California Executive

Trimming costs and boosting productivity become even more critical than usual in times of economic hardship and uncertainty. Larger corporations usually weather the storm through layoffs and other reductions, while small businesses, with few internal redundancies, often find themselves grasping at straws to cut expenses. Technology is one areas that can still help them save money and increase efficiency.

That’s because computer-based technologies, once available only to large corporations with formidable IT staffs and deep pockets, are increasingly trickling down to user-friendly and affordable applications for the little guys.

We asked several small business executives and a seasoned tech analyst about what software, Web applications and related technology services they use to control costs and maintain a high level of productivity. The following list is by no means comprehensive, but provides a diverse sampling of non-intimidating and low-cost applications that can help cushion the blow of a rough economy.

1. Skype & iSkoot

Skype, one of the more popular Voice over Internet Protocol (VoIP) telephone services, is owned by San Jose-based eBay Inc. Skype users pay a monthly fee of $2.95 for unlimited calls to landlines (Skype-to-Skype calls are free) within the United States and Canada, or $9.95 per month for a global plan. Skype also provides a conference call function for its subscribers, which includes video. 

“I would say Skype is really our lead-in to communicate; especially on Virtual Fridays, we can use Skype Conference Call to connect our team,” says Jacob Shea, senior vice president of technology & interactive at San Diego-based public relations firm JHG Townsend.
    
Shea says many of JHG’s clients and prospective clients also use Skype, which enables them to use the video and Web conferencing functions. JHG just started using a Skype service called iSkoot, which allows users to access their Skype calls, voice mail and text messages from their mobile phones. The iSkoot service is available as a free download, but usual mobile phone rates still apply.

2. Google Blogs, Google Docs & Google Apps   

Mountain View-based Google Inc. offers a wide variety of free, Web-based applications tailored toward small businesses, says Charlene Li, principal analyst with Forrester Research and co-author of “Groundswell.”

“If you want your own domain, you can get an exchange server and an administrator; but that is all expensive,” Li says. “So Google has some great, professional offerings for small businesses.”

Li says she uses Google’s spreadsheet and calendar, available under the Google Docs suite. Li, who specializes in technology for the small and midsize business market, says Google is filling a void left by Microsoft Corp. and other large players who have put more emphasis on the lucrative enterprise market.

Google’s free Blogsearch application (at blogsearch.google.com) is a great way for small businesses to stay connected with customers and can help provide a low-cost alternative to market research, which small businesses typically cannot afford, Li says.

3. MyFax

Three years ago, Travel Health Products Inc. president Neal Avery ditched his fax machine in favor of an online service called MyFax. Senders can still feed papers into their old machines and send them using a typical 10-digit fax number, but Avery says they show up on his end as attachments in his in-box. Likewise, he can send faxes from his desktop to a traditional fax machine.

The service starts at $10 per month, which includes up to 100 sent documents and 200 received. Similar to a mobile phone service agreement, extra pages beyond the monthly limit cost 10 cents each.

Avery says toner cartridges cost between $100 and $150 and must be replaced each year. But he says the main advantages of using MyFax are the ability to digitally save faxes, view them online from any location and the absence of concerns over things like power-outages, paper or miss-feeds. Also, he says, MyFax makes it easier for all of his four-member staff to view faxes.

“If you’re on the road visiting with an account, you can verify your faxes from anywhere.  You don’t have to make sure the fax is on and has paper,” says Avery, who says a single botched order due to a power-outage, for example, is enough to justify the cost of MyFax. “Reliability-wise, any lost orders equal lost sales.”     

4. SightSpeed

Del Mar-based executive Andy Abramson has operated an office-free business ever since 1993, when few technology options existed for dispersed organizations. His 20 employees (which he prefers to call “team members”) are spread out across the country and use Skype for phone calls. For video conferencing, though, his marketing firm uses a service by Berkeley-based SightSpeed Inc.

It’s free for the stripped-down entry-level version, but costs $695.95 per month for a 50-user package. The next tier down, which covers 10 users, costs $149.95 per month, while a single-user subscription costs $19.95 per month. Users download software onto their desktop computers to get started and Abramson says it’s very intuitive to use. Also, he says, the system allows you to record video clips.

While it’s not extremely cheap, Abramson says the superior video quality and ease of use make it a suitable alternative to travel.

“I helped someone fix their computer with that once. I had her turn the camera around and walked her through the procedure; so the quality is that good,” says Abramson, CEO of Comunicano Inc.

5. VisiStat

Nick Ezzo, director of marketing for Cupertino-based call center automation company TuVox Inc., says he hopes his competitors don’t learn about the Web analytics software from VisiStat. He uses the software to track how prospective customers explore the TuVox Web site in correlation with promotional emails, allowing his sales staff focus on the most promising leads.

“Let’s say you have 100 companies you’re interested in talking to; you’re going to get a percentage of people who click [onto the Website], then you’ll have another 5% to 15% of people who spend more time at the site,” Ezzo explains. “So it allows us to do very focused, targeted call-backs.”

Costs vary, increasing by clicks-per-month after reaching a certain threshold, but Ezzo says his company pays about $600 annually for two accounts. He claims TuVox has enjoyed a 50% increase in follow-up sales meetings since implementing VisiStat more than two years ago. Also, Ezzo says it’s very easy to install.

“It’s a simple code that you cut and paste into your Web page, and boom, you’re immediately getting results,” Ezzo says.  

6. SuccessFactors

Many small businesses can’t afford a dedicated human resources staff, or even an HR manager, which is where SuccessFactors’ software comes into play. Chiropractor and physical therapist Jay Greenstein, CEO of Sport & Spine, uses the Foster City-based company’s online software to automate the process of writing performance evaluations and setting goals.

SuccessFactors allows managers to track performance based on predetermined goals and expectations, and offers one-click generation of performance evaluations for annual employee reviews. Prior to using the software, Sport & Spine used an Excel spreadsheet, which served its purpose but was cumbersome and time-consuming, Greenstein says.

“For someone who is smaller, they could drastically improve their internal goals management [by using SuccessFactors] without bringing on an HR professional,” says Greenstein, whose network of nine rehabilitation centers throughout the Washington, D.C. area is now at the point of needing a full-time HR manager. “I wish I knew about this tool earlier.”

Costs vary according to size, but Greenstein says his initial investment was $15,000 for a 50-employee package, but recurring subscription fees were $75 per employee this year. 

7. FreshBooks

While QuickBooks remains the industry standard for accounting software, Los Angeles-based business owner Joel Marshall says he prefers FreshBooks, a product of Toronto-based 2ndSite Inc. He says he wanted hassle-free remote access to invoices and the ability of his clients to access their accounts as well, functions lacking in QuickBooks.

And Marshall, the sole proprietor of Web design and search optimization company Supportus Maximum Inc., is like many small business owners who are jacks-of-all-trades but rarely experts in things like accounting.

“I was using Quickbooks before but I found it wasn’t giving me the functionality I needed,” Marshall says. “I needed to be able to keep track of hours in an easy way and the ability to invoice clients from anywhere, including out in the field.”  

Pricing for the subscription-based, Web-hosted software is based on number of clients being managed at once. Marshall says he pays $14 per month for the ability to manage 25 clients simultaneously. FreshBooks offers newcomers an introductory free trial.