Just got this question, I know there are others questions I have not yet answered, and I have already written my “The Week Ender” post for the week, what the hell, but I’m in the mood to have a go at “The System” again. I think I’ve mentioned before that blogging is therapy for me, and I’m sure some of you might even think I should be in therapy, so there you are.

I’m going to expand this question “slightly” into - I hope Walsh does not mind:

What are some of the social, political and economic issues small business face?

I should remind you that when I talk about small business, I mean 1 to 5 people businesses, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professionals, contractors, freelancers, self-employed, sole-traders and virtual assistants.

Social issues are clearly centered around the work-place, work life and private life. To many work is the central activity in their lives and the stresses and pressures of todays workplace are enormous, overtime, project pressure, sales targets, travel to and from the place of work, to name but a few. This all causes tension in a partnership, family and leads often to a dysfunctional family/private life. For example, we need dating agencies and web-sites to find partners, because we are too busy to find a partner in what used to be a “normal way”, and in this sense we have to be thankful for the service dating agencies and web-sites provide. These issues are prevalent in the group of small business owners too.

Striking the right work/life balance has become a personal choice item, with the advent of home businesses. Businesses run by entrepreneurs, often unhappy with the traditional choices in the work place, who have decided to set their their own work/life balance and run a business, not to grow and dominate the world, but to earn an often higher than average income, while retaining a certain amount of freedom and flexibility in their private lives. Parenting people often see a home business, as a way to have a family and stay active in their chosen field of work.

The growth in these kinds of businesses is explosive, while our society is technologically perfectly capable of sustaining this trend, our social work infrastructure in many cases is not.

This brings us to the political issues these micro and small businesses face. The fact that our society is wholly unprepared for this revolution in the work place and small business environment, has to do with the fact, that governments often receive no advice from actual participants in this new home based micro business economy. Current advisors are from big business, with virtually no experience or knowledge about micro business issues.

Of late universities and other institutions have started to produce a vast amount of valuable data, about micro businesses, which is often meaningless to the political elite in the western world. It is, in my opinion, wrong to expect our politicians to guide us into this new area of explosive micro business growth. Experience tells us that any decisions made will be often too late or even counter productive, market forces are much faster and more targeted to help these growing sectors develop.

In my discussions with politicians, civil servants and often big business, the term “Small Business Infrastructure” is rarely understood. The best we can hope for is the insight that less red-tape is going to help, for some politicians this is a frightening thought.

Economically, I feel we are at the beginning of a truly “golden age” of entrepreneurship. Our technical infrastructure, the internet, powerful micro-computer systems and mobile technology have helped to transform our way of doing business. The last piece in the puzzle was the advent of the software as a service industry, which took longer to develop than I had foreseen. With an almost transparent internet and IT infrastructure, the focus is getting back to the business objectives, even in very small businesses. If this is extended by a “Small Business Infrastructure“, which includes 24/7 technical and customer support, additional service offerings like bookkeeping, telephone answering, and similar services, the survival rate of small business startups, vastly improves.

If small business owners use outsourcing and bootstrapping techniques as a matter of cause, the fixed cost (over-head) structure in each of these micro businesses can lead to super efficient and hyper valuable home or micro businesses. I believe you can start a business with $20/£10 a month and grow your business, risk free (without loans) on the side, while still in employment, until the turnover is big enough to justify quitting ones day job.

You may feel about a business on the side as you will, the fact remains this is going on as we speak, trends we see in the online usage patterns of our OnlineOffice, certainly support this theory.

At the same time business failure is far less an issue, as the risk associated with these ventures is very small, with the right mental attitude of the entrepreneur towards failure, the learning effect of a failure can be enormous. Especially in Europe the old-fashined anti-risk strategies only serve to leave us further behind the other global economies in terms of technological leadership. The U.S. is testament to what an economy with a “normal prospective on business failure” can do.

Emerging economies like China, India and some others are learning from the U.S. and will outstrip our economies within the next decades, unless our politicians, will finally stop putting barriers up for micro businesses.

