years. For this reason, it
really doesn’t make sense to spend a lot of money on this year’s latest and greatest
model. Last year’s top model will work just fine, and you’ll save a LOT of money by
going that direction. During the summer of 2006, this writer purchased a one-year
old Dell Dimension with an Intel Pentium 4 processor running at 3.2 GHz, complete
with Ethernet, 3 GB of RAM, advanced ATI video card and a 160 GB hard drive from
a private party for $750, including a 17” monitor and keyboard. This is about half of
what it cost new. It is suitable for high-end 3-D graphics and rendering, runs
graphic-intensive 3d games at a good resolution, and allows for satisfactory mid-
range video editing (the book you are reading was written and published on this same machine). Chances are, a computer similar to this one will serve about 95%
of the small businesses out there quite well for several years.
There are of course risks to purchasing a used computer. You have no idea if it has
been protected by a firewall (more on this later), what viruses may be lurking, and
you have no way of knowing how well it has been maintained. 98% of all computer
problems are software-related, but if you don’t know what you’re doing, you’ll
experience a great deal of frustration and downtime. If you’re going to purchase a
second-hand computer, make sure you have some computer knowledge, or bring a
friend with you who does. The best cure for most all computer problems is
prevention of course, so later on, we’ll be discussing the care and feeding of your
computer.
If you are determined to have a brand new computer however, it’s best to have it
custom configured for your needs. This writer recommends UNION BUILT PC
(https://unionbuiltpc.com/).
This U.S. – based company uses unionized, U.S. American labor to assemble their
products. Their machines are priced very competitively with those of the major
manufacturers who use off-shore factories in Asia. You can purchase a new
computer with an Intel Pentium 4 3 Ghz processor, 512 MB of DDR RAM, 80 GB
hard drive, 52X CD-RW/DVD Combo Drive with Windows XP Pro operating system
installed for $1018, and includes an optical mouse, enhanced keyboard and stereo
speakers. That is nearly $70 less than the lowest-priced, overseas-manufactured
name brand, which does not include mouse, keyboard nor speakers. Union Built PC
offers a one-year warranty on its computers, and has additional products and
business-related services available. The base price of their machines starts at $825,
and a “wizard” is available on their website that enables you to add upgrades and
see the price difference in real time.
About monitors: today’s standard is the 19”, flat screen LCD. Anything smaller will
cause eyestrain if used continually. Unfortunately, the prices on LCD screens go up
dramatically with every inch. That’s the bad news.
The good news is that like all technology, monitor prices have been dropping a
great deal. We are now seeing 22” LCD monitors on auction websites for less than
$350, and 19” monitors for a little over half that. Our advice is that you select the
largest monitor you can afford – your eyes will thank you for it.
Printer, Copier, FAX Machine
Today, you can get one machine that performs all of these functions. Sometimes
called an “all-in-one,” a printer-copier-FAX can run about $150 new. If you decide
to purchase a used one, you may find a perfectly functional device for as little as
$20 (more on this, later).
It should be pointed out that the copier function of these low-priced all-in-one
machines is intended for light duty. If you are planning on making a large number
of copies on a regular basis, you’ll be better off with something larger and more
durable. PC Magazine (http://www.pcmag.com) and Consumer Reports
(http://www.consumerreports.org) generally have good, reliable independent
reviews of the various brands and machines available that will help you make an
informed choice.
Other I.T. Options
As mentioned earlier, laptops have the advantage of portability. However, unless
you’re planning to be on the road or out in the field a great deal of the time, it’s
probably not the best choice. If you need to gather, store and even transmit information in the field, a Personal
Digital Assistant – more popularly known as a “PDA” – is an extremely economical
choice. Due to their size, they are limited as to what they are able to do, but for the
price (ranging from as little as $25 to $150), it’s an excellent extension of your PC
(though not a substitute), and can be used to transfer information back to your
main machine at the home office. PDAs will be discussed in more detail in a later
section.
When it comes to staying in touch, the answering machine and cell phone solution
is definitely the easiest. The drawback of using a cell phone is that it is not always
an economical solution. However, there are hundreds of companies offering literally
thousands of different plans at prices ranging from $30 all the way to $250 per
month. Many plans include free minutes; many do not. “Roaming” charges – the
price you are charged for air time outside your service area – can really add up as
well. Unlike a “land line,” cell phone users are charged each time they talk, whether
the call is incoming or outgoing.
Only due diligence and some thorough comparison shopping will determine which
cell phone plan will best serve your business’ needs.
An answering service, while expensive (plans start out around $40 per month), can
be a great investment in customer and client relations. Having to speak with
machines and mechanical voices while wading through menus has increasingly
become a “turn-off” for many people. At least two marketing studies have shown
than 30-35% more customer/clients will leave a message for a live person than
they will on a machine or voice mail.3
All Those Bells And Whistles; Do You Really Need Them?
