Your startup can act big on a small budget

Brad Patten

BitWits

I had lunch recently with a friend who is starting a new business with a partner. He worked 20 years for big companies.

He wanted an address on Camelback Avenue, a cool Web site, a voice-mail system with a virtual receptionist, laptops, unified messaging, and the illusion that he was a big company, not a startup.

"We're operating under the principle of `fake it until we make it,'" he said.

He was pleased when I told him he could "fake it" for $10,000 in start-up capital and as a little as a few hundred dollars a month for services.

"You gotta love technology," he said.

If you're a starting a new business, you certainly do love it. Technology lets you act big on a small budget.

Here's some of the advice I gave him and would give any entrepreneur starting a new business:

• Think virtual. With Internet telephony and remote access via the Internet, renting office space is virtually a thing of the past. My friend is going to start working out of his house and rent a mailbox with that swank Camelback Avenue address in Phoenix. In a few months - and hopefully some cash coming in - he might consider an executive office suite where they rent conference rooms and offices with shared receptionists, copiers and secretaries for small businesses with big office needs.
• Go mobile. A good cell phone with e-mail and Internet service will keep you connected to the office, even when you're not there. Efficient communication is critical in any business.
• Buy your Internet domain name. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it is much more professional than This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , mailto: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Plus, you can swap Internet providers without reprinting business cards. It costs a couple hundred dollars per year to register and host a domain.
• Rent, don't buy. Outsourcing makes great financial sense for small businesses. We outsource our e-mail, voice mail, fax lines, remote service, spam-filtering, Web-hosting, anything we can. With outsourcing, you lower capital costs, increase quality, and have the flexibility to switch when better technology comes along. Just be sure to read the small print and avoid long-term contracts.
• Get a really fast Internet connection. Whether you have one employee or 100, speedy broadband pays a dozen efficiency dividends daily.
• Use Web services. I order all products online, bank, buy office supplies, read e-mail, pay bills and employees, check invoices, monitor service calls, send text messages, and track shipments. You can access Web services anytime, anywhere. Even better, someone else is writing and maintaining your software.
• Centralize documents and data. Duplicated data is a pet peeve of mine, and a tremendous cost to you. Make sure employees are accessing the same customer lists and documents. It's expensive - and often disastrous - when everyone in the office has a private information store. For my friend, we used an online service that allows the two partners, in different locations, to map a network drive on the Internet to share files for only $20 per month.
• Hire a tech pro. I can't tell you how often we're called in to clean up after amateur engineers. Often, we find no security, backup, or virus protection. Reliable computers and networks free you to focus on your business, not mine.
• Buy quality hardware. Trust me, Conrad's clone computers are not as good as those built by Dell, Hewlett-Packard or Gateway. Not only are they less reliable, clones are more expensive to support and often lack warranties or basic software like Microsoft Office.
• Backup daily. I'll tell my clients this all the time: backing up is the cheapest insurance policy you'll ever buy, and the one you're most likely to use. Get two backups - such as a tape drive and a portable hard drive - and check them daily.
• Simplify. Computers run more reliably if not overloaded with software and gadgets. Your goal should be to run simple, stock systems with three or four key applications.
• Standardize. For the same reason that Southwest Airlines flies only 737s and United Parcel Service drives only those funny brown trucks, you should standardize your computer system. It saves money. Standardize brands, models, memory, monitors, operating systems, printers, configurations, and software and software versions.
• Protect. From spam and spyware to viruses and home page hi-jackers, the Internet is filled with evil doers. A good hardware firewall and up-to-date antivirus/anti-spyware software on all computers will keep bad actors at bay.

My friend is right. Technology certainly can help you "fake it until you make it." With good technology - and a good business model - you shouldn't have to fake it for long.

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