Category: business advice

Apple after Steve Jobs: ABC Weekend computers

What does Steve Jobs stepping down as Apple’s CEO mean to Mac users?

The September 11 ABC 702 Sydney Weekends segment discussed what Steve Jobs’ stepping down as Apple CEO means for Mac users.

Simon Marnie and Paul Wallbank looked at why Steve Jobs was important to Apple, who will be taking over and whether this affects whether you should buy an Mac computer, iPhone or iPad.

Listeners’ Questions

As usual, we had plenty of great questions from listeners and some of them we promised to get back to, these included the following.

Removing Mackeeper

Cheryl called about MacKeeper warnings that keep popping up on her Apple computer.

MacKeeper, and other variants like MacProtector and MacSecurity, are known as malware – software designed for malicious reasons – which has been the bane of Windows computer users for years.

Removing Mackeeper is relatively easy and Apple has released a security patch to fix it. Details and download are available at the Apple Support website.

Wiping an old computer

The most valuable thing on a computer is the data, so it’s important to wipe any system before disposing of it. Deborah asked how to wipe her old Mac system before she left it out for her council’s e-waste collection.

If you have an OS X or OS 9 disk, you can completely wipe and “zero” the disk to make it extremely difficult for someone to recover any data from the old computer. Apple have detailed instructions on this at their How To Zero All Data On A Disk page.

Warning! Before following these instructions, make sure you have backed up all important and valuable data.

How to disable automatic Windows Updates

Updating your computer, whether you have a Windows or Mac computer, is very important as new security bugs are found all the time. Gary though was finding his system automatically installing Windows Updates often disrupts his work.

It isn’t a good idea to totally disable the Windows Update service as those updates and patches are important, but you can change the settings so they are downloaded but not installed until you choose to do so.

Microsoft’s Knowledge Base describes how to change the Windows Update Settings, we recommend the download updates but let me choose when to install them option.

Next 702 Weekends tech spot

Our next Weekends spot is scheduled for 23rd October when we’ll be discussing how to backup your valuable data. Check the Events Page or subscribe to our newsletter for any changes to the 702 Sydney programs and any other upcoming radio shows.

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Microsoft’s lost decade

Ten years ago Windows XP was released by an untouchable Microsoft. What happened next is a lesson for all businesses.

Amid the discussion of Steve Jobs standing down as Apple CEO last week, a quiet milestone was passed. Ten years ago last Wednesday, Microsoft released to manufacturers their latest operating system, Windows XP.

Windows XP turned out to be the most successful computer operating system ever and probably marked the peak of the personal computer era.

The glitz and glamour of the Windows XP launch showed the power of Microsoft at the time – their products dominated the desktop markets, Apple were crawling their way back to profitability and relevance with the iMac while mobile phones were barely capable of sending anything more than SMS messages.

In 2001 the business model of Microsoft was built upon the perpetual upgrade cycle, as computers were expected to last three to five years which would then be replaced by new systems requiring an updated operating system with the latest office software.

Ensuring maximum revenue from the upgrade cycle, Microsoft encouraged retailers to sell XP systems with bundled software locked to the individual computer, these “deals” made sure users would have to buy new programs when the existing machines were replaced.

The three year upgrade coupled with the need to buy new software every time made Microsoft’s model seemingly unstoppable in 2001, but problems were already developing for this strategy.

A major part of breaking the “upgrade every few years” mentality was the late running of Longhorn, Windows XP’s successor, which was released as Vista three years behind schedule and the product’s poor quality meant customers were reluctant to upgrade.

Unfortunately the market rejection of Vista and the wait for the next version of Windows saw the rise of reliable and affordable cloud based services, that ran on web browsers which made the need to upgrade less pressing. Today many people are quite happily running seven and eight year old computers that meet their needs adequately.

It would be foolish to write Microsoft completely as their revenue is still strong and in the past they have seen off major threats like Netscape and the web in 1995 and the rise of cheap Linux based netbooks in 2007. Google’s takeover of Motorola and HP’s abandonment of WebOS may open new opportunities for Microsoft on tablets and mobile phones.

For businesses, the immediate lesson is to look closely at upgrading options however for managers and owners there’s a much bigger lesson when looking at how Microsoft lost its way in the last decade despite a seemingly untouchable and lucrative business model.

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Yep, the rent is too damn high

Local businesses are struggling under high rents, can anyone help?

At the local shopping strip, it appears the rent has become to much for the local storekeepers.

Maybe the local businesses need this guy?

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Be careful with your Google Places listing

Be careful when making changes to your business Google Places account

Google Places is a service that every business should sign up to, however Google’s policies at the moment mean you have to take care with how you use the listing.

At present Google are enforcing their listing rules in unpredictable ways and we’re hearing businesses are having their accounts suspended for what appears to a misreading on Google’s part of their own policies.

More importantly, there are stories of businesses who have updated their details and found their listing goes into “pending” status and their page is pulled from local search results until their revisions are reviewed by a Google staffer.

