Out With The Old Ready to give your first computer the boot? Check out the latest options for homebased businesses.
By Heather Page
Opinions expressed by Entrepreneur contributors are their own.
Time isn't something most homebased business owners canafford to waste. Just ask Gilda Krywosa, owner of Gilda'sAccounting & Tax Services in Boonville, New York. Like mosthomebased business owners, handling all the administrative,marketing and advertising duties, as well as servicing her clients,leaves Krywosa little time for much else. That's why theexcruciating delay she experienced when printing or tabulating taxreturns on her computer just wouldn't do, particularly duringthe tax season.
"I don't like wasting time waiting for things to printor for numbers to total," says Krywosa, who opened her tax andaccounting business last January in the corner of a renovated barnon her rural property. "I needed more memory, more speed and amore powerful computer to operate the [tax] programs [needed] torun my business."
Whether you're like Krywosa and aren't satisfied withyour computer system's performance, you've hired a secondemployee who needs a computer, or you've glimpsed the latesthardware and are itching to buy, there comes a time when yououtgrow your first PC. That's especially true for homebasedbusiness owners who share their multimedia home PCs with thefamily, usually because they can't justify purchasing a machinejust for business. But all it takes is having files accidentallyzapped by your 7-year-old or letting work suffer while the kids usethe computer to do their homework to realize it's time topurchase another computer.
The Buying Game
The good news is, you've probably learned a thing or twoabout purchasing computer equipment since you bought your first PC.You're more knowledgeable about your business's technologyneeds, and you may already know what areas you'd like toimprove. Maybe the monitor on your current computer is too smalland strains your eyes, so now you want a larger one. Or, if yourfirst PC came loaded with a 3-D graphics card, multimediaencyclopedia and games for the kids, you probably found littlebusiness use for these features and want to find a PC without allthe recreational features.
"Usually, [homebased business owners'] second purchasewon't have anywhere near the bells and whistles their firstmachine has," says James Staten, industry analyst withDataquest Inc., an information technology research firm in SanJose, California. "You'll sacrifice things like 3-Dgraphics cards because you don't need them."
While there isn't a single solution that fits the bill forevery homebased business, there are guidelines to follow. Forexample, if you plan on using your second PC for generalproductivity purposes such as running word processing, spreadsheetand general accounting software, you'll need to invest in amachine with a faster processor and larger hard drive. Ifyou'll be using it primarily for communication purposes, suchas sending e-mail, surfing the Web or faxing, look into a PC with ahigh-speed fax/modem. Those who plan to create advertising andmarketing materials in-house may want a higher-end graphics systemwith lots of memory.
A slew of technology vendors are rolling out computers designedspecifically for the small office/home office (SOHO) market.Overall, these computers serve homebased businesses well becausethey come stocked with fast processors, large hard drives, speedymodems, remote-control software and advanced support software todiagnose computer problems quickly. They also come pre-installedwith leading business software. For instance, Apple ComputerInc.'s Small Business Power Macintosh models boast MicrosoftOffice, Norton Utilities, Now Software's Now Up-to-Date &Contact contact management program, Jian BizPlan Builder andmore.
Packard Bell's all-new Platinum 4200 computer for the SOHOuser comes loaded with a fast 266 MHz Intel Pentium II processorwith MMX technology, a 7.0GB hard drive, a Digital Versatile DiscDrive, a 56 KBps modem with U.S. Robotics X2 technology, and atelephone answering system with full-duplex speakerphone. It alsohas a variety of innovative customer support features. One suchprogram is PC Doctor, which performs tests to detect hardware andsoftware errors. CyberWarner warns users when they're about tomake a critical computer error and logs the action online so that acustomer service representative with remote-control software caneasily determine the problem.
When deciding what type of system you need, don't rule out alaptop. Today's laptops boast powerful processors andlightweight designs, making them ideal for displaying salespresentations on the road. They also make sense for accounting,real estate or any kind of homebased business that could benefitfrom inputting or furnishing information on the spot.
On Second Thought . . .
Typically, homebased business owners buy their first computersthrough retail channels. Computer or electronic superstores workwell for first-time buyers because you get to test the equipmentbefore buying it and have your questions answered by asalesperson--and you get to bring the goods home the same day.However, when you're buying your second computer, considerother avenues, such as mail order, value-added resellers or buyingdirect from manufacturers. These options typically offercompetitive pricing, and they can add a greater level of expertiseand support to your business than you'd get from a retailer.Consider the following:
Mail order. Convenience is the obvious benefit of buyingthrough mail-order giants such as Gateway 2000 Inc., MacWarehouseand Dell Computer Corp. Place one phone call, and the goods will beshipped right to your door. And, unlike in retail, where what yousee is what you get, some mail order companies will build customcomputer configurations for you so you can get the computerthat's perfectly suited for your business. Your PC can beconfigured with more memory, a specific graphics card or agargantuan hard drive, for example.
