The first thing to know about looking for a system to start automating your processes, is that you are not going to find one that does it all. However, as I write this, they are improving daily. Which leads me to the next thing to know about buying a new technology system, as soon as you do a ‘better one’ will likely pop up. So here are some important things to know about the system you buy BEFORE you buy it.

Does your data belong to you?

Meaning… can you get to it so that you can transfer it to another application if you need to switch. At the minimum, you need to know if you can download your customer data, sales data, product information and price book (if you have it) into a CSV. What is a CSV? This is a comma-separated values file. If you decide to switch, any technology company worth their salt should be able to upload critical data from a CSV. They may require you to move the data around in it (which can be easily done with Excel), but at the MINIMUM, they should accept a CSV file upload and provide you a CSV download. Ask this question. ESPECIALLY since after the technology bubble. You never know how long a new company is going to be around and you’re left holding the bag.

Create a technology budget

I find this is one of the most overlooked budget items for small businesses. Create some sort of budget that you can use to upgrade, change or replace your technology. We are WELL into the technology age… and things aren’t slowing down. Consider it like paying insurance. Make it a regular expense. You’ll be glad you have it when you need it and want it. You can use it to buy computers, phones, iPads, point of sales, etc.

Put it in the Cloud. I repeat. PUT IT IN THE CLOUD

What is this ‘cloud’ business? Do a google search. There are a lot of pros and cons to putting things in the cloud. But as a SMALL business owner, you are FAR better off on the pros and cons. I could write a lot about this, and will at another time. However, the fact remains that putting together a secure operating system that won’t crash is becoming ever more complex every single day. Just like you see software companies popping up all the time, hardware and storage and processing are making leaps and bounds as well. Do you really want to know all that? Do you really want to be RESPONSIBLE for all of that? Honestly, if someone hacks through and accesses your customer information, I can guarantee you’re NOT going to want to stand there pretending you knew enough to keep it safe. You’re going to want to point out that you were responsible enough to find an expert to keep that safe. At least you made an attempt to be responsible. Additionally, a lot of these are short term contracts and you can cancel them if they don’t meet your needs with a MINIMUM amount of time/money investment.

Avoid Free. It is NOT Free.

If it is free, you will hate it, eventually. Nobody works for free. Before you start lamenting the ‘good hearted techno geek’ that lives next door and fixes your internet every once in a while… or the neighbor who shares their vegetables, let’s just agree that isn’t the same as providing service to 100s and 1000s of people. If your service is free, I guarantee they are selling you… and all the information about you. Pick paid or cheap over free. Free services are selling EXPENSIVE data. EXPENSIVE data is often precise data. If it’s cheap, it’s probably aggregated data. Aggregated data often works in your favor. If an area is underserved… you might find yourself with competition. PRECISE data… typically used in free services… is almost like inviting your competition to please come. Or maybe it’s like begging salesmen to stop by your place. All that time and money you saved… you just lost. Aggregated data isn’t as bad. In fact, if you belong to a consortium of some kind, or a membership club. They are aggregating your data for the good of all of you. However, sometimes cheap means really poor support. So keep an eye out in the first year.

Avoid Free. This is an investment.

Yes. There are TWO issues with Free. When replacing processes and people activity with technology, remember that you would have paid a person to do that… even if that person was yourself. Behind the scenes, you are investing in a technology company that you want to keep running for a while so that you never have to do that again. That’s a big deal. If no one is paying them money, how long are they going to stick around? How willing are they going to be to answer your questions if you have trouble with support? Honestly… if you know you aren’t going to get everything you need in the system you buy, then you are kind of counting on them getting better. Hedge your bets and pay them, so you don’t have to replace them later. Think of it like crowdsourcing your application development. Pick a team you like working with and pay them to keep going. Especially if they are listening to you and understand the specific problems you and your colleagues will be facing. This can be a valuable relationship you are building.

Look in your Industry first

If you are a certain kind of store or service company, look for software in your vertical first. Automotive… look for automotive software. Convenience stores… look for convenience store software.  Restaurant… look for restaurants. Look here before you look at a generic retail packaged software or a service packaged software across multiple industries. The odds are higher you’ll be investing in a team that knows your business and will know and understand all the things you need.