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10 Questions Small Businesses Should Ask When Hiring An IT Service Provider

Based on the premise that small- and medium-sized businesses oftentimes lack specific criteria to go by when seeking to hire an IT services provider for their everyday Information Technology needs, the following list is a handy “cheat sheet” that addresses 10 main questions businesses should ask a potential IT service providers when seeking and comparing IT services:

1) What specific hardware and software products, packages, and offerings does your IT company provide or resell that would make our business more effective and productive?

  • For example, if you’re a small business, certain phone systems will work better, and are licensed to work better for, small businesses of approximately 100 employees or less. Some even have constraints down to 50 employees or less or have constraints about how many locations they can service at once. Once the potential IT service provider tells you of the specific products they resell or offer, do your own online research and find out what the world wide web has to say about the differences between major communications companies and the appropriateness of their products for certain business sizes. Some communications product providers have initially aimed their products towards large-scale businesses and may only now be breaking into the realm of providing products that meet the needs of small and medium business. Each product, whether it’s a VoIP phone system or data backup hardware, has clearly stated constraints for number of users and business size before more upgrades or additional licensing are required. You’ll be in the know ahead of time, before hiring an IT service provider, if you “do your homework” on the products they intend to resell to you.

2) Of the services, hardware, and software you’ll be providing, will any of them actually lower our Total Cost of Ownership (TCO) in the short-term or the long-term? If so, how?

  • For example, installation of a new VoIP phone system may certainly produce a high initial cost, but when you consider that once installed, the new internet-protocol phone system will save hundreds, if not thousands of dollars in long-distance calling fees and between-site calling fees, that initial cost may be well worth the long-term savings. Moreover, new mobile phone apps and other unified communications methods and media are currently changing the way small and medium business do business by allowing your office phones to be duplicated on your mobile phone as if you’re never out of the office, or by streamlining your overall client communications to come to one place, saving you time and money, especially if your business requires you to be out of the office, in the field, or traveling often.

3) What is your fee structure and how is it advantageous to my small- or medium-sized business?

  • Fee structures come in many shapes and sizes, and those that are right for large enterprises are most often not right for small- and medium-sized businesses. While buying into an “incident-based” fee structure may be tempting in that you only pay for each occurrence of an IT problem, the unfortunate backlash of that fee structure is that, in their own attempts to make more money, some IT service providers may not create a solution that is a long-term fix for your problem. In fact, the IT provider may purposely only do enough to solve or “work around” the problem in the moment of the incident instead of creating an IT environment that prevents future incidents. In other words, on an “incident-based” fee structure, an IT company is actually monetarily encouraged to fix problems in pieces and not as a whole so that there’s another future incident waiting just around the corner that the IT company can be additionally paid for at a later date. This point begs for an answer to the next question:

4) Is your approach to IT solutions a reactive or preventative approach? Is it your approach to deal with our IT issues separately as they arise or to deal with our IT issues holistically?

  • A move within the IT industry from “a la carte” problem fixing to holistic solutions begs the question of whether an IT service provider is simply a reactionary entity that comes to fix problems as they arise or if they’re looking at the “big picture” of your business’s IT needs. Instead, many IT service providers and savvy businesses today are realizing that cost savings increase when the IT needs of a business are examined and troubleshot as a whole, preventatively. As a simple example, instead of performing data recovery after the crashing of one employee’s computer, a holistic IT company would have saved time and money by creating a monitored data backup plan with the hardware and software to perform backups well before someone’s computer crashes. As another example, instead of upgrading a business’s network whenever the size of the company increases due to a few new hires, a holistic approach would examine the projected growth of the company and request to implement network changes that can handle the growing workload before multiple potential hires are officially working and before company growth becomes a network-overload issue. A holistic approach does require though that an IT service provider conducts periodic assessments of things like how well your servers are functioning, how overloaded your network is or isn’t, and whether security and data backup practices are continually effective.

5) How will you solve IT issues that need immediate fixes before downtime negatively affects my business? Will you be responding remotely? If so, what happens when a remote fix is found to not be possible? Do you have someone in our local area that can respond on-site if necessary?

  • An IT service provider’s reaction time is crucial to your business experiencing as little downtime as possible. While remote fixes to your computers and your networks are often a cost-efficient solution for both your business and for the IT service provider, if there’s a server issue, you may oftentimes be in need of an IT professional that can be on-site to fix the problem hands-on. For businesses like stock brokers that use their computers to conduct real-time monetary transactions on a daily basis, excessive downtime can lead to a large loss of profit on behalf of clients that can then become upset and question your business’s validity. Avoid this problem by having a plan with your IT service provider ahead of time that notes exactly how much reaction time will be allotted for. If your IT company cannot be on-site within, say, an hour, you may want to consider another provider that can be there even quicker. This would mean contracting for services with a local IT provider, or at least contracting with a distant IT provider that has service professionals in strategic cities that are either close to or within your city.

6) How will productivity and cost-savings be shown? Is your IT company able to quantify the gains created by changes you’ve implemented within my business?

