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technology

What Is Google Wave And What’s In It For Small Business Owners?

What is Google Wave and what's in it for small business owners - Small Business, Marketing and Web Design blog What is Google Wave?

The more you read about it the more confusing it gets. Is it an e-mail? Or is it a messenger service, like AIM or MSN Messenger? Maybe it is some sort of sharing thing, like Flickr or YouTube?

Well – it’s none of the above, or rather, all of the above – with a twist. What you need to understand about Google Wave is that it is a new – and more effective – way of communication. Something like Twitter on so many steroids that it has mutated above and beyond any imagination.

If you think about how you (or your parents) used to use calculators for complex formulas. Doing step by step computations, writing temporary values on a piece of paper to plug them into next formula a few seconds later. I am talking about times before even Calc or Excel came along.

Or you can think of making payments in old days – you tear a check off from your checkbook. Then you find the bill and fill out amounts, dates, who is this check made to, maybe a note. Then you put both return portion of your bill and a check into the envelope, place a stamp on it and then run to the post office to make sure it has a slightly less chance of being lost.

These examples are what we are living with now, that’s the way we communicate. Slow, elaborate, multiple step manual and often painful process. That, in turn, is dependent on other processes, that are also manual and elaborate (think – getting a right calculator, a sharpened pencil and paper, or buying stamps and envelopes). Pain in the neck and other places.

Think of how you schedule a meeting. Think how you keep track of your group activities. Think of how you keep track of your own projects. Think of any daily activity that has any continuity to it.

So What’s In It For Small Business Owners?

Being a small business owner has one, most notorious yet unavoidable disadvantage to it. That is having only 24 hours for any given day. No matter what you do, you can’t make it 25, even if you hire enough muscle to turn mountains upside down. Google Wave can make that time count, save you time on multiple hassles and create more opportunities by just being there.

To show you how small business owners can benefit, I will cite an example of one of my clients who runs a successful business but still finds himself being totally lost in regards to what activities are current, what are done and what are pending, who works on what, which projects are complete and which are still open.

My communication with him is primarily through e-mail. He is using Yahoo mail, I am using GMail. He needs about 15 minutes to sit down and think what he wants to ask. Then he opens up last e-mail that I have sent him and replies with his new request. Which totally screws history of each issue and request as well as messes up threading in my GMail. Few hours later he decides to inquire about the status of another issue and the previous request gets buried under the previous one. So is the history of each of request on client’s side, because he fires off these e-mails randomly, without any regard to the previous contents. Issues get overlooked and lost. Important notifications get missed. Status reports and requests get looked at late. Mess is running the place.

Now let’s fast forward couple of years and imagine Google Wave is already open for business and I have actually succeeded moving my client from old and clunky Yahoo Mail to Google Wave. I create a Wave for each project I am working on or possibly will be working on. Or client can do it himself – doesn’t matter. Each Wave represents a stream of communications in regard to this specific project. Emails, images, videos, documents, requests and responses – everything is ordered by project. If something gets orphaned or request gets into foreign territory – we can move it into right stream, unlike e-mail of which we have no control over once it sent. The whole history is visible to both me and my client. We can refer to it and it is much clearer than a heap of e-mails without any order. We can invite participants to discuss certain issues, we can create sub-discussions to branch off discussions or to separate certain issues if we need to prioritize them or if we don’t want new participants to see the whole thing. I actually have submitted this to Google Wave ideas – should be somewhere among New Ideas now, feel free to vote. So if you are discussing something with your internet marketing guy, your accountant and your store manager in the other part of town – you don’t get confused, you can easily follow the stream and see what is going on with that particular project. Less time wasted, more money earned.

This example incorporates the following activities most of us are doing manually on a daily (and some on an hourly) basis:

  • e-mail sorting (is designer asking about the banner he sent us Monday last week or this week?)
  • assets sorting / file management (where the hell are those banners anyway?)
  • issue prioritizing (should we tell him to fix product image on a front page while we are searching for the damn banner?)
  • branching off the discussion (when did we say the money will be ready? Let’s ask bookkeeper if she sent the check already)
  • including other participants in the discussion (let’s ask what our marketing guy thinks about these banners)
  • having a meeting on the fly (alright, if everybody likes this banner, it’s a winner, case closed, move on).

As you can see, it may sound a bit convoluted. Indeed, it does – mainly because we are so used to doing the computation on calculator and piece of paper we cannot imagine having a computer with most of the solutions built in.

