Are Long Business Plans Stupid? Sabrina Parsons Offers Some Advice for Startups.

Technology makes it easy for startups to think of an idea and breathe it to life. For very little money you can contact manufacturers in China or in Iowa, you can hire a team of designers from Elance and share a video on Youtube.

Although you can do all of this, smart business owners still plan and in some way map out how their business will grow. Long business plans are a thing of the past or most businesses but some plan of action is important.

Check out this Guest post by Sabrina Parsons, CEO of Palo Alto Software for more information on the “new” business plan for startups. Palo Alto Software is the leading company business business plan software, founded by Tim Berry. I guess that makes Tim the Daddy of business plans?

Silicon Valley’s Lean Startup method is great for a high-tech startup aiming for Venture Capital money. But unfortunately, because “Lean Startup” is a new sexy concept, the media is trying to make it a one size fits all strategy.

Don’t get me wrong, this model has worked well for many of the Valley’s high-tech startups. Its “Minimum Viable Product” (MVP) strategy recommends developing technology quickly, and then immediately launching it to customers, gathering data, tweaking and re-launching all in a short period of time. This is an excellent way to quickly determine whether your product solution is really resonating with your target audience, without heading too far down the wrong product development path. However, this strategy alone is simply not effective for new entrepreneurs entering the non-tech business world outside of Silicon Valley.

Businesses in Main Street America are better served with a slightly modified version that focuses more on planning. The days of lengthy documents that take months to develop might be gone, but plans shouldn’t be ditched altogether as the Lean Startup methodology suggests. Today’s small businesses can use many of the ideas from the Lean Startup methodology, like the MVP strategy, while still planning ahead to ensure a stable future.

We have deemed this approach “Lean Planning” because it combines the best aspects of traditional business planning with the Silicon Valley’s Lean Startup method. So, what does a Lean Plan look like? It should have:

  • An executive summary, or pitch, preferably with charts and images to tell your story quickly and efficiently
  • A financial plan with an expense budget, sales forecast, profit and loss, cash flow forecast, and balance sheet
  • An action plan with milestones scheduled and accountability
  • Performance tracking to compare actual financial results with your planned financials and other key metrics

If you go through the process of creating a forecast, you will be forced to think through things like Cost of Goods (COGS), Gross Margin, AR and AP days, Marketing Costs, etc. Once you go through the forecasting, and you set targets for all these key metrics, you are one step closer to being able to manage your business more efficiently and increase your chances of growth.

The next step in the Lean Planning process is to set up a monthly review meeting. Review your planned numbers against your actual results and analyze any discrepancies. Why were the numbers wrong? What assumptions had you made that are not true? You may have thought you could collect money from your clients every 30 days, but as you review and compare your actual results for a few months, you may realize that you are actually collecting money every 55 days.
With this information, you can easily react to the implications it will have on your cash flow by making necessary changes to prevent any problems. You could decide to spend more time and effort collecting money to bring down the collection days, for example, or you could decide to talk to your banker and extend a credit line, to float you over the longer AR period. Either way, by planning, and then measuring the actual results, you have information that you may not have had. You can directly see the impact of longer collections days on your cash i your bank account.

The last step in the Lean Planning process is where the Silicon Valley’s strategy comes into play. In order to make sure you don’t veer too far off course with a faulty plan of action, you need to make small adjustments, every three to four months, based on the variance between your plan and your actuals. Comparing these two numbers and understanding why the reality is different than the original plan will help you make decisions about what to change within your business operations so you can actually grow your company. This is similar to the Lean Startup idea that suggests experimenting with ideas, determining what works and then tweaking your product, service or business model. In this scenario you make educated guesses about what you can do rather than experimenting, if something does not go as planned, tweaking your business quickly is still just as easy and effective.
The Silicon Valley’s Lean Startup method is a highly effective strategy for quickly determining which startups will succeed nd which will fail. Main Street America, however, needs to pair this idea with a more structured business plan to avoid running out of cash and to eventually experience growth and profit. Today’s business world requires entrepreneurs to be flexible and nimble and Lean Planning allows them to do this effectively while ensuring a more stable future financially.

Sabrina Parsons has served as CEO of Palo Alto Software since 2007. She and her husband, Noah, founded a UK software distribution company in 2001 that was acquired by Palo Alto Software in 2002. As CEO, Sabrina is a staunch supporter of entrepreneurs and entrepreneurial organizations.



