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Hidden IT costs can be stifling your company and you just don’t know it. It’s important to assess what those costs are and find a way to help your business perform better.

In this day and age, few businesses (if any) can survive without an IT arm. Every business, big or small, needs someone, or preferably a group of people, on hand to fix computer problems, check networks, monitor software – to generally make sure that their operations are running smoothly.

One question, though: have you ever stopped to consider whether the cost of maintaining your in-house IT system is worth it? For instance, consider your internet connection. Let’s say that a conservative estimate of the efficiency of your business without an internet connection is at 50%. And if your business makes a $1 million a year, then $500,000 depends on your internet connection. If your monthly bill for that connection is $500, or $6,000 annually, you earn $500,000 – $6,000 = $494,000. Now, if you decide to switch to a cheaper DSL connection, which is about $50 per month or $480 a year, you get a much higher figure: $499,520.

You could argue that the DSL is the wiser option, but when you look at a deeper level, a slower internet connection may also hamper your company’s productivity – let’s say, by 10%. So with only a DSL connection, your business operates at 90% of its total possible productivity. Considering the previous figures, a loss of 10% in productivity means a loss of $100,000. Subtract that savings from the DSL connection, $5,520 – you get a whopping loss of $94,480. So when you think you’re saving by getting a cheaper internet connection, you are actually losing more money. Inversely, if you subscribe to an even better connection that costs you $10,000, productivity can increase by $15,000.

The same principle applies when your IT infrastructure is not up to date, with slow computers, outdated software, and other problems. In a company with 10 employees who bring in an annual average of $65,000 each, even losing productivity for just 35 minutes a day due to IT handicaps can cost you $47,000. Hardly chump change! But hiring an IT provider who charges $20,000 a year can offset that lost productivity and even make your business run better, by as much as $27,000. It’s also noteworthy to mention that employing an IT firm can count as a legitimate business expense, thereby lowering your tax liability to about $8,000 if you peg corporate tax at 40%.

IT is important to a business. If you doubt that, just try doing without it for a week – just shut the whole thing down. For most, that’s out of the question, but operating with old software and hardware is almost just as bad. However, many businesses cannot spare the resources to continually upgrade their IT systems.

Enlisting the services of an IT firm changes all that. IT Service Providers are constantly on the lookout for better technologies – both hardware and software – that can make your business function much more efficiently and cost effectively. It’s what they do. And the costs are minimal. If you’re wondering how much better your company might operate with an IT Service Provider, we’ll be happy to sit down with you and run some numbers.

Hold on to your mobile devices: IDC predicts 20.9% growth in smartphone sales from 2009 through 2013. Symbian and Research In Motion (RIM) remain the market leaders, but you can be sure that competition will intensify with giants Microsoft, Google and Apple in the mix.

A few weeks ago, Microsoft announced the release of Windows Mobile 7, officially named Windows Phone. The announcement, made at the Mobile World Congress in Barcelona, came soon after the debut of Apple’s iPad. Early hardware partners were announced, including Dell, Garmin-Asus, LG, Samsung, Sony Ericsson, and HP. While hesitant to give any specific dates, Microsoft says to expect Windows Phone handsets to hit the shelves “in time for the Holiday season of 2010.″

Business users will find the ”Office” particularly interesting: a center where users can access Office, Outlook, OneNote, and SharePoint Workspace on their mobile device. A feature called the “Marketplace” will also be useful, allowing you to easily find and download certified applications and games.

Meanwhile, news has been circulating recently on websites such as The Wall Street Journal, Mashable and VentureBeat about Google’s plans to sell third-party software for its Android mobile platform. While an app store for their smartphone OS has existed for some time, many have criticized it for not being business ready, with its lack of a more stringent review and vetting process for apps. However, all that’s expected to change with the launch of a new app store completely filtered for business-ready apps.

You can be sure that Symbian, through its sponsor Nokia, is not taking all of this sitting down. Soon, you’ll be able to download the popular VoIP product, Skype, for free from Nokia’s Ovi Store. The app will work over a Wi-Fi or mobile data connection – GPRS, EDGE, and 3G – and you’ll be able to call, instant message, text message, share photos and videos, receive alerts when your contacts are online, and import a phone’s address book.

Not to be left behind, RIM also made a recent announcement of its plans to develop a new browser for its Blackberry products. Many have felt that the company’s products has been outperformed by the competition in terms of its web capabilities and UI. With this announcement, it’s believed that the Blackberry will finally have support for websites with AJAX, CSS, and HTML5, although no mention of flash was made.

