Microsoft has announced that it will discontinue sales of its popular operating system Windows XP after 30 June 2009. What will that mean for the millions of people still using XP? Of course, still being a majority desktop software provider, Microsoft probably is not taking into account the millions of people who are moving most of their business applications online (also known as “in the cloud”…).

Either way–whether most of the software you use for your business is online or the shrink-wrapped desktop versions–a reliable operating system is still necessary. If your computer still has Windows XP as its operating system, you need to be aware of several considerations.

Processor speed. Vista requires a much higher processor clockspeed than XP; at least 300 MHz whether in a single or dual processor configuration.

Amount of RAM (Random Access Memory). Most users report that XP runs fine on 512 MB (megabytes) of memory; and 512 MB is the minimum suggested by Microsoft for Vista. However, Vista users report that in order to run smoothly, at least 2 GB (gigabytes) of memory is necessary.

Available hard drive space. Microsoft requires at least 5 GB of free and available hard drive space to run Vista. Unless you use one of the many online business applications that securely store your data online, your hard drive may fill up pretty quickly.

Proper video drivers. Microsoft recommends a video adapter that supports the Windows Server 2008 Display Driver Model (LDDM).

A DVD drive on your computer.

If you are considering upgrading your operating system from XP to Vista, what features and benefits are you looking for to justify the upgrade? Security? Stability? Speed? Resources? Microsoft touts more “user-friendliness”, better searching, a higher level of security, and a better version of Windows Media Player.

So, if you are still using Windows XP, would it be to your advantage to switch to Windows Vista? It all depends on the hardware you already have, what programs you use for your business, what software you need for your clients, and the speed and networking capabilities you require. It will also depend on your “IT” capabilities, as support options for XP will certainly fade as sales are being discontinued.

I run my business almost completely “in the cloud”.  All of my main applications, for word processing, business accounting, customer relationship management, time tracking and invoicing, document storage, and project management are 100% online. I do have Vista on my laptop, because it came with my laptop purchase. It will soon be time for a new laptop purchase, and the next time, my choice will be a _______! (Hint, I will not need either XP or Vista…)

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Do you have a USP? In order to set your online business apart from the many, many others like yours, it is important to have a “Unique Selling Point”. Your goal is for you to be able to have your prospects and clients see your product or business differently than that of your competitors’. There are three distinct advantages to having a USP:

• Your product or online business will uniquely stand out from the rest.
• Your prospects and clients will be much less likely to compare your unique product or online business to others purely on price.
• Your product or online business will have a unique clear, concise competitive edge over other similar products or online businesses.

A USP is also called a “unique selling proposition”; it can be an actual fact about your product or business, or it can be a perceived specialty or differentiation. A USP should state in just a few words a summary of what you have or do and how you do it better or differently than others do. Your USP should focus on the main benefit to the prospect or client. It is often helpful to think of your USP as a phrase that could become an advertising jingle or catch phrase, similar to “Bounty. The Quicker Picker-Upper”; “We Try Harder” (Avis); or “It’s the Real Thing” (Coca-Cola).

If you have a product or service that at first glance seems like the same that thousands of other companies are offering, you can set yourself apart by looking at what you do and how you do it. Look at your current clients and visualize the kinds of clients or customers you wish to attract. Additionally, in today’s business climate, it is important to think of “keywords” that will place you and your business as high as possible in the rankings of search engines.

While your USP can contain facts about your product or business offering, in order to be effective, it must focus on the benefit to the client. One of the oldest axioms in business from a marketing standpoint is “Sell the sizzle, not the steak!” Four questions to ask yourself as you develop your Unique Selling Point:

1. If your business or product has a broad offering, what one or two key services or benefits are most in demand by clients or prospects? Determine a niche or specialty area.
2. How do you conduct your business? Do you offer 24/7 customer service? Do you deliver your product free or at a very low cost? Find something unusual, significant, or special about the way you do business.
3. Who are your clients; or who do you want to be your clients? Again, it is best to find a niche. Study the demographics: local, worldwide. For example, for an online accounting software offered to clients worldwide, some important benefits to a client might be supporting multiple currencies and sales taxes.
4. Exactly what do your clients want? Make a listing of the benefits clients are looking for from you. The one or two most important reasons could be included in your Unique Selling Point.  For example, here are some reasons why small business owners choose Clarity Accounting as their business accounting software:

• anywhere access with unlimited multi-user access
• robust multi-currency support
• easier and more bank for their buck than Quickbooks
• saves time with bank statement upload feature
• excellent integration with Freshbooks

 The best way to find out your unique selling proposition is to ask your customers.  So, what are you waiting for?  Pick up the phone and call your customers today, you might be surprised at what you might find.