But the chief reason to consider mail order? It's the firststep in building what could become a long-term alliance with ahigh-tech supplier. "Homebased business buyers are flocking to[mail order companies] because they can have a direct relationshipwith a vendor and rely on them as another source of support,"Staten says.
Manufacturers. Many computer manufacturers are alsoboosting their built-to-order business. An advantage to this methodis price: Cutting out the middleman gives direct vendors thefreedom to offer a better deal.
Through NEC Computer Systems' new customer-direct program,NEC Now, you can choose from one of four NEC Now models or any NECmachine available. Request any special configurations beforeplacing an order. Provided there are no unusual requests, themachine will be built and delivered within five working days. Youcan also opt to have the computer sent to a reseller in your areawho can install it or provide additional services.
Resellers. These also offer the benefit of long-termrelationships, and they can provide a level of expertise most othersources can't match. "If you buy from a reseller, you candevelop a relationship over time that you can rely on, particularlyas your business grows," says Kathleen Tandy, marketingmanager for Hewlett Packard's Small Business ComputingOrganization. "They are an excellent source of information onnew services and products, and they'll suggest optionsyou'd probably never consider, like setting up electronic linkswith customers if you're a small wholesaler or an ISDN line ifyou're an accountant and want a high-speed connection to abank."
Leasing. Consider computer leasing if you plan to upgradeequipment frequently. Many businesses favor leasing because it letsthem use the latest technology without making a substantialinvestment. Leases are offered from computer retailers and vendorsas well as from third-party leasing agencies. Length and termsvary. Gateway 2000, for instance, sets up leases itself and honorsthose made through third-party leasing agencies. When your leaseexpires, you can simply return the computer. Depending on the typeof lease you signed, you also have the option to buy the computerfor fair market value, 10 percent of the price you paid, or for $1through a buyout program.
Customer service. If you haven't considered thecustomer service you'll receive when you buy a computer,now's the time to do it. Customer support is critical whenbuying your second computer because not only do you lack the timeto spend hours on the phone with tech support, but chances are yourlevel of technology sophistication has increased as you'vegrown. If you now use advanced business software or a backup driveto protect your data, the assistance you need has moved beyond themore basic questions some tech support lines answer, so considerbuying from a company with advanced support for smallbusinesses.
Electronic remote support is another service many homebasedbusinesses need. With your permission, tech support will accessyour computer remotely, scan it for problems, run diagnostic testsand solve your problems from afar, saving you the hassle of takingit in to be fixed or fiddling with it yourself.
Excellent support is one reason Krywosa eventually purchased aHewlett Packard Vectra 500 series (now redesigned and called theBrio series) computer, which comes with a three-year limitedwarranty and one year of on-site support. She bought it through areseller--and was glad she did when, in the middle of tax season,she experienced a hard-drive failure. "It could've been adisaster," she says, "but [the reseller] hooked mycomputer up with a network and saved my programs and data. Thenthey reloaded a new hard drive and re-installed my information. Ilost nothing, and it didn't put me behind or cause me to losebusiness."
Powered Up
Buying a second computer can solve critical business problems,translating into money in the bank. For example, with her new PC,Krywosa now has enough power and speed to run Lacerte Software forTaxes, which she uses to process tax returns for clients.
But more than just working in the fast lane, Krywosa can nowperform tasks that she couldn't before. For instance, herVectra 500 series computer came with a speedy modem that she usesfor researching tax information on the Internet, downloading taxforms, and accessing services that she previously couldn't. Hernew computer also has enough power and memory to run Print ShopDeluxe, a desktop publishing program she purchased to create herown business cards and stationery as well as design advertisements.All this, she says, gives her complete control over the marketingand advertising aspects of her homebased business at an affordableprice.
You'll probably notice having a second PC also fosterscollaboration between you and your employees. If there's a rushjob, you can work on one portion of the task while an employeetackles another. Having a second PC also gives you the opportunityto split up business functions. For instance, one computer can beused just for communication purposes, such as faxing, sendinge-mail or surfing the Internet. Or, you can use one machine tostore critical documents while the second one serves as the"slave," where all of the word-processing and daily tasksget done.
If you feel there's a lot to consider before you buy,you're right. But it's important to think through all youroptions carefully. Analyze all the new hardware and softwareavailable and investigate several different methods of buying. Bydoing your homework, you'll likely be more satisfied with yoursecond PC purchase than you were with your first.
