Small Biz Tech Talk ™

Micro small businesses with less than 10 PCs very frequently use peer-to-peer networks for file sharing and printers.  Small business computer consultants want to steer clear of this situation and stick to businesses that have a dedicated server built around Microsoft Windows 98 or ME to keep costs low.  

Peer-to-Peer Networks Don’t Work with Small Business Consultants

A business-grade desktop OS on a dedicated business-class PC is not used that often, but it is a good compromise between low-budget solutions and more expensive solutions.  However, small business consultants and peer-to-peer networks don’t mix very well unless an upgrade is possible in the near future.  

The Issue with Peer-to-Peer Networks

Peer-to-peer networks are typically chosen to reduce costs, so companies that use them typically cannot afford to hire small business consultants or else don’t believe in the benefits of spending the money on a true professional.

A lot of times, peer-to-peer networks also come with IT issues including lack of software licensing, neglect of data security, virus protection and backup.

The Main Point About Small Business Consulting

Even though there are many issues for those working with peer-to-peer networks, many companies might be sick of unreliable server and business performance and ready to hire small business consultants, which can be a great opportunity.

Blogged By:  Computer Consulting 101 Professional Kit

Recently Chinese-based computer business Lenovo decided that due to an excellent 2006/2007 fiscal year performance, it would be focusing on new ideas for computer resellers.  In Beijing at Lenovo’s first business partner conference, David Miller, senior vice president and Asia-Pacific president stated that catering to the needs of the computer reseller channel will be important to the company’s success in the future.  

The company’s fiscal year ended March 31, 2007 and saw a revenue growth of 10 percent over the previous year.  Its earnings before interest, depreciation, etc. grew 9 percent.  Miller said the company cannot continue to do well if its sales model does not include computer resellers, because these people represent an extension of the company.  

Lenovo announced its plans to improve its Asia-Pacific computer resellers channel at the conference.  The initiative will focus on growing the network and on offering computer resellers better support.  The program will include added infrastructure support and more close work with business partners.  

Lenovo enjoys relationships with more than 5,000 partners.  These new computer reseller programs, according to Miller will help work with the SMB market and other growing markets.  

Lenovo is also making plans to start a direct sales model in Japan and Australia and possibly also in the Asia-Pacific region.   This new computer resellers program announcement comes at the same time as competitor Dell’s decision to move away from its direct sales model.

Blogged By:  Joshua Feinberg

In small business computer consulting, the micro small business market is hard to target.  Those with less than 10 PCs can provide $50 to $75 per hour or at most $75 to $90 per hour in small business computer consulting work.  

Remember in small business computer consulting, when there are 1-10 computers, there are also just 1-10 employees, and that their revenue is at most $1 million per year.  They probably do not have a dedicated server yet either.  

Your Competition

In the micro small business environment, there is a lot of competition for a small business computer consulting firm.  And this competition is usually willing to work for less than $50 per hour, and sometimes in the case of volunteers this type of business can get, zero dollars per hour.  This environment is a challenge for small business computer consulting professionals.  

The competition is characterized by the following qualities:

1.    They agree to help micro-small businesses with computer problems just once in a while because they have day jobs.

2.    The response time of these computer consulting professionals is very high and not the same as the response time your small business computer consulting firm can provide.  

3.    The small business involved with this type of computer helper will have to wait a week or more in some cases to deal with a down server.  But because support is cheap and often free, or can be obtained for the price of donuts, coffee, pizza or beer, you face serious competition even as a professional computer consultant.  

The Main Point About Small Business Computer Consulting

A major reason you will have low-cost competition in regards to micro small businesses as a small business computer consulting professional is because of the low annual revenue of that type of business.  Many micro small business owners will not be ready yet to see the strategic importance of hiring a professional consultant at top rates.

Added By:  Joshua Feinberg

Computer business IBM predicted its revenue from software would grow from 40 percent by 50 percent by 2010.  The computer business also stated that its revenue in new, emerging markets is going to double during the same time period, claiming it was in better shape in countries such as India, China, Brazil and Russia.

Last Thursday, representatives from computer business IBM stated they were expecting profit growth from software sales as a result of new technologies and opportunities.  The company has been able to focus on software development in large part because of its shift away from the PC business.  

Long Term IBM Plans

Computer business IBM’s comments about its future were made at a briefing for its investors in New York City.  This type of lengthy meeting about future financial results is unusual for any computer business and displays that the company is changing into one that is more interested in profit growth than pure revenue growth.  

Computer business IBM stated that profits could be higher because for the following reasons:  the move into more profitable business areas and away from low-end hardware and other low-margin areas; an on-going attempt to reduce outstanding stock shares through buyout.  The company was confident giving a long-term outlook because it helps it provide a map for the future that can help the computer business gain more confidence to move forward.  

Computer Business Optimism

The presentations by IBM made many investors optimistic about the future.  They are happy to hear the computer business talking about continuing efforts to cut costs and help make businesses more profitable.  While some worry about the abilities of the computer business to make such strong predictions in an uncertain market, many believe in the potential of the business to grow.  

