Computerizing your Business


Editors Note: This article was originally written at the request of Hearth and Home magazine, who decided (for what ever reason) not to ever print it. Instead of letting it collect dust (or electrons) on my hard disk, I've decided to update it and post it on this forum. Happy reading !
Introduction
Which System to Buy?
What can I use a Computer for ?
1. Database Programs
2. Word Processing
3. Design and Graphics
4. Spreadsheets
5. Accounting Programs
6. Communications, Internet , Email
How much will it all cost ?
What's in store for the future ?


NOTE: Complete Hearth Shop Software is now available from HearthPro.

Introduction

Lately I've been reading some self-help and personal improvement books. They talk about a concept called "modeling" which is described as looking and learning from other peoples success and failures. This is far preferable to having to make all the same mistakes yourself !

With this in mind, I intend to share my hard-earned knowledge of computers. This experience involves the use of computers in our Retail, Wholesale and Importing businesses over the past ten years. I have spent thousands of hours and quite a few bucks in my pursuit of computer enlightenment. Now I have found it, and my heart is so full of love (actually computer lust) that I am willing to offer this experience to you free of charge.

Today is the day - You say you've managed to miss the computer revolution so far. Well, it's not too late ! Computers are now so inexpensive and easy to use that even the complete novice can be happily computing along within only a few days of buying a new computer.

What is a Computer and what can it do? No, I'm not going to bore you with BITS, BYTES, RAM, ROM, VGA, SCSI and other computer terms. What I want you to grasp is the function of a computer. A computer can be compared with certain other machines, such as a bicycle or a forklift. Much in the same way that a bicycle expands your range and a forklift expands your strength--a computer expands your brain. Apple Computer once used the saying "wheels for the mind" to describe this effect.

Which System to Buy ?

Which system to buy?: This is the big question-- and I'm going to set it to you straight ! I recommend the Apple Macintosh line of computers. No, I'm not on their payroll but I can talk with some experience -- you see, I used IBM and Compaq computers for three years before I went to Apple. The secret of the Mac computer is in it's "operating system." This is computer jargon for the connection between man and machine. A person with no experience in computers can walk right up to a Mac and, using a simple pointing device (the "mouse") can immediately become familiar with the lay of the land. Apple engineers spent the equivalent of thousands of "man-years" to develop this ease of use. The current IBM and IBM compatible systems are trying to copy this style with "Windows" software -- but you'd be better off buying the original -- it's far more refined. If you intend to use a computer for only one application--such as a specific accounting or inventory program-- then the IBM or compatible may be a good option. However, if , like many folks, you would like to do many different tasks with your machine, then the Mac is definitely for you. If you insist on a Windows 95 computer - it won't be too bad. As we Mac users like to say "Windows 95 is Mac 89".

What can I use a Computer For?

This article will touch on five of the most popular and productive uses of a computer:

1. Database
2. Word Processing
3. Design & Graphics
4. Spreadsheets
5. Accounting
6. Communication/Internet/Email

Many of today's programs are "integrated" which means a single program can perform many or all of your everyday business functions.

Database Programs: The most prevalent use of computers today is record keeping and filing -- known in computer jargon as "data base management." This involves the use of a computer to replace any and all filing functions that are typically done on paper or 3x5 cards (or not done at all )!.
In our business we use the popular database program called "Filemaker Pro" by Claris Software. Filemaker Pro can be used for Invoicing, Mailing lists, Inventory and many other office functions. This program helps us to keep track of leads for our importing business. When we receive a phone call or letter, the name is immediately typed into our program. Our office manager then simply prints out the records once every couple of days, and places the self-stick mailing labels on our literature fulfillment package. Some of our customer lists have over 12,000 names in them. Even with a list of this size, any single name can be found in a second or two. If Mr. Jones calls and wants to know if we sent him his literature yet; I can simply ask him for his name and zip code and have his record up on my screen within a few seconds. The record will tell me when we typed his name in and when his package was sent. The neat thing about these programs is that once you enter the stuff in once--its in there forever!. If we want to send a special offer or a second mailing to our leads, we simply select the folks we'd like to send to--by name, zip, date, or any other criteria--and print out mailing labels. We also can easily compare our "leads" against our "sales" to determine which ads are the most effective. This is very important information for today's businesses.

We also use our database to enter all our customer invoices and keep track of payment information and inventory for our Retail Stores. At the end of each month, we can send a "thank you" letter to hundreds of customers just by giving the computer a few easy commands. We simply ask the computer to find all records within the past month in which the sale total was over $300. (we only send letters to these big spenders!). Our printer will then spew out hundreds of letters--each personally addressed and signed. You can bet this makes a good impression on our customers.

