Archive for October, 2008

Small Business Credit Card

Thursday, October 30th, 2008
small business management
Bradley Carson asked:


It has only been recently that the larger credit card companies began aggressively marketing small business credit cards. If you are a new entrepreneur and have decided it’s time to get a small business credit card, you are in luck!

Most new businesses are sole proprietorships and credit is an important part of growing your business. The credit card issuers look at your personal credit history to see how you’ve managed your personal debt. A good personal credit report can prove that you take your obligations seriously.

As with any credit decision, you need to review what your requirements are before you apply for a small business credit card. The financial institutions are offering numerous incentives for your loyalty such as rewards, cash back, airline miles, high credit limit, and an option to pay over time or in full.

A small business credit card can assist with your cash flow. If you purchase supplies to do a job and bill the client upon completion, a small business credit card allows you that needed extension of time. You should keep this in mind and perhaps apply for a higher limit credit card. Consider the invoicing cycle. If you think it may run over thirty days, you would want to apply for a card that offers the option to pay over time. Look at a lower interest rate small business credit card.

If you have been in business for at least two years and just want to add to your cash flow. The Small Business Capital Line offered by American Express may be what your looking for. This offer includes an unsecured line of credit with a minimum of $10,000. Their easy application process doesn’t require any supporting forms for most applications and gives you 100% access to your cash. This offer includes a competitive APR.

If your new commercial endeavor includes travel, a small business credit card with rewards that offers savings for airline miles, hotel and car rental would be ideal. An added advantage is you can keep track, remotely, of an employee‘s expenses through online viewing of your account. This is a big plus when on a tight budget!

The SkyPoints Business Credit Card from Delta and American Express, lets you earn double SkyPoints for everyday purchases and Delta purchases too. You can receive up to 75% discount on airfare when you redeem your SkyPoints. There is a small yearly fee for this program, but the first year fee is waived, offering an immediate savings of $49.

Credit card companies have formed alliances with a number of retailers, both online and off line. Some rewards perks are discounts when using your small business credit card at specified locations.

The Chase Platinum Business Card offers additional savings through their Visa Business partner Advantage. Receive savings of up to 20% from leading retailers with special offers on computer equipment, office supplies, and many other items.

Choosing a small business credit card is made easier by the internet where you can compare offers side by side. Each of the small business credit card programs offer extra value. It’s your choice which program fits with your financial needs.



Brittany

Hr Software for Business Management

Monday, October 27th, 2008
small business management
Radha Kishan asked:


In today’s busy world, many managers find that there is not enough time in the day to do all the things that they need to do. They find themselves overwhelmed by menial and repetitive tasks that need to be done for the good of the company and the employees that they are responsible for. The good news for these managers is that there are now many different types of HR software available to assist them with these everyday needs.

Many of the HR software products available take an everyday process and streamline it so that it takes much less time to complete. Some of the most common types of software focus on the most time consuming aspects of business, such as tracking employee attendance, and reduce the number of steps that need to be taken to perform the job effectively. By reducing the amount of time that the manager needs to spend focusing on these menial items, the managers are more effective at handling the larger issues that occur at the company.

Some of the most common types of HR software include:

Recruitment Software – Recruitment software streamlines the process of searching for and hiring the best individuals for the company. From creating customized employment forms for the company to tracking individuals moving through the hiring process, recruitment HR software covers all of the bases and reduces the amount of mistakes made when hiring individuals to work for the company.

Personnel Management Software – Personnel management software provides a variety of benefits to the workplace and reduces the total amount of time spent on personnel management. These software products provide easy methods for completing common tasks such as tracking employee attendance, tracking vacation time earned and taken, and calculating overtime, as well as providing solutions to many other issues that often arise in an HR environment.

Training Software – There are a number of different training software products available on the retail market today that allow HR personnel to track the training accomplishments and training needs of a large or small workforce. By using software that was specifically created for training, the department will also ensure that they can minimize the costs associated with training and that every employee gets the training that they need.

