Tuesday, June 1, 2010

Retail Management

Microsoft Business Solutions is Microsoft subdivision and historically it is joining several products development companies under one roof: Great Plains Software, Navision Software, Microsoft CRM (this one was developed by MBS), Solomon Software, SMS: QuickSell 2000 – which is now Microsoft Retail Management System.

Let’s first look at your ERP system selection (without Retail Solution). Your options are:

Microsoft Great Plains. If you remember successful mid-size application – Great Plains Dynamics, pioneered on Mac and Windows graphical platforms in the mid 1990th. This is now Microsoft Great Plains, Great Plains Standard and Microsoft Small Business Manager (scaled down Great Plains version, using he same technology – Great Plains Dexterity). Currently it is version 8.0, the only database platform option is Microsoft SQL Server/MSDE. Ctree and Pervasive SQL were abandoned, the last version, supporting these platforms was 7.5. You should consider Microsoft Great Plains if you are in: USA, Canada, Latin America, UK, South Africa, Australia – these are markets, where former Great Plains Software had successful penetration

Microsoft Navision. This product had success on European market and was developed by Navision Software, Denmark based software development company. In our opinion Microsoft bought this product in order to get European market share, especially continental Europe. Then, Microsoft Business Solutions realized that Navision is a good fit for countries with tight government regulation: taxes, chart of accounts (France and Russia), government reporting, etc. You should consider Navision if you have light manufacturing (we believe that Navision will be the base for future Microsoft Manufacturing suite) or located in the following regions: continental Europe, Russia, Brazil.

Solomon. This product has excellent Project Management solution and you should look at it if you are in the USA and have professional services or construction company.

Axapta. There are many different opinions about Axapta. We would like to withhold our opinion here and just tell you Microsoft Business Solutions opinion from Moscow – in Russia Axapta is successful and has approximately the same number of installations as Navision. Axapta is probably MBS stake on large enterprises market to compete with PeopleSoft (now Oracle) and SAP

And finally let us give you Retail Management System and CRM hints. Microsoft CRM is the only CRM option from Microsoft (in Navision you have Navision CRM module option – so this is an exception) and please, feel free to choose Microsoft CRM if you would like to try CRM from Microsoft. This CRM will be loved by your IT department, because it does use all Microsoft recent technologies: MS Exchange, .Net, MS SQL Server, Active Directory, BizTalk (integration with Great Plains), C# and VB.Net based MS CRM SDK.

Now – retail management. In the case of Navision – again you have retail module there. In all the other cases – you should try Microsoft RMS.

Home-Based Retail

You had a great idea when you decided to open a home-based Internet retail business. You became a "power seller" as people in the online retail business world call you. Your goal is to move tons of merchandise through Web auction sites and classifieds services without ever leaving the comfort of your home office. Drop shipping gives you the opportunity to accomplish your dreams and more. The sky is the limit if you know how to get your business off the ground.

Drop shipping can launch your business into successful orbit, but it isn't rocket science. With this unique way of doing business, you enlist the services of a wholesale merchandise company. The wholesale company takes care of the stockpiling and storing of your product. It even covers the shipping and handling charges when one of your customers orders an item.

This means you don't have to rent thousands of square feet to warehouse your inventory, and you're free from the liability that comes with direct delivery to your customers. Your only expenses are the membership fee of your particular wholesaler, along with the fees and percentages you lose to advertising and auctioning online. If you play your cards right with these fees, you can build yourself a very cost-effective and most importantly, profitable-home-based business.

Experienced online retailers have learned the tricks of the trade to do just that. Here are the key secrets that they, your competitors, don't want you to know. These three tips will stack the deck in your favor, helping you to grow your clientele while avoiding the pitfalls of doing ecommerce.

Get sold on your wholesaler. Nowadays, wholesalers are a dime a dozen, so don't settle on the first one that comes your way. Let wholesalers compete for your business, instead of the other way around. Many companies may offer specials to new prospective retailers. They may waive the minimum order requirements, credit check, and prepayments if you sign up with them. Top-notch wholesalers could also offer international delivery or special net payment options. Avoid high expenses at the get-go by taking advantage of such specials, and turn a profit a lot quicker.

Sniff out whole-scammers. For every honest wholesaler looking to build a successful relationship with you, there's a crook out there looking to do nothing but build his bank account at your expense. Avoid any wholesaler, for instance, who demands you pay an advance fee before you sign up with them. Be wary of wholesalers who claim to have thousands of items in their selection. These might not be wholesalers at all, but middlemen who are trying to bluff you. Instead of actually stocking these thousands of products, they actually buy them from a wholesaler, or another middleman, and resell them to you at a jacked up price, thereby cutting into your profits.

Get wired to the Web wisely. You now have a trusted Wholesaler and outstanding products to move, but so do thousands of other Internet retailers. How can you stand out to attract customers and save money doing so? One way to make a mark online is to design and write your own ads for your products. Many wholesalers provide complimentary stock product photos and descriptions that you can use in your online ads and classifieds. Then again, they provide the same thing to all their retailers. Most retailers use them. So you shouldn't.