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As a small business owner, you have many challenges to deal with on a daily basis. A business friend of mine was raised on a farm, and she always says, “the cows had to be milked” every day, no matter what. Sunny, rainy, cold, hot; no matter what was going on or how she felt; the cows had to be milked. She now uses that same discipline with her “city business”–there are activities that must be done every business day no matter what. If your business is to survive and thrive, you must keep in contact with your customers or clients, you must market your product or service, you must manage your employees or contractors, you must do your accounting to monitor your cash flow.

Unlike a farm environment, however, if you work from your home office, you can spend so much time trying to get everything done that you can almost forget there are other rooms in your house…much less an entirely different world outside your door! You tell yourself that you’re so busy; you barely have time to stop and eat–even if you know that candy bar isn’t really supposed to be your breakfast! Sometimes, it is time to take some time…just for you.

When you work for yourself, you often have the benefit of a flexible schedule…it doesn’t matter when the work gets done, as long as it’s done on time-you don’t have to “punch a clock”. Nevertheless, you DO have to take care of yourself so that you can take better care of your business.

When is the last time you took the time to fix yourself a “real” meal in the middle of the day? A peanut butter and jelly sandwich in one hand while typing with the other hand does not count; nor does a fast food burger and fries, although you do have to leave the house!

I encourage you to take some time this week. Close down all of the online applications and the twenty-three tabs you have open on your computer screen (yes, this includes that business accounting software you are working on!). Turn off the Blackberry and/or iPhone-”silent mode” doesn’t count. Go to the kitchen and open the refrigerator (you DID remember to go grocery shopping last weekend, didn’t you?) Take out some real food, as fresh as possible. Prepare a meal for yourself with as few ingredients as you can. Set the table (in the dining room, if you have one) using the “real” china (or at least not paper plates), actual glassware (not the ones you bought at the last football game with the team logo), and the “real” silver (or “real” stainless steel in my case…). If you don’t have real linen napkins, then at least use paper napkins…not paper towels! Now, doesn’t that look nice and relaxing? Even if your “real” meal is still canned soup and a peanut butter and jelly sandwich, you are taking some time for yourself to stop working and change your environment to at least another room. You are also giving yourself permission to take an actual lunch break in peace and quiet. This time will do wonders for your disposition and you will return to your office refreshed and ready to milk those cows!

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If you are considering switching from a desktop accounting software package to an online accounting software for your business, it is important to know what you need, the pros and cons of being online, and what features are available as well as which features are most important to you.

It has been awhile since the year 2000, when small start-up companies first started emerging with their own software applications to challenge the dominance of the large, mature software makers. Today, there is a lot of choice for online accounting applications, but even so, not all applications are equal in their functionality.

Before choosing a business accounting software, the business owner needs to know exactly what features and functions are necessary for the business. For sole proprietors and SOHO (small office home office) businesses, simple bookkeeping and line item accounting may be all that is necessary. As the company gets larger and more complicated, other options are available.

Our purpose here is to focus on the needs of the freelancer, the sole proprietor, or other small business types. For these types of business configurations, online accounting applications could be the perfect solution. Specific features to look for include:

• Ease of use. It is important that the application is easy to learn and easy to use on a daily basis. Small business owners “wear many hats” and do not have a lot time to spend on learning how to use a new program.
• Cost. Online business accounting software programs are leased on a monthly basis rather than purchased upfront, so the cost is reasonable. A business owner can more easily control cash flow with a low monthly subscription cost.
• Backup. Automatic backup of all data is important in the event of a natural or man-made disaster. Recovery can be quick and complete.
• Unlimited data storage. The amount of financial data for a business can grow at a very fast rate. Look for a program that offers unlimited storage within the cost structure of the monthly subscription, not at an extra cost.
• Security. It is imperative, even for a very small concern, that data is secure at all times. Make sure that the program chosen has an SSL security capability.
• Bank statement uploads. All of a business’s finances are held at some kind of bank or financial institution, and the capability to upload all transactions means no manual data entry and less opportunity for errors.
• Reporting. A business needs to constantly know how it is doing financially, and the ability for the accounting software to easily and quickly produce various types of financial reports is necessary. Easy exporting of data and reports into other spreadsheet programs should be available.
• Multiple-currency support. In today’s global economy, many businesses have clients in different parts of the world. The accounting application should provide for instant and seamless transaction in different world currencies.
• Third-party integration. Depending on the type of business, other online business applications such as contact managers, project management, and invoicing may be in use. The most useful accounting applications seamlessly integrate with other business applications, allowing for sharing of information and reducing the need for duplicate data entry. Look for integration between the applications you use in your business.
• Multi-user access. Even the smallest business should hire the services of a professional bookkeeper; some small businesses actually have administrative assistants. Using an online accounting software with multi-user capability, the other people who need to access the program can do it easy, quickly, and at any time. The business owner has the capability of assigning different levels of access to protect sensitive information.
• Customer support. A high level of quick, complete, and free customer support can be a deal maker or breaker when choosing an online accounting software. Most applications have toll-free numbers and “within-one-business-day” email support services. For a freelancer or small business owner, the customer support of the software application is the “IT guy”! On the other hand, the software provider can easily find out about any bugs and issue quick fixes; as well as find out straight from the customer any new feature ideas that can be implemented in a matter of weeks instead of years.