Hey Nightclubs, You Need To Be Online

The social, mobile Web has drastically changed how businesses connect and reach out to people and communities. It has helped create overnight sensations or successes out of smaller businesses. In industries such as hospitality and entertainment where word-of-mouth publicity plays a major role, social and mobile apps have made it possible and affordable for small businesses and even individuals to have a large following.

SnapLion is a company that helps nightclubs, restaurants, musicians, art galleries, sports teams, and real estate agents build custom iPhone and Android mobile apps - quickly, easily, and inexpensively using their do-it-yourself platform. In particular, SnapLion is seeing excellent adoption among both nightclub owners releasing mobile apps, and nightclub goers engaging with those apps.

SnapLion was founded in 2011 by CEO Nikhil Sama with his three friends, Tapan Raj, Rohan Gupta, and Aditya Kapoor. Prior to SnapLion, Nikhil was Director of Rocket Internet, an early stage technology fund, a strategy consultant at Bain in Chicago and a software developer at Cisco and HP.

Nikhil has an MBA from University of Chicago, a masters in Computer Science from University of Southern California (USC), and a masters in Electronics Engineering from Delhi College of Engineering.

Rohan is a veteran of UI, UX and New Media studies at the Academy of Art College in San Francisco and a Computer Science major from St. Stephen’s College in New Delhi.

Tapan’s music band ‘Midival Punditz’ had over a million fans worldwide, but when he wanted to build an app for it, he was dismayed to discover that getting an app built for musicians was cumbersome, expensive, time consuming, and technically challenging. Tapan reached out to Nikhil and Rohan. Together, they created a ‘do-it-yourself’ platform for creating apps and called it SnapLion.

Soon restaurants, nightclubs, and other businesses also started reaching out to SnapLion to create apps for their businesses. Some of its key customers include Buddha Bar, musician Anoushka Shankar, Hotel Radisson Blu, and Smokin’ Joes Pizza with 90+ locations across India. The unique selling point for SnapLion is that just with content, like photos, videos, text, menus, promotions, etc., and without any coding skills, anyone can create their own app in less than an hour.

nightclub app

SnapLion with its social, mobile apps lets customers and fans engage with each other and with the business or artist. It helps businesses inform customers of events - from special appearances and menus to celebrations like Christmas and New Year’s Eve parties - or keep them updated about promotions and discounts.

When SnapLion was launched, their main competitor was Mobile Roadie whose clientele included top brands and celebrities. Their apps were slick but expensive at $500 per month onwards. At the lower end of the market, SnapLion’s competitors included MobileConduit, iBuildApps.com, AppMakker.com.

SnapLion positioned itself as a provider that delivered superior quality apps at a substantially lower price point. It has an average end-consumer rating of 4.5/5 and its pricing ranges from $35 per month to $1,000/month for complex apps with large downloads. SnapLion also offers a “Hire a Pro” service, where a SnapLion Pro would create an app for the client for a small fee.

The custom iPhone and Android app it created for a restobar in Pune called High Spirits delivered ROI of 10 times the monthly cost in customer revenue. Push notifications about the bar’s deals, offers, celebrations, happy hours, etc., alone accounted for 71% of increased footfalls. It also offered reservation facility, proximity alerts, and loyalty points. Its fan wall feature helped the customers interact with each other and the High Spirits restobar, through comments and pictures on a platform controlled by the restobar.

nightclub app

A 2011 National Restaurant Industry (NRA) Restaurant Industry Forecast indicates that social media savvy customers are more active in the restaurant and bar community than the general public. More than 50% of restaurant and bar operators are expected to adopt social media into their marketing mix by 2013 to engage with this segment of the population.

A survey from eMarketer shows that 89% of restaurants have adopted social media in 2013, up from 77% in 2012. More than 50% had a mobile site and nearly 30% had a mobile app. The report also shows that mobile is giving location-based marketing a major boost, and it has a special value for the restaurant and bar sector, a sector that is highly trend-based and is seeing increased adoption of social media and mobile Web.

There are more than 70,000 nightclubs in the US and 200,000 globally. At least 100,000 restaurants have food delivery services via JustEat, GrubHub Seamless, and FoodPanda. All this translates to a huge market for SnapLion to tap into.



6 Ways Small Businesses Can Scale Amazon.com Prime For Their Own Business

Amazon Prime just increased its price from $79 to $99 per year and it’s causing a stir with consumers. But there are a few things about Amazon’s service that will keep customers coming back for more. How can you leverage the Prime model for your own business to create loyal customers?