Self Service Software – There are many companies where the employees interact directly with the HR department regarding sick days, scheduled vacation time, and time card reporting. Self service HR software provides the employees with the tools and forms to accurately communicate these items to the HR department of the company or management.

Using HR software for the company’s Human Resource needs helps to identify any issues before they become costly problems. For example, in some industries, if every employee at the company does not have the necessary training to perform a job, the company can be fined between $5,000 and $25,000 per occurrence that is found. This could quickly bankrupt a small business and will cause major issues at larger companies as well.

Preventing these issues from occurring is one of the primary functions of all HR software products. By issuing an alert when a problem is noted in the database and providing monthly or quarterly reports detailing the information that has been entered into the system, errors can be corrected quickly before they are buried under subsequent correct information. In many cases, the most common types of errors will be flagged as incorrect as soon as they are entered into the software program.

By using different types of HR software to streamline the processes used within the company, the HR department will save money and reduce the amount of errors made within the department. There are HR software products available for companies of all sizes, from small start-up businesses to larger corporations to non-profit companies. Every employer could benefit from the right software products for their business and obtaining the right HR software for the company is not a difficult task to complete.



Catherine

What are Common in Sports Umpires and Business Managers?

Friday, October 24th, 2008
small business management
Satish Nair asked:


“Respect is important in sports and in business. You can not be successful without respect for the customer or the competitors. Respecting the rules means respect the referee”. Perluigi Collina, Retired International soccer referee, a respected figure among soccer referees in the world.

 

Collina says, both sports and business are similar when it comes the decision making, a wrong decision can be fatal for both business and soccer. If your decision is getting wrong-footed, you may be ended up in hot water, however if you take the decision under good judgment and the decision should be for the benefit of the business and for the sports, however the wrong decisions may lead to on field battle by the players and spectators and in business doubts created about the credibility of the manager. He says, there are things that could be very similar between his activity and the business world, as for a manger, he has to take decisions very quickly under pressure. Important decisions will have big consequences, if it goes wrong. Another key is that decisions are all about building relationships with players on the pitch and employees in the organizations. Sometimes, the decision the referee takes is accepted not only because it is correct but because the relationships are positive.

 

The final goal for the referee and for a manger that they are to be accepted even when they are wrong.  It means that the players trust the referee, as if someone trusts the business manger even if he is wrong. The referee is accepted not because of the role but because of what he does on the field.  This is similar the case of a manager. The manager can not be accepted because he is a CEO, but the manager is accepted because he has shown everybody that his way to run a company is correct.

 

Business leaders need to have an insight into coping under pressure could do worse that to follow the referees, who do not betray some nerves prior to the game probably should not be there. Like referees the manager needs to be little nervous just before taking a big decision. If a manager feels powerful more strong, but there is a limit. If he takes it too far, nerves reduce his performance. Everything which happens on a pitch that also happens round the table. Both the manager and referee face challenges and have to have criticisms, when something happens, the like the manager, referee has also to change the things what can be changed and look to the future and this what the referees and manager do. 

 

The vital and important key of a soccer referee is the instant and immediate decision making ability, that too in split seconds, there is some relief to the cricket umpires that in cricket matches, the umpire can refer to third umpire for decisions and let them decide, however in soccer no such assistance can be taken from the replays or third umpire, he has to take the decision instantly and immediately and we can see from the replays that 99% of the decisions were correct, in fact referees are not playing spoiling sport, he actually manage a business of 2.00 hours, he can not be partial, even if the spectators think so. They have nothing to do if a team win or loss, they are just managers of a soccer match and once the match is over, they go another assignment. In most of the decisions, though players and their coaches could still be argued the decision is wrong. It becomes more crucial for referee that when taking decisions in a match, which is being watched by millions of spectators around the globe.

