Enter the giveaway at Sharing the HP Folio 13, deadline is Friday! (June 15, 2012)

I’m a sucker for a great keyboard.

I’ve worked with the Folio 13 for a couple of weeks now, and I find it an excellent and practical tool.

Almost any UltraBook could serve the basic functions that make it so handy: small, light, long battery life, and good wifi. I used it away from my desk. I held a Google Hangout from my front porch with it. I hauled it to New York City for BlogWorld Expo. (It was cool to leave the power adapter in my hotel room. With 9 hours of battery life, I never got close to using it all in a conference day.)

The HP shines over others with a good-looking design, a cool underside, and an excellent keyboard. I’m still impressed by the cool underside each time I use it on my lap. And as much as I write, the keyboard matters a lot. The touch pad is the only pain point so far: the buttons are too stiff, and I keep moving the cursor when I let my wrists touch the touch pad while I’m typing.

Call me a nerd, but I like the F keys arrangement. By default, they operate the hardware functions, like the keyboard light, the volume, and the screen brightness. To use them as F keys, you hold down Fn first. (Since we don’t use F keys all that much anymore, makes perfect sense to me.)

HP gets big bonus points for squeezing in room for the ports that matter most in my working world: ethernet for times when wifi bogs down, HDMI out for presentations, and an SD card slot for my photos. It can also use Intel’s WiDi for wireless display through compatible TV adapters, if I ever run into one.

New UltraBooks are rolling out this summer, but having been hands on with the Folio 13, I can tell you it’s definitely capable enough for my laptop needs.

The Folio 13 was provide to me by HP for my review and for me to keep. The agency was Edelman Digital.

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The PayPal Here triangle reader is sure to remind you of the Square reader.

It strikes me as quite similar to Square, but with some very important differences. Square has been very popular with rural small businesses including farm stands and all sorts of fair and festival exhibitors. I accept credit cards with Square at my liquor store now.

Like Square’s simple (and square) card reader that plugs into the audio jack of a smartphone or tablet, PayPal Here uses a simple (but triangular) card reader that plugs into the audio jack of a smartphone or tablet.

Businesses can snap a pic of a credit card to complete the transaction if the card reader isn’t available or the card won’t scan. It can accept checks the same way: snap a pic to deposit the check. In comparison, Square lets users key in a credit card number if a card won’t scan, but it won’t accept checks. On both services, the business pays a higher rate on “manual” credit card transactions (when it is captured by photo or by typing the number in).

Customers can pay without cash or cards using their PayPal account and the PayPal app on their smartphone. This is similar to the Square CardCase app, though PayPal has a much larger user base to possibly convert over to mobile payments.

Payments are deposited to the business’s PayPal account. The business can use a PayPal debit card to access funds immediately at ATMs. A bank account transfer is supposed to take about 3 days. Square deposits funds into the business’s bank account, usually the next day. I’m a little leery of having funds going straight to PayPal. For the volume of business our store does, going to an ATM or waiting 3 days would not be a good solution, but for smaller volume sellers, it could work.

The rate for credit card transactions is 2.70% currently, putting it slightly below Square’s 2.75% rate. Both services are mercifully free of monthly fees and other similar charges common with traditional credit card processing. Checks are accepted without a fee.

The iPhone and Android apps are said to be rolling out soon, and the card reader triangles are apparently on a wait list. I checked the Google Play Store (which used to be called the Android Market), but didn’t see it yet.

Bottom line: This is more bad news for traditional credit card processing and more good news for small businesses. 

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I’m not a QuickBooks user. I don’t run a small business. But I’m a family member, the family member that understands computers. I’ve spent time with parents and in-laws trying to troubleshoot and explain and update and install.

Recently, a family client wanted to update the QuickBooks version used to run a family business. Since I had installed the previous version, I was asked. I didn’t realize how long ago I installed the previous version. They were running QuickBooks 99. Perfectly good, of course, but things have changed since then. About the same time, I was offered the opportunity to look at QuickBooks 2012: the Official Guide as a review copy.

The timing was perfect.

This book is a comprehensive guide to QB2012, created in cooperation with Intuit. The opening section lays out how to start from scratch. Capachietti  tells you what information to gather for starting out. She also gives choices between the most detailed way (every transaction from the beginning of time) and less detailed ways (customer balances to date). She even tells you how to decide based on how far into the year you are.

QuickBooks gives many choices about the kinds of items you are entering (services, inventory, non-inventory). Because the family I was helping does a service (tanning hides for taxidermists), this discussion was particularly helpful. As I read through this setup section (140 pages), I realized some things we could have done better a decade ago. If you are starting to use QuickBooks, take the time to work through this section. It will shape the rest of your life with the software.

