Computers Enhance Growth of Small Firms
Next year you’ve promised yourself, you are really going to buy a computer for your business. But didn’t you make the same promise last year?
Many small-business owners know that they should be shopping for a computer system but can tick off a list of reasons not to buy one: It’s too expensive, it’s too complicated, it will become obsolete too soon, and so on. But a computer can be a tool to accelerate your company’s growth by saving time now spent on mundane tasks such as letter writing and billing customers.
“Successful small-business owners know that they need to automate and communicate in order to grow,” said Raymond Boggs, director of small-business and home-office market research for BIS CAP International, a Norwell, Ma.-based marketing research firm. “Personal computers and fax have become an essential part of daily life, even for small firms.”
In fact, smaller companies can grow even faster with the right equipment, Boggs said. A recent BIS CAP survey of 1,800 U.S. businesses with fewer than 100 employees found that companies whose revenues were growing 10% or more a year are more likely to own computers and fax machines.
“If your business is growing and you are finding yourself pressed for time and drowning in the minutia, then you should consider buying a computer,” advises Jonathan Sacks, editor-in-chief of InfoWorld, a weekly computer newspaper for business owners.
Sacks said small-business owners use personal computers for three basic tasks: word processing, accounting and data storage. Most people start out with a word processing program to handle their letter writing needs and move on to other programs as they feel more relaxed about using the computer.
“The more you learn about computers, the more you learn what they can do for you,” said Sacks.
Instead of shopping around merely to compare prices, Sacks suggests visiting several computer stores to ask questions and learn more about personal computers in general.
“Don’t be afraid to ask stupid questions,” he said. “The only stupid question is the one you don’t ask.”
If you think you can’t afford a computer, you might be surprised. An Apple Macintosh, IBM, or IBM-compatible personal computer system, including a monitor and printer, retails between $2,000 and $3,500. Software programs range in price from $30 to $500, depending on their complexity and capabilities.
“If you don’t want to buy a computer, you can lease a system for about $150 a month,” said Peter Huber, co-owner of Personal Support Computers in West Los Angeles. Huber said he and his partner Debi Reed sell about $13 million worth of computers a year, primarily to small-business owners.
Huber suggests making a list of all the things you would like a computer to do for your company.
“Once we know what people need, it’s easy to find the equipment and software,” Huber said.
One simple way to figure out what kind of computer system is right for your particular business is to talk to people in your field. Ask them what kind of system and software they would recommend. Better yet, ask them for a demonstration.
Huber said trade magazines also provide a good source of information about software programs designed for specific businesses.
No matter how technically minded you may be, you will probably need some training to feel comfortable with your new computer, according to Reed.
“They are going to need help and they should know that from the get go,” said Reed, who formerly worked for a printer manufacturer.
Help is readily available from consultants and trainers who charge between $35 and $80 an hour depending on what you need to learn, she said.
No matter what your company does, there are computers and software programs designed to help you work better and faster.
“Business owners are being forced to enter into the computer world whether they want to or not,” said Dr. Kevin Barrett, a Brentwood dentist. Barrett bought his first Apple computer five years ago for use at home. Now, he has four computers and five printers at his office.
“In medicine, it’s almost mandatory to have computers, especially when you are dealing with insurance companies,” Barrett said. He said banks are also encouraging small-business owners to use personal computers by offering account statements on computer discs rather than paper. Scott Gitlen, a Beverly Hills attorney who specializes in serving small-business clients, said he depends on his computer system to keep his overhead low and his fees affordable.
“Without the computer, I couldn’t do what I’m doing,” said Gitlen, who uses his system for everything from preparing legal briefs to billing clients. “I don’t need a secretary--I have a computer instead.”
Program to Offer Financing Strategies for Entrepreneurs
Financing alternatives for entrepreneurial companies are the subject of the Nov. 14 meeting of the Los Angeles Venture Assn. Private financing, public offerings, leveraged financing and corporate partners will be discussed at the breakfast session. The meeting begins at 7 a.m. at the Bel Air Summit Hotel, 11461 Sunset Blvd., near the San Diego Freeway. The cost, including breakfast, is $35. Reservations are required. Contact the L.A. Venture Assn., 1341 Ocean Ave., Suite 129, Santa Monica, Calif., (213) 450-9544.
Seminar on Marketing Small Businesses and Products
“How to Market a Small Business or Product Successfully” will be covered at a seminar Nov. 18 at Pierce Community College in the community services office, 6201 Winnetka Ave., Woodland Hills. The session runs from 9 a.m. to 4 p.m. and will be taught by Dennis Morgan, a marketing consultant. The fee is $25. For information, call (818) 719-6425.
USC Business School to Honor Ticketmaster CEO Fred Rosen
Fred D. Rosen, chairman and chief executive of Ticketmaster, has been chosen outstanding entrepreneur of the year by the University of Southern California School of Business Administration. When Rosen joined Ticketmaster in 1982, ticket sales were about $1 million. Under his guidance, it has become a worldwide company with ticket sales projected to reach $500 million in 1989. Rosen will be honored at the 12th annual Entrepreneur Awards banquet Nov. 15 at the USC campus. USC’s Entrepreneur program and Wells Fargo Bank are co-sponsors of the event.
TAKING THE PC PLUNGE SMALL BUSINESSES THAT OWN PERSONAL COMPUTERS 68.6% 21.3% SMALL BUSINESSES THAT PLAN TO PURCHASE PCs Source: BIS CAP International
How to buy a computer for your business
Figure out what tasks you want the computer to do to make your life easier.
Buy a system that can be expanded.
Ask associates, competitors and friends about their computers and what they like or don’t like about them.
Buy major brands with good service and support, whenever possible.
Visit several stores to compare prices and get information.
Consider the tax advantages of leasing instead of buying equipment.
Try to buy popular software, rather than having programs customized.