As far as hardware is concerned: again, this depends a great deal on the nature of
the business. If you’re doing high-end video editing or graphics-intensive desktop If desktop publishing, you’ll definitely want to get the best video card you can afford. A video
card is like a co-processor for your computer’s main processor unit, and handles
most of the mathematical calculations required to display images. The three most
popular brands – ATI Radeon, GeForce and Nvidia – offer hundreds of different
choices, ranging in price from as little as $30 to as much as $750. The price goes
up with the amount of video memory installed on the card. More video memory
(RAM) equals better quality video.
The same can be said for audio cards. If you business involves processing any sort
of sound files, you’ll want the best one you can afford. Fortunately, audio cards are
less expensive than video cards.
Speaking of RAM – that is, the main memory used by your computer’s Central
Processing Unit (CPU) – more is better. No matter what you use your computer for,
more memory will allow your computer to run faster, with more applications open
at the same time. Main memory is called either SD RAM or DD RAM, and like your
processor comes in various speeds.
RAM modules typically must be installed in pairs, and are purchased as such – so if
your computer has 512 MB of RAM already installed and you want to upgrade to a
total of 1 GB, you’ll need to buy two 256 MB RAM modules. All of this will depend
on the number of slots your computer’s motherboard contains. Most today have at
least four, and will accept up to 4 GB of RAM (that’s two pairs of 1 GB memory
modules). Unfortunately, the operating system used on most business computers
today – Windows XP – addresses no more than 3 GB. The upcoming Windows Vista
OS may solve this issue, however.
In any event, RAM today is fairly inexpensive, especially compared to prices in the
early and mid 1990’s. In 1992, you might have paid $400 per megabyte and
considered it a heck of a deal. Today, RAM prices have dropped to around $100 per
gigabyte – a mere 0.4% of what it was fifteen years ago. Regardless of what
software you’re running, always install as much RAM as you can afford. When
shopping for RAM, also make sure it is compatible with your particular system, and
that all your modules are rated at the same clock speed.
Most of the “extras” that constitute the “bells and whistles” on a computer system
consist of software that you really don’t need. They take up room on your hard
drive, and may provide some limited functional or entertainment purpose, but if
they’re applications you don’t use very often, its best to get rid of them. If you
don’t know which programs are merely “taking up space,” there is an easy way to
find out.
Uninstalling an application in Mac OS X is as simple as dragging it to the “Trash.”
Although this will leave behind some of the application’s related files in the cache
and the System, these will not interfere with your computer’s operation in any way
due to the OS X Unix-based architecture. You have the option of removing them
manually, if you like.
Getting It Cheap
Earlier, we mentioned that the best way to go is with last year’s equipment. The
best places to obtain this equipment at a low price are (A) newspaper classified ads,
(B) online want ads and (C) Internet auction sites.
When dealing with potential sellers found on Internet want ads, it’s best to deal
with someone local with whom you can meet face-to-face. If you know little or
nothing about computers, take someone along who does and who can look at the
system and run some diagnostic routines. Otherwise, you’re better off buying a new
system.
Reputable online auctions are another way to go. Sites such as Ebay and Ubid have
procedures in place that protect both parties in a transaction. If you are buying a
used system, it’s important to look at the seller’s feedback rating. If an Ebay seller
has a feedback score of 100 or more and it’s 99.5% positive, chances are good that
you’ll get your money’s worth and that the seller will stand behind his or her
product. In addition, if you use Pay-Pal, you are protected for purchases up to
$10,000 – although there is a lengthy procedure involved, and getting your money
back may take some time.
When it comes to peripherals such as printers, these are showing up increasingly on
the shelves of second-hand stores such as Goodwill and Value Village. Reputable
second-hand stores will allow you to test the item before you buy it, and if it
doesn’t work when you get it home, they’ll allow you to return it in exchange for an
in-store credit.
We encourage the purchase of second-hand computer equipment for two reasons:
(A) electronic waste – much of which is highly toxic – has become a major
environmental problem.
The purchase of used equipment reduces consumption of resources and keeps this
waste out of the landfills. (B) Buying equipment second hand keeps money in the
local community (or at least the country), and – in the case of many second-hand
stores – contributes to charitable causes. Likewise, when you purchase a custom
system from Union Built PCs, you are keeping money in the U.S. economy and
supporting domestic industry. Supporting your community and nation is always an
excellent investment in your own business that will pay big dividends in the future.
If you have obsolete electronic equipment and aren’t sure what to do with it, point
your browser toward http://www.FreeGeek.org. Free Geek is a non-profit
organization devoted to the reduction, reuse and recycling of electronic waste.
Based out of Portland, Oregon, they run centers in Olympia, Washington, Missoula,
Montana and Columbus, Ohio as well and will have valuable information on how to
make the best use of obsolete equipment for which you no longer have a use.