Last and by no means least, the positive ecological impact of a largely home based economy can not be underestimated. Endless hours of travel to and from the work place, meetings, office heating, and so on could be a thing of the past. Rural economies will be revitalized, multi-generation household will no longer be a thing of the past, this all will have a tremendous positive impact on our social infrastructure, child-care, crime and drug abuse, to name but a few.

While I have often quoted this in the past “it is not the answers that are the problem, knowing the question is”, I’m often left feeling with politicians it is both, not only do they not know the question, they don’t know the answers either. While I accept it is easy for me to sit here and say this, it does not alter the fact that it is only too often true.

It is almost the weekend now, and I’m off to see 10cc, or what is left of them. ST.

Again I had several questions regarding “crisis planning“, “disaster planning“, “data-security” and “data-backup“, so I will cover all of them in this post.

When I started thinking about WinWeb’s Small Business Infrastructure, we always knew we had to do something about data-security and data-backup. The truth of the matter is that most small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, do not have a coherent data-security and back-up strategy. To be perfectly blunt about the subject, it is not made easier by confusing technology and more to the point terminology, that even we have difficulty understanding some time. So I believe:

We should not expect business start-ups and small business in general to be accountants, bookkeepers, IT specialist, lawyers, marketing & PR gurus and so on. We should provide small business with an infrastructure in which it can concentrate on core business tasks, while at the same time enabling the business owner to stay informed of all relevant business facts like cash flow, sales, HR issues, tax position and more. This will enable him / her to make informed decisions, maybe with the help of an external advisor.

I formulated at the beginning that one of the benefits of using WinWeb’s OnlineOffice would be:

No security problems. No business interruption problem.
Your data is continuously backed up onto multiple RAID-5 data servers in multiple physically and network secure data centres - if that is not enough you can make a copy of your data anytime onto your PC or a CD. Should your computer crash or get stolen - no problem, just log on to another computer and keep working - can your competition do that?

So that takes care of the data security and back-up problem. To give you a little example, one of our clients is a web-designer for a niche market, he lives in an area which was flooded earlier in the year. His computer equipment gone, but all his data, addresses, email and work was safely stored in our OnlineOffice. He moved to his parents for a time and was back working within a few hours - not everybody was that lucky.

A burglary or fire would do the same - and can be dealt with quiet easily. This is not so easy when you have a business that manufactures goods, even when you do it from the kitchen table, you will incur “business interruption“. You will need a plan for that too - insurance may be the first step.

But loosing customers and with that revenue is not something an insurance is going to cover you for. So you need to plan ahead, ask yourself the following questions:

• Is there somewhere else I could work from temporarily? Parents, friends, short term office hire, etc.
• How long until I can get my raw-materials again? Maybe you should require your supplier to get a certain amount in stock for you, make a contract.
• Could you hire machinery until you can replace your own? Find suppliers now.
• Could my staff work from home if necessary? Online technology will help with that.
• Could I outsource some work temporarily? Have a look at virtual assistants in your area.

There are other questions you could ask yourself, just take 30 minutes, get a piece of paper and imagine your business, office, house, kitchen just burned down - trust me - the questions will come, and so will the answers. Oh, just to mention it, a disaster plan in a burned out house is of no value to anyone, keep it online or safe elsewhere.

Answer: YES, a small business needs a disaster plan, just like any other business. ST.

Disclaimer: As with any of my readers questions, I do not have all the answers and here on my blog I can only give you some ideas, since I know very little about your small business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below - I’d be most grateful.

I have discussed before that it is important for small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, to do a minimum of business planning, but does it stop there?

Not really, you need to keep up to date with your bookkeeping, to complete the business planning process. You may ask why, if you have done the planning, why not get your bookkeeping done once a year for your tax return?

The answer to this question is the business planning process never ends. Remember I have been talking about going back to your plan at least once a month. In order to fine-tune your small business planning you need to actual information how your business performed in the last month. The only way to do that is to do your bookkeeping or accounting.

