Technology Needs of a Start-Up

Technology is a hungry beast, and will devour all the funds you feed it. So, how much investment is enough, and where should those dollars be allocated?

Dissecting technology reveals answers that may not be as complex as you think.

1. Phone communication is critical, of course. Naturally, you want give the perception of being "established," and more importantly be reachable by your clients. If they can't talk to someone when they call, or quickly leave a message, most people will not try again. However, answering services and assistants are expensive. If you are a small business, consider using voice mail and email to communicate.

2. Computers are critical since much of the world communicates via e-mail today, web research can save you time, and your documents will look more professional. If you don’t own a computer try to gain use of one at low or no cost from a friend, family member or organization until your business can afford one.

3. Your first website can swallow your funds in one gulp if you are not careful. Entrepreneurs should find customers first, and then create the complete website and applications that tie to them. Many start-ups have created slick websites without any customers and it takes their focus off the important things, like growing their business. If you are creating an on-line business, or a business heavily dependent on your on-line solutions, a cost effective way of using the web is to create a demo of your solution and use that to sell to clients and/or investors. The non-successful usually balk at this either due to fear of someone taking their idea (because it is "just a demo"), or fear of selling. Unfortunately, these individuals believe spending time on building a website is building the business, when in reality only people who say they will pay money for your product or service can build your business.

4. Software - The necessary software will depend on your business, but you might need some combination of the following: a word processor, spreadsheet program and accounting software.

5. Other - An investment in an electronic organizer is a big time saver. You are never without a phone number, your emails can be read from them, your calendar can be manipulated from anywhere, and your tasks can be quickly forwarded to another date without rewriting them daily.

Whether you are a one person start-up running on a minimal budget, or have a moderate to large budget, you will ultimately be faced with a tough question: "When I finish feeding my technology beast, how many more customers will I have?" If the answer is none, then this may be the wrong time to invest in technology, because early on, unless your actions are making your virtual cash register ring, it is not worth the investment.