  • A periodic report sent either electronically or on paper, should be something your potential IT service provider can produce without a lot of effort. That’s because if they’ve chosen the proper products to boost the productivity of your business, and they’ve taken an initial baseline of the business’s productivity, quantifiable gains and losses should be easy to illustrate in a “productivity report.” This means a report that will answer questions like: how much faster is the server working after our recent upgrade? How much money are we saving per month now that we’ve upgraded to a VoIP phone system? How much faster is the website loading now that we’ve addressed latency issues? How many more calls can our business receive and handle simultaneously now that we’ve added more phone lines? How much more protected from outside and inside security threats are we now that we’ve implemented network security products and building surveillance cameras?

7) How are data backups implemented by your IT company? Do you provide emergency monitoring of our servers and networks? What happens in the case of a security breach?

  • A reputable IT service provider will be wise to perform periodic assessments of data backup systems and actually verify that those backups are working by attempting to retrieve random sets of data in a real-life application, such as pulling up accounts payable documents from three months ago and seeing if they can be opened without incident on an accounts payable employee’s computer. If the files are backed up but won’t convert to data that’s readable (i.e., if it reads as coded nonsense), then that’s a sign that data backup may be being performed but may not be accessible or usable when retrieval actually needs to occur. In addition, your networks, servers, and even your business’s buildings aren’t only under threat during business hours, so many IT providers provide 24/7 monitoring that shows up on an “on-call” IT phone that gets handed off between knowledgeable IT employees who can be “on call” throughout the night and respond quickly even if a server fails at 3am.

8) How does your IT company ensure the internal and external security of our networks, our websites, our VoIP phone system, our online admin areas, our passwords, and our building?

  • Though all of these security services may not apply to your small- or medium-sized business, those that do beg these important security questions. Proficient IT service providers can easily answer all of these questions by sharing with you what products and methods they implement in order to uphold the security of your business. They may recommend high-resolution security cameras, policies that ensure only administrators have access to crucial areas of your network, methods of storing passwords that aren’t on a sticky note in someone’s desk, and of course, firewalls and security software that ensure your website is hacker-proof. If the IT service provider you’re interviewing doesn’t have a quick, tried-and-true solution to your specific security needs, you’re better off finding a provider that does.

9) What certifications, qualifications, and most importantly, what experience does your IT staff have that will benefit my company?

  • While a common standard of having Microsoft and phone-system-brand certifications is common amongst the staff of many IT service providers, the real question is if any of the IT service provider’s employees have gone above and beyond to obtain not-so-common certifications and qualifications that make that IT service provider more of an expert in certain areas than the next. More importantly though is whether their experience matches and goes beyond their certifications. An IT professional going through a training course to obtain a certification is great, but oftentimes applying that knowledge in the field is a whole different ball game. Many IT service providers have decades of combined experience amongst their employees and have also kept current on applicable certifications, which is the type of pairing of education and experience to look for. If your server goes down, you’ll want an IT professional responding that fixes serves all the time, not one who’s checking his textbook for the next troubleshooting step.

10) Probably the most important question to ask, beyond obvious considerations of available products, potential costs, procedures, and so forth, is to ask: Is your IT company a good fit for my company, and if so, how?

  • IT service providers are usually accustomed to servicing certain business sizes or types. Oftentimes many small-city providers are dealing mostly with small and medium businesses while others within larger cities are mainly accustomed to working for large enterprises. You’ll want to match your business with an IT service provider that has a host of solutions tailored just for your business size. In addition, your business type is also a factor in that there’s a big difference between the IT needs of a stock broker whose commodities and sales are all online as compared to a retail store that holds a lot of valuable merchandise on a sales floor with glass front windows as compared to a large, barley marked warehouse that’s piled high with boxes of expensive equipment. The stock broker will need heightened online and network security while the glass-front retail shop may need heightened security cameras placed outside the building while the warehouse may need heightened security inside the warehouse and a strong server for mass inventory data. Ask potential IT service providers if they’ve ever serviced the type of business or a similar type of business as yours and if they answer “no,” you’re going to better off with an IT service provider that’s accustomed to working with your business size and type.

Therefore, following up on the premise that small- and medium-sized businesses oftentimes lack specific criteria to go by when seeking to hire an IT service provider, this list of ten basic questions will certainly have your business moving along the right path towards choosing an IT service provider only once for your business instead of going through several providers before finding the right one. This 10-question list is your small- and medium-sized business guide to honing in on the most qualified IT service provider because of its ideal fit with your business.

5 Easy Tips To Help Build Business Credit

How To Build Business Credit

So many business owners fail at establishing business credit due to fact most have no idea how to approach the idea of achieving business credit credibility.

The lenders care about one thing:

Are you attractive on paper?

That is truthfully the only thing any lender will ever worry about. All lenders measure risk in an effort to help them reduce the default rate a prospective client could have. They do this by measuring the “fundability” of a business.

Here’s five quick tips to help you establish your business credit in the quickest fashion
1. Ensure everything in your business is set up. You must be in a position to receive credit in the first place before you apply. This includes a 20 point checklist a few of them are: ensure you have an EIN number, ensure you an incorporated, ensure you have an 800 number and ensure you are listed in the 411 directory.

