Outsourcing? Really. Its OK: How it can save time and money

Almost by definition, small business owners and entrepreneurs cringe at the concept of outsourcing. Those who start their own companies like the control and autonomy it provides them. Unfortunately, that preference for control and autonomy may have some bad side-effects when it comes to IT.

Small business don’t have the resources to fully support all of their IT infrastructure needs. The present in-house staff is most likely very busy putting out day-to-day fires. One statistic suggests 65% of IT budgets go to nothing more than keeping the lights on. In short, staff is busy making sure the printer works or reloading a PC infected by a virus after an employee fell for a phishing email. This means that small firm’s expenditures on IT are not improving operational, efficiency, or enhancing productivity or competitiveness.

There is an alternative. Managed Service Providers are outside consultants you can bring in to handle the day-to-day tasks, so your own IT resources can be used more productively.

How might an MSP supplement your IT efforts?

1. 24/7 operations center – Small businesses can benefit from, but simply cannot afford 24/7 internal monitoring of their IT infrastructure. Many of the issues that become costly business disruptions, such as hardware, software, and applications failures are completely preventable if they’re detected and addressed early enough. It is a reality that your systems run 24/7, but you can’t support a 24/7 IT staff. A MSP, however, can use economies of scale to provide around the clock monitoring of your IT operations.
2. Disaster recovery and business continuity plans – Small businesses have limited resources, so if there were to be a serious business interruption or data loss, they could be completely out of luck. However, risk assessments and continuity plans are likely outside of a small business owners field of expertise. A MSP can be brought in to design a complete solution.

These are just 2 ways that a small business owner can benefit from passing along IT support to an outside source. In both cases, small business owners don’t lose any control of the key parts of the business operation. Instead, the distractions of IT support are moved along to an expert, while the entrepreneur focuses on what she does best: running her business. We’ll talk in another blog about other benefits of outsourcing IT, but in the meantime, see our e-guide “Outsourcing Isn’t a Dirty Word: Meet Managed Services, Your IT Team’s New Best Friend – Managed Services“.

What is the Cloud: A Simple Analogy

You use the cloud and don’t even know it. Do you go to Amazon and create a wish list? Do you have an email account on Yahoo? That is cloud computing. All your emails are stored on Yahoo servers somewhere. They are on physical servers, of course, but they aren’t on your laptop. The advantage is that when you spill your coffee onto the laptop keyboard, you haven’t lost all your emails even if you never backed up your hard drive. ( If you haven’t, shame on you, by the way.)

Here is a simple analogy to explain how the cloud works and why it might be a very useful part of your business model. Picture the small, very cramped office space of a little start-up. You and a few coworkers sit in tight quarters with messy desktops buried in mounds of papers, files, and pizza boxes. There is absolutely no room for storage. (Throw the boxes out yourself. There are limits even to cloud technology) It will be a long time until you can afford a larger office space. Your building manager offers to rent you an empty file cabinet in the basement. Although the basement space is shared with other tenants, only you and your team have keys to this locked cabinet where you will store all those piles of paper. Your rent is relatively cheap compared to other tenants, since you’re only paying for the cabinet, and not the larger lockers they have leased.

Suddenly, those once covered desktops are clean, leaving space to work. More importantly, the papers are all nearby, each of you has a key, but they are safe from everyone else in the building or outside. They are also safe from spilled coffee and pizza crumbs. You’ve avoided the dramatic jump in fixed costs required to find bigger office space, when all you needed were several feet of filing cabinets. Even better, the money saved is put back into the core goal of providing a product or service to a customer.

The cloud does the same thing. You rent only the space you need, it is safer from hackers than your on-site server will ever be, secure from thieves, and protected from accident prone employees. Unlike the rest of us, cloud service providers don’t have coffee cups near their keyboards or forget to do monthly backups. In short, the cloud provides scalable storage without large incremental leaps in fixed costs you really can’t afford.

It is Heaven! Using the Cloud to Challenge Big Business

Has anyone suggested you begin moving your business to the cloud? Cloud data storage or cloud computing? What is this, anyhow? And isn’t it something for huge companies?

In the last post we explained what cloud computing is. Simply put, it is the offsite storage of your data, and perhaps even the software packages you use. The primary benefit is pretty straightforward. Somebody else pays for all the hardware and support costs needed to store your data. You pack up all your own servers, wiring, etc. and take them to the recycling center, and save money. But is that all it is? There is a much stronger case for a small business to incorporate the cloud in their business model. The cloud allows you to become competitive with the big players in your industry.

The traditional issue holding back small business: they do not have the capital to create the infrastructure to compete with large firms. They are too small to enjoy economies of scale. One obvious area is software and hardware. Historically, the technology used by big business has been out of reach of the little guys. Most SMBs have neither the hardware budget nor internal resources to own a network infrastructure. A small business does not have capital to buy the equipment. Take a simple example: You run a storefront, but think you might be able to sell a bit more if you went online, but you don’t know how much more. You can’t justify the capital to buy the hardware, software, and the labor to design, build, and support it all. The cost of entry to the online world is just too much.