By doing that you will be able to compare your predicted numbers in your cash-flow with the actual number your business has generated. This in turn will help you to update or modify your cash-flow plan for the future. More important than that, you will learn new things about your business:

• You may have higher (good) or lower (bad) sales, than you expected?
• Your cost in your business may be higher (bad) or lower (better) than you expected?
• Your cash-flow may be better or worse do to the above two points?
• You may need to outsource some business processes to lower your fixed cost structure, to make your business more recession proof or just more profitable?
• You may need to ramp up your sales and marketing activities for your small business products or services?
• You may also have to adjust your SWOT analysis and your business goals?

You will be surprised how creative you can be, once you know about and understand a problem in your business plan. It may not even be a problem at that time, you may just need to adjust the way you do things, and you may have avoided a small or big problem in the future.

In my opinion strict cost control and bootstrapping are not like nice to have features, they are essential for your small business survival. Often the difference between failure and success is just a little planning and checking the “plan” - doing a reality check. There is no excuse not to do it, all the tools are available for free, for anyone.

If you feel the initial process of business planning is too much for you, than get your accountant or bookkeeper to help you to set your cash-flow fore-casting, SWOT analysis with you, doing it online will give you strategic advantages, like you can work with your accountant or bookkeeper in real time in different places, this lowers your cost, no time wasted and is good for the environment.

I would like to make one more point here, the aim of all this planning is not to get it spot on - no, the aim is to understand what is happening in your business, that is why you should be doing it.

Among other things, it will give you a measure of certainty, security and confidence, if you understand what is happening in your business. So, how confident are you about the future of your business? Why not take the weekend and have a planning session, it is like playing monopoly, only this game will secure your future. ST.

Starting and running a small business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business today, is all about staying focused on the small business and not on running your office. WinWeb’s Software as a Service applications allow you to do exactly that. Below you will find some of the benefits detailed to help you make up your mind if this kind of technology is for you.

1. No More Software Installation.

Since our software comes to you via your internet browser, there is no need to install anything. Your printer will also work with our software without installation or any modifications. Our software works with any web browser, Internet Explorer, Safari, Firefox etc.

2. Our software is always up to date.

This really is one of the main benefits of SaaS. We make all the software updates on our servers, so you don’t have to do anything. No update hassle and worry anymore. There are no “Update available - Please download” messages and no CDs / DVDs updates arriving in the mail.

3. Never pay for software “updates” again!

No matter if we update or bug-fix, you will never have to pay for them again, it is all part and parcel of our service. Artificially accelerated software cycles are a thing of your past.

4. Fully Compatible with any Operating System.

Our software runs on any Operating System (OS) with Linux, Mac, Windows and some others - you login and use it.

5. Work and collaborate with anyone, anytime and anywhere.

Our software allows you to work with your accountant, colleagues, virtual assistants and others in real-time at anytime - whatever your business needs.

6. No commuting. No time wasting.

With online technology you can work from anywhere, so no need to travel to an office. Run your small business from home and benefit in terms of time, money and investment.

7. No security problems. No business interruption problem.

Your data is continuously backed up onto multiple RAID-5 data servers in multiple physically and network secure data centers - if that is not enough you can make a copy of your data anytime onto your PC or a CD.
Should your computer crash or get stolen - no problem, just log on to another computer and keep working - can your competition do that?

8. 24/7 Live Support 365 days a year.

We believe that you will be busy during the day with your clients and with working on new projects and so you should - after the phone stops ringing you get down to your admin work. So we thought we better be around in case you need some support for any of our products. It would be no good if we weren’t around now, would it?

9. No contract needed.

No minimum term, cancel anytime, no contract needed and you can test drive any software for a minimum of 30 days free of charge. This puts you in control. Unlike the boxed software you buy, once you paid for it, it’s yours including the problems. Not so with our software.