Often when the review is done, the listing is denied as being in breach of the rules which effectively bans the business from Google Places until the error is fixed.

Fixing the problem is difficult as the Google rejection emails are cryptic and, unfortunately in this era of the social business, come from a “no-reply” account with no sign off name, so there’s no way to find out exactly where the problem lies.

Given the uncertainty around Google’s policies in this space, it’s best not to make any changes to your Google Places account unless it’s absolutely necessary to update essential information.

If you haven’t already listed your business on Google Places, we’d still urge you to do so. Just make sure you get all of your details correct and pictures uploaded before you submit the entry.

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The online review challenge

Customers’ web reviews matter for your business. How do you handle bad online comments?

Last Christmas a group of office workers gathered at a city hotel to celebrate the year’s end. The meal was a disaster as slow, surly staff made mistakes and delivered poorly cooked food.

Within an hour of the workers returning from lunch, negative reviews of the hotel started appearing on the Eatability and Urbanspoon websites. By the time Christmas Day rolled around, the reputation of the establishment was throughly trashed.

The rise of online review sites along with social media services like Facebook challenges many businesses, particularly those in the hospitality industry as café owners, restaurateurs and hotel managers struggle with unfavourable comments about their establishments.

Customers now research on the web before deciding to dine out or make a purchase, so online reviews can make or break an establishment. How does a business make sure their online reputation is safe.

Pay attention

The most important part is to pay attention to what people are saying about your business.

Big corporations will have their own social media staff and community managers to handle much of this, Telstra last week announced their online team will now be on the web 24/7.

Larger organisations will also subscribe to online monitoring services like BuzzNumbers and PeopleBrowsr to report what’s being said about them.

For smaller businesses it falls on the owner and staff to keep an eye on the popular review sites and to monitor the business’ Facebook page for negative comments.

Engage the critics

No matter how good your business is, you will get the odd unhappy customer. When that happens you need to contact them, preferably through the same public forum they have complained about you.

Once you’ve established contact, take the discussion offline onto email, phone or even face to face meetings. If the resolution is positive, try to publicise the result in the original channel the complaint was made.

Fix the problem

Despite many in the hotel industry believing that most online complaints are deliberate campaigns against them, regular complaints are usually legitimate and indicate an underlying systemic problem in the business.

If customers are complaining about service, you need to let your staff know customers are talking about them. Should there be regular criticisms of your food, then you need to talk to your kitchen staff or suppliers.

Don’t get defensive

Complaints happen. Even the best business in the world has a bad day or encounters a customer who woke up on the wrong side of bed.

If you think the criticism is unfair or even defamatory, don’t get angry and certainly do not make threats as you’ll only inflame the situation more.

Should the customer turn out to be unreasonable, at least by having publicly engaged them you’ll have shown the public you’re calm, professional and trustworthy.

Don’t Lie

The web is as great at exposing falsehoods as it is at spreading them. If you’re clearly not telling the truth, you’ll make your critics angrier and more determined to damage your reputation.

A common way many businesses cheat online is with false reviews. Despite industry claims that organised damaging comments are widespread, the reality is the opposite as many hoteliers and restaurateurs frequently post clumsy and obviously fake glowing reviews of their establishments. It’s a bad look and the establishment often ends up looking foolish.

Get your website right

Many businesses, particularly in hospitality, have lousy websites or a site that has no Search Engine Optimisation (SEO) so when someone searches for a hotel or restaurant their page comes up way below those for review sites or critical blog posts.

Regularly review how your site is doing and talk to your web designer or SEO consultant on making sure it’s coming up well when customers search for your type of business.

It’s important not to overlook local search services so ensure your business has been listed on Google Places and has a Facebook Local Business Page otherwise local searches will go to the online review sites or your competitors.

Ultimately, the best way to deal with negative online reviews is to minimise them by running a good business. The biggest effect the web is having on business is that it is making us accountable to our customers.

As big corporations are finding, the days of covering up poor goods and indifferent customer service with marketing is over – if your product doesn’t match the promise you make to your customers they will tell the world.

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The corporates are getting social media and local search

Small business’ head start over corporations in using social media and local search is over, it’s time to get serious.

Shopping centre owner Westfield’s announcement this week that they’ll be offering Facebook Check-in Deals  at their local malls shows the corporate sector is beginning to rise to the challenges of the social, local and mobile driven marketplace. Smaller businesses need to be taking notice.

Consumer behaviour is changing quickly as the SoLoMo revolution, a term invented by investor John Doerr, sees customers bringing together social media and local search on their mobile phones and iPads. That presents a lot of opportunities for savvy marketers and business owners.

In the early days of mobile commerce we saw the idea of local, mobile based marketing being SMS based along the lines of nearby vending machines texting you on a hot day to say “hey, I have cold drinks” on a hot day.

Thankfully for our sanity that concept never really took off and it’s taken the arrival of social media services and smartphones for this type of marketing to become feasible.