There are 16 other points such as this that a business owner must have in place to qualify for any type of financing. We know because we have the lending guildelines from over 2000 lenders!

Part of the reason lending institutions require such information is due to the fact that so many people apply for business financing and small business loans who, quite frankly, have no business applying. This helps weed out many business owners who simply will never receive financing for their small business.

2. Start with vendor accounts. Vendor accounts, unlike revolving accounts, are typically set up with net 30 terms. This requires the business owners to pay, in full, the balance at the end of each month on the amount allotted by the vendor. Many vendors including staples, home depot, radio shack, Uline shipping etc, all have vendor accounts that can be set up for any type of business owner. We have the exact underwriting guidelines for these plus 300 other vendors in our business credit program. Therefore the business owner will always be approved for the vendor account before they even apply.

3. Access your Duns Account and Duns number to ensure your vendor tradelines are reporting. Unless you know how to set this up, Dun and Bradstreet can charge anywhere from $700- $1500 to get a business owner set up. They like to couple products and programs in an effort to squeeze the business owner’s cash. The truth is, through our business finance suite business owners can be set up with a Duns account for free. This virtually covers the cost of the system.

Knowing what trade lines are popping on your business credit profile is crucial to the success of a business owner. Reason being, many revolving lines of credit rely on the fact of starter vendors as trade references before extension of corporate credit will be granted. Knowing what is on your business credit report can be the difference between success and failure in establishing business credit quickly.

4. Make sure you are using no personal guarantee, no personal credit check vendors to get started.

The idea of building corporate credit is to remove your personal liability from your business risks right? Well then for that to be true a business owner must not take on personal guarantees or allow personal credit checks to take place to be approved the right way for business credit. Knowing which vendors do not require personal guarantees of personal credit checks can be tricky. You have to have access to underwriting guidelines to know exactly which ones do and which ones do not. We have those inside our business finance suite. You can request this information up front from the vendor if you wish or you can gather many applications and skip the section that asks about your personal information. There are not to many out there unless you have a source to use.

5. Make sure you “x” number of tradelines reporting before you apply for business credit, revolving accounts.

This is crucial to your success. So many business owners fail at corporate credit because they have no idea what it take for a business owner to be approved for a VISA line of $10,000.

Do you think any merchant would extend a VISA line of credit for $10,000 to a business owner who has credit in their business’ name that is either not been established or is poor?

NO!

And this is why so many business owners fail. When people talk about business credit they talk about going and applying for something like a Staples of Visa. Well, if you had nothing in place to be attractive on paper to the lender, does it make sense for the lender to lend to you?

Would you lend to you? If you had no business credit?

Probably not. And financial institutions will not either.

Building business credit is about having everything in place just to be set up to receive business financing. If your foundation is shattered you will no have a chance at receiving any type of financing. Building business credit can be one of the toughest thing a business owner accomplishes if they don’t know where to start.

Our business owners are teamed up with a business finance coach whose sole job is to ensure our business owners receive their desired financing. We’re so confident in our business coaches that we have an unmatched $50,000 guarantee.

Business Start Up Help – Power Mondays

Start up business help.

For many people starting a new business or thinking about starting a business it provides an escape from the routine and monotony of employment and organisational structures that are killing both your passions and creativity. Recession and lack of job security have driven many people towards self employment and business start up as a way of taking control of their own destiny.

The business start up industry is a growing market with over 300,000 new businesses starting each year. However 65% of these fail within the first 2 years. So what is making such a high number of businesses fail? Is it lack of start up business help or the motivation of the business owner?

Is start up business help a self defence?

There are a variety of training, products and services designed for business start ups, focusing on practical step by step guidance to help you get to grips with starting a new business. However very little providing both inspiration and practical tips that help you overcome the hurdles and challenges along the way. Most business owners need to master better techniques in the earlier days to survive and grow in a competitive marketplace

Perhaps you have spent a long time identifying your products and services, researching your ideal customer and how to market your product or service to them, who your competitors are what separates you from them with your unique selling points. You have followed the business plan model and all the training, tips and guidance for business success. But still struggling to fall into the 45% of successful business start ups despite being armed with an elevator pitch that is designed to attract more customers and increase your profitability.

Motivation your personal survival.

Financial pressure is one of the biggest factors for business failure within the first 2 years and it is very wise to plan how you will pay yourself a salary in the first 2 years of business not to be dependent on the business income. If you have given up a regular income to start a business or thinking about how you will finance your transition into self employment or a new business, finding a viable option can be a challenge, especially if you have family or financial commitments it can make the transition even more complicated. It is vital in the early years to give your business time to establish new customers and grow. Hence working part time maybe a good option for you to make the transition.

Confidence is a motivating factor that can often be overlooked in business start up and is directly connected to business success. However start up training, products and services are often focused on practical guidance instead of tailored around motivating and inspiring business owners. This support does exist in the form of coaching or mentoring and is usually seen as added value or complimentary support instead of necessary business support for the personal survival of the business owner. In my opinion it is regular inspiration that provides the motivation needed to persevere and persist in the early years of business start up and finish in the 45% successful business.