National Small Business Week
Posted by Mike Haworth in Uncategorized on May 13th, 2009
Next week is National Small Business Week and I would like to congratulate all the owners and employees of Small Businesses.
I believe that the contribution that Small Businesses make to our society in North America is greatly under appreciated and the economic contribution is under estimated.
People seem to think that bigger is better but as seen in recent economic times, do large corporations really set examples by which we should run our businesses?
Is working for a large corporation really better then working for a small organization?
Is getting the large corporation as a client really much better then serving many small clients?
Perhaps as a society we should do all we can to encourage entrepreneurship. Many jurisdictions offer very low tax rates for small business and provide support services to help small business owners learn how to run a business.
In the US organizations like SCORE, and BDC in Canada provide mentoring services to new entrepreneurs and these are invaluable resources.
Individuals like John Jantsch (www.ducttapemarketing.com) are fantastic resources to learn how to market your small business.
Organizations like HTG founded by Arlin Sorensen (www.htgmembers.com) provide Peer Mentoring to small business in the IT Services Field.
Next week in Washington DC, there is a conference celebrating Small Business Week and the contribution the millions of Small Business make. http://www.nationalsmallbusinessweek.com/index.php
Congratulations to all those making a difference in our lives.
Michael Haworth
Binatech System Solutions
Hamilton, ON and West Seneca, NY
The Time and Materials Service Model for SMB is Broken
Posted by Mike Haworth in Small Business on May 8th, 2009
Why Most Companies are Unhappy With Their IT Service Provider
Most companies we contact express dismay with their IT Service Provider. These companies complain about endless bills and a lack of partnership with their Provider. The reason for this is that most Service Providers bill clients on a Time and Materials basis.
The client wants the problem fixed as quickly as possible to save money and the consultant is able to bill more the longer the call takes and the greater the frequency of problems. This conflict of interest does not work in the best interest of the client.
This approach is reactive, the consultant is rushed to complete the work and the client usually does not allocate time for the consultant to properly manage the Network. This Time and Materials Service Model is Broken.
There is hope. By entering into a relationship with a Service Provider where you are not charged by the hour results in a better managed network with much fewer problems.
A new breed of IT Service companies has developed over the last 5 years where the focus is on strategically managing IT Resources for the SMB market place. If you own an SMB it is in your interest to identify providers where they will take ownership of your entire IT system and be held responsble for all IT matters. These service companies will offer a flat rate per server and workstation and will look after all issues for the set fees.
If an IT Services company believes 100% in the IT management that they provide then they will be willing to be held responsible and charge a set fee.
Something for Small Business owners to consider.
Mike Haworth
President,
Binatech System Solutions
Hamilton, ON and West Seneca, NY
When a problem arises the client contacts the Service Provider who arranges a time to come on site, who then bills the client for the time taken, for every hour spent on the job.
Running a Small Business in Two Countries
Posted by Mike Haworth in Small Business on May 1st, 2009
West Seneca, NY – May 1st, 2009
I quite often get asked “Why would you open an office in Western, NY”. To many Canadians in Southern ON, having an office in Hamilton, ON and in West Seneca, NY seems like a strange combination. People seem to think that I should have opened a second office in Toronto or London, Ontario.
I think folks are surprised more by the complexity of operating a small business in two countries and their lack of understanding of the Western, NY market place as the main reason I get asked this question.
Yes, there are many legal and immigration issues to deal with when you want to be “International” but as long as you properly research the requirements and follow the rules then the border can be somewhat seamless. The larger issues are hiring local employees, learning the differences in the markets and building a business. Opening a second office for a services company is almost like starting a business from scratch. It can definitely be a challenge and not for the faint of heart, but when successful it brings a real sense of accomplishment. A key ia to have good systems and management procedures in place so you can manage from afar.
It is funny how a river can create such a cultural difference. Though there are many cultural business similarities between Fort Erie, Ontario and Buffalo, NY, the river between these two cities seems to create many differences. It is these difference that seems to lead to a lack of understanding. Many people in Southern Ontario have the perception that the Buffalo area is a declining area with nightly fires and gun shots on the East Side. While the east side does have issues and the population is not what is was in the 1970’s Buffalo is still a dynamic city and an exciting place to do business.
Mike Haworth, President of Binatech System Solutions can be reached at: mike.haworth@binatech.com