1. Don’t buy a Cadillac when all you need is a Chevrolet. Microsoft has lured us into believing that we should have software with every feature possible. We will never use most of these features, but we still pay for them. Only buy what you need. There are plenty of free and inexpensive applications out there that will get the job done.  For example OpenOffice vs. Microsoft Office, Quicken Home and Business vs. QuickBooks. Make sure you are getting what you need, not paying for what you don’t need.

2. Technology doesn’t solve problems. People solve problems, and sometimes they use technology to do it. For example If your accounting person cannot accurately write checks by hand, a piece of software won’t solve the problem–I know from experience. Your technology is only as good as the people who are using it, and the procedures you have in place to run it. Make sure you have the right people and procedures in place before you get new technology.

3. Don’t buy a solution looking for a problem. Too many people (me included) will get the newest gee-whiz tool out there, and then try to come up with a justification for using it. For example buying a PDA when you Paper Organizer works fine; all that’s going to happen is that your going to be disorganized until you go back to the paper organizer.

4. If you are putting in new technology have a plan. It is true with technology that those who “fail to plan, plan to fail”.

5. Keep it simple. If all you need are two computers that can share files, don’t put in a full fledged network with file servers; Don’t host your own email if you don’t have to; Don’t write software if you can buy it; and so on.