Posts Tagged Web Presence and Optimization

Doing It Yourself vs. Hiring Professionals

OBSERVATION

Today’s Internet is stocked with fantastic low-cost or free tools for managing ones own web presence. From content management systems like Drupal to the Blogger (the tool I’m using now to write this entry). If you take a few moments to search, you can find free do-it-yourself tools to do most anything.

In some sectors of business that I consult in, there is a growing pressure among small business peers to do things internally under the premise that it is “smarter save money by doing things yourself.” I have pondered this for some time now and have considered whether this is warranted.

KEY COMPARISON

When I was in high school, my guitar player from my band used to drive us to school in an enormous Ford Galaxy. Between band practices, the guys in the band and I used to love to work on that car. We did small jobs like changing the oil and working on the brakes, as well large jobs such as changing the timing chain. We became pretty decent young mechanics, and wouldn’t have ever dreamed of taking that car anywhere to have it worked on.

Today, my guitar player pilots a C-130 in the U.S. air force and I run a software company. He spends much of his time overseas, and I’m in the prime of my career, so I’m seldom too far from my office. I don’t think either of us have worked on a car in years, we pay to have work done on our vehicles today. Why? We are simply utilizing our time in other ways. One can spend an entire day working on a car, especially when it’s yours–some days we’d get started and never stop.

You can spend an entire day on your website too–especially when it’s yours. And an advantage over working on cars is that your hands don’t appear to get as dirty and your arms don’t get tired from holding a wrench or holding your body over the fender to reach a bolt.

CONCLUSION

I conclude that for the hobbyist, novice, and even the part-time self-employed micro business owner, the do-it-yourself toolset is the way to go. One saves money in this scenario while being creative, doing something fun, and learning new things.

For the full-time self-employed business person, or the small business looking to grow, do-it-yourself may still actually be the way to go, but if you are one of these, I would consider asking yourself a few questions:

  • Am I or the people in my own organization actually savvy enough in the first place to create a professional product? (If you’re not sure, you may want to sit down with a consultant who will give you a complimentary Q&A on this, I actually offer this service myself, drop me a line if you’re in the Tucson or Phoenix area)
  • Could my time developing my website be spent more effectively doing something else–like helping customers or filling orders for business?
  • What is my time worth on an hourly basis, and from that, can I/should I budget a weekly or monthly allotment of time to allot to working on my own web presence?
  • Are some parts of my website or content better written by someone else? Sometimes having someone else tell your story is both easier and more compelling to visitors than trying to do it yourself, and this might be worth paying for.
  • Can I find a company that has a professional consulting presence that can guide me and strike a balance between developing the important parts but giving me the ability to manage/update key content, current events, and industry news (this is another area we are very complementary in, we love to be of service if you’re in the Tucson or Phoenix area)

So striking that balance between doing it yourself verses hiring a tech professional is key when considering our time and resource management as business owners. When this balance is right, the Internet is an area of infinite possibilities in terms of helping business customers find out about what we do and how we can help them solve their respective business problems.

If you liked this blog, here are some other sites that might interest you:

Do you know anyone who has a technical project–large or small, such as a website, software project, or network setup that is stalled or half complete? I’m never too busy for a referral, so if you think I could help–feel free to drop us an inquiry by clicking here…

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Common Assumption: The Back Office “Runs Itself”

OBSERVATION

It is very common that entrepreneurs and business enthusiasts approach us with ideas about starting a business. Being a business consulting, software and tech company often allows us the opportunity to build a company from the ground up with our clients in terms of infrastructure and operation.

The type of owners we typically deal with are “front-end minded” individuals. They have almost always thought through a way to enter an “untapped market” with some kind of web-based technology and marketing plan to bring some product to market. The ideas we hear are usually compelling, impressive, well-thought out from a front-end perspective. But almost always lack any kind of plan or more importantly–cost structure for control, accounting or administration that would be necessary if the “organic viral” concept were to “catch fire” or “take off.”


KEY ASSUMPTION

When asked about whether or not considerations have been made for administration, accounting, and details like this, the most common answer we here is: “The web system should handle that.” There is a common assumption today that a web system or software can completely replace accounting, reconciliation and administration, and this just is not true. Consider the following example.


EXAMPLE

Company X develops a fantastic website to market widget X as a re-seller. Widget X is purchased from Company Y at a cost of $1.00 and is sold over Company X’s web POS for $2.00. Company Y is recovers its cost by tapping Company X’s bank account for items sold in a week, and the quantities charged are determined by a weekly data batch sent from Company X’s web system to company Y’s.

