Small- and medium-sized businesses (SMBs) are regularly acknowledged as key contributors to economic growth.  Each year, approximately 10% of existing small businesses shut down.  The large majority of them fail in their first five years.  Yet, many of us continually decide to take the plunge. 

While there are many reasons why some businesses succeed where others fail, one factor they all have in common is the threat of competition.  It leads owners to constantly determine ways of providing better customer service, increasing productivity, and reducing expenses. 

In recent years, this reality has met with a confluence of economic, market, and industry forces that have paved the way for SMB operators to think about technology in ways not possible before.  Commoditization of equipment has made computers and related hardware and software a basic startup cost.  Every thing is cheaper and can do much more.   

Major vendors have developed software to specifically address small businesses.  Prices have dropped. Features and capabilities have gone up.  What these trends have also meant, though, is a burgeoning of options.  For many SMB owners and managers, this has led to confusion. 

With so many hardware and software options, what are owners to do?  What do they focus on now?  How do they go about doing it? 

This is where technology planning comes in.  Some hear the term “technology” and immediately tune out.  Others hear “planning” and start running the other way.  I argue that these are reactions borne of an information technology and business era that is no longer reality.  Using appropriate technology is a must for competitive advantage.  It is too great a risk not to embrace it. 

So how do you get started?  What are the building blocks for a Strategic Technology Plan?  In this article, I am going to outline the steps to get you thinking.  We will drill down on specifics in future articles. 

The way to start is to think about your business strategy and goals first.  Short and medium term objectives (3 months to 3 years) must be defined.  Having a longer term picture is also important.  I suggest a different level of focus based on the size of your business and the complexity of your infrastructure.   

If you have been piecing together hardware and software purchases over the span of a few years, long term considerations are a larger issue for your business.  If you have minimal investments or are a startup, you can spend less time on this.  Although this is different from traditional consultant input, I think it works well. 

You must then determine how you work today.  What issues give you headaches because they are too complicated, take too much of your time, or regularly break down?  What are your customers and partners requesting?  These could be external, internal, service, process or technology related.  All key functions should be considered. 

The next step is to assess your technology inventory and begin thinking about integration. 

“Integration” is another one of those words that can generate fear, especially in the non-technical business owner.  But it’s something you will want to remember because you will keep coming back to it.  We will address it in more detail in a future article. 

Once you know your business goals for the short and medium term, have brainstormed how you conduct business now, and have a list of your technology assets, you have the information required to begin defining your needs.  What kinds of processes and systems can be supported and enhanced with technology?  What data is critical for your business, how is it currently stored, and where is it required?  You should also consider the changes that will result from the projects you complete. 

Needs assessment should include your managers as well as staff who are on the ground and pounding the pavement.  They know your needs the best (or more appropriately, their needs).  It makes it more complicated and harder to manage, but it is also a key success factor for your new investments.  Striking a balance will be required.  As a SMB owner or manager, you do that well anyway, right? 

The next step is where having the appropriate expertise is crucial.  If you have in-house staff with it, then you are set.  Most SMBs require the help of outside consultants.  This is where you investigate potential solutions to the projects you have prioritized.  You should evaluate your options as thoroughly as possible, including considering purchase and training. 

The last step prior to implementation is to write your plan.  This is the business justification as well as the technical issues.  You want to explain where you are, what tools you have now, and what you plan to accomplish.  You should also discuss resources, budgets, and timelines for each project. 

The final step is to implement your initiatives!  Work with the team, a project manager, and keep all stakeholders involved and updated throughout.  It is important to get their buy-in and support. 

As a SMB owner, you know you have to increase your own competitiveness to survive.  Customers expect real-time, always-open, and everywhere-accessible business.  You constantly hear you can better manage and grow their business by using the internet, developing a website, purchasing specific kinds of hardware or the latest buzz-word-based software.  Quite often, there are too many options and it is difficult to choose the ones that will work for your needs.  A good way to address all the key steps to choosing and implementing your solutions is to create a thorough technical plan.

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