10. ClimateByte™ Technology

Our environment is in trouble - by using our on-demand Small Business Infrastructure™, you can help to reduce your carbon footprint and help our environment - we are dedicated to develop our future products and services with this in mind.

Our Software as a Service products provide your small business with a on-demand Small Business Infrastructure™ helping you to concentrate on your business, while we run your office and IT. This makes your business more mobile and competitive while saving you time, money and helping the environment.

When you run a small business and personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants you probably benefit even more from using SaaS technology - program your business for success.

I get regular questions about what we really mean by WinWeb’s Small Business Infrastructure?

On-demand Small Business Infrastructure™ centers around the idea that business start-ups and growing small businesses need help with numerous administrative tasks that are not core to the business success - such as bookkeeping, it services, internet services, call handling and other such services.

These services - if performed by the business owner - cause a great deal of time wasting - while the fixed cost of a business is still accumulating. This is in our minds a fatally floored business model and can easily be remedied with our infrastructure approach.

We should not expect business start-ups and small business in general to be accountants, bookkeepers, lawyers, marketing & PR gurus and so on. We should provide small business with an infrastructure in which it can concentrate on core business tasks, while at the same time enabling the business owner to stay informed of all relevant business facts like cash flow, sales, HR issues, tax position and more. This will enable him / her to make informed decisions, maybe with the help of an external advisor.

Based on these facts, we have devised a six point on-demand Small Business Infrastructure™ concept, which consist of:

1. WinWeb On-Demand Software Solutions - Anywhere At Anytime.

AccountsOffice and OnlineOffice are our two software offerings, which are based on the SaaS - Software as a Services model, to allow for the following key business benefits:

• tight inclusion of business advisors from the start,
• cultivating outsourcing techniques at the outset, i.e. virtual assistants,
• no IT knowledge needed and hassle free operation,
• real-time multi-user access from anywhere, increasing mobility.

2. WinWeb 24/7 Live Support - We Are Here For You Always.

Providing customer care and support only during business hours is not acceptable to our clients. Experience has shown us that most admin work gets done by small business before nine in the morning or after five in the evening. This practice is essential if the business is to survive it’s early years.

This is why we have provided our much acclaimed customer support for 24 hours a day, seven days a week from the outset. Saving our clients wasted time and money - while setting new standards in customer support. No manuals need to be read - all problems can be solved in real-time online.

3. WinWeb Live - Networking Community for Small Business Only.

To foster collaboration and outsourcing we have expanded our WinWeb Live™ offering to allow for small business community networking - thus enabling the business owner to make decisions about his / her current needs, with the following benefits:

• timeshare virtual assistants for professional results,
• offer contracts of work to contractors on a case-by-case basis,
• promote the business to a large audience or even locally,
• find new work and contracts online

4. Business Advice

Our On-Demand Small Business Infrastructure™ enables business advisors, accountants, bookkeepers and other advisors to have a “Up Close and Personal” relationship with the small business owner, providing key elements for the success of a small business:

• timely and up-to-date advice from anywhere at anytime,
• more efficient advisor function due to SaaS technology, less travel,
• easily expandable advisor network.

5. Solution Partners

Third parties provide external services to complement our services, such as parcel service, office supply services, printing services. These and other services are provided on a bulk buy arrangements by leading businesses in their respective sectors - to provide the most reliable and up-to date service possible - with the effect of enhancing the professional appearance of our clients.

6. ClimateByte™ Technology - For A Cleaner Future.

Our clients are among the biggest demographics concerned with climate change and carbon footprint neutrality. It is a fact that employing remote working and collaboration techniques drastically reduces the damaging business side affects on our environment. We enable our clients to be more eco-friendly and aware, by providing them with our green technology - an ongoing development commitment of WinWeb.

WinWeb welcomes any suggestion that will further enhance our On-Demand Small Business Infrastructure™ concept - especially the development of even more eco-friendly business processes - to serve our small business and business start-up client-base.