 

If the referee wants to do his best i.e. to referee in big matches, from Arsenal vs Man United to world cup matches, even though it’s still just a game of football and nothing else. Making good decisions is essential even either in EPL matches or in the small matches. There’s been an explosion of exposure lately - every single incident gets noticed and analyzed. Like soccer, the managers are also watched by the directors and stake holders, then the decision should be correct to the great extent. If the referee, they had a couple of cameras at a game 10 years; nowadays for a live match there are numerous cameras, capturing every decision the referee is going to take. If a referee makes a mistake, millions of people are there to blame him, he should be affected only by his desire to do a good job, not adverse publicity. This is similar to the business managers, as these days the media closely watches all the decisions they take.

 

Both in the business and in sports, the respect is very important; giving and taking the respect, nobody can be successful without giving respect and getting respected for the customers, or the competitors and once you get the respect and trust of players and employees, you are successful and your decisions are respected by everybody. People may not instantly put a name to the face, but once they realize that this is the man who is credited with being the most outstanding referee/businessman, the penny drops. There is some dissimilarity too, in football it is mandatory to retire referee at the age of 45, irrespective of they mental and physical strength, but in business there is no such restrictions, he can perform till his health allows him to do. The qualities required for a good referee and good businessman are the same; they have to have;

 

To stick eyes on the “ball”

Both should focus on what is going on in the pitch in case soccer and organization or market and without watching following the ball (focus) no manager can take any decision for the benefit of the organization and this is also applicable for referees, once their eyes distract from the ball, wrongful decisions can be made, it may be fatal. It may attract the ire of the spectators and can lead to loss the job. Both should stick on the focus for taking a decision for the interest of the business and the game being played amidst pressure for both sides.

 

Coping under pressure: Soccer officials are routinely subjected to a wide range of potential stressors, like the businessmen, as both reveal a considerable mental and physical toll. Soccer referees identify spectators, players, coaches, trainers and other personnel as sources of aggression. Unlike the businessman, at the extreme, referees and their assistants have been pushed, punched, kicked, and even shot to death by players, managers, coaches and fans. Referees and their regulating bodies are well aware of these sources of threat, and some attempts have been made to provide psychological training to help them cope.

In addition, match-specific demands are extreme. The referee must have a thorough knowledge of the current laws of soccer and implement them while keeping constant vigilance over complex activities and interactions, whereas a manager should know the market trends, customer trend . Considerable amounts of time must also be spent on pre-match preparation, travel, and post-match reports.

A few studies have examined referee responses to stress, but little was found about the mechanisms which motivate officials to continue their involvement despite the variety of potential physical, social and cognitive factors which are regularly encountered. The present study was designed to allow referees to convey their perceptions, particularly with regard to their methods for coping with demands and abuse and their reasons for remaining referees.

To deal the negativity : Social psychologists have identified a number of cognitive strategies that help people explain and deal with negative experiences. Blaming others for failure while taking personal credit for success, distorting or ignoring unpleasant information, and interpreting one’s motives as principled and righteous, are among the variety of available methods of maintaining confidence in difficult circumstances. Misrepresenting reality with ‘positive illusions’ (Taylor & Brown, 1988, 1994) can ultimately be healthy and adaptive. Indeed, they serve a vital function of removing perceptions of self-blame, protecting from external censure, and providing palatable explanations for disturbing events. In the longer term, they may lead to more positive expectations about the future, greater persistence and self-efficacy. Taylor and Brown (1988) suggest that people who fail to use these strategies are more likely to be anxious or depressed.

To expect the unexpected: Sports performers and coaches often make use of self-serving attributions to explain their own disappointing results. External factors such as bad luck or other people’s incompetence are used to deal with unpleasant experiences, defeats, and rejection, while internal factors such as skill and effort are seen as responsible for victories and other successes. Some analysis showed that players and coaches were more likely to attribute their successes to internal factors, such as skill and determination and their losses to external factors, such as cheating opponents and poor weather. These factors are closely associated with the business managers in various situations.

