A technology tune-up.

HandySolutions LLC makes its first big leap into the high-tech world -- on a limited budget, of course

Fifth in a 12-part series

During the past several months, our series has shown that business owner Joe Chambers, president of HandySolutions LLC, is feeling the same growing pains many small businesses experience during their start-up years.

To date, Joe has attempted to secure financing and get adequate insurance coverage for his business, but failed. In addition, he's looked into moving out of his home office and into an office facility to house the business's anticipated growth, but had to put those plans on hold.

And even as Joe has been concentrating on his core business concerns of positive cash flow and profitably growing his business, he has also proved himself a good father by heeding advice from his college-student son to implement some practical, cost-effective environmental programs.

Fortunately, Joe started listening to some strategic and tactical advice last month from two financial management consultants who told Joe that he really needs qualified outside sounding board advice, and warned him that he was straying away from core business issues that ultimately could imperil his company unless they were quickly and decisively addressed.

Joe didn't take that advice lightly. Instead of trying to do it himself, he hired an accountant and paid for part-time financial consulting management advice.

With a minimum of outside help, Joe is now focused on getting back to basics and planning for positive cash flow rather than relying on a checkbook management style that is driven by crisis. And finally, with project consultant Robert Sher's input, Joe put together a board of directors.

After three years of struggling, HandySolutions finally seems to be on a firm footing. During the first quarter of 2001, the once-shaky business has finally demonstrated bottom-line profitability and, equally important, a positive cash flow. Yet, as we all know, recovery doesn't happen overnight. Along the way, Joe has made some mistakes he still needs to remedy, including developing a financial roadmap for controlled growth.

This month's scenario: Unable to secure a loan without using his home as collateral, Joe decided to remain in his home office for now. In the meantime, HandySolutions needs a basic technological tune-up. With cash flow limited, his resources will not allow him to go high-tech immediately.

Currently, HandySolutions owns a Pentium III computer, a color printer and a fax/copier machine. Orders are taken and scheduled manually, and then placed in a Word program. Previously, books were also kept manually and later incorporated into the Turbo Tax software program.

The company cannot afford a $35,000 customized software package that performs scheduling, billing, payroll and other functions that promise to take care of all the company's needs. What can Joe do on a budget to take care of his company's IT needs?

This month's columnist is financial and managerial consultant Lawrence Gardner, president of Lawrence Gardner Associates in Troy, who helps Joe make his first real venture into the world of high technology.