              |
   |
We hope you find this arcthve useful. A subscription to The Small Business Advisor Newsletter is free. Subscribe now - it's easy! The Small Business Advisor Newsletter for June, 2003 ======================== ======================== ======================== If the thousands of viruses threatening your information technology lifeline are not enough to keep you awake at night, add worms, Trojan horses, and other elements such as ActiveX or JavaScript that are frequent tools of hacker exploits to the mix. Still sleeping soundly? Multiply by several communication protocols and dozens of ports and it's a wonder that anyone can figure out what's going on and how to protect your information assets. To read this month's entire article on antivirus and firewall protection for your computers and network, go here.
Have you been thinking about buying a new computer to replace your 2-3 year old system? If so, let's take a moment to decide if this is the *best* decision to make, or if there are some other options you have to help save a substantial amount of money. First off, ask yourself if you really need to spend $1500+ just to have the latest computer system sporting the newest, fastest processing chip. Are you really going to be using all that computing speed and power? Your answer all depends on how well your current computer system is performing, and what you are SPECIFICALLY going to use the computer for. The majority of you may find that an "upgrade" is all that is necessary to give your aging system new life. For those of you unsure of what an "upgrade" entails, it is merely the process of replacing a specific component of your computer with a new, faster, improved replacement part. Please note that YOU MUST MAKE SURE the upgrade components you select are compatible with your specific computer system. Just like you wouldn't put diesel fuel in a tank designated for unleaded fuel. :-) Here are some of the most popular upgrades computer users make to their aging systems: Does Your Computer Need A Modem? You then simply slip the modem into the proper location and install the software program that comes with the unit. You can even opt to pay a little extra to have a technician from the store install it for you to guarantee a hassle-free upgrading experience! How Much Memory Do You Have? If your computer has 16mb or 32mb RAM and you want to improve the performance of your system, seriously consider upgrading to either 64mb or 128mb. This is one of the easiest and most cost effective ways to improve your computer's performance for under $100. * IMPORTANT NOTE * You must FIRST check your computer specs to find out how much RAM your system can handle AND what type of RAM you need to buy. There's tons of options out there so make sure you know what kind to get before buying anything. If you are unsure of what type to get, or if you "misplaced" the computer manual, simply take your computer in to your local service center and they will find out for you. You can CHECK how much RAM your computer currently has by using the mouse to "right-click" the "My Computer" icon on your desktop and select "Properties" from the options list that pops up. Your "System Properties" will then display and inform you of your computer's status. Need More Storage Space? To find out how much space you've used on your hard drive, using your mouse, simply "double-click" the "My Computer" icon on your desktop, and find the "C" drive/icon. "Single-click" the "C" drive and a pie-graph representation of your hard drive should automatically be created in the left hand margin illustrating how much space is used, and how much is still available. If you notice that you're running out of space, you can opt to purchase an additional 5-10gig hard drive (approx$50-$80) and install it side-by-side your current one so you will have dual internal hard drives, or you can purchase a 10-50gig hard drive (approx $80-$180) to use as a complete replacement. NOTE: If you are unfamiliar with replacing hard drives, you may need to pay a computer technician to perform this installment. Ask your local computer dealer for details. You also have the option of purchasing an external hard drive that will plug directly into the USB port in the back of your computer allowing you to bypass installing an internal component however this type of drive does cost a bit more. Want To Upgrade Your Computer Processor? Your computer processing chip is identified by its speed in megahertz (mhz) until recently when the industry broke the 1000mhz (1 gigahertz) mark. If your computer is a year or two old, most likely you have anywhere from a 166mhz - 600mhz processor. If you are a "typical" computer user who browses the Internet, emails friends, and does some work in word processing software like Microsoft Word or ClarisWorks, you can easily get by with a processor ranging anywhere from 200mhz-600mhz. There really is no need to spend more money on a faster computer (unless you just absolutely must have one). The only time a user would need this extra processing power is if they are editing video, constantly running multiple programs simultaneously, working with large graphic or music files, or high intense gaming applications. Unless you fall into one of these categories, upgrading your processor is really not cost effective. You can put your money to much better use by increasing your RAM memory instead of replacing your processing chip and your motherboard/mainboard. Conclusion Shocking as it may seem, the fastest computer I own is only 500mhz and I have two other computers, one 300mhz, and the other a 200mhz and I'm happy to say that both work flawlessly. For what I use the computer for; writing, emailing, html editing, and browsing the net, these computers work fine and get the job done just as well as a 2.3 gigahertz computer costing over $2000 would. All I've done is upgraded the RAM to 64mb in one, and 128mb in the other, but that's about it. I'm content, happy, and familiar with my computers and will keep them as long as they are problem and error free. And since I am an avid money saver at heart, I can't justify spending $1500+ on a new computer. Personally, I could find a much better use for $1500 than spending the money on a faster computer. Couldn't you? :-) Written by Gregory Thomas, editor of http://www.SavingSecrets.com.