As part of a bootstrapping exercise or a business start-up phase, working from home is a great way to work, so I thought of some points to consider when setting up your office, small business or personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants at home:

1. Cost - you will save a lot of money and be very eco-friendly when you decide not to rent an office, this saving can be used in other areas of your business, like marketing, better web-site or better IT.
2. Family - I suspect that many of you work from home because of your family, it allows you to be around when your kids come home from school or look after relatives, while still earning a living.
3. Commuting - again a very eco-friendly approach and saves money and time. This time can be spend on real business activities. It certainly will enhance your work/life balance and make your small business or start-up more cost efficient form day one.
4. Freedom - this may especially appeal to you if you like to work at odd hours, it will suit your lifestyle. Dress as you like it, so you will be more comfortable.
5. Healthy - if you work in an office and one of you gets ill, soon all the others are down too - not if you work from home.
6. Teamwork - chances are you need to work with other people, use online technology to collaborate with your colleagues and other team workers - they too may work from home.
7. Domestic Life - you’ll be around when the plumber finally turns up or other trades people. You can enjoy your local life more - by having a social network in your village rather than at work - this could be the return of the local community.
8. Small Business Infrastructure - use online technology to keep your data and work safe at all times without that you have to do anything, build your own virtual Small Business Team to timeshare professionals like yourself. Outsource to make your business more professional and scalable.
9. Meetings - even bigger businesses use coffee shops to meet - they often have WiFi - so can you. Make sure you plan them well, so you can be efficient with your time.
10. Eco-Friendly - you will only heat your home, no other workplace needs to be heated or air-conditioned, your energy efficiency goes up, no travel to work - so you reduce your carbon footprint enormously just by working from home.

You will need some pretty good reasons to go to an office and work. Especially for small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business, you need to ask yourself if you can afford to miss out on all the above opportunities for your work and for your life?

I work from home over 90% of the time and only go to the office for meetings and I love every minute of this. I use social network communities like linkedIn to build my professional network, utilizing our online office, skype and other tools to communicate and work worldwide.

More and more of my friends work from home so we have nice “pub-lunches” locally, no traveling, less stress and a much better work/life balance - how is your work/life balance?

For more of my checklists see the Small Business Checklists category and as always please add to my list with your comments, tell us what works for you.

I get many questions about bookkeeping and accounting for small business and start-ups, here are a couple of things you should consider before making your decision:

What do you want to achieve? Do you want to:

1. Do you just want to collect your receipts and other documents and than hand it over to someone else?
2. Are you happy to fill in a simple online forms and have the double entry done by an bookkeeper or accountant?
3. Or do you want to do the accounting yourself and have the accountant prepare your tax-returns for you?

Each of these options is OK, as long as you do not relinquish all your responsibility to the other party when you outsource. You need to keep your books up-to-date, so you know where you small business is going and so you can make good and informed decisions.

If you are considering option 2. then their are products on the market that can help you, one of them is our AccountsOffice- Lite Edition ( currently still called CashBook), for a full tri-ledger accounting system you can use our AccountsOffice Standard Edition, both of the single user versions are free BTW.

For small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business, the only way to go is online - I’m sure you think I would say that - but consider this.

You will need to get information fast - to make an urgent decision - how is anyone going to give you advice without up-to-date numbers on your business. There are other benefits to consider, but this one to me is the most crucial. Remember most small businesses fail because of bad financial decisions being taken, often based on false or out of date data.

What if your accountant or bookkeeper wants you to use an offline accounting system - do your business a favor find a new accountant, fast. Accountants are sometimes slow to change, they are also very often very busy people, but you should not worry about that, you need to worry about your business.

I wrote in the past about many accountants wanting to live in the past - that they are not interested in helping you plan your future. Michael Gerber in his book “The E-Myth Revisited” calls these type of business people “technicians” - I agree most of them are and very few have an entrepreneurial outlook in live.

So remember - no planning or no online accounting/bookkeeping for your small business - leave NOW! You owe it to your business.

As a side effect of Skype’s Login Problem our own users experienced long login times. We log our clients into skype during the login in process into WinWeb’s OnlineOffice.