Guest post by Brandon Levey founder of inventory management company, Stitch Labs 

1. Push for customers to “qualify” for free shipping.
If you are hesitant to offer free shipping to all customers, then follow Amazon Prime’s lead and focus on member-based incentives. For small businesses, grabbing an email address from a potential customer is gold. It takes little time for someone to type in contact info, and it won’t feel like they’re giving too much to get something in return. This will allow you to market to that person even if they don’t purchase something right away.

2. Use it to move the sales process forward.

According to a Forrester study, 44% of online customers abandon their shopping carts because of high shipping costs. If you have people who leave things in their shopping cart for days, then offer free shipping as an incentive to click “buy”.

If you’re a Shopify seller, you can take advantage of their Abandoned Checkout Recovery feature in premium plans that allow you to send automated recovery emails that get people back to your store so they complete their order. If you can capture who is leaving items behind, you can add them to a list and send them an offer code for free shipping.

3. Offer it to first time buyers only.

First impressions are everything. And for a lot of small businesses, customer loyalty is all about a really positive, interesting brand experiences. Offer a new customer free shipping to increase your credibility. Something as small as a friendly, “Hey, we see you’re new! Shipping is on us this time!” can make a huge impact.

Even further, ask that they share their purchase on Twitter or take a photo of it on Instagram. At the very least, you should be capturing their email address and encouraging them to opt into your marketing emails.

4. Leverage evangelists to share their purchases in order to get free shipping.

Have repeat customers? Ask them to share some of their favorite products in order to get free shipping on their next product. Make it a discount code that never expires so they are more motivated to take action for something they know will be accessible for a while. Use social media tracking tools to see if it causes a spike in mentions and discussions that include your brand.

5. Give it an expiration date.

On the flipside, see if people respond to immediacy. Use holidays to offer free shipping and see if people tend to respond to that more. Often times, you’ll notify them via email or through your social accounts. Be sure to use a tool like Bit.ly to track links so you can test how successful limited-time offers are.

6. Test against discounts.

If you are really not sure that free shipping is going to be a good fit for you, test it to gauge the success against ongoing discounts you offer. Within several email-marketing platforms, you can track the success of various offers. If something will potentially have a large impact on your profit margin, always test it.

Whether its free shipping, exclusive access to products or suggested products providing a more unique experience for your customer, looking to larger commerce organizations like Amazon can be helpful. Be aware of the commerce and multichannel selling trends, then think of creative ways it can be scaled for your business.

Brandon Levey is the creator of inventory management company, Stitch Labs, a.k.a the ThinkerUpper, and writer of the original code that makes the product operate. He has a diverse background ranging from microsystems and nuclear security to iPhone accessories and sustainable apparel. When not coding he enjoys perfect lattes and dinners at Nopa. If you need to find Brandon you can probably see him scooting around San Francisco on “The Hog”.



Vimeo Now Has These 3 Interesting Alternatives to Vine and Instagram Video

Vimeo now has three interesting mobile video sharing apps.

Vimeo’s moves to acquire additional apps and add them to its service are not unlike what Facebook did when it bought Instagram. And, of course, Twitter did something very similar when acquiring Vine, according to a Recode report.

While Vine and Instagram Video have taken much of the spotlight, you may want to have a look at these apps. All are free and provide an alternative depending upon your business and marketing needs.

Cameo

Cameo (pictured above) is a relatively new video-editing app available for iPhone users only. With the app, you can edit videos right from your mobile device. Adding in title cards, video overlays and other effects is fairly easy, too, according to its maker.

Cameo gained quite a reputation during its short time on the Apple App Store market. Apple developers tagged it as one of the “Best of 2013″ video apps. When you’re done creating your edited video, you can save it to Cameo’s cloud server. This feature, the developer says, will save storage space on your phone or other device, as well as preserve battery life.

The company was just acquired by Vimeo on March 18. In a statement on the purchase, Vimeo CEO Kerry Trainor said:

“Vimeo is committed to empowering all creators, and the ubiquity of HD camera phones is driving the largest wave of video creation ever seen. What we love about Cameo is that it gives even novice video-makers the power to create beautiful, well-crafted videos.”

Echograph

Echograph is truly unlike any other video sharing app available. Called “The Instagram of Animated GIFs,” it’s currently only available on iOS devices. The GIF-making app allows users to animate just a portion of a video while leaving the rest as a still shot.

According to its website, to make an Echograph, you shoot a short video using your mobile device. Then you trim the video down to include just a portion of the video you want to animate. The rest remains as a static image. You can use your finger to “paint” over a portion of the video, in order to choose the portion you wish to animate.

These videos can be shared on popular social network sites like Twitter and Facebook.