======================== No doubt, one of the most asked questions by the
prospective business owner is “Should I incorporate?”
Here are the choices available for operating your business: Sole Proprietorship. The vast majority of small and home-based businesses operate as a sole proprietorship. There is no limited liability - the owner is solely responsible for all debts. Business profit or loss becomes part of the owners personal tax returns. Major advantage: Simplicity. Regular (“C”) Corporation. Limited liability is its major asset. Profits are taxed at corporate rates (lower than personal rates). Salaries paid to owners is subject to their regular personal tax rate. Major advantage: Relief from personal liability. S Corporation. Limited liability as with a “C” corporation but with some additional restrictions that only affect a few. Business profit and loss is passed through to the shareholders’ personal tax returns. Major advantage: Profit and loss pass through to personal returns. Limited Liability Corporation (“LLC”). A fairly new entity that offers limited liability like a corporation and the tax advantages of a partnership and S-corporation. (No Federal taxes and personal pass through of losses). Major advantage: Limited liability PLUS profit and loss pass through to personal returns. General Partnership. No limited liability. Each partner reports profit and loss on their personal tax returns. Major advantage: No Federal taxation. Limited Partnership. Limited partners enjoy limited liability but the general partners (at least one is required) do not enjoy limited liability. Major advantage: Limited liability for the limited partners. Except for the sole proprietorship, each of these legal entities can be complex to setup. It is very important that you engage the services of an attorney and/or CPA to ensure no mistakes are made. There is no “best” choice. Oh, and by the way, the answer to the question, “Should I incorporate?” , is maybe but unlikely. ======================== Pricing means more than how much you charge. Smart customers look beyond pricing when considering a purchase. Price is important but so are delivery times, guarantees, customer support and quality to name a few. Small and home based businesses can - in many cases - do a better job than "big businesses" in some of these areas. You should evaluate your pricing based on this fact. You're small and don't have the inertia or paperwork logjams of a bigger business. You're quick on your feet and can change direction easily and quickly. You cannot determine prices based only on costs and desired profit margins. First step is to do a little research to get some "real world" pricing guidelines. You don't need a high priced marketing firm to help. Remember, you know your business better than any consultant. Here are some marketing research tips: 1. Contact your competitors. Call, like any customer, and ask for pricing information. Quick and easy. 2. Find out about competitor's costs. Use trade groups, suppliers' sales reps, former employees. 3. Trade associations are a great source of pricing data. Use the library and the Internet to find these appropriate trade associations. 4. Use the Internet for research! This can be your most valuable research tool. Visit competitors websites; trade associations; newsgroups. Search the Internet using any of the major search engines. 5. Review catalogs that carry your product(s). With this information and your own costs you can determine where you set your own pricing and still be competitive. Price carefully. You might not be able to compete on price only but remember your advantages as a small business and emphasize your "quick service" or "outstanding customer service." You may be able to price higher and still win customers within your market niche. Be careful about lowering prices just to meet or beat the competition. There are, however, some good reasons to lower prices: 1. A strategy to increase market share. Sometimes you have to increase prices in order to cover, for example, increased cost of materials, labor, etc. When an increase is necessary ease the pain for your customers by considering the following: 1. Notify your existing customers of the increase and, if possible, give them an opportunity to purchase at the existing prices. 2. Try and advertise the increase along with "new and improved" products or services. 3. Give the customer something in return for the increased costs. For example, free shipping with orders above a certain value. 4. If possible, delay the increase for existing customers. The biggest mistake small businesses make concerning pricing is not reassessing pricing on a regular basis. The marketplace is constantly changing making it mandatory you keep a close watch on your pricing. Raise or lower prices as necessary keeping the above suggestions in mind. Return to top of page - Back to Home Page - Back to Archive Index |