Category: business advice

  • Control freakery

    Further to my earlier post about Apple pulling out of Macworld, CNBC opines they are doing it so they can control the messages, to quote;

    The fact is, Apple hosting its own events gives the company complete and total control over its own message. More and more companies are leaving traditional trade shows in favor of enjoying the total spotlight at their own events. I’ve reported recently that some big names are either dramatically reducing, or exiting all together, the massive Consumer Electronics Show in Las Vegas next month.

    If this is true then it’s a shortsighted policy by Apple and anyone else that thinks this way. The days of total control has passed, if it ever existed.

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  • Apple leaving Macworld

    Apple’s decision to leave Macworld is strange and disappointing.

    Macworld gives Apple a captive audience of dedicated fans. Any other business would kill for the same opportunity to roll out their new products to such an enraptured audience.

    While there’s not doubt the Internet and the Apple Store channels have diluted the importance of the trade show, the Macworld event is still an important part of the tech industry’s calendar.

    I’m a bit baffled why Apple would be doing this, I think it’s an asset they should treasure.

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  • Why a cheap Mac netbook would be a mistake

    AppleInsider is speculating about the possiblility of a $599 Mac netbook.

    If Apple were to do this it would be a strategic mistake and damage their business.

    The key to the Mac’s success is the point of difference they have to rest of the computer market. This difference allows them to achieve higher margins.

    If Apple want to get down and dirty with Asus, Dell and HP they’ll find their products and margins will be dragged down with to their levels.

    What’s more, it’s a marketplace they won’t win as other players have better low cost models. For instance, no other brand has a successful worldwide chain of branded stores.

    The idea driving the netbook push is “Apple can’t justify charging double”. That’s true and there’s no doubt Apple have been overcharging in recent times. So there is room for some price drops.

    But cutting prices to meet other people’s price points would be a suicidal move from Cupertino.

    A far more sensible strategy is to accept sales are going to drop and focus on their core market, sacrificing a bit of margin won’t hurt either. 

    Sure, Apple’s profits will take a hit but they’ll still be profitable while their competitors struggle to make pennies on $500 systems.

    This is the key to survival in the downturn, not mindlessly slashing your throat to meet artificial price points.

    It’s a lesson for all businesses in this economy. Focus on your core market and your margin. Giga Om has a good guide to “competitive differentiation”.

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  • Keeping Costs Down On The Net

    This article originally appeared in the November 2008 Sensis “Small Business, Big Opportunity” newsletter.

    There are few areas in business that change as fast as the Internet, particularly when it comes to business connection plans. What was good value two years ago can be pretty ordinary today.

    Now we’re in uncertain times it’s a good opportunity to review what your Internet provider is giving you for your money. The right plan can help your business get the most from the Internet.

    It’s often said there are three factors in an Internet plan: price, speed and reliability. You can choose any two of them.

    I’d like to say price shouldn’t be the deciding factor, but in reality none of us have bottomless budgets. So the first step is to look at what you currently spend and decide what you can afford.

    Budgets can vary dramatically between businesses. A $50 a month plan is fine for a home based business while tens of thousands per month isn’t out of the question for a larger business with heavy needs.

    Regardless of your business size, forget the super cheap consumer plans. You need a supplier you can rely on. Business grade providers will also offer important add on features like fixed IP addresses and priority support.

    Nothing breaks a technology consultant’s heart more than seeing a business struggling with a substandard Internet connection. The lost productivity dwarfs the fifty or hundred dollar a month saved from scrimping on connection charges.

    So having set a realistic budget, we have to choose between speed and reliability.

    Reliability is non-negotiable. The net, and in particular email, is a key business function and telling customers “sorry, the Internet is down” simply doesn’t wash anymore. As businesses move more towards Voice over IP, software as a service and web 2.0 applications, always-on fast Internet becomes essential.

    This leaves us with speed. Internet speeds are split into two parts; download, the data that comes into your system, and upload, the data that goes out.

    Internet plans usually state their speeds along the lines of 1500/256 which in this case means the download speed is 1500kbps and the outgoing speed 256. This is called an asynchronous connection which is the “A” in ADSL.

    Home plans usually use ADSL connections because web surfing downloads far more data than it sends but office applications like email, remote access and Voice over IP need a higher upload speed.

    So if you have lots of people working remotely, or you’re making phone calls over the Internet you’ll have to consider plans that have higher upload speeds.

    There’s also data allowances, these can be tricky for all Internet subscribers as the fixed price plans shape the connection, meaning they slow you down once you go over the limit. For businesses that rely mainly on email, these plans are fine.

    If your business Internet needs are more demanding though, the alternative is excess use plans where you are charged once you exceed the limit. This can mean horrendous bills if the wrong plan is chosen.

    The good news with data allowances though is this is one of the areas that has dramatically changed in the last few years. So this is an area where the canny business can get more value for their Internet spending.

    Even if your Internet Service Provider won’t come to the party on reducing your prices, there’s a very good chance you can negotiate a better deal in data allowances and speeds to help your business have the edge in these uncertain times.

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  • Respecting your network

    This article orginally appeared in Smart Company on November 25, 2008

    Australia’s Spam Act is just over five years old, and it’s had some success in keeping locally sourced junk email to reasonable limits along with catching the odd perpetrator.

    The Australian Communications and Media Authority has plenty of Spam Act information for business owners on its website and the requirements can be summarised in three principles – get consent, identify yourself, and make it easy to unsubscribe.

    Before you can send commercial emails to people, they need to ask for them. In itself, this requirement eliminates your emails being classified as spam given the definition of spam is unsolicited emails.

    Identity is important, as the recipient needs to know who the email is from. All legitimate businesses should have no problem with this.

    Finally, unsubscribing is simply good manners. For a business owner there is absolutely no point in irritating potential customers and partners who don’t want your messages.

    The sticking point in all of this is defining consent. The loophole in the act defines “inferred consent” if you have an “existing business relationship”. The current interpretation of a business relationship is merely having the business card of the recipient.

    Sadly this gives any dolt you’ve been foolish enough to give a business card to at a networking function permission to bombard you with invites to get-rich-quick seminars and share boat schemes.

    I can’t tell you how irritating I find idiots sending me three pointless emails a week because I put my card in the door prize bowl or gave the courtesy of exchanging cards while talking.

    Even worse are the dills who start sending SMS messages to your mobile phone. In fact I’m amazed that anyone thinks ultra intrusive text spam is an effective way to generate goodwill for a business.

    A particular difficulty with spamming people in your network is that your paths will almost certainly to cross again, which can put all parties in a difficult position.

    So don’t simply add everyone who gives you their business card to your mailing list. By all means send them a follow up email, phone call or postcard, and certainly offer to connect to them on social networking sites like LinkedIn and Facebook, but spare everyone the spam.

    Understanding your responsibilities under the Spam Act will help you get more from your mailing lists. Adding some common sense and manners goes a long way too.

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