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In 2011 it was Sony, Epsilon, and U.S. government sites among those who had fallen victim to computer hackers.

With the New Year under way, word comes from Israeli officials that the country’s stock exchange and its national airline had their Web sites paralyzed on Jan. 16 by a Middle East hacker network. While officials said the sites did not contain sensitive information impacting both trading and the safety of passengers, there were concerns nonetheless. And given that Israel is a security-focused country, it comes as no surprise that these recent cyber-attacks have left officials looking for improved ways to protect such information. El Al Israel Airlines reportedly took down its Web site after a hacker warned that the site was being targeted by a number of individuals who are pro-Palestinian. Meantime, a spokesperson for the Tel Aviv Stock Exchange reported that the site was inundated by electronic requests that brought it to a crawl, however it was still operating. Trading was not affected, according to the spokesperson. Given this is the latest of much publicized hacking attacks worldwide, it should lead more and more businesses to think about what Internet security precautions they have in place to prevent such events.

According to a 2011 survey from Ponemon Research of nearly 600 U.S. businesses, 90 percent of respondents reported their organizations’ computers had been breached at least once by hackers over a one-year period. Meantime, close to 60 percent stated that two or more breaches had occurred over the past year. If your company’s site is vulnerable to attacks, there are steps you can and should take to lessen the dangers.

Among them are:

  1. Put in place a firewall - The firewall is the buffer that keeps hackers and viruses away from computer networks. Firewalls intercept network traffic and permit only authorized data to come through;
  2. Put together a corporate security policy – Put in place a corporate security policy that details practices to secure the network. The policy should educate employees to select unique passwords that provide a mix of letters and numbers. Passwords should be switched every three months to lessen hackers’ ability to obtain possession of a functioning password. When someone departs the company, the appropriate personnel should immediately delete the user name and password;
  3. Install an anti-virus software program - All computers in the office should run the most recent form of an anti-virus protection subscription. Also educate your employees regarding viruses and discourage them from opening e-mail attachments or e-mail from senders they are not familiar with.;
  4. Update your systems regularly – Just like you update a car or other items you use regularly, it is important to update your computer’s virus protection software. Schedule a time to regularly do this so that all your office computers have been checked and are shown to be running the latest virus protection programs. It is also a good idea to not run unnecessary network services that may be on your office machines, but are not frequently used. Such programs can fall victim to viruses because one forgets about them and then goes to use an unprotected service;
  5. Backup your data – Lastly, make sure that all your data is properly backed up. In the event your office computers are hacked, both the operating system and the software programs can be reinstalled, however, data can only be restored in the event it is frequently backed up.

Dave Thomas, who covers among other items starting a business, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

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We’ve written before about disaster recovery plans, and whether disaster recovery is even possible when your data is in the cloud. You might think we’d be safe from real disasters here in the Pacific Northwest; the reports we’re seeing today about impending hurricanes and oil rig explosions are all happening far away.

But a little event only a block or two from our office reminded us why we no longer host our websites here in our building, and reinforced our decision to backup data to both local and distant digital drives:

Exploding manhole covers

What’s your company’s data backup and recovery plan? How would you deal with losing power – or even losing your physical office – if the fire were on your street?

Sara Prentice Manela
Editor

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It’s a lot more expensive to get new customers than to keep the ones you have, so why not take advantage of that? Business models that create brand loyalty or have high switching costs help you keep the customers you get.

Bait and Hook
Ever noticed that you spend far more on razor blades than on the razor? Or that laser printer which sounded like such a good deal, but requires expensive ink cartridge refills? Companies using the bait and hook model make most of their money from components rather than the initial sale.

So long as the cost to the customer to switch to a different brand is higher than the periodic outlay for new components, most customers will stay with your brand. And if it’s a good quality product or service, you can bet they will tell themselves they’re staying because they LIKE it. Kind of makes you wonder what would happen if petrol companies started giving away cars for free. Cars that only work with their particular brand of gasoline, of course.

Franchise
McDonald’s, Starbuck’s, Tesco (for Brits). Immediately, you can visualize the sign, and have certain feelings about the brand. A franchise model leverages a customer’s desire for the familiar to create loyalties across towns, and even across countries. By using the same lighting, signage, quality, and (sometimes) pricing in each location, the franchise reassures customers that they really can get what they expect, whether they are across the street or across the world.

Subscriptions
Newspapers and magazines know how this works, and Saas (Software as a service) businesses are figuring it out. Offer someone a discount to sign up for a lengthy contract, instead of buying piecemeal, and take in that revenue every month. Of course, there are some pitfalls. Dharmesh Shah of OnStartups warns that with a subscription model, you are financing your customers - you provide the service, and fund all the sales and marketing upfront, and only get paid in little chunks over time. If you don’t keep customers long enough to recoup your acquisition costs, you’re losing money.

If you don’t have customer loyalty built into your business model, you should. Impress the heck out of them. Keep them coming back for more and referring their friends. It’s good for your business, and it’s good for your customers.

Find more examples of effective business models at Bplans.co.uk.

-Sara Manela

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2010-08-13_0952

The BBC World News – Business Daily speaks with Palo Alto Software CEO, Sabrina Parsons about family succession.

2010-08-13_0952The conversation touches on the topics of “good and bad nepotism” and the worry that if family-run businesses don’t pass down from parent to child, the outcome for the business can in some cases be quite dire.

Both Tim and Sabrina have talked extensively about this topic before, check out their posts Serendipity Succession, Father and Child and Nepotism vs. Family Business.  It’s nice to hear a refresher on the preconceived notions of a daughter stepping into her father’s shoes and how that has personally impacted Sabrina since taking over the company.

Sabrina’s interview starts around the 9:20 mark.

