New and improved - using technology to enhance small business operations

Entrepreneur, March, 1996 by Cynthia E. Griffin

Move your business into the 21st century.

TECHNOLOGY equals time and money.

Simple equation, right? Then why do you cling to that electric typewriter or continue to court writer's cramp by maintaining handwritten business ledgers?

"There are so many aids out there you can use to be more productive," says Suchitra Doshi, owner of Naturally Organized in Berkeley, California. The office management specialist knows this not only because it's her business but also from personal experience.

"As a sole proprietor, one-woman show, I found doing business as usual [which means using a typewriter and maintaining manual accounting systems] wasn't good enough," Doshi says. "To be secure that I wouldn't throw away something I might need in the future, I had to [keep] all the notes and logs--and lots of piles would build up." Until she felt overwhelmed.

"I needed to be free of paper, and technology was one option," continues Doshi, who worked in office management for 10 years before starting Naturally Organized in 1993.

So she computerized her bookkeeping, progressing from Quicken, which she said was perfect for her start-up business, to Best!Ware's M.Y.O.B. (Mind Your Own Business), an intermediate program.

The results were more than positive for Doshi, but if you're still not con- vinced technology could be a good friend to your business, she suggests asking yourself these questions: Do you know how much you spend every day, week or month? Do you know how much money you made last month or last year? Are you having trouble keeping track of accounts?

Need more convincing? Let's look at the numbers. In a 1995 Xerox Corp. survey of 442 small office/home office professionals representing a variety of industries, 81 percent of respondents said office technology helped them pres- ent a more professional image, 68 percent said it made them more competitive, and 86 percent of those investing in state-of-the-art equipment reported improved efficiency and productivity levels.

CheckingYour List

Now are you convinced? Then it's time to bring your office into the 21st century. "But you don't have to go out and buy every gadget there is," cau- tions Doshi. "You need to have a critical view of what exists, how it can benefit you and how you can exploit it."

Here, the consultant offers some basic areas to assess:

* Bookkeeping. Computerizing accounting and bookkeeping functions enables you to get a handle on the financial health of your business, says Doshi.

* Contact management. "In the start-up stages of business, entrepreneurs typically cannot afford to hire full- or even part-time help, but they need something to help manage themselves and the business," explains Doshi, who recommends a contact management software program. "You can use it to document meeting notes, conversations and actions that need to be taken. You can use it to generate databases or even get holiday cards out on time."

For the road warriors in the audience, Doshi says contact managers are small programs that won't take up much storage space on a laptop or notebook com- puter. Those without a portable computer might consider a personal digital assistant, a hand-held organizer that allows you to send faxes or e-mail, make notes, create time schedules and carry a database with you.

* Mail order. If your company takes phone orders, Doshi says, a computerized system whereby customers use a touch-tone phone to respond to menu prompts and order via credit card can free up lots of your time.

* The Internet. Internet possibilities are almost infinite: You can network with other entrepreneurs to gain moral support, business advice or even busi- ness partners. You'll also learn where to find anything from information about government contracts and daily news stories to assistance from the Small Busi- ness Administration, stock updates and more.

Tech And Beyond Beyond technology, there are several other areas you need to assess to bring your company into the 21st century. These include cultural diversity and strategic alliances.

Entrepreneurs must be "more tuned into [cultural] diversity in America and dealing with customers. You can't apply the same yardstick to everyone, and you need to be more sensitive to others' needs," says Doshi.

Inadequate understanding of cultural and ethnic differences can lead to mis- communication, which could cause problems in the workplace.

Another important trend that homebased businesses can use to move into the future are strategic alliances. These partnerships with other businesspeople or companies "are going to become an incredibly big part of the 21st century," says Doshi. Fortune 500 companies aren't the only ones who can benefit from joining forces with other companies. She suggests looking at how big firms handle alliances and customizing the process to your own situation.

Preparing your home office for the 21st century won't be easy. But if you ever start to feel so overwhelmed that the old manual systems begin to look invit- ing, remember this: "Technology frees you from doing the grunt work so you have time to be a visionary and make your vision of your business come true," says Doshi.