It is time to think about what changes you are going to make in your business if you are going to be a competitor in the world of commerce. A new look at the basics of business should at least include the internet, employee management, location, accounting, and marketing.

INTERNET
37% of small businesses are using the internet for business. 66% of this group feel the internet is important or very important to business survival. 36% established a website to advertise or to sell merchandise. These figures are courtesy of Verizon SuperPages.com. There’s lots more information on this site that you should factor into your decision-making, so visit them at http://www.superpages.com/about/press/press22.html. Over the next few years the need to be “on the web” is going to be critical. Even though e-commerce is at the bottom of the “S” curve of business, the pace is upwards, and the next five years is going to decide who wins and who loses. Do your homework, study the web’s progress, and make your decision.

EMPLOYEE MANAGEMENT
What can you ask an employee to do, and what can you not ask? You need a set of policies whether you have one, ten or a hundred employees working for you. If you mess-up on this you are leaving yourself open to a lawsuit of one kind or another, and it will probably wipe you out, win or lose. There are all kinds of software packages out there, but my favorite is KnowledgePoint’s Version 6.0 Policies Now. You can create legally appropriate, highly customized policies and employee handbooks that will help you address important issues you might overlook, and the $179 cost is minimal compared to a couple of days in front of a judge.

LOCATION
LOCATION Unless you are selling retail, you don’t need a fancy building on main street. In most instances you can forget what the Realtors say about location, location, location. What you need is easy access, low cost, and a high speed internet line. This holds for just about all service businesses wholesale businesses, and consulting firms. In fact, many small firms of all types (including manufacturers and distributors) are joining together to rent inexpensive office space, hiring a common staff to answer telephones and make copies, and sharing everything including the telephone system (good phone systems can address multiple businesses from one console). If you are self employed, you don’t even need a business address, you can work out of a PO Box and a cellphone.

ACCOUNTING
The IRS is out there waiting for you. If you are not large enough to hire a really good CPA full time, you need an accounting package that at least gives you a sporting chance. I recommend QuickBooks 2002 at the starting price $99.95. New features such as specific industry applications, remote access, third-party vendor solutions to integrate into your business, D&B on-line credit checks, a live advice center, and their fabulous “Professional Advisor” service (http://www.quickbooks.com) will solve even the most difficult challenge you can throw out. From my standpoint, there is not a better package for new and growing businesses, and the staff at QuickBooks tells me they intend to develop their system to continue to grow with you no matter how large your small business gets! That’s worth the short learning curve.

MARKETING
Marketing is providing to a potential user what he or she wants at a price they are willing to pay. Let’s start with the money. It matters little what your competitors are charging, what matters is what your customer is willing to pay; not just for the product, but for the “service factor” you provide as well. This goes for consulting, retailing, wholesaling or whatever. Today’s consumer is a smart cookie, and if you try the usual tricks and games played by some marketers, you will be the one sitting out there all alone in the field of failure. Take a look at what’s happening to major purchases. Purchasers are avoiding these like the plague! Sales are down so far that merchants are offering 0% interest rates and half-off sales. If you don’t pay attention to the trends, your competitor will.

The second part of marketing is providing what the potential purchaser wants. Look at what is happening to the rag business (clothing). So-called gurus of this business have tried to keep fads and trends alive in the face of changes in taste of their purchasers. It doesn’t work, and multiple store-closings prove that. Is poor service a factor? In my opinion Montgomery Ward guessed wrong and is no more. I also feel Sears guessed wrong but is surviving while still looking for their “image”, whatever that means. If you are going to stay in business, get focus groups going to discover what it is your prospects want, and start working on providing that as your basic product or service. The world of business is waiting for you. Are you ready?

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Paul Tulenko is a Small Business Success Consultant based in New Mexico. Additional tips and suggestions are available at www.tulenko.com or call (toll-free) 1-866-TULENKO.