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business clients

Small Business Problems Aren’t Small

cash_registerImagine you are running a small retail store. And the online storefront as well, where you sell exactly the same stuff you sell in your brick-and-mortar. Now, correct me if I am wrong, but main issues you’ll be working with are:

  • keeping track of the inventory (N units in stock, X units on order)
  • keeping track of sales receipts (since you have cash/credit you have to learn what the heck is accounts payable and accounts receivable)
  • keeping track of employee hours worked or units of work completed (like packages prepared and shipped or units assembled)
  • keep track of all your money movements, including both direct and indirect costs (like paying salary to employees and paying handyman to fix your delivery truck, or paying your smart-ass business consultants to improve your business), i.e. all of your costs of running business
  • keep track of your customers’ records, personal requests (if your business is of such sort) or general requests (for certain merchandise)
  • keeping track of long term projects not directly related to running a store, like marketing (ads in newspapers, AdWords campaigns) or IT (web site redesign, integrating store’s POS with online ordering)

I’m sure there’s so much more than this, but I just want to stop here. So far we have operations, sales management, human resources, accounting/finance, customer relations and executive management. Did I miss anything (ah, yes, legal, let’s just skip this for a moment) else?

Now, from my experience pretty much all the business owners are keeping all this in their heads. Their bookkeeper does their bank reconciliation once a quarter or once a year. Their full time store sales person probably remembers what needs to be ordered by week’s end. She also knows most of the customers by face and name and sort of knows what they like. And every night the owner pulls cash out of the register together with thick pack of credit card receipts to try to make some sense out of them before the store opens tomorrow morning.

Sounds totally wrong? Or too familiar? That’s what I’m getting at!

Over 80% of business owners don’t go above Excel sheets in order to keep track of all of the above information. One spreadsheet – inventory, one – list of vendors, one – credit card transactions, one – payroll. And these are very well disciplined businesses, because about 60% just don’t keep track of everything. About 20% of business owners don’t keep track of anything at all, judging about their current situation by the current balance on their bank account. And that, mind you, could be a personal account, because they aren’t incorporated, just d/b/a.

Why? Because they don’t know any better. And they don’t want to pay for it, because the money’s tight, the crisis is upon us and there are more important things to do. Nobody wants to spend their time and money on something they can’t immediately use or profit from. And that is totally understandable and just as well totally wrong.

Keep reading, this is just the beginning 🙂

Categories
business technology

Small Business On The Cloud? Not There Yet!

Being a small business owner myself I often communicate latest and greatest of IT achievements to my fellow small business owners who aren’t as tech savvy. Since the latest hype seem to be the cloud, I am genuinely interested in feedback of people who are not on Twitter/Facebook/LinkedIn, but who are small business owners none the less. With all the hyped up trends of running your business off your favorite Blackberry/iPhone/PDA we, the tech guys, tend to forget about other entrepreneurs.

So I went around my own clients as well as their friends – whoever happened to be a small business owner had a chance to respond. The question I was asking is simple – how would you be able to benefit from the cloud services in your current set of operations. Plain English version: we are not changing the infrastructure of the business, we’re just trying to see what cloud services would be helpful to the business as it is.

The responses I got were surprising – to say the least. None of the business owners would trust cloud or any other internet service with any kind of critical part of their operations. Why? Because their internet connectivity is NOT 100% reliable. Why? Because their operations are mostly based on offline interaction.Why? Because their internet connectivity is not 100% reliable. See the pattern?

It makes little sense for a small business to justify paying for SLA-backed lines like T1, T3 which are a lot more expensive while providing significantly lower speeds compared to general consumer-grade connections (like cable or FiOS). Yes, they do use internet for job-related tasks – like downloading forms and brochures, doing competition and marketing research, advertising and so on. However, none of them could justify purchasing a dedicated commercial-grade internet connection for what they are being offered. Which means – business cannot rely 100% on their stuff being available online. Therefore – no cloud services.

It just boils down to this – we are not connected enough to use cloud services. Yes, a few of us live off their smart phones. If pushed hard enough I guess I could do away with any of my smart phones – if I am on the go (although I do lug my X61s pretty much always these days). But for the rest of small business owners I had a chance to talk to – this is not an option. Contacts must be local. List of clients, leads, price lists, suppliers, data backups – everything must be local and available offline. The longest shot I’ve seen to a mobility so far – is a take-home laptop that is synchronizing everything daily.

So while I am happy to see new cloud services every day, I guess the more important question to ask – before asking which cloud service could benefit your business – is this: are you connection good enough to rely on cloud services? Chances are – you still must keep an actual copy locally. Just in case.