Wired for success: entrepreneurs reap the rewards of the technology revolution

Entrepreneur, May, 1997 by Heather Page

Years ago. Pink Jeep Tour, a Sedona, Arizona, company that offers guided Jeep tours through nearby red-rock formations, booked tours by entering basic customer information into a DOS-based program and then scheduling and organizing tour lengths and party sizes on magnetic boards. Unfortunately, if someone brushed up against the boards, magnets would come tumbling off, tour guides wouldn't have a clue which parties were scheduled when, and chaos would ensue - that is, until the company installed a new Windows-based reservation system that electronically schedules each day's tours.

* A retailer of fine wine. food and gift baskets with six locations. Merchant of Vino Corp. juggles immense quantities of inventory. The Southfield, Michigan-based company used to run out of customers' favorite wines. But thanks to a new bar-coding system and a customized software program to capture detailed purchasing information, wine connoisseurs nearly always find what they want.

* The Las Vegas owner of Gotcha Covered Wholesale notices he's spending far too much time re-entering invoices into his home computer for products purchased right off his truck - and too little time on the road getting orders for his cut flower business. The solution? By using a laptop computer, he slashed his invoicing time in half

These are just a few examples of the small businesses reaping the rewards of the technology revolution, from higher productivity and improved customer service to increased sales, a better image and greater professionalism.

Twenty years ago, far fewer technologies were available for small businesses. And those that wanted technology had to pay dearly for it. Today, however, most small-business owners wouldn't dream of opening their doors without a computer, voice-mail system and fax machine. Indeed, the last two decades have seen a metamorphosis of the small business from a low-tech enterprise into a lean, mean, high-tech machine - and the future promises only more of the same.

* TAKING THE HIGH-TECH ROAD

Behind all the fancy packaging and snazzy sales pitches, what most technologies promise small business is simply the ability to get more work done in less time. In a 1996 study by KeyCorp, a Cleveland-based banking firm, 45 percent of those surveyed said technology has allowed their small businesses to perform faster and more efficiently.

Pink Jeep Tours is a prime example of how a technology investment can spur productivity. In the old days, its reservation staff had to navigate software with multiple screens, entering customer data with much difficulty, and tours were frequently overbooked - and under-booked - because employees didn't schedule them efficiently on the magnetic board. The new software installed two years ago, which has a more user-friendly interface and automatically schedules tours at maximum occupancies, has cut the average time it takes to book a reservation from five minutes to one. "We were able to drastically increase the efficiency and accuracy of our bookings," says company president Shawn Wendell.

Customer service is another area that benefits from technology. By implementing a new voice-mail system, database or fax-back service, small businesses can score big points in customer satisfaction. "[Technology] has increased our customer service tremendously because we don't run out of stock as often," says Merchant of Vino's president, Marc Jonna. "Our customers are delighted because we're more in tone with their buying habits."

Some technologies, particularly the Internet, have transformed small businesses from local ventures into global operations. In other instances, however, technology has had the opposite effect: It's allowed businesses to stay small. Whether entrepreneurs are doing the books themselves with accounting software or cutting back on customer support staff, technology is playing a big part in keeping the "small" in small business. "Technology has helped me keep the quality and customer service high while keeping my business small," marvels Gotcha Covered Wholesale's co-owner Courthey Young, who has done it all himself since 1992 with the help of a notebook computer, portable printer, pager and cellular phone.

A less tangible - but important - impact is the creation of a more nimble, competitive entrepreneur, thanks to recent advancements in mobile technology. The introduction of portable computers, cellular phones, pagers and, more recently, wireless communication has given small companies greater freedom, flexibility and efficiency when on the road, severing the cords that traditionally tied them to the office.

* BARRIERS COME TUMBLING DOWN

Anyone who has invested time or money in technology has a horror story or two to tell. Software wouldn't load correctly, costly equipment had to be replaced six months later because it was already outdated, employees couldn't get a grip on the newfangled system - these are all frustrating side effects of the growing presence of technology in business.

For cost-conscious entrepreneurs, the biggest downside associated with technology is the high price tag. According to KeyCorp's survey, 38 percent of the respondents said cost is a barrier to technological advancement.