Compaq
Model: Armada 1585DMT (notebook)
CPU: 150 MHz Intel Pentium processor with MMXtechnology
RAM/hard drive: 16MB (expandable to 80MB); 2.1GB
Monitor: 12.1-inch TFT active matrix display
CD-ROM drive: 12X
Modem: 33.6/14.4 KBps data/fax
Software included: Windows 95/NT, Intuit ExpensAble,Quicken Special Edition and more
Warranty/support: One-year limited warranty; phone andonline support
Suggested retail price: $3,699
Toshiba
Model: Satellite Pro 460CDT (notebook)
CPU: 166 MHz Intel Pentium processor with MMXtechnology
RAM/hard drive: 32MB (expandable to 160MB); 2.02GB
Monitor: 12.1-inch TFT active matrix display
CD-ROM drive: 10X
Modem: 33.6 KBps data/fax
Software included: Windows 95, America Online,CompuServe
Warranty/support: Three-year limited warranty; phone andonline support
Suggested retail price: $4,299
Packard Bell
Model: Platinum 4200
CPU: 266 MHz Intel Pentium II processor with MMXtechnology
RAM/hard drive: 32MB (expandable to 256MB); 7.0GB
Monitor: Available in a 15-inch or 17-inch SVGA display(not included)
CD-ROM drive: 24X or Digital Versatile Disc Drive
Modem: 56/14.4 KBps data/fax
Software included: America Online, CompuServe, TakingCare of Business Software Suite with Microsoft Windows 95,Microsoft Works, Microsoft Money
Warranty/support: One-year limited warranty with 90 dayson-site service for registered users; pay-as-you-go phoneservice
Suggested retail price: Starting at $2,499
Dell Computer
Model: XPS H266
CPU: 266 MHz Intel Pentium II processor with MMXtechnology
RAM/hard drive: 32MB; 4.3GB
Monitor: 17-inch SVGA display
CD-ROM drive: 16X
Modem: 33.6/14.4 KBps data/fax
Software included: Windows 95, MS Office 97 SmallBusiness Edition
Warranty/support: Three-year limited warranty withone-year on-site service; phone support
Suggested retail price: Starting at $3,299
Apple Computer
Model: Small Business Macintosh 6500
CPU: 250 MHz PowerPC 603e RISC processor
RAM/hard drive: 48MB (expandable to 128MB); 4GB
Monitor: 21-inch standard (not included)
CD-ROM drive: 12X
Modem: 33.6/14.4 KBps data/fax
Software included: Small Business Software bundled withMicrosoft Office, America Online and more
Warranty/support: One-year limited warranty; phonesupport
Suggested retail price: $2,299
Gateway 2000
Model: G6-266
CPU: 266 MHz Intel Pentium II processor with MMXtechnology
RAM/hard drive: 64MB (expandable to 256MB); 6.4GB
Monitor: 19-inch EV900
CD-ROM drive: 12/24X
Modem: Not included
Software included: Windows 95, MS Office 97 SmallBusiness Edition, TripMaker 97
Warranty/support: Three-year limited warranty; phone andonline support
Suggested retail price: Starting at $2,949
IBM
Model: 300GL
CPU: 200 MHz Intel Pentium processor with MMXtechnology
RAM/hard drive: 32MB (expandable to 128MB); 2.5GB
Monitor: 17-inch CRT display (not included)
CD-ROM drive: 16X
Modem: Not included
Software included: Windows 95/NT, Lotus SmartSuite, IBMHomePage Creator, Microsoft NetMeeting
Warranty/support: Three-year limited warranty withone-year on-site service; phone, online and remote support
Suggested retail price: Starting at $1,503
Hewlett Packard
Model: Brio 8178
CPU: 233 MHz Intel Pentium processor with MMXtechnology
RAM/hard drive: 32MB (expandable to 192MB); 6GB
Monitor: Not included
CD-ROM drive: 24X
Modem: 56K U.S. Robotics data/fax
Software included: Microsoft Windows 95, Microsoft Word97
Warranty/support: Three-year limited warranty withone-year on-site service; online and phone support
Suggested retail price: $2,087
Contact Sources
Apple Computer Inc., http://www.powermacintosh.apple.com
Compaq Computer Corp., http://www.compaq.com
Dataquest Inc., e-mail: askdq@dataquest.com, http://www.dataquest.com
Dell Computer Corp., http://www.us.dell.com/products
Gateway 2000 Inc., (800) 338-0169, http://www.gateway.com
Gilda's Accounting & Tax Services, (315)942-4357,fax: (315) 942-2175
Hewlett Packard Co., (800) 752-0900, http://www.hp.com
NEC Computer Systems, (800) 632-4636, http://www.nec-computers.com
Packard Bell, (800) 733-5858, http://www.packardbell.com
Toshiba America Information Systems Inc., http://www.computers.toshiba.com
