By now, we’ve all heard 2009’s ballad of loss. Last year was no cakewalk for many Americans: The fallout from the near collapse of the financial industry, the upending of the real estate market, and record-high unemployment rates were nothing to sing about. Despite the overall gloom, some entrepreneurs knew brief moments of hope, particularly those who invested in technology. Their small outlays in hardware, software, and social media resources helped them to do better financially.
So Black Enterprise invited owners of large firms, single-person shops, and part-time businesses– or somewhere in between–to share their stories with readers. We asked one simple question: How have you used technology to make over your business? We received numerous responses to our tweets, as well as to our Facebook and LinkedIn queries, and selected three companies that reflect the variety of resources available and the ways in which even a small investment can make a huge difference in revenues, outlook, and mindset.
Company: Nancy Alert & Associates L.L.C.
Principal: Nancy Alert working under RE/MAX Allegiance
Location: Northern Virginia and Washington, D.C. (also licensed in Maryland)
Type of Business: Real Estate
2009 Revenues: $200,000-$250,000
In real estate, 2009 was just an ugly year. I decided I needed to get back to revenues of the year past, when I was making real money. I wanted to do what I could to make myself stand out and measure those efforts to see if they worked. So I implemented a number of new (to me) technologies to improve productivity and save time.
I have added DocuSign to my business. It costs $19.95 per month, with no contract required. You can cancel at any time or just order a month here and there. With DocuSign I can get my clients’ signatures on a contract or lease, even if they do not have a printer or fax machine. I send the contract to my clients via e-mail with a link to DocuSign; then they adapt a signature and sign and initial where indicated, and that’s it. I e-mail the signed contract to the other parties.
Another service I use is eFax ($9.95/month, discounted through RE/MAX), which does not require any equipment or implementation on my part other than to start giving out my 800 fax number. If I am out of town and receive a faxed contract or lease, I can forward that e-mail to my clients, have them sign and e-mail it, then send that document to all parties.
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I have also invested in my tech education. I successfully completed a course called e-Pro ($349, discounted through National Association of Realtors), which helps real estate professionals leverage technology to increase sales. The e-Pro designation says you know how to work with the new technologies in real estate.
Because I decided this would be the year I got more tech savvy, I also invested in a Kodak Zi8 HD video camera ($179 on sale), which takes still photographs and video. I take photos of all my listings, and then upload them to my Website and to about 35 to 40 real estate portals. I also upload photos and videos of my new listings to Facebook and Twitter and to my blog. I can add more real estate-specific information on YouTube and other social media sites.
I have added the following social media tools to my online marketing efforts: LinkedIn, ActiveRain (real estate specific), RealTown (real estate specific), Plaxo, and several others–and they’re all free. These took a little time to set up, but are well worth the effort in terms of the reach they afford me.
The core thing you need to understand is that today, according to the National Association of Realtors, 80% of buyers search online listings. So you must have your listing at every place that the buyers are looking. Video serves a great purpose in that it ties in the whole social media experience. Videos are the first go-to for homebuyers–and not necessarily just for videos of the properties. It could also be a message you want to give to prospective buyers. Having a video on YouTube takes you to another level, and here is what I’ve learned: If you want to maintain your level in real estate or any sales business, you definitely have to be involved in social media.
I can attribute an additional $50,000 in revenues to the tech tools I’ve implemented and expect 2010Â revenues of between $300,000 and $350,000.
Company: NuJak Cos.
Principals: Frank Kendrick, CEO (right) & Timothy B. Jackson, COO
Location
Type of Business: Construction, property management, and real estate development
2009 Revenues: $10 million
Employees: 12
In our industry, time and money are synonymous. NuJak has invested in project management software to plan and manage construction projects efficiently, track our projects, mitigate delays, save time, and reduce costs. We have a fully integrated Project Management Control System (PMCS) that consists of Primavera P3 Project Planner, Primavera Expedition for document control, and Sage Timberline Office for cost control. The initial startup cost of the system we purchased (the P3 model) was $3,500.
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We also invested in training on the PMCS for all our project managers, field superintendents, and contract administrators. Training classes are conducted in one- to three-day seminars and run between $500 and $1,500 per employee.
Additionally, we outfitted all our field superintendents with laptops or PC tablets, air cards, PDAs, and digital cameras at a cost of $1,200 to $1,500 for each superintendent. Each person has direct access to the office server with a database of project information such as plans, specifications, schedules, logs, and project costs.