This is not a flashy book. There aren’t lots of fonts and bright headlines and graphics. Those are all in the QuickSteps book (see below). Instead, this book explains how and why things work in QuickBooks. It gives options, tells why you might want to use features (which is very helpful for those of us who experiment but don’t want to blow up the whole company. I discovered this approach when I read “Often, this feature is used shortly after you start using QuickBooks as a way to ‘start all over’.”) More than 10% of the book is table of contents and index. For most books, this would be padding; for this kind of book, it shows respect to the brother-in-law trying to get it right.

QuickBooks 2012: QuickSteps is the picture version of using QuickBooks 2012, also by McGraw-Hill. Lots of screenshots, lots of color in the layout, and one-third the size of the Official Guide. It covers the same material and would be helpful for getting going quickly. But I confess, I needed more explanations because of the way I learn.

Software guides aren’t always interesting, are often not useful, and frequently are poorly designed (from a reading perspective). The Official Guide is an exception for all three.  

The links to the books are Amazon affiliate links. If you buy through them, it supports my 300 Words a Day project.

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Our Old “Traditional” Merchant Processing

Yes, I really do have a liquor store.

Our traditional merchant was Retriever Payment Systems, “powered by” NPC (National Processing Company). We’d been with them for just over five years. When I opened my October statement, there was another new fee on my account. It was one fee too far. I called and talked to customer service at NPC, and on that call, I decided to find a new processor.

Our qualified rate was 1.55%. (I see that their website is offering rates as low as 1.35% today.) Sounds fine, but it doesn’t take into account the other fees we paid. So I added up all the fees, and divided by the total amount processed. That gave me a total effective cost of 3.1% to 3.3% for my processing. (It varies, depending on the transactions for the month.)

We also leased a credit card terminal, arranged by the Retriever salesman, through Lease Finance Group, LLC., paying $35.67 per month. I was more than ready to eliminate that lease and put that money towards acquiring some new equipment.

Square Processing
I have been familiar with Square for three years, through another of my businesses. Not too long ago, they changed their rate structure to be just a straight percentage, with no other fees. The fee is 2.75% for card-swiped transactions. That’s all we do at the store, so that fit perfectly. And it was a lower total cost than the old traditional merchant account. Make sure you look at total costs, no matter what solution you investigate!

The iPad with the Square reader and Square App.

I spent a lot of time reading through the FAQs at the Square site to be sure I understood their processes. I signed up for an account. They sent me a Square reader, and we converted. The 3-year-old Square reader I had laying around was inconsistent and hard to scan with on the iPad, but worked very well on my Android phone. The new Square reader they sent me was much, much, much easier and more reliable on the iPad.

So far, we have had the iPad app crash three times, out of an estimated 700 transactions. In each case, it happened  before the transaction was complete, so we had to re-run those transactions. I completely re-set my iPad, and it has not happened since then.

Because I have those two readers, during our busy days we can have both running at the same time, one on the iPad and one on my phone. Now that is kinda cool.

Customers like it, except for one grumpy guy. The iPad seems high-tech, and the process is easy for customers. There are no more paper receipts because Square will text or email their receipt. A few customers have still asked for a paper receipt, usually just to record the amount. We’ve been able to offer them a piece of adding machine tape with their total, and our stamp on it. So far, no complaints.

The payments are processed quickly, with next day transfer. Payments actually arrive about one day quicker than they did with our old traditional processor. Square is also inching into point-of-sale territory, with the ability to “ring up” cash payments and the ability to connect a printer and cash drawer.

Mobile Payments – Pay With Your Phone
Square offers a mobile payment option, called Card Case. Customers create their own account with Square, then only need to bring their compatible phone with them to complete their payment at the store. I signed us up, and we’ve had one customer pay this way. (Cool!) I did have to experiment a bit to get our address right on the map. Instead of 916 Oklahoma Blvd, I had to put in 916 Okla Blvd to get the map pin in the right place. That matters, because Card Case wants to see that the customer really is at the store before allowing a transaction.

Google Wallet
I also looked into a few of the other new payment systems. Google Wallet requires NFC (Near Field Communications) built into the customer’s phone and an NFC receiver at my store. I might have one customer who has an NFC-enabled phone. So that wouldn’t solve my every-day credit card processing needs.

Intuit GoPayment
I looked at Intuit GoPayment, but they still have a more complex fee structure than Square. Most cards are 2.70% with no transaction fee. American Express cards are treated differently, and there are “non-qualified rates” in the fine print. That deserves careful reading and understanding before making any commitment.

