How to Evaluate Your Home Office Equipment and Technology Needs
By Shawn Welsh, VP of marketing and business development of Telular Corporation

Tough economic times often lead to an increase in new small businesses, many which are home-based.

During a recession, such as the one we are currently experiencing, people look for ways to enhance their income or become self-employed in response to cutbacks or layoffs. Couple that with the increasing number of telecommuters, which the International Telework Association estimates will skyrocket to 100 million by 2010. This group grows even larger when you include corporations, now downsizing real estate space and asking their employees to work from home.

While a home office typically consists of one person in a small room, it still requires constant management and maintenance to ensure an efficient operation. Home offices do not come with IT departments, 24/7 help desks, or corporate IT spending budgets. Every technology issue, regardless of how minor, means time lost and money spent.

In order to stay viable in the market, small businesses need to constantly evolve and keep up with the latest and greatest technologies. The problem is that upgrades can be costly and require some downtime, which affects overall productivity.

Do You Know What You Have?
Many home-based businesses find themselves lagging behind their larger competitors when it comes to network and equipment upgrades. Broadband, cellular, traditional fax, Internet faxing, VoIP, landline — there’s so much technology to keep up with; it can all be very overwhelming. It’s important to think through your communications assets and determine what is essential to your success.
1.    Take inventory of the equipment and technology you currently use: This is a good first step when considering a home office makeover. List the devices and equipment that have been on the shelf for a while, not just what you use on a daily basis, in order to get a more comprehensive picture of your working assets.
2.    Rank your assets in order of importance to your business operations: For example, if the majority of your work is conducted over the phone, then your telephone would be ranked high on the list as an essential piece of equipment. Perhaps you receive sales orders via fax machine, making it a vital part of your business. Maybe your laptop falls a little lower than it might for someone who is often on the road.
3.    Evaluate the condition of your office equipment: Once you’ve identified your essential home office equipment and tools, that’s when the real work begins. Are you having any problems with your current equipment? Is there a newer model that is more efficient? Are you relying on outdated technology? Do you have too many service bills (i.e. landline, cell phone, broadband) to track and pay each month?

Research and analysis are keys in determining whether to keep, enhance, or replace your existing equipment without breaking the bank. Though this type of homework takes time and patience, it is well worth it and in the long run will save you a lot of headaches.

There are additional points to consider before making the final decision to upgrade.

To Upgrade or Not to Upgrade – That is the Question
•    Cost – The obvious question is how much will an upgrade cost? In addition to the upfront cost of purchasing upgraded devices or technologies, there are also less obvious expenses associated with transitioning to new solutions including: service plan costs, training expenses, time spent learning new ways of doing business, technical glitches that might require additional service, etc. For example, if you wait until your squeaky printer is completely out of service, rather than purchase the latest model today, it will cost you more in down time, while you research and purchase a new one.
•    Right Time – Small businesses should decide if timing will affect their technology transition. In some instances, it may be better to hold off on costly equipment upgrades for another year in order to take advantage of tax deductions. Your type of industry may influence this decision. For instance accountants may want to avoid upgrading software in the weeks leading up to tax deadlines.

•    Options – With information just a few keystrokes away, it is easy to research equipment and network plan options. Small business owners should compare service providers to see which package would be the best fit based on their communication needs. Investigating alternative equipment that might eliminate or delay the need for an upgrade is also recommended. There are quite a number of web sites that will actually help you with this research. Some will even do comparisons so that you can see the pros and cons of equipment and services.
•    Space Constraints – Home office usually conjures images of cramped areas in someone’s house with limited desk space. Luckily, devices like printers and fax machines are getting more compact. Equipment that gives you mounting or placement flexibility can make a significant aesthetic impact. Many office supply companies are designing more furniture and equipment specifically for home offices so you can find many pieces that meet your needs.
•    All-In-One Solutions – Instead of a separate printer, fax machine, and scanner taking up large areas in your home office, you can invest in one machine that does all three at a reasonable price. In some cases, it’s more cost-effective to eliminate all three, sell them on Craigslist, and start new with one solution that’s more efficient.
•    Refurbished or Overstocked Items – Many reputable on-line retailers, such as Tiger Direct, offer great deals on new and refurbished office equipment. Research and price comparisons may lead to a quick decision for or against an upgrade.
•    VoIP, FoIP – IP-based solutions can provide robust voice and faxing functionality that is easy to use and significantly less expensive than legacy equipment. You may already be halfway there if you have a wireless or fixed connection (DSL or cable), as there are many online services, like Skype, that allow you to make your calls inexpensively.
•    Going Wireless – If you are considering an upgrade, take the opportunity to cut the cord and replace outdated equipment with wireless technology. Wireless technology is reliable and generally more cost-effective. There is no longer a need for traditional wireline in the home. By going all-wireless you can eliminate landline telephone bills and leverage your cell phone plans for fax, phone and broadband communications.
•    If It Ain’t Broke, Don’t Fix It – Weigh the benefits of older technologies versus upgrading. Look at how essential these early generation technologies are to your core business. Some of your equipment may be fine for your needs. A recent Wells Fargo study indicated that the average amount of capital required to start a business is approximately $10,000. A thorough examination of your assets may allow you to keep costs down by extending the life of some of the equipment.

Next Steps
Now that you have a basic idea of the work involved in setting up or upgrading your existing home office, where do you start? First, begin with your inventory plan, followed by your needs, and then the evaluation. There are lots of tools at your finger tips, on-line and within your community, to help you through the decision making process.

Though we hear it all the time — it’s true — the Internet is a great resource, so use it often, for researching prices, comparing product specifications, product reviews and so much more. Also, consider some networking organizations, like your local Chamber of Commerce. These types of business groups are designed to stimulate economic growth and provide support to small businesses.

Setting up and maintaining an efficient home office is not difficult, once you are aware of your existing equipment, any new requirements, and your realistic budget. Plan accordingly, and in no time, you’ll find yourself building a strong foundation for your business and making the best choices to maintain a competitive edge. HBM

Shawn Welsh joined Telular Corporation as vice president of marketing and business development in October 2007, to lead and oversee the product marketing and business development teams. Welsh brings a wealth of wireless industry, team and product management experience to his role at Telular. Prior to his time at Telular, he served as business development and product manager at Motorola, where he directed all aspects of Motorola’s MeshTrack product line. His work included product concept and business plan development as well as manufacturing and sales training. Welsh came to Motorola through the $200 million acquisition of MeshNetworks, where he led the Motorola Engagement Team responsible for the deal. Prior to his position at MeshNetworks, Welsh spent six years at SkyTel Communications, assuming a number of roles including: Partner Program Manager, Sr. Systems Design Engineer and Software Developer. Welsh has a bachelor of science degree in computer science from Mississippi College and a master’s degree in business administration from Rollins College.