Tweet

Tips for Selecting Software for your Small Business

Written by: John Kilbride

Article Overview: Every business needs software in order to run efficiently, effectively, and productively (accounting, marketing, communication, etc.). Software technologies can be a great enabler and level the playing field for small businesses, but with so many technologies available how do you know that the ones you select for your business will be supported, remain relevant, and be around as long as you are?

Tips for Selecting Software for your Small Business

Every business needs software in order to run efficiently, effectively, and productively (accounting, marketing, communication, etc.). Software technologies can be a great enabler and level the playing field for small businesses, but with so many technologies available how do you know that the ones you select for your business will be supported, remain relevant, and be around as long as you are?

When selecting software for your company keep in mind that you want to make selections that will be around for a long, long time (as long as you’re around); you want software that will be supported both with updates/upgrades, so that it doesn’t become obsolete, and with customer service, so you can get help when you need it.

Here’s how you make sure these things are true about the software you’re about to buy:

1. Research the software providers website and check out the customer support areas, if any.

This is of course obvious because you probably wouldn’t know about the company if you didn’t somehow land on their website. However, some company’s can have great looking websites, and even a terrific product, but poor or non-existent customer support.

Review the website for customer support areas and find out what type of support is offered. Is it free or paid; is it by phone, by chat, or by email; is there user driven or peer support (e.g. knowledge base, message boards); and is there a live person you can speak with when the going really gets tough.

Most credible technology products will have some combination of the above but some level of free customer support is a must. Also, keep in mind that paid customer support can lead to a conflict of interest for the software provider with respect to product development, and should therefore not be part of the core business model – some paid support is perfectly fine (see point 3 below).

2. Review the product history and check for updates/upgrades.

Here’s something that often gets overlooked. A great way to find out a few things about a particular software technology is by reviewing the update and upgrade history for that product.

An update/upgrade history can tell you important things such as when the software was released (so how long has it been around); how often are updates provided (so you know the company is keeping it current); how many problems there have been with the software – bug fixes (careful of never ending bug fixes); and how much upgrades cost, if anything.

A credible software will have a history of major version upgrades which tends to mean the product is mature and refined. Minor updates should be freely available and a "check for updates" integrated into the software has become standard. Also, keep in mind that major version updates/upgrades will often be fee-based but that’s acceptable practice.

3. Review the companies business model.

No, you don’t have to call the CEO and ask for a detailed accounting statement and their business plan. Simply take some time to review a few key areas of the business model so you get an idea how this company makes it’s money. If it’s not apparent how they make their money, then they probably aren’t making any and they won’t last.

Focus on these 3 areas:

i. Core Revenue Streams: How the software is sold is the big one of course. Is it a 1-time fee, user-based licensing fees, or Software-as-a-Service (SaaS) for instance; are there yearly fees; are there product verticals such as a Home, Pro, and Enterprise versions?’

ii. Target Audience: By understanding who the provider is trying to sell to, you can better understand if they are trying to sell to you (therefore the product will be relevant for your needs and development won’t steer into non-relevant sectors or uses), if they have a sustainable source of buyers (or is it too niche), and if the price model will remain accessible for you.

iii. Competition: Find out who the big competitors are and ask yourself why you’re not considering them. There are lot’s of reason not to go with the market-share leaders, just make sure they make sense for your business. Also, consider that the top 3 – 5 competitors will likely be around for a long time and therefore run little risk of going out of business or being bought out.

4. Last but not least, review the buzz on the software and the company you’re buying from.

You’re not just buying software, you’re investing in a company so make sure you learn what you can about how they do business. A great way to do that is by checking the buzz on the company.

Start with reviewing the current client list and see who else uses the company. The software providers website should have a list of current clients and if they don’t, contact them and request one (get at least 5 – 10 sample companies).

Also, Google/Bing/Yahoo! the software to find out what people are saying about it. Running searches that include words like "reviews" and "comparison" are good starting points but check popular review sites as well. Also, don’t be afraid to utilize your personal/professional social networks like FaceBook, LinkedIn, and BizNik – ask people you know what they know. The socialsphere can tell you a lot about a company so access it.

Depending on the size of the financial investment, and the role the software technology will play in your company, research can take anywhere from an hour to months. Don’t rush it but don’t get buyers paralysis either. When you find what you need, buy the thing already and get on with the business of your business.

Related Articles
  “Tips For Entrepreneurs In Selecting A Venture Capitalist”
  Simply by Outsourcing your own Software Application Development, It can save you Cash and time Each
  Internet Home Based Business Tips - Choosing The Right Autoresponder Software
  Disaster from Day One or Successful Accounting Software Implementation
  Email Marketing Made Easy #16 - Practical Considerations When Choosing an Autoresponder

Article Tags: accounting, conflict of interest, core business model, customer support areas, enabler, free customer support, knowledge base, live person, long long time, marketing communication, message boards, peer support, rsquo, selecting software, small businesses, software provider, software providers, software technologies, technology products, terrific product



Related Forum Posts
The Little Man Introduction - Good Morning, This is John Hoover from Little Man Consulting. Our company has been floating along as a after thought for a few years. This year we decided to make a go of it. So far we are doing great. We are Virtual Administrators, Web Developers, Database Designers, and Software instructors. Basically, if you have someone in your office to do it, we can do it virtually. Our company was created to "Provide Big Business Resources to the Small Business". Wish me luck, I plan on revolutionizing the small business world with this!
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Business Tips - How about: Tips for managers to handle employees more effectively? Tips on how to deal with difficult customers? Tips on how to deal more effectively with suppliers? The only three I have in mind right now, but will try to come up with something else. Chris
These maybe the coldest franchises out there: - Here are the worst 15 performing franchises in regards to having the highest Small Business Administration (SBA) loan failure rates. The list is dotted with sub sandwich shops, fitness centers and car shops. WORST FRANCHISE LOAN FAILURES Failure % 1 OBEE'S SOUP SALAD SUBS 55.56% 2 LADY OF AMERICA 41.94% 3 COUNTRY CLUTTER (BED & BREAKFAST) 41.18% 4 COPY CLUB 36.36% 5 ALL TUNE AND LUBE 35.71% 6 PICKERMAN'S 35.71% 7 PHILLY CONNECTION 35.59% 8 ROLY POLY ROLLED SANDWICHES 34.78% 9 COTTMAN TRANSMISSION 34.48% 10 HAIR COLOR EXPRESS 33.33% 11 LEE MYLES AUTOMOTIVE TRANSMISSIONS 33.33% 12 GODFATHER'S PIZZA 33.33% 13 SMOOTHIE FACTORY 33.33% 14 BLIMPIE 31.39% 15 GOLF U.S.A. (RETAIL GOLF EQUIP.) 30.77% Source: Small Business Administration, SBA Loan Performance Within Franchise Code for the Period of FY 2001 - 2005
Exclusive: Interview with Results - Hi Forum Members, I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles). As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business. This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business. I am looking to interview about 30 businesses across North America over the span of 3 months. At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews. I would like to extend this opportunity to members of the Forum. If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM. Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Executives and Elevators Perfecting That Pitch

Top Ten Home-Based Businesses

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.