Social media services also have the advantage that messages, particularly those appearing on a user’s Facebook wall, come from trusted sources, further increasing the credibility of a message.

How the check-in deals work is a shopper checks into their local shopping mall which triggers messages there are deals available at stores in the centre. If the customer takes an offer, a “Like” appears on their Facebook wall.

All of the customer’s friends then see the hot deal and that encourages them to visit the store and shopping centre. In this respect it’s similar to the social media aspect of group buying services, another area that Facebook have entered and which will almost certainly be integrated into this the Check-In Deals program.

There are some issues with this for both the merchant and the consumer. The most obvious are the privacy and identity issues of the customer as social media sites work harder than ever to find angles on using our private information.

For businesses, there’s the risk of being held hostage by Facebook and Westfield. Both organisations are well known for their strict terms and control of tenants and users, so having your business’ long term interests may not be served by being locked onto their platforms.

Driving traffic to your website is the key objective of a social media presence, so the website has to tie into the proprietary social media, local search, group buying and whatever channels you’re using to promote your business online.

What this emphasises is the importance of smaller businesses getting their local search listings working on services like True Local, Google and Facebook Places to compete on this platform against the big boys who are now making aggressive moves into the social and local services.

The clear message from Westfield’s partnership is that corporate Australia is now beginning to understand how social media, e-commerce and online concepts like group buying fit into their businesses.

Smaller businesses had a head start with online media as the larger corporations struggled to understand the new services. Now that advantage is gone, it’s time to make sure you’re getting local services right.

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Greater fools and lesser fools

Is the Silicon Valley, venture capital funded business model right for your venture?

As Groupon struggles to get its public offering to the market and the startup mania continues in the tech sector, it’s worthwhile having a look at what underpins the modern Silicon Valley business model along with it’s limitations and risks for those who want to imitate it or invest in it.

Distilled to the basics, the aim of the venture capital funded startup is to earn a profitable exit for the founders and investors. While there’s some exceptions – Apple and Google being two of the most notable – most of these businesses are not intended to be profitable or even sustainable, they are intended to be dressed up and sold onto someone else.

This can be seen in what many of these companies spend investors’ money on; in an example where a startup receives 10 million dollars VC investment, we may see a million spent on developing the product, five million allocated customer acquisition and four million on PR. The numbers may vary, but the proportions indicate the investors’ and management priorities.

Focussing on PR and customer acquisition is essential to attract buyers, the public relations spend is to place stories in the business media and trade press about the hot new business and spending millions buying in customers backs the narrative of how great this business is. By creating enough hype about a fast growing enterprise, the plan is prospective buyers will come knocking.

But who buys many of these business? In some cases a company like Microsoft or Google may buy the startup just to get the talents of some smart developers or entrepreneurs, but in many cases it’s fools being parted from their money.

Greater Fools

The greater fool model the core tech start up model; two guys set up a business with some basic funding from their immediate circle; the friends, family and other fools. A VC gets involved, makes an investment and markets the company as described above.

With enough hype, the business comes to the attention of a big corporation whose managers are hypnotised by the growth story and possibly feel threatened by the new industry or have a Fear Of Missing Out on the new hot, sector.

Eventually the big business buys the little guys for a large sum, meeting the aim of the founders and venture capital investors. The buyer then steadily runs down the acquired business as management finds they don’t understand it and find it a small, irritating distraction from their main business activity.

While there are hundreds of examples of this in the tech sector, the funny thing is the biggest examples are in the media industry with Time Warner’s purchase of AOL and News Corporation of MySpace.

Lesser Fools

As a bubble develops we start seeing the Initial Public Offering arrive and this is where the lesser fools step in.

The mums and dad, the retiree, German dentists, the investment funds and all the other players of the stock market are offered a slice of the hot new business.

Usually the results are interesting; the IPO is often underpriced which sees a massive profit for the initial shareholders and underwriters in the first few days then a steady decline in the stock price as the pie in the sky valuations and the realities of the underlying business’ profitability become apparent.

Steve Blank, a Silicon Valley investor and entrepreneur, put the greater or lesser fool scenario well in a recent article asking Are You The Fool At The Table? Sadly too many small and big investors, along with big corporations, are the fools at the table ignoring Warren Buffet’s advice on avoiding businesses you don’t understand and finding themselves the patsies that the Silicon Valley startup model relies upon.

The fundamental misunderstanding of the venture capital driven Silicon Valley model of building businesses is dangerous as our governments and investment mangers are seduced by the glamorous, big money deals. It’s also understandable funding from banks and other traditional sources is difficult to find.

An obsession with this method of growing businesses means that long term ventures with profitable underlying products and services are overlooked as investors flock to the latest shiny startup. That’s a shame and something our economy, and investment portfolios, can’t really afford in volatile times.

For business owners, the venture capital model might be a good option if your aim is a quick, profitable sale to a fool. If your driving reasons for running a business are something different, then maybe the Silicon Valley way of doing business isn’t for you.

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