 

Eureka! Month’s 1-12 are a complete success. Company X sells twice the Widget’s as expected. And the money invested to create a web system sure paid off–because everything’s automatic! No hand-written checks, invoices, or anything have to be exchanged between the producer and the reseller. All the owner of company X have to do is monitor online banking to make sure the money is coming in. Outstanding.One small problem. When customers arrive at the website and order widget X, if they are using web browser X that has pluggin Y installed (popular toolbar from their favorite social networking site) it causes a rare phenominon in which the count for widget X ordered is over-stated in the data batch by tripple. In other words–every time customer order widget x, Company X gets bill 3 times for it instead of 1.The problem is that since the error made by the web system only affected 5% of the transactions, without any substantial accounting or administrative processes in place when the entrepreneurs of Company X created the company, the billing problem is not easy to find–it becomes like a needle in a haystack. This billing phenomenon could go on indefinitely at Company X, causing it to lose money unknowingly.

Now instead of making money on this product, they lose money.

Luckily, the phenominon works out to only be 5% of their customers. But–their successful start brought in 100,000 customer transaction for purchase of widget X. That amounts to $10,000 in being over-billed for cost of goods sold.
 
 
 
CONCLUSION

Sadly, things like the scenario above happen to start-up companies all the time. We see it from two different perspectives : beginning a consulting relationship with company AFTER a problem like the example is already occurring in an effort to fix it, AND assisting the start-up of a new company advising on how the potential for pitfalls like the example can occur in the future.

We find business owners to be much more receptive to our advisement to invest in best practices in accounting and administration in the situations where it has already happened. We too often find it very difficult to get new business owners to imagine that such a scenario like the example could actually happen to them, and unfortunately investment in best practice to avoid this gets overlooked.

Situations like the example above can happen, do happen, and need to be considered as if they will happen. If you are considering a start-up that relies on technology, websites or software to be your company’s sales front or payroll (which is becoming more common every day), make sure to have expertise around you during the start-up process. You should take into consideration back-end company necessities like accounting, administration, reconciliation and control. This can not only help alleviate a great deal of hardship in the future, it could be the difference between a company surviving or not.

 

If you liked this blog, here are some other sites that might interest you:

Do you know anyone who has a technical project–large or small, such as a website, software project, or network setup that is stalled or half complete? I’m never too busy for a referral, so if you think I could help–feel free to drop us an inquiry by clicking here…

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The basis for my posts

WELCOME

I have been a partner in a successful software and technology consultancy for almost 6 years now, and I’m blessed to have great loyal clients and fantastic partners. The things I’ve learned from them along with my experiences in this best of all industries have inspired me, and I have a lot to write about!

 

OUR COMPANY

Our company, D’Mention Systems, is a general technology consultancy. Over our tenure, we have had a wide breadth of experience in many areas that include specific line-of-business application software (in industries such as automotive and construction), custom web applications, technology partnering (helpdesk contracts and remote on-call support), business development, website and video/animation development, foundership investment contracts, software training, and business development (there are probably some I neglected to mention, my partners constantly remind me how bad I am with buzz words). Our clients have ranged from the individual looking to quit his/her job and follow a dream to major universities looking to cut cost.

 

WHAT I ACTUALLY DO

As my perspective on my own career evolves, I’m assessing more and more that my job in the company is really not about software, tech products, or technology. The path to realizing this has not been easy for me, as I love to be “close to the metal” in terms of code, development details, programming languages, and new technology.

I’ve come to realize that my partners and tech staff actually lead me in those areas. In doing so, they allow me to be good at what my actual job has always been–I am a business development expert. I just happen to deploy computers, the web, software and technology to solve business problems, because in today’s business climate–those tools are the most cost-effective option we have for operating a business.

For years, I have performed the role of product manager on a wide range tech projects, websites, multi-media productions, and software projects (most I’d deem successful, and a few not–all worth writing about). I feel that the role of manager in any business sense of the word requires a knack for being able to “see the whole picture,” and to gather that picture in any situation QUICKLY.

Half or more of our tech projects that we took over were projects that were stalled in some way, for whatever reason. I happen to be one of those people who can enter into a situation that is difficult, behind schedule, politically hostile or otherwise, and begin progress toward problem solving and project completion almost immediately.

Like many published professionals, after having done this over and over, I’m at a level where I feel inspired to reflect back at what I’ve done and analyze how I’ve done it to see if there’s anything notable that stands out in the way I do things that I can share with others. As I do this, I’m intrigued that I actually do have a philosophy for looking at businesses and business units. This philosophy makes up the platform for which I will write my posts.