To decide on personal strengths : Another potentially useful mechanism is ‘illusory superiority’ or self- elevation, where people adopt the view that they have more positive qualities than others and describe their personal strengths as above average compared with those of other people their age. Individuals made more flattering judgments about themselves than others made of them. Individuals also believe their personal relationships are of a higher quality than the relationships of others and remember experiences as more successful than they really were. These factors are also existing in the managers

The managers and the umpires are the connecting link between players and spectators, likewise a manager, who is a connecting link between the employees and the board of directors, stakeholders, the job of a referee and a manager are same in most of the scenarios, though there are indeed some deviations. The keys for success for both are almost all the same – and the most important is the INSTANT DECISION MAKING POWER. Therefore, one wishes to analyze the similarities and qualities of a manager and referee, similar factors impact their performance off and on the pitch/office are vitally required for success, to get respected and to get the reputation of a good referee or a good manager. 

 

 



Ronnie

Does Small Business Marketing Need Much Planning?

Tuesday, October 21st, 2008
small business management
Nate Stockard asked:


Small business marketing is small, as noted by the name, but too many times business owners think that small business marketing is too small for planning, budgets, or strategies. Since small businesses usually have little or no marketing budget and are concentrating on just keeping the doors open, owners, more times than not, neglect their marketing planning. No business should exist without marketing planning and strategies!

Actually, small business marketing requires planning and strategy more than major companies.

When the marketing manager of a large corporation has a $20 million marketing budget just for print ads, they have room to make mistakes, produce the wrong ads, and even scrap the marketing plan half-way through completion. Small businesses don’t have such freedom and liberty. Small business marketing should contain a plan before anything else happens in the company in the area of sales and marketing. There should be budgets and strategies created as early as possible and reviewed as often as possible.

Create a marketing plan as soon as you decide to start a business.

My company specializes in helping small businesses with marketing and design, and we encounter many of the same problems, and they all stem from lack of early planning. Once you decide to start a business, start creating a marketing plan.



Who are your customers?

What are their needs and wants?

How will you acquire new customers?

What kind of customer relationship management systems will you use?

What do your customers expect from you?

What are your products’ benefits?

What are your strengths?

What are your weaknesses?

How will you advertise?

How much will you budget for marketing?



This list is actually very small when it comes to creating a marketing plan, but you must answer all of these questions and more. Small business marketing must be precise, have a defined strategy, and contain at least a rough budget. Figure out who your customer is, how you will reach them, and why they will buy from you. Starting with these three areas will give you a plethora of other questions to answer in figuring out the maze of small business marketing.

 

 



Brad

CRM : is it Worth it for a Small Business?

Monday, October 20th, 2008
small business management
Hugh McInnes asked:


As a small business, you may be bombarded with a torrent of market noise regarding the latest and greatest in customer relationship management (CRM) software. You will hear each vendor boasting about infinite features and benefits that differentiate themselves from one another. This makes it increasingly difficult to decide which CRM one is best for your business. Until now, your business might have been comfortable using a combination of Outlook and Excel to fulfill most of the basic CRM needs, and in all honestly, that would have been more than sufficient to start with. You also may be thinking of recruiting a distributed sales force to grow your saturated customer base, or even introducing new product line to augment your current offering. In the midst of looking into a crystal ball for your future, you may be apprehensive that the current systems in place will not able to cope with the influx of new customers when extrapolating growth trajectory. Like a ship entering into uncharted waters to reach a destination, you want to make sure that you have the right crew, procedures, and equipment in place to navigate the unknown of the open ocean. This article attempts to address certain questions. Do I need a CRM? What do I look for? Is it worth it for a small business?

The term CRM was originally coined from the high-end enterprise market. However, the benefits of a CRM system are palpable in industries of all sizes. The concept is simple and is defined in all marketing books. Technology tools may be new, but the underpinning idea of a CRM application has remained throughout the ages. An entrepreneur explained it to me the other day describing his business model, “Customers will buy from you through experience you provide them, make the experience as pleasurable as possible and they will keep coming back”. Managing this customer experience at all touch points is the core function of a CRM system.