The cloud ends all of that. In simple terms, the cloud lets you rent just as little infrastructure as you need, and then lets you grow as incrementally as you like, paying only for what you use.Essentially, the cloud has become the great equalizer. The high cost of entry created by IT can be eliminated by the cloud.

Your website represents your business and so building and maintaining it need to be of primary concern to you as a business owner. We often find business owners struggling with their websites saying things like: “My website looks great, but I am not able to convert” or “I invested so much into creating my website, but I don’t get many hits.” These things are very common pains faced by businesses, especially small business. If you aren’t sure where to start your site improvement project, this post will get you rolling in the right direction with seven key areas you need to pay attention to when it comes to your website.

1. Content – Make sure your site has a significant amount of content and that the content is relevant and meaningful. Having the right amount of good content adds value and appeals to your target audience. Don’t fill the site with jargon and keywords just for the sake of it, lack of relevant content won’t help you improve your conversion rate.

2. Testimonials – Nothing has more impact on your prospects than them hearing about your product/service from their peers. So make sure your site showcases testimonials from your satisfied customers.

3. Social Media Icons – Social Media, when done correctly, it is a great medium to enhance your brand presence online. Get on popular social media networks and invite your website visitors to join you there – that way they will hear more about you from your fans at the social network.

4. Contact Information – Tell your web visitors how to get in touch with you. They shouldn’t have to search the entire site before knowing how to contact you. Provide your contact information/contact form very clearly for them to use.

5. Tracking – Incorporate a web-site tracker that helps you track the leads that come in from your website. You can use services such as Google Analytics that are free and provide you basic details such as number of hits, location, time spent on pages, etc.

6. Loading Time – Web visitors today have little patience and lots of choices. So, it is important that your site loads quickly, otherwise they move on to the next search result.

7. SEO – Search engine optimization is a key factor in determining the ROI of your website. Make sure your site is optimized for search engines so that it shows up when your prospects search for you.

Partnering with a managed service provider (MSP) is one new approach being used by many companies like yours. Experienced MSPs have access to newer tools that reduce costs by automating many routine in-house labor intensive processes. Break-fix is labor intensive, and labor is one of the most expensive operating costs within your IT infrastructure. The new innovative tools that can be provided by MSPs generate real productivity increases and mitigate the risk of network failure, downtime and data loss from human error.

MSPs deliver a trusted foundation for your team and your customers. Some of the services and tasks offered include:

• Remote Desktop Management and Support
• Predictable Management of Critical Patches and Software Updates
• Fractional Resource Availability of Best-In-Class Expertise – scaled to your needs
• Implementing and Testing Backup and Disaster Recovery Processes
• Performance of Inventory and Audits of Computer/Network/Software
• Enforcement of Network/Security Policy
• Monitoring of Network/Operating System and Alerts
• Updating Anti-Virus Software and Detecting Spyware

Erase any misconception that managed service providers are nothing more than “outsourced” tech help priced to displace your in-house IT technician or team. The new MSP has defined new methodologies and technology partnerships to offer valuable preventative services that proactively locate and eliminate threats before a bigger problem arises.

MSPs today put considerable effort into understanding the operational and business needs of SMBs to develop and deliver a set of specific services that align technology with the SMB’s business objectives. This is the reason you hear managed services often referred to as “partners.” A present day MSP offers quantifiable economic value, greater ROI and decreased total cost of operation by streamlining costs and eliminating unnecessary lost productivity, revenue, and avoidable on-site IT consultant fees, in addition to eliminating the need for costly hardware/software repairs or replacement.

Did you know that 50% of small business owners think their businesses are too small to be targeted by the thieves of the virtual world? Contrary to popular belief, 72% of hacker attacks often happen to smaller firms – firms with less than 100 employees! So how prepared is your SMB? Here’s a checklist to help you find out how vulnerable you are to these attacks.

1. Do you have Antivirus protection? – An antivirus software program can protect you from threats that originate from emails such as phishing and virus attacks. However, the most striking fact is that 61% of small businesses don’t install any antivirus software! If you are one of them, then it’s time to change!

2. How sturdy is your Firewall? – A good firewall system protects your computers from the variety of threats that exist in the virtual world. Examples include harmful cookies, viruses, worms and other such malicious programs used by hackers.

3. Do you use a Spam filter? – Using a simple spam filter for your emails keeps junk out of your inbox. The bonus to having a good spam filter is that your employees save time, as they are not distracted by irrelevant emails, but the major perk here is that the potential virus and phishing threats are lessened as spam emails are unlikely to be opened.

4. Do you do backup your data regularly? – Agreed – backups don’t really protect your data, but they are the only way to recover it if data loss does happen. So, be sure you have a regular and reliable backup plan in place – and it is actually being deployed.

Data loss can prove very costly—especially to SMBs, sometimes even resulting in them having to close down. Prevention is certainly better than a cure in such cases.