Most Costly Computer Mistakes, Small Businesses Make

COMPUTERS can increase productivity, expand a business' bottom line and make molehills out of mountains. However, small to medium-sized businesses commonly make several mistakes that hamper, if not eliminate altogether, the benefits of using today's technology in the workplace. Here are the top five mistakes to watch out for.

Mistake #1:
Purchasing the wrong computer :
Many businesses make this mistake by purchasing the lowest priced computer available. Don't! By purchasing computers based solely on low price, one usually ends up with systems built using sub-standard parts, and which aren't reliable. You may save money on the initial purchase only to end up spending everything you saved, and more, to repair your systems.
Just as bad is spending thousands of dollars for the most expensive system on the market. Usually, you end up with some really nice computers with lots of options that will never get used, or worse, be misused (i.e., employees watching the latest action film on their new DVD Drives on Company time).
I suggest finding a local dealer who specializes in custom-designed business computer systems with a proven reputation. Don't go with the dealer that has the lowest price. Find one willing to make on-site service calls should anything go wrong. A decent, reliable computer system should cost $1,200 to $1,400.
I also recommend small businesses stay away from namebrand computers. These tend to use "proprietary hardware" custom-designed for that company's systems and available only from their factory. This creates a problem if your system fails and you can't get the part for five days or a week. Local dealers generally have replacement parts readily available.

Mistake #2:
Buying computers with unnecessary options :
When purchasing new computers, it's often tempting to get all the latest gadgets. DVD, CD Burners, Serial ATA hard drives, etc. are all great ... but think: What are you going to use your computer for? Word Processing ? E-mail? Customer tracking? Chances are you don't need all those options. A computer for your receptionist, mainly used for typing letters and sending correspondence, definitely doesn't need a CD burner or a DVD drive. You can save a few hundred dollars by leaving these options out. Don't buy the latest high-performance parts if all you're doing is word processing. You won't see much benefit for the cost.

Mistake #3:
Having no backup strategy :
Server crashes happen all the time. More often than not, the business in question has no backup, or the backup they do have is so old it's useless. At the very least, every company should have two backup copies of all of their crucial data. Ideally, I would recommend at least three redundant Backup Systems. Perhaps a tape drive on the server itself, with a second copy made to another server each night and a weekly copy burned to CD or other media. Don't rely on a single backup strategy. Tape Backup systems are great for automatic archival of your data, but tapes break, and sometimes they don't work at all when it comes time to retrieve the information. If your data is important to you, take the time to hedge your bets.
Once you have the backup strategy in place, make sure you use it. Keep an eye on your backup. Periodically try to recover a few files from the backup to see if it's really doing what it's supposed to do. These little tasks are often neglected because they take time away from other seemingly more important and pressing duties. But if you lose all your data, those other duties will be gone, because you may not have a business to run anymore.

Mistake #4:
Purchasing unnecessary software :
According to a recent survey conducted by IT research company Gartner, of 251,626 software licenses purchased for different brands of Customer Relationship Management software, only 146,200 had actually been installed for use. This represents an estimated $1.27 billion spent for unused software, not counting the maintenance contracts.
There can be a number of reasons why software that sounded like a great idea ends up unused. Perhaps the software's too difficult for the employees to use. Maybe during installation it was discovered that the software was incompatible with the network. Before making a major software purchase, ask yourself, "If I buy this, will it ever get installed? Who will install it? Will my employees use it? Who will train them? How long will it take? Will it save me more money than I am spending on it? Is there a software package we already own that can do the same thing?" If you can't answer these questions positively, don't buy the software. Before you buy, ask the vendor for a full working copy for your IT consultant to test. Often there are underlying technical quirks in software packages only an experienced IT professional can recognize. Most software companies won't take back software that has been opened and installed. Find out if it will work before you buy.

Mistake #5:
Not using a professional consultant:
A good IT consultant is worth his or her weight in gold. Take the time to cultivate a longterm relationship with him or her. A good consultant should have service contracts available as an option. Many of the mistakes listed above can be avoided with the help of a consultant. A monthly service call can be arranged to check your security,Anti-virus software backups, etc. Let a pro do it, and it will get done right.
Computers can be a wonderful addition to your business. But in order for them to be of any benefit at all, they must be properly maintained and configured Take the time and invest the money in the beginning to do it right. You will save thousands of dollars and get the most out of your company's computer investment.

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