The fundamentals in adopting a CRM system are irrespective of company size. Before selecting any CRM vendor or even deciding if a CRM if even right for your business, have a deep look inside the company and its overall business strategy. Take an inside-out approach, do a reality check of where your business is, where you want to take it, and how you want to get there. During this analysis take into account your industry, competitors, customer segments, and economic environment when formulating a strategy. What you might discover is that your self-image is very different from how your potential customers perceive you. A thorough understanding of your corporate strategy will then dictate your marketing strategy moving forward. Here you decide on what are your marketing objectives: is it to enter new segments? Is it to change your position on the customer perceptual map? Or is it to increase repeat business? Once you have carefully considered all your strategic alternatives and decided which one to adopt, flesh out individual tactical steps, milestones, and measures on how to achieve the overall goal. The features you will require out of a CRM system will naturally fall out of this rigorous process and bubble to the surface. These are the functional features which form the basis of the selection criteria when short listing which CRM vendor to choose.

The relevance of doing this analysis is to make the CRM selection and adoption process as seamless as possible. Think of it as similar to building a house. The more precise description you provide to the architect on what you would like your house to look like, the better the end product will ultimately be. Although may not know every descriptive feature beforehand, and the fixtures could change during the process, the foundations remain the same. The quality of your input you can provide upfront will affect the end product you will receive at the end. This is the same process in adopting software. When you engage in a software vendor, you will disclose to the vendor what you know and require, and then an experienced vendor will probe through a structured discovery process for as much information below the surface. This is in the best interest of both parties to do this information gathering exercise before a solution is agreed upon.

Keep in mind that no software will ever be the single sliver bullet. There is no CRM that will make your sales reps sell more if they are the wrong people, nothing will make your support reps more proactive if there are no incentives in place to drive them, and it is impossible to eliminate customer churn if your product or processes are fundamentally flawed in the first place. All this change has to come from within and stem from your overall strategic objective. It is important to note that from experience, most CRM or software failures has little to do with the technology itself, but more the human problems. Enabling the key stakeholders and end-users to participate is the planning and selection process will help avoid this perilous fate. The more involvement the stakeholders play in defining and refining the requirements, the more efficient the selection process will be, and the more ownership your people will ultimately take of the solution. It is key to remember that a CRM, if selected for the right reasons, will provide support fabric and help facilitate the tactics to reach your overall strategic objectives.

Software should not be your only decision when choosing a vendor. Software is a commitment; you need to make sure that you find a vendor that will not only provide you the software, but one that will partner with you through your company life-cycle. Businesses are like organisms, they evolve over time. Market conditions change, industries change, and competitors come and go. For this reason you need to make sure that your software and vendor have the agility to change your processes incrementally as they evolve. If not, you will be constrained to with archaic processes that will dilute what you bring to the market.

Investing in a CRM application is a major decision for a small business. When selecting a CRM application, choose carefully as the costs to switch of the wrong decision can have serious consequences. Once you have performed a deep strategic analysis to derive your company direction, ensure you find a vendor that not only ticks all the functional boxes, but a vendor you can trust, one that goes out of their way to understand your business, and one you believe can be a long-term strategic partner. Relating it back to the ship analogy, when navigating uncharted waters, make sure you have the right crew on deck, collectively decide where you want to go, have the right procedures in place, and then identify the right equipment for your journey. The CRM should take part in the latter part of this process. Rushing this process will see your investment turn to dust, while thoughtful planning and analysis will help ensure that aligning the right CRM system to your overall strategy will be worthwhile for years to come.



Alfred

can anybody tell me how to forecast sales for a call center?

Wednesday, October 15th, 2008
small business management
The_Only_WAy asked:


I am developing a business plan as my
SMALL BUSINESS MANAGEMENT assignment in MBA.
In which i am working on call center development.

