The Virtual Startup

So two weeks ago, I was invited to help a small startup with five employees with their technology needs.  My job would be to conduct a site review and provide options for networking, phone, security, and data processing systems.

Typically, the remedy for this kind of job would be clear: spec out the network cabling and the labor required for installation; spec the phone system, voice mail features, and handset style; spec the LAN requirement and a Microsoft Small Business Server; setup DNS (a presence on the web), email, and web; and spec the physical vulnerabilities of the site. All told, I’d be preparing an estimate that’d likely begin around $7k.

However, this time, I offered to approach things differently. I told my client that I could bid the traditional installation, or – if they were game – to try something a little… different.

First, we’d need high speed Internet offered by cable. Comcast provided a 35mbps circuit with four voice/fax lines for a really great rate. That was really hard to beat and offered a great data circuit to build off of.

Next, ditch the wires. We invested in an 802.11n wireless access point and wireless-n adapters. 300mbps wireless on the LAN. Nice.

After that, ditch the phone. This is a company that’d be using a VOIP phone solution across the Internet anyway, so our solution would be that vendor’s soft phone software on their PC’s anyhow. Plus, voicemail’s included in that package and risk for managing phones is shifted to that vendor.

Then, let’s say, “no server”. These guys will use apps in the cloud. I offered Google Apps but they already had a solution for mail from another partner, so I helped them set that up on their local workstations.

And when they asked about CRM (Customer Relationship Management) – so that they could all get on the same page and manage their new accounts – I helped them set up a free Zoho CRM instance. Scaleable, Zoho CRM allows these guys to track their leads, manage contacts and issues, and do marketing campaign management. It’s free for three users, and tacking on an additional seven users would only cost $15/mo.

Eventually, they’re going to ask me about an invoicing and collections system outside of their VOIP solution. We’ve already talked about QuickBooks Online to fill that purpose: running QuickBooks in the clouds.

And the security situation? Much more relaxed, thanks, since sensitive company data wouldn’t be stored physically in-house on a big expensive server.

So what we ended up with is a fully-functional company in just a few hours. Instead of $7k, we’re looking at less than $1k. A company whose capabilities and economies of scale rivals big competitors yet with hardly any overhead or upfront investment. Monthly subscription fees allow access to immediate capability yet with a fraction of an investment in technical assistance to get started.

This ain’t your grandfather’s business. What you’re looking at here, folks, is a new way to do business. A business with little or no startup costs, no long-term maintenance contracts for phone systems or microcomputer support, the ability to work from anywhere at any time, a strategy to shift IT risks to vendors, a plan to contain expenses associated with their growth through subscription licensing, a self-service approach to IT administration, and,  immediate capability on day one.

What you’re looking at here is a tremendous opportunity for your small business and your startup to lower costs and increase capabilities. But most of all, what you’re looking at here is your competitor.

R

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