Another effective way to sell on the Web is to find new and innovative sites to sell on. The main auction sites are often crowded with retailers who are eager to undercut your prices. Plus, these auctioning sites tend to have high fees and shorter listing durations. Avoid competition and high prices by trying the next generation of premiere selling sites, such as free online classified sites.

Free online classifieds services work as powerful avenues to sell your goods. They offer attractive features your business needs to take off, such as:

No sign-up, registration, or transaction fees.
Free listing (text description and image upload).
Up to 60-day ad listing. This listing duration is light years longer than most other sites and renewals are free as well.
Distance calculator. This function comes in handy if you're concerned with locality.
These free online classified sites can be the ace up your sleeve, whether you're just launching your home-based Internet retail operation or trying to shoot for the stars with an established business. Strap yourself into your chair and count down to ignition.

Accounting/Retail Market

In this small article we will be looking at the new opportunities for Microsoft Small Business Server specialists, but rather look at the global business strategy and possible ways of future ERP modules standardizing and interoperability. This is important to get into consideration for midsize and large corporate business IT decision makers. Let’s look at the chronology and possible future development.

• Great Plains Software acquisition. When Microsoft took leading position on the operating system market and released stable and reliable Windows 2000 Server, the next logical step would be getting into ERP market. Microsoft decided to try midsize market, and the reason is probably this – it is wise to create small accounting as the extension to Microsoft Office, not to purchase existing small application. However if you plan to try midmarket – you better purchase something established with broad client base. Developing midsize package from scratch might deplete all the resources. As the stake on Great Plains was high – Microsoft formed business systems subdivision – Microsoft Great Plains Business Solutions, later on Great Plains name was taken off and now we see Microsoft Business Solutions.

• Navision Software Acquisition. There are multiple opinions among the MBS partners. Considering the fact that Navision Attain had strong clientele in Europe, and the fact that currently MBS promotes Navision on the majority of emerging markets: East Europe, Russia, Brazil – the point of view that Microsoft got very large pool of clients in Europe and one of the goals of Navision acquisition was geographic expansion.

• Axapta. Navision Software was indeed very robust and it was one of the Danish software “dragons” (in the good sense of this word), the other nice company was MacHanza. We would like here to credit Danish ERP vendors. Axapta was new product on the moment of acquisition and it is rich-functionality ERP and so – a rival to SAP, Oracle Financials, PeopleSoft

• Small Business Manager/Small Business Financials. This was natural way of downsizing the functionality of Great Plains Dynamics/Microsoft Great Plains to gain small business market. Small Business Financials is Great Plains Dexterity written accounting package. You see similar marketing moves from SAP and Oracle sides.

• Small Business Accounting 2006. It took Microsoft about four years to feel itself comfortable on the ERP market before it decided to create its own small business package, targeted to take over market share from QuickBooks, MYOB, PeachTree. Small Business Accounting 2006 is really nice application, which is excellently integrated with Microsoft Office/Microsoft Outlook. Microsoft is right – majority of Windows users spend their computer time in Microsoft Outlook and Microsoft Excel. And it create accounting application, allowing you to do 50% of work from Microsoft Outlook directly

• Microsoft POS. As you know that there are several thousand small retail businesses in the USA, using just one cash register and these folks have to use a lot of small Retail Management applications, which are competing on this market for a long time. And it is a good momentum to take over this unreliable and turbulent market offering cheap and solid rock solution, working with POS devises. Please, take into account that Microsoft has another high-end Retail Management system – Microsoft RMS, which can automate midsize and huge retail stores and chains.

• Market is taken over? Well – the last flint of Microsoft Small Business Accounting and Microsoft POS give customer an option to stay in Microsoft framework from the company inception till going public as a large corporation. This fact would be very difficult to ignore for such folks out there on the market as BestSoftware, SAP, Oracle, Sun.

Right Retail Premises

Finding an Area that Encourages New BusinessesThroughout the UK, there are many cities that have created specific plans devoted to encouraging new retail businesses. Norwich, Northamptonshire, Oxford and many other communities have focused their efforts on encouraging, developing and sustaining new retail establishments, business sectors and the infrastructure needed to promote investment and success.

In Part I of our two-part article devoted to helping you choose the right premises for your business, we will consider what defines a supportive municipal environment for new companies. Although there will be individual nuances you'll want to bear in mind when selecting the specific address for your storefront, there are broader issues to be evaluated first before you choose the community in which your company will reside.

Regional and National ReputationFirst, starting a retail establishment in a city or area that has an economic plan devoted to developing and advocating its regional and national reputation is desirable. If a municipality is willing to put forth the effort to attract various types of companies, especially large employers, then the ground will be fertile for retailers. Also, there is likely to be development money for new businesses.