Here i can’t get the actual data of any client whose project we’d be working on. But the figures should be realistic so i got the payments and their schedules of a client from a call center.

Now how would i make projections on its basis

Cynthia

What employment position do I qualify for with this resume and experience? Must make at least 34K annually?

Wednesday, October 8th, 2008
small business management
Jamie F asked:


OBJECTIVE
My career objective is to obtain a position as Inventory Administrator that will further my career. The ideal position will provide significant opportunity for growth and increasing responsibility.

QUALIFICATIONS
•Have 10 years experience and accomplishments in small business management, sales and customer service.
•Have supervised others, handled difficult customers and introduced special promotion and incentive programs.
•Strong communication skills and high motivation with the ability to manage and train others.
•Library experience, including experience with document delivery and some general reference experience.
•Experience with industry standard bibliographic databases; books in print and other data basis.
•Experience using online card catalog.
•Ability to communicate effectively with a wide variety of people including senior management.
•Strong interpersonal and relationship management skills.
•Competent working on a geographically disperse team.
•Customer Service Experience.

COMPUTER SKILLS
•Proficient computer skills in the Microsoft suite and Adobe applications.
•Understanding of CeledyDraw2 and Art Explosion Publisher Pro.
•Understanding and experience using the Internet/World Wide Web.
•Typing at 70 WPM, 10-Key at 6,677 key strokes.
•Intermediate-Advanced performance in a variety of computer applications.

WORK HISTORY
2005-2007Desktop Publisher/ Graphic Designer, ENVOY Consulting
•Designed business proposals and provided contracted graphic design services.
•Formatted text documents using QuarkXpress, and inserted graphics.
•Typesetting for articles, advertisements and flyers, fixed type font ligatures.

1991-2001 CEO/Manager/Administrator, Freedom Housekeeping Services
•Fashioned innovative and effective advertising media using various publishing software.
•Increased sales annually through effectively and efficiently marketing services.
•Achieved goals that provided a service which catered to the customers needs.
•Preformed Management and business administration in advertising, marketing, estimation,
scheduling, bookkeeping, customer service, hiring and training employees.

2004-2004Exceptions Clerk I/CCS, East Coast Bank
•Experience in a fast-paced, competitive banking environment, providing daily support to two managers on various levels.
•Daily review and tracking of possible fraudulent account activity, comparison of customer signatures using check logs. Bank recording, distribution of deposit corrections and check receipts, and review of various banking documents for accuracy were done on a regular basis.
•Administrative responsibilities consisted of data entry, formatting spread sheets, correlating documents, filing, mail service, facsimile and telephone services.

EDUCATION
Western Washington University, Mountainville, Washington
Credits completed towards Bachelors degree in Humanities, 2006-2007

Climate Community College, City Center, California
Pre-nursing certification program, 2007-Present

Todd

What are my chances of getting into a good MBA school coming from a small state school?

Tuesday, October 7th, 2008
small business management
- asked:


I will have a 3.1 with a B.S. in Business Management- Finance, a B.A. in Economics and a math minor. Also my gpa was poor first two years but I did very well the past two. expect to do above average on the GMATs. Thanks

Edna

Small Business and Technology

Wednesday, October 1st, 2008
small business management
Luis Luarca asked:


Traditional business management has had to make room for a new facet of business: technology. Through the years traditional business management has had to marry its strategies with the proliferation of technology where every business owner from Starbuck’s to Jim’s Auto has had to incorporate technology into its everyday operations.

The problem is that in the late nineties business believed technology was going to be the solution for every business problem, but it wasn’t until recently that business managers realized that technology will fail if not implemented properly. That is, traditional business management must seamlessly marry itself with technology.

Traditional business management is pretty self-explanatory; it’s managing business through traditional methods that have been used for many years. Traditional business management takes into account all aspects of running a business, large or small. Whether it is a million-dollar company or a billion-dollar company, all companies run the same. Those traditional methods incorporate three aspects of business: sales and marketing strategies, efficient operation and production methods, and manageable finances (SG&A). I believe all businesses should pay attention to these areas of business management.