BBC Podcasts – Business Daily News with Steve Evans – Nanny State or caring government? Aug 13, 2010

‘Chelle Parmele
Social Media Marketing Manager

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So, maybe you’ve got some nifty new idea for generating value for your customers, or your company. Why bother writing it down, outlining it in detail, or even trying to explain it?

1. Your investors and lenders
If you’re asking for money, you’d better be able to show how it will be used, how it will generate more money, and how your use of the money is better than other opportunities an investor has.

2. Your employees
Your employees are used to doing things one way. Introduce a new product, a new customer base, or even a new logo and you’ve got some explanation to do. Introduce a new business model – the underlying foundation of how your business operates – and you have a lot of re-education on your hands. You need to be able to talk about why you’re switching, how their roles are changing, and what success looks like for each of them.

3. Your customers
Every interaction a customer has with you or your brand is part of your marketing. Your customers should be able to understand how you give them something of great value, and how you get compensated for this, whether the message is implied in the phone manners of your sales staff, or spelled out in a license agreement.

4. You
You can’t understand your real competition or opportunities if you don’t fully understand your business model. A razor-and-razor-blades model creates a different kind of customer loyalty than a franchise model. A subscription model, like a newspaper, has different competition from substitutes than an affiliate model. Write it down. Spell it out. Poke holes in it, and invite others to do so. Rework, rethink, and keep planning as you test out what your business model can do for you and your customers.

Read more about how to use your business model at Bplans.co.uk

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iPad and Startups

by Chelle Parmele on January 28, 2010

Fascinating article from ReadWriteStart about what the iPad could possibly mean to start-ups. In a word? Instant Demos.

“Startups and entrepreneurs will benefit immensely from the ability to create documents, spreadsheets and presentations on-the-go, allowing them to take their product pitches with them wherever they go. When they meet people at events, they can whip out their iPad and flip through their Keynote presentation right then and there.”

Read the rest of the article at ReadWriteStart

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hm

Fascinating story in the New York Times about a New York based H & M clothing store destroying unsold merchandise and then dumping it into the trash. The article points out that in NYC, a third of the city is considered “poor” and in need of warm clothes, coats, hats and shoes. Finding bags and bags worth of unsold clothing destroyed and abandoned was pointed out as being unnecessarily wasteful on the part of the store management.

The other side of this coin, however, is the cost of business.

Where a consumer sees un-necessary waste, a business sees a program to safeguard their interest and business health.

hm

Let’s say it becomes general knowledge that H&M will throw away racks and racks of perfectly good clothing at the end of every season. Would a consumer still be willing to go into the store and purchase that adorable green coat for $129 dollars if they could dumpster dive for it three months later for free?

After this article in the NYTimes ran, H&M released a statement saying they would no longer use this practice of disposing unsold product. Instead they would donate it to a local charity for dispersal to people who truly need it. [Kudos to them for seeing the need to react swiftly and decisively to a growing negative public discussion]

Interestingly enough, H&M Corporate has an entire section on their website dedicated to “Corporate Responsibility” which shows a real commitment to sustainability.  This incident could have been a case of a single store not wanting to take the trouble to follow policy.

For the sake of business, I would love to know what this is going to do to this particular store’s bottom line. I am assuming they were destroying in field for a reason, not just for the fun of slashing hundreds and hundreds of items. There’s a cost to everything a business does. From shipping to restocking to disposing of the fabric in a “proper” manner. At what point in this decision process did the end game tip from “this is what we should do” to “this is what we will do”.

So, if you are H&M, what do you do? Continue to destroy clothing to avoid loss of sales and market saturation…. or switch to a more sustainable method and go through a charitable agency to donate that unused clothing?

‘Chelle Parmele

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Ask Seth Anything

by Chelle Parmele on May 14, 2009

On May 11th, Ted.com gave people the opportunity to ask Seth Godin anything.

And they did. And Seth answered.

This one I particularly liked:

How can small business coffee shops survive a Starbucks next door?Pascal Lacroix

By being not only different, but better in ways Starbucks cannot. You can’t win by imitating them. Consider having a membership fee, or a different social group. Serve a different item, in a different way, at a different price. Emphasize the ‘Cheers’ friendly element over the ‘get in and get out’ mindset. Exclude certain people or practices. Offer clothes or community performances … stuff they can’t do!

You can read the rest of the questions and answers by going to the TED website. Ask Seth Anything

‘Chelle Parmele
Palo Alto Software

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It’s no secret we’re big fans of John Jantsch around here. So it was exciting to read about a new webinar he’s involved in concerning something we get a lot of questions about.  Branding.

John writes:

Please join me and a very fun panel of small business branding pros on Wednesday, March 18th at 11am CDT for – The “Truth” About Small Business Branding – using your small business brand to outsmart the competition – a panel discussion featuring practical branding tips and tactics from leading small business branding experts.

Panelists:
» Karen Post – The Branding Diva & Author of Brain Tattoos
» John Moore – Creator of Brand Autopsy & Author of Tribal Knowledge
» Sam Horn – Author of Pop! – Stand out in any crowd
» Aaron Weiss – Chief Product Officer for MarketSplash

This won’t be your typical Branding 101 discussion, trust me, these guys get small business.

Register here for the Truth About Small Business Branding

Definitely a webinar to  make time for!

‘Chelle Parmele
Social Media Marketing Manager
Palo Alto Software

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Save the date!

The SBA website announced the date for annual National Small Business Week 2009: May 18-22

The three day event will be full of awards, networking opportunities and different forums covering subjects from “Growing your Small Business: Lending, Government Procurement and International Trade” to “Hot Topics Effecting Small Businesses”

There will be more information as the date approaches. Registration to attend will be available “soon”.

National Small Business Week 2009 Website

‘Chelle Parmele
Social Media Marketing Manager

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