Oh, and the “cons” of using an online accounting application: the internet access could go out at the business location. But wait! Because online applications can be accessed from anywhere, all that is needed to is find another computer at another location with internet access, and the work of business goes on!

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Cloud applications. Online applications. Software as a Service. Which ones do you need? How do you know which ones you need? How can you find the ones you need? What are they, anyway?

Back in the olden days (about 7-10 years ago), just about all business software applications were desktop applications. An accounting software, for example, was purchased on disks and licensed for installation on one computer. Each computer in an office had to have its own copy of an application, and the worker was tied to working on the application at his or her own computer. “Sharing” information meant copying data on a floppy disk and literally walking the disk to where the data needed to go. That worked fine for its time, IF the other computer had the same version of software. Upgrading software meant buying a new disk and installing the new version on the desktop computer. The whole procedure was slow and tedious. Any new feature of a software program necessitated doing the process all over again; usually every year or two. ; and at a great expense of time and money.

Over the past few years, software applications have moved from the desktop to the “cloud”. Being “in the cloud” means that, like radio waves, everything is “up there in the clouds somewhere”. Software has moved to the internet, and can now be immediately downloaded, upgraded, and serviced “up there”. Online applications can be accessed at any time from any computer with internet access. A new term, “Software as a Service” (SaaS), has evolved to indicate the difference in the way software is purchased and used. Rather than purchasing a licensed copy of a software application for one computer, the software is thought of as a service to be leasing on a periodic basis, usually month-to-month; although discounts are often available for annual leases.

This is very helpful and convenient for people to find the exact business application to fit their needs. Instead of a large upfront purchase of a software package that may or may not be right for the needs of the business, and then being “stuck” with the decision. A business can very easily try out an online business application for a few weeks or a month to see how it works for the particular business.

Usually, a business can sign up for a 14-day or 30-day trial run of a business application (we offer a 30 day free trial with our business accounting software) testing all of the features with the actual data that will be used for the business. Often a credit card is not even necessary for the trial period. At the end of the trial, the business can continue with the program by signing up for a monthly subscription, or decide to try another program. The company’s data can usually be exported via a CSV or similar file to be easily ported into another program.

This is a cost-effective way to find the near perfect fit for an online application for both the potential customer and the software provider. There are no packages to buy, nothing to install, and almost all applications have training videos and/or FAQs right on the site to help the business with the initial learning curve.

The software provider has no distribution or storage costs for software packages, and the customer has no large cash outlay for each software program it needs. Additionally, with a subscription model for software applications the business can much more easily monitor and control cash flow. Upgrades are much more frequent, and any changes are delivered right online and install at the click of the mouse.

Depending on the type of business you have, and the particular software application needs of the business, it may be time to start moving “into the cloud” and consider trying out some online business applications and using Software as a Service by getting unchained from the desktop.

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This has been a particularly stressful week here at Clarity Accounting.  We did a software upgrade this past weekend and there are some bugs that creeped up on us. 

When we first started and we looked at some of the bigger software as a service players and snickered at the fact that they were slow at responding to feature requests and fixing bugs.  As our software begins to “mature” I now understand why other SaaS players were slow at implementing features and fixing bugs:

Any attempt at implementing new features and fixing bugs will cause more bugs!

Bugs are the reality of software.  In fact, the technical team here spends most of the time “maintaining” the application instead of cranking out new features like when we first started our business accounting software.  Sometimes bugs occur in the worse places at the worse times.  This week, for example, a large number of new sign ups couldn’t get their activation emails or create new business files.  Thankfully, we have very nice customers who are willing to call us and tell us about these bugs.  We are going to get a toll free number in the upcoming week so more people would call us.

