Various pieces in various magazines and blogs have all been breathlessly touting the latest and greatest technology trends for 2009 and “what it all means to the business guy or gal”: smaller, faster computers; cloud computing; et cetera et cetera. Most of these articles have one thing in common: they usually don’t have much to say to the microbusiness owner (i.e., those with 5 or fewer employers) and particularly the nonemployer businesses out there.
This may seem like a pretty fine distinction to make, but if there’s one thing that’s more true today than it was 8 years ago when I started on this little entrepreneurial journey, it’s this: the one-person shop is vastly different in just about all regards to any other business. Most of the time, the overhead is pretty low. Processes are leaner. Procedures aren’t documented. Customer arrangements are more personal and less encumbered with contracts and other paperwork. Technology trends and their impacts are more deeply felt, but they also represent a much bigger investment slice than with other businesses.
Let me give you a series of examples. If you’re just starting out, hopefully this will save you a great deal of pain. The idea is to take advantage of technology products and services that simplify or streamline your ability to make money. Sometimes this involves portability, other times it means repackaging bundles of things that were hitherto handled via scattered processes. If the tech product or service doesn’t actually help you make more money (or save more money, or time/energy/pain/tears/whatever) then you need to wait a bit before you shell out the bucks.
We’ve always done a lot of web development at Triple Dog Dare Media, most of it from scratch. We originally used Dreamweaver a great deal. We would set up development environments at our hosting company (paying an extra buck or two a month for a subdomain and dedicated database). At some point, we had a bunch of folks working on projects and needed a source code control system, so I went out and bought a cheap server, installed Linux on it, then installed Subversion and Apache and some other tools. I set that server up in our offices and ran an extra dedicated line to it so all of our contractors could reach it.
The extra costs ran into the several hundreds of bucks per month, plus one of my guys spent about 5-10 hours a month tinkering with the server–patching it, setting up backups, mucking about with cron jobs and database caching and mysql logs. Not too bad, and the arrangement stayed that way for a couple of years.
At some point, I decided to simplify my business model (read: go back to being just a lone-gun consultant). By this point I was down to mostly contractors anyway (having employees did not suit me). I switched to another hosting company (DreamHost), mostly because they gave me a flat rate for hosting that gave me unlimited databases, domains, bandwidth, and email inboxes. They also provided Subversion servers that I could just connect to without having to own all my own stuff.
Within a matter of a few days, I’d moved over, and now life is better. Simpler. And cheaper. $300 a month plus having a guy work 5-10 hours (let’s call that $1000/month in lost productivity–that’s what he would bill out as) may not seem like much to a bigger firm, but to the small fry it is a lot. $1300 a month was roughly my office rent in the old days. But beyond the money, moving to a cheaper hosting provider with better services means simplification, and that means being able to focus more on the business instead of things like “is my Subversion server working” or “can my contractors connect to the Subversion server”.
Here’s another note on the “ever smaller, ever more powerful computer” trend. A few years ago I was a PC user. I had an 11-pound monster Toshiba Tecra laptop that I lugged around everywhere. It was basically a desktop replacement system with a huge screen and oodles of RAM. It crashed all the time and was generally a pain in the behind. Because I didn’t want to switch to Vista and I yearned for a system that had some kind of Unix environment on it (again, to simplify my life, as I was doing a lot of PHP development and UNIX shell scripting), I switched to Mac.
I ordered the biggest MacBook Pro I could get, with maximum RAM, biggest hard drive, the works. It was shiny and thin and light (under six pounds) and had 3x the oomph of the PC, and it never crashed. I could run Apache on it (and a whole host of UNIX tools and applications) without hassles, and was therefore able to carry around a fully loaded development environment. All in all, a very good $3000 spent, the best money I’ve spent on a machine. Two years later the MacBook Pro is still going strong, except I note that the battery only lasts five hours instead of the usual eight or nine.
Suddenly, I had a lot more mobility (it was just easier to carry the lighter machine!), access to both Mac GUI slickness and all the UNIX I could ever want, and didn’t need to maintain an extra Linux server for development environments. Plus I no longer needed to spend 2-3 hours per week dealing with endless virus problems, security patches, and updates.
Another way to look at it is I spent $3000 (which some would say is too much for a laptop) but was able to get back 5x that in the first six months alone just in productivity and not having to maintain a separate Linux server for development (and all the extra costs–both real and opportunity–related to that server).
But it gets even better. At some point, I dumped my BlackBerry and bought an iPhone. I needed a simple to use phone with good web browsing, good email, SMS, and a calendar and address book that worked with the Mac. Very soon after buying this little device (and being delighted by it at every turn) I realized something important: I really didn’t need to lug my MacBook Pro around.
All I needed was the iPhone and a paper notebook.
In most travel situations, all I needed was access to email and some Web capabilities. I was there to listen, take notes, have meetings, maybe do some nosing around. I wasn’t coding. I wasn’t setting up servers. So I really didn’t need the laptop, and frankly, I was getting sick of the TSA guys using it as a frisbee anyway.
So in many ways, the $300 iPhone became a surrogate computer. In fact, I use it now a lot as I’m doing on-site contracting these days. I can use it as both a discreet tool for checking personal email and a way to keep up to speed with my other business concerns (especially once I installed TouchTerm, an SSH client for the iPhone and moved important documents to my IMAP email). Seen in the light of this use case, the cost for the handset is a bargain, because what you’re paying for is not some kind of phone, you’re paying for a really small netbook.
If the netbooks+cloud computing trend keeps, er, trending, then we’ll just see an acceleration of what many of us have already started. You’ll have some kind of ultraportable device with just enough power and juice to get on the network, which will give it access to tools and content that you need to get the job done. Don’t have to worry about bad hard drives, backups, upgrades, patches and all the other miserable details of modern computing. All you need is access to the network, which is becoming more and more available as progress marches on.
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