Vimeo purchased Echograph last February, according to a TechCrunch report. After the deal was completed, Echograph went from a paid app to free.

Vimeo Mobile App

This is the mobile version of Vimeo and lets you share and watch high-resolution streaming video from your mobile device. The app is available across all platforms, including iOS, Android, Windows 8 and Windows Phone.

Using it is like using any other video sharing service. Shoot and edit videos from your device and share them on the Vimeo network as well as on other social networks.

There are upload limitations to Vimeo’s basic account, including the number of videos you can shoot and save. Vimeo does offer paid plans, too, for heavier users of the service. The lowest paid plan starts at $9.95 per month, the company’s website says. Paid plans offer more HD uploads and customized video players, too.

Image: Cameo



CERT UK reportedly to launch next week

The British government will finally launch the much-delayed Computer Emergency Response Team (CERT-UK) next week, according to report, in a bid to protect the country's critical infrastructure.

Citing unnamed sources, The Guardian newspaper reports that the group is set to go live on 31 March, some 15 months after being announced by Cabinet Office minister Francis Maude in December 2012. At the time, the group was seen as a pivotal part of the government's £650 million cyber security strategy.

Much work has gone on behind the scenes over the last year between the government, law enforcement bodies and industry-specific CERTs, including those based out of GCHQ, CPNI and the recently-introduced National Cyber Crime Unit (NCCU - part of the National Crime Agency). The Janet Computer Security Incident Response Team (Janet CSIRT) has also been involved and has been sharing data on incident response. 

According to the Cabinet Office, the CERT-UK will develop UK's cyber resilience to protect critical systems -such as power and water stations - from criminal and state-sponsored attacks. 

The group was initially delayed because of a shortage of technology and personnel, but the latter has, in particular, has rectified in recent months. 

Chris Gibson, the former director of e-crime at Citigroup and on the leadership team at the Forum of Incident Response Security Teams (First), joined as director, with Neil Cassidy, former cyber defence lead at government supplier Qinetiq, becoming deputy director of operations. The Guardian reports that Andrew Whittaker, formerly a crisis management expert at the Foreign Office, was given the role of overall deputy director. 

Gibson did not immediately respond to our request for comment. 

Some other details on CERT-UK are still to be decided, although the location is likely to be London-based. 

The government has faced plenty of criticism over the delay, but a Home Office spokesperson told SCMagazineUK.com back in October that it wouldn't be pressured into launching the group ahead of time: “We're not going to be rushed into doing it, because this is the first UK national CERT and we want to do it properly.” 

On learning that the group is now ready to become operational, Tim Holman, CEO of 2-Sec and president of ISSA UK, told SCMagazineUK.com that CERT-UK will, however, only work if clear communication lines are established between the various CERT teams, as well as the NCC. 

“CERT-UK in essence is a good idea - there are already multiple CERTs within the UK that have grown from the public, education and private sectors to fulfil the urgent need for information sharing, and bringing it under one roof should help ensure information sharing can be carried out much faster and ensure a rapid response to cyber threats,” he said. 

“Next day recovery is no longer acceptable for entities that are damaged by cyber attacks, and getting certain entities back online within hours or even minutes has to be a priority.  

“It's only going to work if the fragmented CERTs that exist in the UK today start talking together and share information, both within the UK and the rest of the world.” Holman added that effective CERTs are also needed for the private sector, and expressed concern that these groups may not protect SMEs, even though attackers are increasingly edging that way. 

“Criminals are just going to turn their attention to easier targets. Us,” said Holman via email.

Information security researcher - and industry veteran - Graham Cluley is more positive on the announcement, although he too noted the importance of different groups being able to work together.

"Good luck to them. Lets hope that they bring together the different teams effectively, and can provide helpful leadership to the various organisations defending the UK against cybercrime attacks," he told SCMagazineUK.com.

Bob Tarzey, analyst and director at Quocirca, added that he has mixed feelings on the new group, especially as so few of supposed attacks against CNI are reported in mainstream media.

"Mixed feelings on this. On the one hand, if CNI is so vulnerable, how come there have been no significant attacks reported to date? On the other hand, if the threat is so ominous how come it has taken the government so long to put protection in place?" he said.

"Anyway, it is good to see the government is looking at the potential scale of the problem and the defences that might be required."

The UK is late to developing such a team, although it does have a CERT focused on government-run systems, critical infrastructure and defence forces (CESG). The Home Office says that “the new national CERT will build on and enhance these existing mechanisms”. The US has had a CERT team since 2003, while there are various teams across the EU (CERT-EU) and its member states.