It’s truly exciting times for mobile device users. If you spend your day connected to customers, partners, and employees, you can see the value in these capabilities, with even more useful useful devices that really help you stay in touch and work on the go.

A recent study by the Kelsey Group reveals that more small and midsized businesses are using digital media, specially the Internet, to promote or advertise their business. Their study, conducted with research partner ConStat, indicates that the penetration of digital/online media increased from 73 percent in August 2008 to 77 percent in August 2009, while that of traditional media such as TV, radio, and print decreased from 74 percent to 69 percent during the same period.

This is a clear indicator that the Internet has become an important source for many businesses to generate and manage their business. Potential business can come anywhere – from their website, queries in search engines, online ads, and lately even social networking sites. According to the study, for businesses that track lead sources, the percentage that does so using the Internet has increased from 22 percent in 2008 to 30 percent in 2009.

Although the Internet can often be a scary for many SMB’s and their prospects place with threats such as spam, malware, phising, and more, this study reveals that it is still a source of tremendous value for those who know how to use it effectively.

Related Information:

• If you’re a Microsoft Partner you can access my 5W50 Webinar “Building Your Online Marketing Engine” If you’d like a copy of the presentation don’t hesitate to drop me an email and request it
• Online Media Ad/Promo Use Eclipses Traditional Among SMBs

Whether the economy is up or down, no matter what is happening in the world, most small business owner’s work hard anyway. It’s never been easy to start a business, nurture its growth and succeed in any line of business. It’s competitive, more so in some industries than others, but every butcher, baker, candlestick maker or software developer started the same way – small.

There are an astronomical number of variables that are involved in any business success, certainly, but there are also some truisms that seem to apply always and everywhere. The primary ingredient in success, of course, is not genius, creativity, a college education or a lot of working capital. The key is persistence, pure and simple.

• Read more at SB Informer…

Brand building is indeed a journey. Branding is all about how your product or service is perceived by customers and potential customers. A brand marketer attempts to manipulate brand awareness by associating traits they would like consumers to associate with the brand.

Building a brand has everything to do with capturing the hearts and minds of consumers. Building a brand is much more than just promoting an image. A brand incorporates and conveys the values and traits that a company wants associated with their product or service. It sounds like building a brand is a simple task, but the marketers must do more than just create a brand image. The magnitude of branding encompasses all aspects of a product. With this in mind, we’ve put together a guide for marketers on the journey of brand building…

• Read more at SB Informer…

For the past few months I’ve been using a variety of wireless, blue tooth headsets, with my cell phone. The latest head set I’m using does not have clear reception. Often times I can hear the person fine, but they can’t hear me so well.

I love technology, and in fact, the particular blue tooth headset I’m using is made by one of the premier brands.

• Read more at Small Biz IT…

When an economic downturn starts to hurt, small businesses often hunker down and cut costs. But new technology solutions may be necessary for survival and growth—and they may not be as expensive as you think when you consider their return on investment (ROI). In this three-part series, we’ll review what ROI is, explain how an ROI analysis can help you save or make money, and provide guidelines for analyzing the ROI of a technology investment.

Part 3: Analyzing ROI

As we explained in Part 1 and Part 2 of this series, today, more than ever, small businesses considering a technology investment should analyze not only the costs of that investment, but
the expected ROI as well. Unfortunately, few models exist to guide you through that analysis,
and with good reason: Determining ROI involves looking at many components, then applying those components to your particular situation.

Doing this requires making many choices, so first, let’s look at the things one must consider—from both a cost and benefit perspective—when considering the ROI of a technology investment.

• Your existing technology infrastructure. There are few companies without existing technologies in place—and any new solution will need to work with these systems to be effective. There will likely be costs associated with the new technology’s impact on existing systems—but there will also be benefits. For example, a new technology might offer more efficient automation of workflow or improved information collection, storage, and access.
• Your business processes. A new technology can clearly improve your businesses processes as described in Part 2 of this series—by reducing downtime, improving productivity, and lowering costs. But implementing the new technology will likely involve training staff in using the technology—and that can have associated costs.
• Your external relationships. Finally, no business is an island: Your systems may link to customer and vendor systems. As a result, any new technology may impose constraints or require changes of external organizations or individuals—in the way information is delivered or received, for example.

To solve this puzzle, it can be helpful to ask three different but related questions about the technology solution’s cost,effectiveness,andefficiency.