The truth is, the speed in which we can implement new features slows down dramatically as our online accounting software become more robust.  When we only have a handful of users, we can make changes to the software quickly without affecting many people.  Most of our early users are early adopters of technology and they can stand a few hiccups.  However, we are getting to the point in which we need to spend more time testing the application and fixing the bugs before we can release the new functionalities and features.

After the stress we were going through this week fixing bugs, we realized we need to do 4 things:

1. Hire a QA Engineer ASAP!
2. Slow down our software upgrades and releases
3. Fix more bugs!

I wonder if anyone would ever know how horrible I feel when the software isn’t working the way it should.  When I realized no one was able to sign up for our business accounting software, I felt mad all day long.  Of course, this did not help with my productivity at all.  I just ended missing out on valuable moments to connect with Dobes (my business / life partner) as a result of being mad.  Sorry Dobes (I know you will be reading this blog post, heehee).

Yet another lesson learned from the startup trenches…

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If you are a freelancer or small business worker, especially if your business is “knowledge” versus “manufacturing” or “retail”, you spend the majority of your workday on your computer. Sometimes, your computer may be working right along with you for eight to ten hours a day. Inevitably, something will happen with your computer: it will slow down, choke up, freeze, or just plain crash. (No comments from the Mac Gallery, please!) And…if you are a freelancer or the owner of a very small business, chances are you are also “the IT guy”, along with all of your other responsibilities.

If your livelihood depends on 100% uptime for your computer, there are several things you can do so that you don’t stop when your computer stops.

The #1 item in your contingency bag should be a backup plan, literally. Depending on your needs, you should have at least an external hard drive connected to your computer to which you constantly back up your work during the day–even several times an hour. Then, if something happens to the computer you are working on, everything is saved except maybe the last fifteen minutes or so. There are also several online software applications that will back up your entire hard drive at specified intervals.  I recommend using Mozy.  It’s great and it’s free. Always check out the level of security when using online applications as you check for the other features that may meet your needs. The benefit to having either an external hard drive and/or an online backup application running is that you can recover everything quickly and easily and get back to work.

Just about everything you do on your computer is based on some kind of software application, either online or desktop. If the majority of your applications are installed directly to your computer, and the computer crashes, you will first have to re-install all of your applications, and then recover all of your data into each application before you can resume what you were doing. That can take hours or even days, depending on the number of applications…and where did you put those “unlock keys” for each application?

This is where having the majority or even all of your applications online as SaaS (Software as a Service) is critical to your productivity. With online applications, you are not tied to one computer; as all of your applications, including online word processing, online customer relationship management, online project management, online accounting, and any customized online applications that you need for your particular needs, can be accessed from any computer with internet access. It is also possible, very convenient, to have either some kind of laptop connect card or tethering ability from your smartphone to use if your wired internet goes down, as happened to me the other day. My internet disappeared during a storm and I just plugged in my laptop connect card and was back working within two minutes.

When you can work from anywhere at any time, if worst comes to worst and you actually have to take your computer in for repair, with online applications, you can go to the nearest internet cafe or even your brother-in-law’s house (he’s not still on dial-up, is he?) and meet your deadlines and keep your business running.

Which leads me to my ideal situation: having more than one computer in my office. My entire business is run on my laptop computer…and my Blackberry…and my iPhone. Yes, the #1 desktop office suite and calendar program is installed, because many of my clients still use them. But all of the applications I use to do my actual work are online applications. I often have several tabs open at once as a multi-task and juggle different projects throughout the day. My goal is to have a second laptop sitting right next to my current laptop so that I can switch between the two computers. With online apps, I can work from any computer, on any application, at any time; and when I want to work outside, or need to visit a client, or just work at the local coffee shop–no need to worry about compatibility or having the right file with me, it’s all there online and/or on my portable hard drive.

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I was having a chat with my husband yesterday (the topic of discussion will become obvious) and discovered that the concept of SaaS has been around for a long time.  In fact, before the days of technology, SaaS already existed. 

In the modern world, SaaS is defined as “Software as a Service”.  You build a piece of software like our business accounting software, put it on the internet, continue to update and maintain it and customers pay a monthly fee to use the software.

Before the days of technology, there was an “old” SaaS:

Sex as a Service

It is still around and most considers this to be the oldest profession.  It is more tangible than the modern day SaaS and the recurring revenue model is optional.  