Taking Care of Customers with FreshDesk

freshdesk review

Talking with your customers can be a full time job. Keeping track of various aspects of customer service might demand two of you. If you have struggled with managing a help desk, then Freshdesk brings a new approach a new world of customer service in the age of full email inboxes, online reviews, and social media.

With names like Toshiba, Enterprise Rent-A-Car, and Goodreads using it, you can be assured of a quality way to manage questions and complaints. Freshdesk has even created a way to keep your agents in the moment through a video game style point system at the “Estate” level of service.

One of their headlines says it all: Support customers everywhere they go.

Freshdesk Review

You have to love a free level of service that is as comprehensive as the basic plan Freshdesk offers its small business customers. Any small business could start at the free “Sprout” level and greatly improve their customer service experience for both agents and customers.

International businesses can opt for paid plans that offer unique ways to respond to multi-national customer support issues.

What I Really Like:

  • The forever free service is fully functional and allows you to have up to three agents with one mailbox.
  • Other services are combined under a thirty-day free trial of the “Estate” level, and you don’t need to give them your credit card until the end of it. Additionally, there are no contracts. The service is strictly pay-as-you go.
  • You can access your helpdesk anytime and anywhere through email without signing into your portal. You can also forward questions to other agents.
  • For a low $1 - $3 you can add extra agents for a day to help get you through high volume times without changing your plan. To make the transition quicker, you can purchase these in advance and use them as needed. Sweet.
  • I like the comprehensive tickets. The sample ticket shown below gives you an idea of the many useful ways to track what’s going on.

freshdesk review

What I’d Like to See:

  • A little bit more speed. I read in other reviews related to Freshdesk (and some other solutions) that access could be a bit slow. I personally didn’t find it to be lightning fast, but I wouldn’t complain about it, especially given it offers a robust free level. But I’d suggest beefing up the speed component to keep the “always-on, gotta-have-it-instantly” crowd happy.
  • I’d like to see some sample reports populated with sample data so I can understand better what’s possible from that option. But as you can see here, there is no shortage of options once you have some data/tickets flowing.

freshdesk review

There are many customizable options with Freshdesk. You can even add an agent to the free level for $15 per month per agent. They offer monthly plans that range from $19 to $49 per agent per month or annual plans discounted to $16 to $40 per agent per month, when paid annually.

All the plans allow you to upgrade or downgrade at any time. Plus, as I already mentioned, you can add extra agents for very little cost, as you need them.

You can manage your customer requests and issues via email, but why? With powerful tools from Freshdesk, you can keep track of everything going on in your business and keep your customers extremely satisfied.



PayPal Goes Beyond Transactions. Innovative Small Business Loans for Growing Businesses

Paypal is the dominate online payment solution for small business owners. They’ve recently branched out and now also offer loans to their small business customers. Here’s a high level view of how it works:

  • It’s a business loan that enables PayPal merchants to repay the loan with a share of their PayPal sales, so there are no minimum monthly payments. If you have no sales on a particular day, you owe no payments for that day.
  • Select PayPal merchants can apply online, review and agree to the terms of the business loan and if approved, get funding into their PayPal account in minutes.
  • Pricing is simple and clear. The loan is available for a single, fixed fee that is displayed to a business before signing up. There are no periodic interest charges, late fees, pre-payment fees, or any other fees, so a merchant knows what they’ll pay, down to the penny.
  • Under the PayPal Working Capital program, the lender uses PayPal sales history to extend credit, so no credit check is required and the loan does not affect a business’s credit score.

Get the full details here.

As a small business owner there are several options you have for obtaining financing: credit cards, bank loans, crowd funding, friends and family and probably a few other options. Strategically and purposefully consider how you access capital for your growing business.



Reporting cyber attacks should be \"a legal requirement\"

The opposition Labour party is calling for new laws to be introduced so that businesses are forced to report when they have been hit by a cyber attack.

Shadow defence secretary Vernon Coaker will today say that reporting cyber attacks should be “a legal requirement” for private companies, especially when these firms are tasked with protecting the UK's critical infrastructure.

This has led some companies, especially those in the financial sector, to worry about brand reputation and customer trust, and Coaker admits that there is “a balance between [needlessly worrying the public] and security.”

"One of the things we need to do is consult on whether to make it a legal requirement that people report cyber attacks," said Coaker, who took over the defence brief from Jim Murphy in the autumn of last year. "At the moment, there are just voluntary agreements."

Somewhat confusingly however, Coaker remains unsure if this obligatory reporting should be extended as far as government departments, despite the fact that attacks on public sector organisations - even those emanating from inside the network - are on the increase.