• Cost: Can you afford the technology—and will it pay for itself? To answer these questions, you’ll need to know the cost of the solution itself and the monetary value of the resources used to implement it, measured in standard financial terms. You’ll then compare the dollar cost of all expenditures to the expected return (in terms of the projected savings and revenue increases). You may need to project the cost and return over a multi-month or multi-year time span in order to show a payback period.
• Effectiveness: How much bang for your buck will you realize? Now the analysis becomes more complex. Analyzing the effectiveness of a technology solution requires you to look at its costs in relation to how effective it is at producing the desired results—in essence, to expand your measurement of ROI beyond cost savings and revenue increases to include performance relative to your company’s goals. To do this, you’ll probably want to look at unit cost or activity cost.
• Efficiency: Is this the most you can get for this much investment? Finally, you’ll want to ask whether the technology will produce the greatest possible value relative to its costs. That can present difficulties, as it will require you to conduct a similar analysis on many alternatives, perhaps simulating the performance of the alternatives in some way.

These three types of measurements differ in several ways. While the first is based simply on
Financial metrics—i.e., cost in pure dollar terms—the other two include production output metrics, including the quality of goods or services and customer satisfaction. These production output metrics may even extend to employee morale, or in the case of some companies (such as manufacturers of “green” products or non-profits), social or political benefits.

All of these measurements, however, help you answer the same basic question: whether an economic downturn is a time to reduce technology spending, or a time to examine priorities
and decide which technology investments will pay off in the long-term.

When you have to lay off staff, software-as-a-service can often make up the difference, especially in sales and marketing.

Every business wants a hot niche, and Starr Tincup had one. In 2003, the Fort Worth marketing and advertising startup decided to cater to software makers in the human resources industry—and quickly signed 20 customers. Then the growing pains set in. By 2005, staff had ballooned to 80 from 4, plus more than 200 contractors. But revenues were just $2.5 million, and soon Starr Tincup was $500,000 in debt. SaaS made the difference in the turnaround.

• Read more at Business Week…

There comes a point when gadgets detract from meetings. Or does there? Companies are coming up with different strategies to manage technology in the meeting room.

• Read more at Entrepreneur…

When an economic downturn starts to hurt, small businesses often hunker down and cut costs. But new technology solutions may be necessary for survival and growth—and they may not be as expensive as you think when you consider their return on investment (ROI). In this three-part series, we’ll review what ROI is, explain how an ROI analysis can help you save or make money, and provide guidelines for analyzing the ROI of a technology investment.

Part 1: Understanding ROI

There are two ways to look at the value of technology: total cost of ownership (TCO), which quantifies only the cost of a project, and ROI, which quantifies both the cost and expected benefit of the project over a specific timeframe.

Traditionally, businesses have used TCO when analyzing the cost of internal infrastructure projects such as upgrading an e-mail system. But even with internal systems, ROI can be a better method: If your old e-mail system goes down, for example, your sales team can’t contact customers electronically and must spend more time making phone calls. If your employees spend two more hours on calls than they would on e-mails, you’ve actually lost money by not upgrading your e-mail system.

When it comes to any non-internal technology, however, ROI has long been the gold standard. That’s because technology can drive profit growth by increasing revenue.

Looking at ROI is particularly important when an economic downturn limits your budget. Indeed, an economic downturn may be the best time to assess your technology spending—because by investing wisely during a downturn, you can strengthen your future.

As an example of how ROI works, consider the case of a small, high-end electronics boutique. The current point-of-sale (POS) software program is beginning to show strains from the company’s expansion and increasing inventory, and customer service issues are arising—a problem since the company’s mission is to provide exceptional customer service. The company’s owner believes implementing a new POS software program will help address these issues, but deploying it will be costly.

The key question is which will cost more in the long-term: spending the money to provide a solution—or the losses the boutique will incur by not doing so?

That question may be easier to ask than to answer. As important as determining ROI is, there is still little consensus about how to measure it accurately. ROI, it seems, is in the eye of the beholder. That’s because ROI has many intangibles—things that don’t show up in traditional cost-accounting methods but still maximize the economic potential of the organization, such as brand value, customer satisfaction, and patents.

For example, a knowledge management system may not reduce your costs in obvious ways, so how can you justify it in a tight economy? You probably can’t if you measure ROI by asking what a project will do for your bottom line in a year. But if the new system leads different parts of your company to collaborate, which in turn produces better goods and services that lead to top-line growth, then your ROI is strong.

In Part 2 of this three-part series, we’ll go into more detail about how a technology investment can provide a high ROI.Later, in Part 3, we’ll offer some guidance for conducting your own ROI analysis.