So, now you have this traditional business model to think of, and you also have to think that the model has incorporated technology. You see, managing a business is not as easy as it sounds, and I know you have never looked at your business in this way before.

Believe it or not, graduate schools teach this stuff and larger companies obviously have the money to pay someone to think of this stuff. But most businesses do make the mistake in believing technology will solve all of their business problems. This is simply not true; technology cannot solve every business problem.

Many large corporations install and implement technology as quickly and arbitrarily as they would a new desk or a new lamp, not taking into consideration the stress new technology places on both business processes and human nature. Humans inherently do not like change, especially at the work place where they might feel as they might lose their job or were not consulted in helping determine which technology is best for their task or function.

Business processes do not like change either as the processes a business must go through to operate are much more complex than people might think. Most technology consultants want to “go live” with their implementation as soon as they can so they can share the praise of a successful launch. What most technology consultants don’t realize is that their eagerness to “sell” the job puts a business in a precarious operational bind.

It only makes sense to understand that as technology can be customized and most business processes cannot, basic technology implementations will hurt a business’ process as opposed to helping.

Some of the technology solutions out there can be very complex and some can be very simple. For example, I recently helped a client realize that developing a method of capturing labor time per phase of each of their projects allowed them to better understand and account for costs associated to labor and materials, per project. This allowed their sales team better cost data related to profit margins required per project. Initially the client was looking to spend money on purchasing one of those electronic card readers that each of his employees would have to swipe as they moved from station to station. We were able to solve his process issue at half the cost of that electronic clock by simply creating a custom process document from Microsoft Excel. The fact that the clock was not customizable would require the business processes to change just to accommodate the clock.

In this case we are trying to convey the importance of understanding your business and its processes before you move into technology. It is less expensive and less burdensome on your business processes. What we accomplished in the case above was that we were able to ‘tweak’ the business processes at will, where had we purchased the clock, we would have been forced to comply with what the clock required, not the business.

In the late nineties the hype of technology and the Internet fueled the belief that plugging technology into your business or developing your business around technology was the best way to run a business. A great example was WebVan and HomeGrocer.

These companies spent over a hundred-million venture capital dollars building the infrastructure that was going to give them the warehouse space to buy food products to fill all the customer orders that were to come via the Internet.

The mistake was that the company put all of its money into the assumption that its idea would work because the American grocery shopper was ready to buy groceries online via state-of-the-art technology. The orders never came.

Actually, the orders did come; the problem was that both companies were in so much debt because they couldn’t generate interests in their business model and they went out of business.

Today, the traditional grocery chains such as Albertson’s and Vons in the western U.S. have capitalized on earlier business models and realized their traditional way of doing business could was a great foundation to build their technology around their current processes.

I had the privilege of touring the WebVan warehouse in Oakland, California. It was impressive. If I remember correctly, it was an 80,000 square foot building equipped with a technologically advanced conveyer belt system worth millions of dollars. It looked like the inside of a United Parcel Service (UPS) warehouse, but much more expensive. For those who have never seen the inside of a UPS warehouse, it is just a bunch of conveyer belts.

Interestingly, about 50 people were milling around the WebVan warehouse; their main task was making sure the computers were pulling the right products and putting them on the conveyer belts. Great operation, but they ran out of money after just a little over a year.

So, what failed here, technology or money? Lack of money failed at WebVan, and lack of money fails almost every business that goes out of business. Lack of money fails business due to lack of business knowledge.

Business owners, make sure that you understand technology and that it can be customized and should be customized to meet your business process requirements. You can see the most successful implementation of technology in companies such as Wal-Mart and Toyota and we can see failures in technology such as WebVan.

We make sure we know how our business operates and what those operations require when making your businesses more efficient and effective. We look at understanding what your business requires before we recommend technology.

In the long run, you’ll spend less and profit more.



Pamela