BTW, that has been changed now, so I will no longer delay the login to our console. But this demonstrates the inherent danger of mash-up in the online software industry (SaaS, Web 2.0). You not only mash-up functionality, but possibly also the problems.

Something to consider, when you consider the pros and cons of mash-ups. The silence of the pro mash-up community to this outage is indicative of these unresolved issues.

There is a lot one can do to help the environment with the choices we make in buying products and services. Our On-Demand Small Business Infrastructure deploys environmentally friendly business processes and technologies to help our planet and reduce your carbon footprint.

Small business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Personal businesses can help reduce it’s carbon footprint just by making a choice between software and services delivery models, it is that easy:

1. Less Travel - More Time. More Money. Less CO2.

With our On-Demand SaaS technology you can work from anywhere, so no need to travel to an office. Run your small business from home and benefit in terms of time, money and investment - our environment will thank you.

2. e-Documents - Less Paper. More Trees. Less CO2.

Using our e-Quote, e-Invoicing and e-Statement you help the environment and make your business more productive. If your business partners did the same, imagine how much paper that would save.

3. Less Heating - More Money. Less CO2.

Not only can you save up to 2% of your annual heating bill by lowering the temperature 1ºC in your home, but if you work from home you will not need to heat an office for yourself and others - lowering your carbon footprint.

4. No CDs, DVDs, Packaging - Less Pollution and CO2.

Our software updates happen online, they are included in the price and we do not send out boxes all the environmentally unfriendly side-affects. No need for you to install anything and our 24/7 support will help you with any problems you have.

5. No Paper Manuals - More Trees. Less Pollution and CO2.

All our Support and Customer Care Infrastructure is online, so we do not need any manuals that are outdated with the next update, it helps us and you to stay up to date and the environment at the same time.

6. No Shipping - More Time, More Money and Less CO2.

We do not send out any software or other materials to you and we enable you to upload all your documents, so you do not need to ship anything to us.

7. Less Hardware - More Money. Less Pollution and CO2.

Since all our software runs on our servers you do not need to update your hardware all the time. Servers have a far longer service life than desk-top computers, we can change that.

8. Less Infrastructure - Less Overheads, More Money and Less CO2.

On-Demand Small Business Infrastructure works with professionals like you, so you can timeshare any expertise you need, no need for offices, heating, etc - outsourcing for our environments sake - it is the way to go.

What really makes these examples so appealing is that while you help to save our environment you also save money, overheads and time on every corner, for your efforts.

A lot has been written about the benefits of on-demand SaaS software, but the green aspect is often overlooked, at WinWeb we call this part of our offering ClimateByte™ Technology and more will be revealed when our new version 3.4 is launched on September 3rd.

Remember we can always do more to help the global environment, it’s not always going to be as easy as this.

If you would like to find out how to do more, click on some of the links below:

• Working Green: 50 Tips To Reduce Your Office’s Waste
• IT’s Easy Being Green

I have been asked to be a speaker at the first SIIA OnDemand Conference in Amsterdam from May 30th to June 1st. The event is hosted by The Software & Information Industry Association (SIIA).

SIIA OnDemand Europe is the European software industry’s first comprehensive conference for enabling and delivering Software as a Service. Delegates represent the complete SaaS ecosystem, including ISVs, platform vendors, systems integrators, venture capitalists and other influencers.

I will be a panelist on the “Pricing and Sales Compensation Strategies” hosted by Phil Wainewright. I’m sure that is going to be an interesting discussion, since I believe the value of software is very limited, certainly in my market segment of small business. To be successful in this area you will need more than software.

The following day I will give a small preview of our Small Business Infrastructure and the implications for small business.

I would be delighted to meet with anyone of my readers at this event, please come and see me.

Tags: On-Demand Europe ‘07, Phil Wainewright, WebWare, SIIA, Small Business, Small Business Infrastructure, smb, sme, sme-blog, Software as a Service, SOHO, VSB, WinWeb