Coaker's speech, published before his appearance at the Royal United Services Institute, a defence and security think-tank based, in Whitehall on Monday, also reveals that he believes the country needs to look at defence strategy ahead of the next strategic defence and security review (SDSR), which is scheduled for autumn 2015. The last one was back in 2010.

“We must ensure that the review provides the long-term direction that UK defence and security requires - one that is fiscally realistic and strategically ambitious,” he will say.

Defence Secretary Philip Hammond has refuted Coaker's suggestions, and claims that the last SDSR provided an adequate cover for cyber crime.

 “The 2010 SDSR identified cyber threats and the need for upstream capacity building abroad as some of the priorities for the future,” said defence secretary Philip Hammond.

“That is why hundreds of millions have been invested in these areas. After four years in opposition, Labour is calling for measures we are already implementing.”

The government estimates that cyber crime costs the economy £27 billion a year, although that estimate was from 2011 and Met Police's Mark Jackson said last week that that figure is now as high as £81 billion.

The government has partnered with nine defence and security companies last July to help battle cyber attack and has been making strides to improve security awareness, and reduce the skills gap in the information security industry. In November 2011, it launched its Cyber Security Strategy, while more recently it has established the Cyber Security Information Sharing Partnership (CSISP), the Cyber Streetwise initiative - for citizens and SMEs, and a new research centre designed to protect the country's critical infrastructure. It's also making a big play at educating children on online fraud and cyber crime.

Such action appears to have paid off, with Trustwave reporting last week with 60 percent of FTSE 100 companies now highlighting cyber security in their annual report, up 11 percent from the previous year.

Andrew Rose, analyst at Forrester Research and a former CISO in the legal sector, told SCMagazineUK.com that the issue could cause confusion, especially with the European Union's data protection law reform soon to be ratified.

“It's not a redundant debate as the EU Data Protection Act will not cover thefts relating to IP or market sensitive data (such as M&A data being stolen),” he said via email. “The question is, once PII (personally identified information) and consumers are protected by the DPA, does government really need to force organisations to come clean about their non-PII related compromises?”

Rose agrees that companies could lose out from any new law, with share price and revenue potentially falling. “We need to consider what the benefits could be. If breaches are all publicly notified then firms may start to understand the severity of the situation as frequent breaches occur in their sector, they may be incentivised to close control gaps to avoid negative publicity and they may more willingly collaborate with peers to learn lessons and work as a team to avoid common enemies. 

“I have to admit, I'm torn. The benefits are considerable but sensible firms have already taken those steps based on information we see from overseas and UK government advice. Will mandatory breach reporting really help those who haven't 'seen the light' yet? I'm not convinced.”  

Dr Guy Bunker, CTO and SVP of products at Clearswift, meanwhile, called for business transparency, something Unilever's global privacy officer Steve Wright touched upon at last week's SC Congress London.

“There is a need for transparency, but not necessarily attribution as that can have more of a negative effect than positive,” he told SCMagazineUK.com. “There is a need to share not just the successful attacks, but also the unsuccessful one, as the attack vector used might have not been successful on the initial target organisation, but could be successful on another. 

“Ultimately, it is good to share information - forewarned is forearmed.”



Small Business Marketing Gets Easier with Vertical Response Refreshment

Small business owners who win at online marketing use best practices and strategies supported by an easy to use online marketing platform.

Vertical Response, online marketing services company owned by Deluxe, has massively upgraded their platform - making it easier to use.

One of the upgraded features Vertical Response customers will find is  a quick “preview” option that lets users see how their email will look on various devices - desktop computer, tablet or mobile phone - at any time during the design process. This is a simple, but powerful new feature.

I was speaking to a business owner last week who was frustrated that while she was spending hundreds of dollars a month on Google Adwords she did not know how to optimize her expenditure and measure the results of her marketing campaigns. For some business owners online marketing is pretty easy to do, for others it’s a frustrating experience.

Small business services providers such as Vertical Response are focused in not just providing a service - but improving their services to make it as easy to use as possible.

“This has been one of the most important initiatives in VerticalResponse’s history and I am thrilled it is now available to our users,” said CEO/founder Janine Popick. “Everything has been revamped, from the product and user experience itself to pricing and billing, customer support, and branding.

“Our research confirmed how important it is for small businesses to connect with their customers wherever those customers might be, whether they are checking email on a desktop computer, tablet or smartphone, or hanging out on Facebook and Twitter. Our new platform makes this, plus a whole lot more, possible and is incredibly simple to use from the get-go,” said Popick.



