2008 will be here before you know it, are you ready with what the market will throw at you in a couple of months. With 2008 just around the corner, now is a good time to start the discussion of what needs to be the focus areas in 2008 for the small business IT professional and small business specialist.In 2007 we experienced a tremendous amount of innovation in the small business technology world. Innovation included releases of a new desktop operating system, new productivity suites of applications and enhanced methods to share information and communicate with each other. 2008 will be no different! The excitement around new versions of the Windows Server operating system that will scale from the smallest of business requirements right through to the largest of enterprises offerings. Plus we will see new innovation with how business manage, share and secure corporate data and how applications are written that deliver solutions to today’s global economy.However, I personally do not feel that our focus be totally on the ones and zeros around all of this new technology. Small business owners, managers and users today do not care about what the technology specifications are, they have business needs that must be addressed and they need to be running all the time. Downtime, breakdowns and complicated solutions are not an option in today’s one world market.Where will today’s IT professional or small business specialist be focusing their efforts for the upcoming year in order to grow their business sustainably in 2008? Here are some ideas to kick start the planning processes for 2008:Focus on people – Small Business does business with those who they trust and can establish a relationship with. It is not about the speeds and feeds any longer, small business owners don’t care about how fast something runs or how much memory is in a laptop. Meeting business needs is no longer expectable by throwing technology at a problem, it is now about exceed expectations and having their technology investments work. The systems or software most of the time is transparent to the end user.The importance of data – Having their data accessible and secured is very important to small business. Data has to be managed and controlled and combined with ease of access. Complicated file shares and network systems are no longer acceptable to the end users. Data must be accessible to enhance collaboration and sharing throughout any organization. Small Business IT firms that understand and promote the importance of data, who can offer their clients services like the SharePoint Starter Site and Exchange mail services through their mail clients, mobile telephones and web access will win in the end.Securing Small Business – As the world shrinks in size when it comes to business, emerging threats continue to show their ugly face and threaten commerce. Securing small business will continue a challenge for the small business specialist. It must be a main focus for many of us in the IT community. Luckily, we haven’t seen a major virus outbreak for a while; however, the threats are still out there. Educating small business against the threats from social engineering, corporate espionage and also the “threat from within” must be a major focal point in 2008. As social networking gains momentum, small business needs to understand the importance of ensuring information flow is secure without jeopardizing productivity. Small Business IT Professionals that offer their clients a managed firewall service that controls SPAM, virus, spyware and other threats will have a competitive advantage of those who offer transactional firewalling solutions.Business Process – How small business does business will be an important trend for the small business IT professional to understand in 2008. If a small business consulting firm can master how small business does business and how information flows within their clients will end up ahead in 2008. Business Intelligence services that once purely an enterprise play will start to move into the small business space. Those who master this will come out of 2008 with a definite advantage.IT as a Service – Managed Services is all the buzz in the SMB community it has been for a number of years, however, in 2008 the focus on “as a service” will grow, firms that can offer software or hardware as a service will have a competitive advantage over those who do not, and those that can bundle their complete IT solutions as a service will win in the end. It will no longer matter how it is structured from a billing perspective, (annual, monthly, weekly or hourly) the service component is the important key and this is what small business is after.The Complete Solution – SMB consultants that can deliver the complete solution will win in 2008. This is nothing new, small business wants a solutions partner that can offer the complete end to end offering. From systems, software, solutions and service, today’s small business client needs to be “under” one umbrella. Partnering will continue to be an advantage in the marketplace. Partnering to extend geographic service, specialty services and complete services must be on the top of your list to achieve in the early part of 2008. Those firms that can extend their service offering to other partners will have a strong advantage over those who just stick to their own small silo.Marketing – The small business consulting firm that can market all of this effectively will hold the trump card over those that do not see the importance of marketing. There has been a lack of focus on the importance of marketing with small business partners over the past few years, while those that continued to actively market have grown faster and have separated themselves from the masses. Small Business partners must have a resource dedicated to marketing in 2008. This can be outsourced or hired in-house. One word of advice to the owners of small business firms, you are responsible for the strategic marketing direction, never outsource that component. If you are not comfortable with marketing, seek the advice of someone who can help you. There are a number of great marketing coaches and consultants that can assist you.Strength in Peers – Teaming up with peers will continue its strong momentum in 2008. Once again, no IT firm can know everything nor do everything. This is where having a strong peer group relationship is vital to the success of your business. Information and idea sharing, technical specialties, and relationships are keys to success in the IT business. TechSelect and Heartland Technology Groups offer peer group services to firms that specialize in small business and are open to sharing information, best practices and resources with each other. Our involvement in the Heartland Peer Groups has been a key to the success of my business and offers us a competitive advantage over firms that have not engaged in this business practice.”I think the marketing continues to present great opportunities for partners who execute, deliver great service, and provide true solutions to clients…and that’s where we’re focusing for 2008,” states Erik Thorsell, President of Minneapolis’ Success Computer Consulting. “Managed services support for network infrastructure is important, but that doesn’t get our business owner-clients excited…solutions do! If we can provide technology that solves business problems, makes work better, faster or cheaper, then we all win!”2008 will be an exciting year in the small business space across the globe, boundaries will continue to disappear in our global economy, peer relations will strengthen, and collaboration will continue to become more and more important to small business, however, it needs to happen in a secure fashion so that small business can maintain a competitive advantage in the marketplace that they service.

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.

