10 Tips to Help Small Business Owners Avoid Costly Software Investments
Feeware Software No Comments »Are you a small business owner? Are you thinking of starting a small business? Concerned about the economic big picture? Are we facing a double dip recession, or just a prolonged recession?
Regardless of the economic environment if you are starting a small business you need to try to find ways to preserve your cash reserves. And nowhere is that more possible than when it comes to your software investments. So here are some tips that will help you save money when it comes time to decide on whether to buy that new ‘killer app’.
This step is absolutely crucial. Start with a listing of the functionality that you:are currently using;think that you could conceivably use in the near future; and,think would be nice to have if it didn’t cost too much. Make proper use of trial software. More often than not the largest software developers will give you the option of using their solution on a trial basis. In the business world this is an absolute free lunch. So it’s imperative that you don’t waste it. Too often people will find a piece of software, download it for the trial period, and then not get around to using it during the whole trial period. This is a waste. You have the opportunity to determine whether this tool is something will be of value to your business make sure that you make the time to test it properly. Don’t just automatically pay for an upgrade to the latest version-especially where cash flow may be a problem. Sometimes you’ll launch an application and you’re notified that there is a new version available. When it comes to simple upgrades there are usually no additional expenses. However when it comes to version upgrades, you will usually be asked to pay at least a portion of the price of the newly upgraded software. Before you automatically upgrade, review your requirements. Can you get along with your current version for a little longer? In the long term you will likely need to upgrade. The reason is that sometimes the version upgrade will coincide with an upgrade in your operating system. And in many cases the old software may not work with your new OS. Check into freeware. In some cases the risks involved in using freeware are not worth the money saved. Those risks include: lack of proper testing, no training, limited support, the general absence of any kind of reputation in the software development sector. That said, there are many other pieces of freeware that will likely meet your needs. But you will have to do your own research and testing to make sure. Don’t automatically purchase the full suite. As a small business owner you may decide to buy the full suite of solutions from a provider. Whether it is a office suite, or a graphics suite, or an ERP suite. You’ll do this believing that you’re business will grow into the application. In other words, you hope that one day you’ll have a business that will will be able to use the full functionality of the suite. But between the day that they purchase this week in the day that you can actually use the full functionality, there have been OS upgrades, version upgrades, and even hardware upgrades. So in my opinion buying the full suite on this basis is full of risk and should be seriously thought over. Do you really need the ‘professional version’? Similar to the above scenario, business people will buy the deluxe or ‘professional’ version of the software. This is one that I am guilty of all the time. I don’t have time to fully research and fully scope out the use for this software my business, and the difference between the standard version professional version is usually not that much. However, using this logic over a number of applications could mean a difference of hundreds maybe thousands of dollars. If you are a Mac user, stay with the home team. Since switching over from Windows, one of the biggest differences that I’ve noticed is the price of software. Currently MS Word by itself sells for $149, while iWork-which includes Pages, Numbers, and Keynote-sells for $79. Most Mac business applications will allow you to either “Save As…” or export to a common Windows format. Check the hardware requirements-you never really want to have the bare minimum. You need to allow for a little more room especially when it comes to RAM. Check the software requirements-you do not want to undergo an OS upgrade simply to buy a word processing application. Look into web-based software. From Salesforce.com to Google Apps, there is a wide range of web-based software suitable for business. Depending on the complexity and size of your business these solutions may be suitable from both a short-term cash flow standpoint, as well as a longer-term solution that allows your software to grow with your business without significant disruptions.
Small business people always need to find ways to get a dime’s worth of value out of a nickel’s investment. And when it comes to your software investments there are many things to consider before you spend a dime.