How Low Will Online Storage Costs Finally Go?

There was a time when cloud storage was seen as a passing fad, not destined to last long. But in fact, the opposite has happened, with everyone embracing it for their files, and shunning the computer hard-drive. And now, online storage costs are plummeting fast, which is good news for businesses.

There’s no better example of this than Google’s recent announcement that it’s slashing the cost of its Drive storage. The price for 1 terabyte of data dropped from $49.99 a month to just $9.99 a month. (No, that is not a typo.) 100 gigabytes went right down to $1.99 a month, which is definitely affordable on any budget.

As ReadWrite comments, a whole terabyte of data would have been unthinkable less than a decade ago. Just the very idea of it would have been unbelievable or laughable. But now Google is offering you exactly that for a mere $10. And Techcrunch points out that Google is probably offering these prices to get people onto the Drive platform where its productivity apps reside.

This, of course, puts a serious squeeze on rivals such as Dropbox, OneDrive, and Box. Until Google’s announcement, OneDrive was barely in the lead, price-wise, ahead of the other services. Now it has been caught wrong-footed, just weeks after the rebranding of the service formerly known as Skydrive.

If your business needs storage space in the cloud, then your options continue to expand. There are a whole variety of cloud storage options to consider. And lower costs aren’t the only benefit to be looking out for. For example, companies like Dropbox are rapidly enhancing their features with the ability to manage accounts across multiple devices. There’s also the option to support multiple accounts easily for business and personal use.

While these features are extremely useful, Dropbox’s cause isn’t helped by its high prices, in comparison to its rivals. CNET argues however that it is only a matter of time before the other cloud services respond to Google’s business strategy of slashing prices to pennies.

So if you think that your favorite cloud storage service is currently too expensive, then be patient. You may see that price tumbling before you know it. And often, paying the whole year up-front gives you a further 15%-20% off. They’re practically giving it away.

image: Google



Non Profit Technology: Non Profit’s Want Good Technology But Have Small Budgets. What To Do?

There’s a lot of free technology available on the market - Zoho, Gmail, and so many other tools are all free.

But most all free tools have some limitation (be it user limitations or feature limitations).

This leaves many non-profits in a quandary. Many do not have the budget to hire staff or technology and are struggling to fulfill their missions with as much donated, free and half broken technology they can get their hands on.

Thanks to organizations such as Tech Soup and the giving arms of many for profit companies there are solutions to this tech angst for non-profits.

Citrix has a solution as well. It recently announced that it’s making its online collaboration and communication tool, free, for 501c3 registered not for profit organizations. Sign up for Podio for free here.

According to Citrix, according to Columbia Social Work Review’s 2013 report, the uptake of cloud, social and mobile technologies will allow the nonprofit sector to provide more effective services through improved productivity and efficiencies; yet the most common barriers to technology adoption remain lack of resources: funds, time and IT expertise. The report shows that while most NPOs use information technologies such as websites, email and databases to deliver services to clients, few of them employ software systems and mobile technologies that would enable their workers to improve client communications and access to information off-site. An estimated 35 percent of nonprofits use mobile devices and applications to manage work, while only 20 percent use software systems to record data for things like client and volunteer management. A recent McKinsey study found that companies see a 20-25 percent increase in productivity by using social technologies like Podio, because they simply get work done faster



Non Profit Technology: Non Profit’s Want Good Technology But Have Small Budgets. What To Do?

There’s a lot of free technology available on the market - Zoho, Gmail, and so many other tools are all free.

But most all free tools have some limitation (be it user limitations or feature limitations).

This leaves many non-profits in a quandary. Many do not have the budget to hire staff or technology and are struggling to fulfill their missions with as much donated, free and half broken technology they can get their hands on.

Thanks to organizations such as Tech Soup and the giving arms of many for profit companies there are solutions to this tech angst for non-profits.

Citrix has a solution as well. It recently announced that it’s making its online collaboration and communication tool, free, for 501c3 registered not for profit organizations. Sign up for Podio for free here.

According to Citrix, according to Columbia Social Work Review’s 2013 report, the uptake of cloud, social and mobile technologies will allow the nonprofit sector to provide more effective services through improved productivity and efficiencies; yet the most common barriers to technology adoption remain lack of resources: funds, time and IT expertise. The report shows that while most NPOs use information technologies such as websites, email and databases to deliver services to clients, few of them employ software systems and mobile technologies that would enable their workers to improve client communications and access to information off-site. An estimated 35 percent of nonprofits use mobile devices and applications to manage work, while only 20 percent use software systems to record data for things like client and volunteer management. A recent McKinsey study found that companies see a 20-25 percent increase in productivity by using social technologies like Podio, because they simply get work done faster



Is America in the Midst of a High Tech Entrepreneurship Boom?