 

MY PHILOSOPHY–HOW I SEE BUSINESS IN A NUTSHELL

THE FRONT & THE BACK: As I see it, EVERY business (or business unit within a larger organization like a department or division) has what I simply call a front and a back. The front of a business encompasses everything that is outward facing: the name, the logo, the tag line, outreach, marketing, mantra, store-front, mission, definition of product and customer, sales people, and image among other things. The back of a business encompasses infrastructure, accounting, finance, budgeting, planning, corporate office location, plant & equipment, management, servers, computers, tools, product development, quality control, supplies, and employees among other things.

During my tenure as a professional consultant, I have observed in nearly every instance that one of the main problems with the business we were consulting was that there was not a sufficient balance in the owner(s) focus of attention, management, and resources between the front and the back. In most cases, I have observed that most entrepreneurial small and medium business owners (our largest client group over the years) have a tenacious focus on the front, and an absence of focus on the back, as well as in some cases a dislike for the back compounded by an overall misconception about what it takes to create and manage a strong back.

In an odd way, this may define why I’ve been successful in my career, because despite being an entrepreneurial business owner myself, I have oddly always been a back - focused business owner (my dad is a CPA, that may have something to do with it). In fact, I would still consider myself more of a student of the front at this point in my tenure as a business owner, especially since the way a business’s clients arrive at the front door of a business is changing so rapidly today.

I would consider myself a pretty solid expert at the back of a business as defined above, and this balance between myself being back - focused and my clients being largely front - focused may explain my success and longevity as a consultant, as well as our clients’ success as a result of utilizing our services, so I’m grateful for this peculiar sort of reality and balance between myself and our clients.

What I have learned so far is that there are 3 main ingredients to building a successful “front” of a business:

  1. Clearly defined product(s) and customer(s) This should really go without saying, but it is really amazing how many of us in business really have not taken the time to identify our products and customers, both to the outside world as well as to ourselves as business owners
  2. Continuously employ several forms of marketingContinuously be utilizing more than 1 form marketing at all times (preferably 3), and NEVER stop marketing at any interval, no matter how busy you get      

  3. Control from the back - Those who influence sales, make commissions, and drive the company’s front need to have limited policy & decision-making abilities. It is such a commonality that this causes problems, and nobody ever seems to point it out. Look at some examples–the U.S. government budget committee, Enron, the bursting of the “real estate bubble–” do you think there may have been some “front-focused people” influencing “back-end policies,” like in accounting perhaps?      

I have also learned that there are 3 main ingredients to building a successful “back” of a business:

  1. Proper Infrastructural InvestmentThe right amount of energy, attention, and investment in the back. This is a moving target from the day a business is born throughout the business’s life      

  2. Proper overall managementRealization that proper management is constant, an ever-lasting challenge, and ever-changing such that there is no point where any business “runs itself–” EVER      

  3. Respect for the front Often, a good back in an organization over-controls the people in the front without recognizing the energy, charisma, and weirdly enough–the chaos required to sell and drive sales and enthusiasm, so it’s critical to strike a balance and not to drown or stifle the front with controls and policy imposed by the back  
 
 
 

 

THE PLATFORM FOR MY POSTS

My posts in this blog will mainly center around this philosophy and using it to define and solve problems that arise in typical businesses.

My hope and dream is that my audience includes the following:

  • My colleagues, clients, friends, family, partners (and weirdly–myself) to get a good insight and understanding of me and what I do.
  • Business owners and managers who struggle with trying to manage tech people and employ technology–so many of us wake up every day think we automatically know how to invest in and employ technology because we can use a mouse, keyboard, and M.S. Windows until we actually invest in a business and realize it’s not that easy–I want to empathize with those people and share what I’ve learned and overcome.
  • Aspiring tech professionals who are up and coming in this best of all industries, who may not realize how young and new this industry really is. Maybe you’re thinking of entering this industry and think that everything’s been invented already just because Microsoft, Google, and social networking explosions appear to have cornered everything and there’s no more room to have any new ideas or make any more money. Oddly, I ponder that for just a moment many mornings myself as I order my tea at Starbucks, and then I remember that a huge percentage of business professionals refer to any one of us–developer, DBA, or designer-alike as a “computer guy” or a “geek,” and that their neighbor down the street who “retired from IBM” is going to help them “set up their computers for their business” just because he “retired from IBM–” even though he was in sales. Your opportunities in this industry are endless, boundless, and infinite, and I’m your biggest fan, so if you’re in the Tucson area, I hope we can have coffee some time and talk about it. My posts are for you, too.

Enjoy my blog posts, I look forward to some good conversations. :-)

 

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If you liked this blog, here are some other sites that might interest you:

Do you know anyone who has a technical project–large or small, such as a website, software project, or network setup that is stalled or half complete? I’m never too busy for a referral, so if you think I could help–feel free to drop us an inquiry by clicking here…

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