Word Processing: This is the computer name given to what used to be called writing and typing. I can personally attest to the effectiveness of word processing. You see, before I had a computer I was unable to put words to paper in any way. Even if I did write something, no one could understand my sloppy handwriting and misspelled words. Now, I'm in writing heaven. The computer allows me to think more creatively and to correct and reword my work as I go along. Some folks are scared to write because they have poor spelling, grammar or punctuation skills. That's not a valid excuse anymore. These new programs have built-in spelling checkers, grammar checkers and Thesauruses. I find that my spelling and writing has greatly improved over the years because my computer is always correcting my mistakes. The most graphic argument for word processing is to hold two letters side by side; one handwritten and the other printed by a laser printer or ink-jet printer. Which letter makes the most favorable impression ? Handwritten letters are just not taken seriously anymore. Word processing can also be used to send form letters, such as the ones that you always get in the mail telling you to claim a big prize. You can also use these programs for printing handouts, flyers, and other documents for use in your business. Most word processing programs can mix text and graphics on the same page. We print all of our owners manuals this way and save a bundle on printing costs. (see sample page from manual).

Design and Graphics: The computer can work wonders with adverting layout, newsletters, product design and scale drawings. Graphics programs can combine text of different sizes, borders and pictures on the same page. These programs have become so popular that many big city newspapers are actually publishing on Apple Macintosh computers. USA TODAY uses them extensively for illustrations and maps. It is quite simple to work up some ads for your local newspaper. The ads can be saved on disk and changed later to fit with the current occasion. Pictures of stoves and other products can be scanned into the computer with another miracle of modern technology, the page scanner. We use these design programs for retail store layout, wiring and plumbing diagrams and new product design. These programs consists of a blank sheet of paper and a palette of tools on the screen. You use the computers' pointer (the mouse) to select the proper tools and perform the drawing functions. If you want to draw a line, simply select the "line" tool and point at where you want to start and end--viola--a straight line is drawn. if the line is not quite right you can grab it and fiddle with it to your hearts content. Using one of these drawing programs is much like a throwback to childhood. It reminds me of the old etch-a-sketch I used to have. The creativity just seems to flow when the computer does all the hard work. In fact, some neat inventions have been coming out of our office lately. We actually have a patent pending on one of them--the 1/2 kettle (for sitting on top of those too-small stoves and inserts). The use of these graphics and design programs are limited only by your imagination.

Spreadsheets: Spreadsheets are an Ideal tool for the number crunchers among you. A spreadsheet can be compared to a gigantic printing calculator. It consists of a series of Rows and Columns-and therefore many individual cells . Data can be entered in the cells and then this data can be manipulated based upon formulas that you enter in the cells.
We use a spreadsheet to keep track of the value of the US dollar against foreign currency. We also use spreadsheets to keep track of monthly, quarterly and annual sale figures for our retail stores. I admit it --Spreadsheets are for nerds! But spreadsheet programs have another function that would bring a smile to the face of even a tough guy like Ross Perot. Yes, I'm talking about those great charts the Mr. Perot likes to use. The truth is, charts are a very friendly way to express numerical information. Perfect charts in any type, size or color can be produced just by selecting some numbers from your spreadsheet and pointing to a command that says "CHART".

Accounting Programs: There are many different accounting programs available. Whether you desire simple "one-write" check writing or full-fledged double-entry accounting, you can surely find a program to fit your needs. One word of caution : unless you truly understand accounting and/or unless you have an employee to study, learn and understand these programs, you may be biting off more than you can chew. I recommend doing a lot of research before purchasing an accounting system. Talk to folks who are using different programs and get as much free advice as you can. Some mail order software companies offer free technical advice and 30 or 60 day money-back guarantees. This way you won't be stuck if the software is not right for you.

Communications and the Internet: The explosion of the internet is just one more reason to start using a computer. Imagine talking with other retailers, manufacturers and industry members on a dialy basis...with no phone bills. If you are not really familiar with the internet and it's uses, here is the text of the recent seminars I gave at the hpa show. It should help you understand the internet in detail.

The Bottom line: How much is it going to set you back?

Here's some examples of different systems:
1. Basic system- Macintosh Quadra/Performa and Stylewriter Printer, Modem and basic software - Approx $2,000

2. Advanced System - Power Macintosh, Laser Printer, Modem, Scanner and Software - Approx. $4,000

What's in store for the Future ?

Here's what's new and up-and-coming:

FAX Modems-Allow you to send and receive faxes right from your computer screen without a fax machine. The computer can also be commanded to send the same fax to lots of folks and it will do this without any intervention from you. Watch out for fax junk mail !

VIDEO and Multi-Media--You can now process Video ,sound and animation on computer. This will be useful for everything from editing home video to creating fancy training tapes and presentations. Voice Recognition--Very soon you will able to give commands to your computer in plain English--or whatever language you speak.

Watch out Dick Tracy--Personal Digital Assistants (PDA's) are a new "information appliance" that will be hitting the streets within a year. Imagine a combination computer, fax, cellular phone that fits in the palm of your hand and can communicate with your home or office computers. These little computers have no keyboard--they can recognize handwriting and speech!

CD-ROM--These are available now. They are CD's that look just like the musical kind but are packed with amazing amounts of information. Encyclopedias, books and other references are just a "point and click" away. You can even buy CD's listing every household in the US (it takes 7 of these disks to hold all that information).


Craig Issod spends his days sitting in front of his Macintosh(s) (he has 7 or 8 now), and happily running Stoveworks and CHI associates, his consulting business. He hopes that one day soon he'll be able to earn a living as a computer consultant and writer, but fears that no one will pay him for his advice or writing.


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