For more information about this computer business story, visit the attached link.  

Added By:  Computer Consulting Kit

When you are starting a small business computer consulting company you need to be aware that small businesses with 10 to 50 PC’s are going to have more than one office.  Prospects this large are typically accustomed to using professional computer consulting experts and are willing to pay for support.

Small Business Computer Consulting:  Is There an In-House IT Department?

If a prospect has an in-house IT staff you need to know what they are thinking of having you do for the company.  If the prospect wants a deep specialty or if it is a strange outsourcing situation, you need to know.  

Small Business Computer Consulting:  Research Prospects

Finding prospects for your small business computer consulting company is as seasy as Googling towns using area, ZIP and postal codes.  Also try telephone prefixes when conducting a search.  Typically the best prospects will also belong to local or regional chamber of commerce organizations or similar organizations.  You can join these organizations to meet people or attend as someone’s guest.  

Small Business Computer Consulting:  The Location of Your Prospects  

Your prospects will typically be found at B2B events, so market your small business computer consulting firm by going to these events.  Target clients for your computer consulting firm will be covered in business sections of local papers and publications, so subscribe to these or read them in the library or on-line to increase your chances of finding the best prospects.

Small Business Computer Consulting

Narrowing your focus to the best small business computer consulting prospects in your area is as simple as networking at local events and reading about businesses in local publications.

Blogged By:  Joshua Feinberg

The skills of one IT consultant are often very different from the skills of other IT consultants.  But a successful IT consultant typically has the following traits.

IT Consultant:  Management Skills

In your first year of business, you will most likely have to hire some subcontractors before you hire employees.  You will have to make hiring decisions and even firing decisions.  Therefore, as an IT consultant you need to be decisive and swift.   

IT Consultant:  Diplomacy

As a successful IT consultant, you should be able to teach technology to computer phobic individuals in a way that is not at all condescending.  If you are accustomed to working with highly skilled users, you have to also learn to put that aside and have patience.  Your job is to do what it best for your client and your own business.  If you are worried about this with certain clients, you may choose to walk away.

IT Consultant:  Empathy

You should be able to empathize with your client and know what he/she is going through so you can offer a good solution.  Listen and understand a client’s issues so you can help calm him/her.  This calming process will be necessary for you as an IT consultant often before you even think about providing treatment for the symptoms or working on the problem.

Added By:  Joshua Feinberg

Despite recent layoffs by computer business players Lenovo and IBM, the companies keep hiring employees.  However, many seeking employment are finding the process of getting hired difficult.

Computer business IBM worked together with Lenovo two years ago to revamp its personal computer business and both also signed an agreement that stated they would not take each other’s workers during the start-up phase.  While that agreement ended on May 1, 2007, reportedly the two companies are still following it.  

Both computer businesses state they will try to not recruit each other’s employees for positions.  This means they will not specifically seek out employees from the other company without first looking at other candidates for open positions.  According to Lenovo spokespeople, this means current employees of IBM will not get preferential treatment during the hiring process.

According to computer business experts, no-pirating agreements are fairly standard.  IBM and Lenovo signed the agreement in 2005 in order to protect Lenovo’s $1.25 billion investment in the computer business.  One of the assets purchased was the skill and expertise of employees at the IBM PC division.  These employees crossed over to the new company, but employees currently trying to cross over find themselves up against a brick wall and an agreement that seems to be designed for the benefit of the employers rather than any current or future employees.    

For more information on this computer business story about Lenovo and IBM, visit the attached link.  

Added By:  Computer Consulting Kit

Your computer business can be very profitable if you provide service to businesses rather than to consumers.  Retail customers only need service one or two times per year and typically don’t need you for long-term service.  If your goal is to produce $200,000 annually in services revenue, the following are your strategic options.

Computer Business:  Retail Clients

The first choice for your computer business is to offer business to consumer service, otherwise known as B2C.  This type of customer might spend $250 annually in services or products from your shop.  They will spend money on a hard drive upgrade, repairs, installing Wi-Fi, etc.  This type of strategy for your computer business can get tricky and time-consuming, as you would have to reach 800 customers in order to reach your revenue goal.  

If you are only selling the products and don’t find yourself with a lot of after-sale support, this amount of customers might seem fine with a small staff.  However, these types of customers will need a lot of advice and guidance from you.  This type of sales for your computer business will also cost you a great deal in terms of advertising, promotional and marketing dollars.  

The B2C model will also be expensive in terms of labor costs.  You will need quite a few technicians to be able to give enough free and paid support to customers.   

Computer Business:  Business Clients

Business customers (B2B) will be committed to spending about $1,000 per month every month.  This means every year you can expect to get $12,000 per customer at least.  You only need 16 or 17 of these types of computer business customers in order to get to your revenue goal, which is very manageable, especially with a small staff.  

Plus, when a business is spending $12,000 per year, the business is no longer based on transactions.  This is a real client that has made a real commitment for extended maintenance and a long-term relationship with your computer business.

Blogged By:  Computer Consulting Kit