Using the PMCS, superintendents update project status with daily field reports, schedules, and progress photos. The PMCS can be set up to allow owners, architects, and/or engineers to access information and review the status of all project-related items. Web cameras are set up to monitor construction progress. This has significantly improved communication internally and externally.
We are in the process of replacing the laptops and providing all field superintendents with PC tablets (about $5,000 each) equipped with the PMCS, which will allow them to update project status as they perform field inspections. This will allow them to mark up discrepancies on drawings and forward them to the architect and/or engineer directly. In the past the architect/engineer would have to make a site visit to review the issue, which would take a couple of days.
Technology helped us change our bidding process, which saved time and paper. We set up an FTP (File Transfer Protocol) site and uploaded construction documents. Subcontractors get a user ID and password to access the FTP site so that they can view the documents and submit their bids electronically. This has almost eliminated reproduction costs and saved us
more than $50,000 per year. At first, a few subcontractors were reluctant to switch, but most adapted to the new system quickly. This has also improved the overall quality and sophistication of our subcontract pool.We have plans to incorporate a building modeling system that generates 3-D images of buildings with overlays of different exteriors, structures, and mechanical  systems. This would enable us to provide various pricing scenarios to our clients.
Recently, the team of Skanska and NuJak was selected to build the new University of South Florida Polytechnic campus’ signature building designed by world-renowned architect Santiago Calatrava. The entire campus will be designed and built with cutting-edge technology that will include a Building Management Control System. NuJak’s exposure to this technology will advance our position in the construction industry.
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Five percent of our yearly operating budget, approximately $20,000, is dedicated to technology and technical training, but the added efficiency has paid for itself many times over. Technology has saved time and money, and more important, provided a greater value to our clients. As a result of our use of technology, we became leaner and more efficient, which saves the company about $150,000 per year.
Company: Salome’s Simply Delightful Creations
Principal: Selena D. Cozart, Ph.D.
Location: Charlottesville, VA
Type of Business: Soap and body care products
2009 Revenues: $5,000
After running my business for a year, I finally gave myself permission to consider myself an entrepreneur and business owner. Until that one-year mark, I thought of myself as a hobbyist who was trying to earn enough to pay for materials.
I have a Ph.D. in educational evaluation and, in addition to the side business, I work full time as a diversity consultant, specializing in education, mentoring, and community development. I also have a background as an English teacher, college professor, academic adviser, and K-12 diversity coordinator.
My interest in handcrafted soap began as an outgrowth from my desire to make my own shampoo and conditioner for my locks. I was interested in hair and body care products that are natural and that eliminated the harsh chemicals often found in commercially made products. As I continued my research for the best places to order supplies for hair products, I found myself ordering from Websites that
catered to soap makers and chandlers (sellers of candles and soaps). The information on soap and candle making intrigued me and led me to another branch of online research–how to make body products. I started out by researching the market, looking at products, recipes, and procedures on various blogs, and on YouTube, as well as at sites such as Squidoo, ehow, and Expertvillage (which has since moved to eHow).I began making handcrafted soap and personal care products using vegetable oils. My products contain no animal fats or petroleum derivatives.
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So far, for Simply Delightful Creations, I have invested about $12,000. I typically spend 15 to 20 hours per week making products, and another 10 to 15 hours weekly on marketing, advertising, and networking to build the business.
I use an iPhone ($299, plus $120/month; AppleCare, $69; and MobileMe, $99/year) as my main point of contact and to help run the business. I also use the following apps: Vision Board, 99 cents; Twitterrific, $4.99; Soap, $4.99; The Best Camera, $2.99; Perfect Photo, $2.99; Camera Flash Deluxe, 99 cents; Red Laser, $1.99; and BlogPress, $2.99.
I am also in the process of adding Merchant Warehouse ($7.95/month, plus 2.1% per transaction), a credit card processing service that will streamline payment. The company also offers MerchantWARE Mobile, which means that I can do business from my iPhone while I’m on the go.
I use Facebook, Twitter, and Ning to create buzz about my handcrafted products. I usually post updates on production, pictures of products, specials that I am running, links, and updates to the Website. For example, in December, I ran a Cyber Monday special on my Ning site, which accounted for about 10% of my holiday sales. I was also a guest on the BlogTalkRadio show Lose Weight with Laura, where I made a special offer to listeners that translated into additional sales.
I have participated in Webinars with the Business Center for Entrepreneurship & Social Enterprise for coaching on how to start a small business online and with Handmadeology for advice on how to organize and manage an online presence. I expect revenues of $15,000 for 2010.
This article originally appeared in the March 2010 issue of Black Enterprise magazine.