Business DiversityRegions that are interested in an economy that embraces various types of businesses tend to create a more stable trade environment. If there's a focus on one sector, such as high tech, and not much else, the local economy will ebb and flow as does that one enterprise category. Additionally, a mixture of small, medium and large companies tend to offer more opportunity due to the range of business traffic they attract.

Emphasis on EducationA city that wants to develop workforce that is continually being educated is a city that will foster ongoing growth. Searching through history, one of the trends one discovers is that economic instability occurs when workers are unable to adapt through education to changing developments in technology, business opportunities and economic shifts. Also, there is a direct relationship between continued education and earning power, which translates into more dispensable income that can be spent at local retailers.

Sound Economic Development PlanA city or region that has created a well thought out economic development plan is one that has the best chance at succeeding. The plan should include a five to ten year timeframe and a commitment to reviewing and modifying the plan bi-annually of annually.

Key elements in any plan include:

A coalition of government, community and economic sources devoted to implementing and supporting the plan.

A clear description of challenges that the municipality is going to undertake.

Specific goals relating to the workforce, investment and educational opportunities.

A description of constituents to be served.

A specific course of action, which is outlined and detailed.

Particulars regarding the development of infrastructure.

A clear understanding of the strengths and weaknesses within that community.

A realistic statement of how the city relates to the region and nation as an economic, cultural and educational force.

A timeline outlining how the plan will be further developed or implemented.

With any plan, you are looking for a reasonable analysis of the existing situation and how it will be altered. Many plans will denote specific geographic areas that will be developed or will describe the characteristics of the types of neighborhoods they are interested in serving. Consider how your business will literally fit into that area.

Next StepPart II focuses on what you'll need to consider for your specific establishment. Along with reviewing this next article, if you're creating your first retail storefront, you'll want to read our piece entitled Developing a Solid Business Plan—Details You Won't Want to Forget.

Rollicking Internet Retail

Even with the dot com bust of the late 90s, the number of entrepreneurs who have successfully leveraged this powerful medium to sell products, services or information and become millionaires in the process is phenomenal.

Setting up an Internet business is easy. Running it successfully is slightly more challenging. Which is why countless new Internet businesses emerge every day, only to fold up immediately or wind up slowly in a few months’ time.

The truth is that most of these failures are due to inadequate planning and preparation; the Internet still provides one of the easiest means to realize one’s dream of running a successful, low-cost and highly profitable business.

Based on my own experience with running several online businesses, mainly niche Internet retail stores, I am confident that some due diligence before embarking on the Internet retail business will go a long way in ensuring its success.

At a very broad level, an aspiring online retailer needs to follow three key steps to get the business running successfully:

• Market research and planning

• Setting up the online store and streamlining the operations

• Marketing: Attracting visitors to the store and converting them to buyers.

In this article, I will briefly cover the first aspect, ie. research and planning.

Research & Planning: Laying a strong foundation to your online business

This is one of the most neglected aspects, simply because aspiring entrepreneurs often get carried away by the overall simplicity of getting their online business up and running.

However, identifying the right niche is absolutely critical. Get this wrong and your Internet business will flounder.

Here’s how I recommend going about identifying a niche market (http://www.internet-retailer.com/product_map.htm) (we’ve used this process quite effectively). Consider the factors below, address some of the questions listed and you are well on your way towards e-commerce riches:

• Market and market size: Determine if there a market for the product you are trying to sell online. It is important to know whether the targeted buyers of your product purchase online! Once you have estimated the size of a market, it will be prudent to see if the market can be further broken down into more narrow niches with lower competition and potentially better returns.

• Search potential and competition: Analyze the volume of search traffic (both free and paid, preferably the former) that you will be able to generate, as search traffic is among the lowest-cost means of getting visitors to your website. There are several tools available to do this, the most common being the Overture (Yahoo! Search Marketing) search term suggestion tool.

• Competition: Are there big players in the market you are targeting that you need to be wary of? There is certainly no shame in locking horns with the big players but you need to be aware of them and find out means to be better than them. In fact, being a small company/ business might even work to your benefit!

• Profit margins: Does the product offer sufficient margins to make it a viable, sustainable business? Take into account all the costs that you can readily identify and add a certain percentage to it to estimate your profit margin. Remember you can only be better off when you’ve planned and prepared for a worst case scenario.

• Product supply: Can you ensure regular supply of the product? Which suppliers would you like to source your products from?

• Logistics and fulfillment: Does the product you intend to supply involve high shipping and handling costs? Does it require significant level of customer support and other specialist resources? What is the likelihood of product returns and how much should you factor in your estimations?

Once you have addressed all these questions to base your decision on the choice of the product(s) to sell, you would have laid a reasonably strong foundation for your online store. Moreover, this research will enable you to formulate strategies in building your website and its marketing. The next step is to build on that strong foundation and begin executing on the strategies you’ve drawn up, which I will cover in a subsequent article.