Heehee

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Once the decision has been made to start your own business, the next item on your to-do list is the acquisition of hardware and software to help you to run your business successfully. On the hardware side, some people are “Macs”, and some are “PCs”. That’s a relatively easy decision–it’s usually what you prefer or what you’re accustomed to using. The software decision for a small business person is more complicated. Where to start? Again, it depends on what your business function is and where your business will be located. All businesses, however, need the basics: a contact manager, a project manager, a calendar, a word processing program, an invoicing program, and an accounting program.

You can go the traditional route, with a desktop computer on the desk and an all-in-one office software suite purchased at the local office supply store; that just might work for your situation. Except, you still need the other “basics” for the financial accounting part of your business, as well as project management and some way to share information. If you and your staff come into the office everyday and basically work in the same space, traditional could be your answer.

These days, however, as the 21st century marches on, more and more people are working either solo, in very small businesses, from home or other off-site locations, or with virtual teams of staff often vastly separated by time zones and distance. This is where online applications become the best options.

Online contact management software applications can be accessed and updated from anywhere at any time; instantaneously. Contacts and all the information associated with them, such as emails, notes, and documents can be shared at any time with others working with the same contact.

Online project management software applications are extremely useful if you have a team larger than two people working on the same project. Rather than relying on emails to keep everyone updated on a project’s progress, online project management software allows the project manager and everyone on the team to always have the same information at the same time; as well as update individually or in groups in real time.

Online calendars allow for group scheduling capabilities; again updated in real time. Multiple calendars can be integrated so that everyone’s schedule is available to everyone else and conflicts are much less likely.

Online word processing programs also allow for easy group edits and tracking of changes. These programs can also easily be accessed anywhere by anyone who has “permission”, and usually are compatible because of open source coding.

Online invoicing programs allow your clients, with permission, to access their own accounts and pay online with any number of online payment gateways. This allows for less questions about billing and faster payments to you. Using checks (or cheques, for my Canadian friends) and snail mail is SO five years ago!

Online accounting software has many features and benefits for the SOHO (Small Office Home Office) business owner, not the least of which is the downloading of bank accounts in the background, linking with invoicing and contact management software, and online collaboration with the bookkeeper and/or accountant. I have found the continuous updating of financial records and reports available to me with my business accounting software application to be invaluable to me as I monitor my ever-changing cash flow.

There are many online programs available today, so it does take some time to find one that meets most of your needs. But almost all applications allow for free trials, and also for easy migration of your data if you desire to switch from one program to another. Unlike traditional software-in-a-box applications, you’re not “stuck” and out of hundreds of dollars if your needs or desires change.

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Apps. Wikis. Blogs. RSS. Mashups. What in the world is all of this stuff and how does it help your SOHO (Small Office Home Office) business? All of those names are part of the way most of the World Wide Web works today, using what is commonly called Web 2.0. For those old enough to remember, “Web 1.0″ was essentially the “first-generation” of mass web use by people and businesses. There was a big beige box on the desk, and software was purchased on disks, and then installed and maintained by the company’s IT gurus. People worked on their own personal computer, and the only way to “share” information was to copy information onto floppy disks and walk those disks down the hall. Every year or so, updates and upgrades were needed for the software, so new packages were bought, and then again installed and maintained by the company. Web 1.0 was faster than typewriters, but still slow and laborious compared to today, and there was very little capability to share ideas or innovate within groups. Networking meant sharing printers between individual PCs.

Today, the web has evolved. Not only in speed and size (remember when Bill Gates said that 64K of storage was more than anyone would ever need?), but in its purpose and function. A good definition of how Web 2.0 is different is given by Phil Wainewright at ZDnet:

“Web 2.0? It’s about using the Web collaboratively - sharing and mixing up information and resources - so moving on from the first generation of the Web, which was more about using websites just to publish content and sell things.”

With Web 2.0, people can work independently as well as collaboratively. A worker is not tied down to the desk and the beige box; applications (”apps”) can be accessed anywhere there is an internet connection and from anyone’s computer–as well as on most of today’s smartphones. With Web 2.0, it is not so much about the hardware, it is about the software. Especially for SOHO owners, there are applications available for functionality needed to run a business successfully, such as office documents, customer relationship management, online accounting software, personal and business productivity. Additionally, Web 2.0 apps are usually not bought outright but subscribed to on a monthly or annual basis. This allows for instant downloads and real-time upgrades; saving time, money and IT aggravation and delays.

Sole practitioners and small business owners can benefit greatly from learning to use Web 2.0 applications: freeing themselves from 20th century web restrictions, freeing up their staffs from being tied to working in only one physical place, freeing up their wallets from expensive software costs, and ultimately freeing their minds to think more innovatively and collaboratively with people from around the world.

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