You can think of software as a set of tools designed to take the grunt work out of running your business. If you choose your tools well, you’ll save time, sweat and worry on a daily basis.

Some software is multi-purpose, the digital equivalent of a Swiss Army Knife. Other software is designed for a specific task (payroll management or time tracking, for example) or a specific industry type (medical billing, real-estate management). You can even purchase tailor-made solutions designed specifically for the needs of your business. The cost of software tends to increase as you move through the spectrum from multi-purpose to tailor-made solutions.

Operating system

Before you make any other decisions, you need to decide the operating system you wish to use. There are three main contenders: Microsoft Windows; Linux, a variant of Unix that runs on PCs; and Mac OS, the operating system that runs on Apple Macintosh computers. If you buy a PC (a computer containing an Intel or Intel-compatible processor such as the AMD), you can choose between Windows and Linux; if you buy a Macintosh, you have no choice of operating system.

It’s important to remember that software designed for one operating system will not run on another. For instance, if you’re in the business of creating brochures and you want to use Adobe’s PageMaker Plus as your desktop publishing software, you can get a version of PageMaker that runs on the Macintosh, and a separate version that runs on Windows, but there’s no version that runs on Linux.

So, if a particular software program is crucial to your business, you may find your choice of operating system is driven by this constraint.

Most people, though, should go with the operating system that gives them the best all-round business support and flexibility, and that means Microsoft Windows. Not only does Windows give you access to more software than any other operating system, it also has other huge advantages over the competition. With Windows, it’s easy to find staff who are already familiar with the operating system. It’s also easy to find technical support from both official and informal sources. Windows and Windows-based programs are also designed–with varying success–to be easy to use.

If you’re tempted to try the increasingly popular Linux, think twice. Despite recent attempts to make Linux easier to use and more Windows-like in operation, it is still far from being user friendly. There is also little business software available for Linux.

One of the driving forces behind Linux’s popularity is a dislike of Microsoft’s industry dominance. That may be a valid personal reason for choosing an operating system, but it’s an absurd business reason. Unless you can come up with much more compelling reasons to use Linux, stick with Windows.

Which Windows?

If you choose Windows, you need to decide which version is most suitable for your business. Windows XP is the latest version of Windows and it comes in two flavours: Home Edition and Professional Edition.

Despite its title, the Home Edition is suitable for many small businesses including those running small networks. The Professional Edition is best suited to larger office environments or businesses where at least one of the regular employees has a lot of computer experience. The Professional Edition is a full superset of the Home Edition. That is, you get everything in the Home Edition plus extras including:

If you have a small business on a strict budget and not much computing experience, opt for the Home Edition. Otherwise, go with the Professional Edition.

For more information on Windows XP, check out geekgirl’s XP section.

The core applications

The most commonly used business applications are word processors, spreadsheets, business graphics, personal information managers and databases.

Here’s a quick run down on each:

Office suites

Office suites integrate the core business applications into a single package. They offer good value if you require two or more of the included applications.

The three major office suites are Microsoft Office, Corel WordPerfect Office and Lotus SmartSuite. These suites come in different flavours, including small business and professional editions. Make sure you check the components of each version, as there are big differences. Microsoft and Corel, for instance, do not include a database in their standard editions, while Lotus does.

If the price tag on the office suites is daunting, you may want to take a look at OpenOffice.org. This free software provides solid word processing and spreadsheeting and illustration plus some extras.

Desktop publishing

Desktop publishing (DTP) software lets you produce professional brochures, newsletters, magazines, menus, booklets and even books. If this is the main focus of your business, you should buy one of the powerful DTP programs such as Corel Ventura or Adobe PageMaker Plus.

If, on the other hand, all you need is the ability to design an occasional letterhead, small newsletter or pamphlet, a good quality word processor or a low-level DTP package, such as Microsoft Publisher, should do the job for you. Publisher is included with the Small Business Edition of Microsoft Office.

The Macintosh used to be the dominant desktop publishing platform. While that’s no longer the case, there are many fine Mac-based DTP programs and many full-time DTP houses use Macs instead of Windows-based machines.

Accounting packages

While it’s possible to set up your accounts in a spreadsheet or a database, a dedicated accounting package will make the job much easier.

For consultants and solo professionals, a personal financial package such as Microsoft Money or Intuit’s Quicken may be sufficient. If your needs are more substantial, check out one of the more powerful programs such as MYOB (for the Australasian market), PeachTree Accounting (for the US market) or QuickBooks.

Some of the larger accounting programs come in modules and you buy only those modules you need, such as payroll, accounts receivable or inventory.
You may also find it helpful to chat to your accountant before choosing a program. If you buy a compatible program, you may be able to exchange information with your accountant via computer disk. Keep in mind, though, that it’s important you buy a program you’re comfortable with.

Contact management

While Personal Information Managers let you manage business contacts, dedicated contact management software lets you do much more. Programs such as Act! and GoldMine are designed for sales professionals who need to track more than simple names and addresses. If you want to follow sales leads, log phone calls and have full control over all your contacts, consider buying a contact manager.

Internet and e-mail

If email is central to your business, don’t settle for one of the free email clients bundled with a Web browser. Consider getting Microsoft Outlook. It’s a powerhouse when it comes to handlingemail, contacts, tasks and a whole lot more.

For Web browsing, don’t use Internet Explorer, which is probably included with your system. Install Firefox instead – it’s more secure and has better features.

While you may have no immediate business use for a Web browser, a little experience is likely to change that. With a browser and Internet connection you can do everything from tracking down phone numbers and business addresses to purchasing stationery online.

Utility software

Utility software handles housekeeping and maintenance tasks on your computer. The most important utility software you need are an anti-virus program to protect your computer from data loss and file corruption and anti-spyware software to prevent data theft. See my recommendations for this software.

Another essential utility is WinZip, a program that lets you compress and decompress files. WinZip will save you time when sending e-mail with attached files, and you’ll find it’s essential if you want to download files or programs from the Internet.

Vertical market software

This is software designed for a specific market, such as architects or real estate agents. Good vertical market software combines the knowledge of those familiar with the industry with professional programming.

Vertical market software is pricey and the price does not necessarily reflect quality. If you want to buy such a program, take the time to research it thoroughly. Consult with others in your industry who have used such software and, if possible, see if your industry association has a recommendation.

Tailor-made software

Your business may benefit from tailor-made software designed specifically to manage your day-to-day operations.

Custom-made software does not come cheaply. As with vertical market software, do your research before spending several thousand or more on a program.

If possible, find a programmer or consultant who is already familiar with your type of business and who has a list of clients who will act as referees. Beware of signing a contract that binds you to a per-hour fee. You’ll do much better to get a fixed price, or at least a price range, for the job.

Also, make sure that you get all the source code for any programming work. Without it, if your original programmer moves on, you may be unable to get technical assistance at all.


© 2005,  Rose Vines

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