If you read the business press, you probably think the answer is yes. The popular media is full of stories about start-ups like Facebook, Groupon, Instagram, Linkedin, Snapchat, Twitter, WhatsApp, Yelp, and Zinga. American entrepreneurs are starting high tech companies at a feverish pace, the media experts say.

Perhaps you shouldn’t believe everything you read in the popular press. Careful analysis of Census data outlined in new report by the Ewing Marion Kauffman Foundation shows that entrepreneurial activity in the high tech sector has declined substantially over the past decade.

John Haltiwanger of the University of Maryland, Ian Hathaway of the policy organization Engine, and Javier Miranda of the U.S. Census Bureau, examined business dynamics in the high tech sector from 1978 to 2011, using data from the Census Bureau. Classifying industries as “high tech” or not according to a method developed by the Bureau of Labor Statistics (BLS), the authors identified 14 high tech industries - ten information technology and computer-based lines of business plus architectural, engineering and scientific R&D services, aerospace manufacturing, and pharmaceuticals - and aggregated them to measure the “high tech” sector.

The authors looked at the fraction of firms under the age of six in the high tech sector every year since the late 1970s and compared it to the share of young companies in the economy overall. They found that the percentage of high tech firms aged five-and-under has declined considerably since 2000. They concluded that “in the post-2000 period, the high-tech sector is experiencing a process of economic activity consolidation, away from young firms and into more mature firms.”

The decline in the fraction of young high tech firms since 2000 is similar to the decline in the share of young firms in the economy overall. For both high tech businesses and companies overall, the U.S. has experienced a decline in entrepreneurial dynamism. In both high and low tech sectors, the fraction of companies under the age of six was considerably lower in 2011 than it was in 1982.

In high tech, the post-2000 pattern differs from pattern that prevailed over the 1994-2000 period. In the late 1990s, young firms accounted for a declining share of overall businesses, but an increasing share of high tech companies.

The authors don’t explain why high tech deviated from the long term trend towards less entrepreneurial dynamism between 1994 and 2000. Perhaps the opportunities generated by the initial rise of the Internet offset the general downward trend.

While the report raises a number of interesting unanswered questions, it also makes clear that the media’s slant on high tech entrepreneurship in America is wrong. Rather than booming, start-up activity in high tech has been in a long-term decline in this country.

Perhaps someone should tweet that message or Facebook some reporters about it.



The Lesson Small Online Publishers Can Take From Business Insider May Surprise You

Business Insider just received another $12 million in investment last week.

BuzzFeed has collected $46 million in funding and Vox Media has collected about $80 million in venture funds, Quartz reports.

You could make the argument that big media is back in online publishing form. It could also be said bigger is better when it comes to publishing news sites online. But in a recent USA Today post on Business Insider’s latest windfall, journalist and former media entrepreneur Michael Wolff suggests just the opposite.

Wolff writes:

“Overhead and other traffic-acquisition costs push expenditures well past $19 million. In other words, it costs more to get traffic than what you can sell it for.

In this, Business Insider finds itself in the CPM vice. The cost per thousand page views (CPMs) â€" a measurement beginning to be as common in conversations about digital media as movie grosses were in the 1980s â€" slides ever downward.”

To keep its traffic, Business Insider must produce a lot of content. But as the online inventory of content continues to increase, big online media faces another problem. There’s a decrease in the amount of pay-per-click advertising available to drive their revenue. Meanwhile, most efforts to boost traffic will only increase their costs or won’t make enough money long term.

Wolff suggests various solutions:

  • Invest more heavily in video advertising which tends to get higher revenue per page view but can also see lower conversions.
  • Invest in new traffic strategies which short term bring higher traffic volumes at lower costs until your competitors figure them out raising the bar for everyone.
  • Develop a source of revenue outside pay per click advertising (like conferences), though this model also has its challenges.

Finally, Wolff adds:

“You could accept a smaller business and make it profitable by carefully controlling your costs â€" but in the case of Business Insider, it’s already taken too much investment to settle for a small business.”

In the end, the surprising lesson smaller publishers may be able to learn from Business Insider, BuzzFeed, Gawker and the rest - is to stay small.

It may be too late for big online media to take that advice, but small publishers may still want to consider it.

Lesson Photo via Shutterstock