Fundraising Auction Tip: You should always provide potential bidders with a printed Auction Listing of both your Live and Silent Auction items at any Fundraising Auction. A printed Auction Listing is vital for several reasons:

An Auction Listing informs bidders of the order of sale, and what is coming up next. If you keep your bidders guessing, they will simply not bid.

If bidders are not 100% certain of what they are bidding on, they will not bid. A printed Auction Listing should answer any and all questions about what is being sold in order to encourage bidders to bid as much as possible.

Bidders often need time to plan their bidding strategies, especially on multiple and/or larger value items. A printed Auction Listing helps them to do that.

Couples often need time to consult with each other about what they are willing to spend on something. A printed Auction Listing helps them to do that.

Potential bidders need to know the specifics, the benefits, and the restrictions on any item they are going to bid on, especially on travel and/or other higher value items. A printed Auction Listing should answer all of their questions, in writing.

After bidders see that they have lost an item to another bidder, a printed Auction Listing makes it easier for them to re-strategize on what else they can bid on.
Printed Auction Listings generally come in 3 forms:

Printed in the Event Program or Auction Catalog.

Printed on loose sheets of paper and hand-inserted into the Event Program or Auction Catalog.

Printed on loose sheets of paper and hand-delivered to all attendees, or left on each dinner table in the room.
Auction Listings cost practically nothing to produce and they can make the difference between the success and failure of a Live and Silent Auction. You should never conduct a Fundraising Auction without one.

A Case Study

Let me share a real-life experience with you. Once I was hired to conduct a Fundraising Auction for a nationally renowned organization. The event was held in a major hotel, in one of the country’s largest cities, with several hundred “black tie” participants attending. It was an extremely professional event, with the music, singing, lighting, speeches, and awards all perfectly timed and choreographed. Everything was done to perfection… exception the Fundraising Auction.

Although I had signed an agreement to serve as their Auctioneer nearly one year in advance of the event, no one bothered to contact me for any advice or help. Approximately one week prior to the Auction date, I contacted the group to see if they had replaced me with another Auctioneer. But they said that I was still their man.

Upon arriving at the event I asked for a copy of the Auction Listing. I was told that there were none. I’m not sure whether they felt that the Auction Listing wasn’t necessary, or whether someone forgot to have them printed. This was never made clear. When I asked what I was to use at the podium, I was told to copy the list of Live Auction items from a committee member’s computer. It took me about 30 minutes to copy three pages of hand-written notes in order to prepare for my role as their Auctioneer.

I knew that they had created a PowerPoint program showing the various Live Auction items. When I asked whether the PowerPoint slide order corresponded to the order of sale I had copied from the committee member’s computer, I was met with a blank stare. The committee member left to check the slide order, and returned to let me know that the slide order did not correspond my notes, and he provided me with the correct slide order… hand-written on a paper napkin. This forced me to re-arrange my three pages of hand-written notes before taking the podium.

There was a Live Auction Table with descriptions of the Live Auction items that were to be sold, but the table was not clearly marked, and it received significantly less attention than the Silent Auction Tables, which were clearly identified. Since the Live Auction Table was located adjacent to the “Raffle Table”, it appeared that most people thought it was part of the raffle and therefore paid very little attention to it.

According to the event program (which did not include an Auction Listing), I knew approximately when I was to begin the Live Auction. At the designated time the Master of Ceremonies announced the start of the Live Auction to the several hundred people in attendance, and introduced me as Auctioneer. As I approached the podium I realized that photographs of award winners were still being taken… directly in front of the podium where I was to stand… which required me to stand aside for several minutes until the photographers were done. Can we say “awkward moment”?

As the photographers cleared, I approached the podium and began my Live Auction introduction. Approximately one minute into my introduction, the “Raffle Committee” approached the podium and stopped my Live Auction Introduction in order to pull the 8 or 9 Raffle Winners. These drawings lasted about 5 minutes. Upon it’s conclusion I was allowed to resume the start of the Live Auction.

When standing at the podium two intense and extremely bright spotlights were pointed directly at the podium. The lights were so bright that I literally could not see the center 1/3 of the room. I could see the tables on the right, and on the left, but was totally blinded when looking straight ahead. It took perhaps five minutes before the spotlights were turned off.

While at the podium and describing Lot #1, I had to ask someone to start the Lot #1 PowerPoint Slide… because apparently no one was assigned that job.

So with only the Auctioneer’s verbal description, and a PowerPoint slide, it appeared that few people in the room had any idea about what we were selling… or when we were selling it… until it was announced by the Auctioneer. As a result, bidding was extremely light and the final results fell several thousands of dollars short of where they should have been
The learning experience is this:

The Live Auction is where you place your better items, and where the real money should be made at any Fundraising Auction. Let bidders know as far in advance as possible what you will be selling, and the order of sale, so they can get excited about the Auction, and plan their bidding strategy accordingly.

Auction Listings are absolutely vital to the success of both Live & Silent Auctions. In my opinion, revenues at this Auction fell thousands of dollars short of where they should have been, because no Auction Listing was provided to the guests.

If bidders are not perfectly clear on what is being sold, including both the item’s specifics, benefits, and restrictions, they will not bid.

When you have a committee of volunteers, especially volunteers having full time jobs and/or very busy schedules, the services of a professional Fundraising Auctioneer can help to keep the committee on track.

And once you retain the services of a professional Fundraising Auctioneer… use the services that you are paying for.