Posts Tagged ‘Business’

Content Is King – Picking the Right CMS: Part IV, True Open Source

Tuesday, March 16th, 2010

Lock, Key & Chain by sravi in (Busy at work) via flickrIn the last post I discussed commercial open source CMS which are open source in that their code base is available to the public but are not entirely free like open source.

True Open Source is where popular systems like drupal and joomla and others live. These systems don’t have any paid components (core or extensions) and their code base is entirely open to the public. For the big players (like Joomla, Drupal, and Plone), the library of community-contributed extensions can be mindblowing. (Joomla alone has over 4,300 extensions.)

In my experience, true open source CMS tend to evolve the most quickly, and are likely to stay up with current trends (integrations with social media, new web apps, etc.). A great number of the extensions contributed were initially designed by developers to solve a unique problem they had when working on a specific problem. When thought of this way, you’re not just looking at a massive amount of code, but a massive amount of intellectual capital – that is, people using technology to solve their problems and sharing those solutions on the web.

Open Source has many of the same advantages that commercial open source has. Cost avoidance can be achieved by maintaining the code yourself, and you can’t be left out in the cold even if the community dies (which does happen) since you have the code base and can maintain it yourself.

Recognize, of course, that not every extension is safe to use. This is the primary reason that open source CMS get a bad rap for security. (IBM Internet Security 2008 Year Trend Stats – Drupal, Joomla, make top 10 vulnerability list.)

But if you stick to the core and do some due diligence yourself on any extensions you use, open source is going to be a good option for your CMS.

Should I Develop A New Product Or Find A Partner?

Thursday, November 12th, 2009
Handshake by Svadilfari via Flickr

Handshake by Svadilfari via Flickr

One of the smartest things you can do for your business is to determine what you do well and what you’d be better off outsourcing. Sometimes entrepreneurs feel like they have to do it all, that using an outside source to provide part of what they’re offering to customers is cheating. But really, it’s okay. It’s even expected.

Everyone has their own area of expertise – you can’t be everything to everyone. So it only makes sense to find someone who excels in what you don’t, so that you’re providing the best to your client. Recognizing your own expertise and limitations allows you to provide value to your customer. It’s not that you’re just marking up what someone else does to make middle-man profit; you know who the best source is to fill their needs, and they’re counting on the fact that you’ve done the research and have found the right solution.

It might be tempting to try to create the solution in-house – so you don’t have any external costs to worry about. But make sure you weigh all factors before you make that decision. Some questions to ask:

  • Will I truly be able to provide a service comparable to the existing providers?
  • Does my staff have the capacity to fill the tasks on an ongoing basis?
  • Will the amount I can charge for the services adequately account for the amount of time to design & implement the new product?
  • Does the new product fit my business model and brand?
  • Would finding a partner/provider negatively impact my brand message?

If your answer to any of the above is no, you should probably find a partner.

Fortune 500 Companies are Not Dominoes

Monday, February 16th, 2009

Fortune 500 companies are not dominoes. Getting one to buy your widget does not mean the rest will fall in line.

There is a common misconception among young entrepreneurs that if one Fortune 500 company makes an investment in a product, the rest will quickly fall into place – to reduce the risk of trailing their competition.

This premise is false for a couple of good reasons:

First, the people to whom you are making the sale, frankly do not care if their company falls behind their competition. They’re simply looking to hit sales or hiring quotas so they can keep their job. Either you’re going to help them do that or you are not. The exception, of course, is when you’re talking with board members, but as a young entrepreneur, even if you do get a meeting with one of these big wigs, you will likely be passed down to a lesser employee.

Second, most companies would rather let their competitors spend money on a new piece of tech first and then watch for the ROI. If they have success with your widget, then they’ll consider buying it. Otherwise, the value of your offering poses too much risk. There is no incentive to buy while the risk is high when all they have to do is wait a few months to see how things play out. After all, you’re not likely to turn down their money if they offer it later, once they’re more assured of your value.

So what does this mean to a budding entrepreneur? It means you need to assure that your product provides tremendous value to an individual inside a large corporation rather than providing value to the company at large. This can be a sales manager, project manager, marketing manager, etc. If your tool can increase their efficiency and make them look more effective, you’ve probably got a winner.

You may also want to review your pricing strategy, making your product affordable to anyone inside the Fortune company and then doing volume sales inside that organization.

E.g., don’t try to sell a $100,000 license to your recruiting software. Instead, make the license $200/month and sell it to 50 recruiters at one company. Sound difficult? Sure. But the $100,000 sale is a lot toughter. Moreover, it only takes one HR Director saying no to the $100,000 sale to sink you at a Fortune company – but there are PLENTY of recruiters to go around. So even if 10 say “no”, there are still plenty of others who may say “yes”.

Good luck!

It's a marathon – Not a sprint

Wednesday, February 4th, 2009

Running a successful business is a marathon, not a sprint.

The 90-hour week is a foolish endeavor born of reading “Art of the Start” one too many times. In truth, many of the stories entrepreneurs tell of the hours they pulled to make their companies successful are highly exaggerated. Organizational psychologists say after 50 hours you are wasting your time and you will spend the next 20 hours fixing mistakes you made during those candle-lit nights.

That is not to say that you cannot (and will not) pull all nighters. But working on Christmas is not only unnecessary, it is downright foolish.

It’s tempting to just work around the clock and expect your employees to follow suit, but a tempered approach will do more to keep everyone happy. The last thing you need is for those who work longer hours to start resenting those who work fewer – because the mood will catch and soon you’ll have an entire office of disgruntled employees.

Instead of giving out gold stars for working long hours, give them out for producing great work – regardless of whether it was completed during traditional business hours or during what should be “off the clock” time. This will encourage more successful efforts – not just time spent.

And isn’t success, after all, the bottom line?

Quietly Taking Over The World

Friday, January 23rd, 2009

Welcome to Leading the Nerd Herd.

Technology keeps advancing. It’s vital to it to stay on top of the advances because the importance of those who understand and know how to use it will only continue to grow.

Those in the herd live by this fact. We stay online and connected. We revel in the latest and greatest. We’re the early adopters who alpha and beta test, so that the rest of the world can have products that are easier to use.

I’m lucky enough to not only be a member of the herd, I’ve taken a position in helping to develop tech. On this blog, I’ll post thoughts about technology, web development, and business entrepreneurship.

Got a question? Just send it to me.