I give big credit to Intuit for improving. Their fee structure is now much less complex than it used to be, and their offer of a better rate for high-volume merchants might make a big difference. It’s clear they are working hard to be as easy as Square, but they need to keep streamlining. Make it easy for people to compare total costs, Intuit.

GoPayment’s hardware choices have also improved since their introduction. The iPad is listed as a compatible device, however, my particular HTC phone was not. I also found the sales pages lacking in detail and the FAQs harder to navigate, compared to Square. Still, I have to say that GoPayment looks much better than my old traditional merchant account.

Dwolla Isn’t for Credit Cards
A new mobile payment system, Dwolla, is based on cash instead of credit cards. I applaud that. It does require both the customer and the merchant to have an account. Then the customer initiates the transaction, instead of the vendor. It is going to take time for this to reach critical mass in my small town, but I would bet on this ahead of NFC. So I’ll probably set up an account for us soon, out of support for the project more than out of business practicality.

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Locavesting: The Revolution in Local Investing. Now required reading for rural economic developers. Photo by Becky McCray.

What if we could change investing from a gamble in the stock market into a local development tool? That’s the basic question behind Amy Cortese’s book “Locavesting: The Revolution in Local Investing and How to Profit From It.”

This book does a great job of explaining the problems in the current financial system, and laying out the alternatives that are being tried. Cortese talks about the revolution in innovative financing plans like royalty financing and alternative business models like cooperatives. Each one includes an explanation, examples of who is using it, and where to find more information.

Community development loan funds and venture funds exist in most states and are a good option for small businesses that cannot get reasonable bank loans. (To find one near you, try cdfi.org). If you’re a sustainable food or agriculture-related business, look for your nearest Slow Money chapter. Some areas have a local investment club or an active angel network. And “crowdfunding” web sites such as Kiva, Kickstarter, ProFounder, and Prosper all offer ways to ways for entrepreneurs to raise funds. Also, many businesses that fill a need in a community—whether for a bookstore or café—have found that their neighbors are often more than willing to invest in the venture. A number of restaurants, for example, have pre-sold meals as a way to raise capital. Others have borrowed money from customers. Finally, if your capital needs are high and you have a good following (and don’t mind giving up some ownership), consider selling shares through a direct public offering, which is a less expensive, “do-it-yourself” version of an IPO.

Several of the tools, like regional stock exchanges, work best when an entire region bands together. But rural regions have a notoriously hard time working together. Is this a realistic goal?

What steps can rural and small town economic developers take to support more local investing?

There is a sea change in thinking in economic development policy. Rather than trying lure in the ‘big game’ — in other words, a large factory or big-box store—with taxpayer giveaways, many economic planners are realizing that if they help their homegrown small businesses grow and expand, they can create jobs and boost tax revenues without being dependent on a single employer that might move on to greener pastures. Public-private partnerships and innovative incubator-type programs are being successfully tried across the country. New York City is not exactly rural, but it has created an interesting program to boost the city’s growing ranks of food entrepreneurs with a $10 million fund (funded by Goldman Sachs and the city) that lends to small food manufacturers. You could imagine adding a community-funded option onto that. In Ohio, the Economic and Community Development Institute is launching an Invest Local Ohio program that lets Central Ohians put money in a fund that makes loans to the area’s small businesses, and receive a modest fixed return.

Built to Sell delivers on its promise.

• If you think you may want to sell your business someday, or someday soon, get a copy now. Read it, and start putting it into practice.

• If you have a business that is eating your life, this book stands up there with the E-Myth Series and Work the System as a tool to help you get your life back, while building a stronger business.

• If you are just starting a business, I recommend you read this first. It’s a good peek into the future, one where your business gives you options. 

I blazed through my copy of the first edition and passed it along to a colleague. I’m excited to have a copy of the second edition in hand. In addition to the basic business fable, it now includes an outstanding implementation guide. So it includes an engaging story full of implicit lessons, plus an explicit “how-to” guide. And Warrillow added lessons from his own experience in building and exiting four businesses. Some of these real-life stories are quite revealing, like his early attempt at a subscription model that would make his market research business more sell-able. It failed, but he learned the lessons that made it possible to succeed later. (And yes, he does share those lessons.)

This week only, you can get in on a promotion, where you can get a $65 basket of goodies along with your copy, including

• a one year subscription to Inc Magazine, 
• an e-book from the E-myth, 
• a BizBuySell Valuation Report, 
• a two hour conference call with Warrillow and 
• a $25 Kiva loan in your name.  

But you have to order and send in your confirmation by this Saturday, April 30, 2011. Check the details on the basket of goodies offer.

Honestly, I don’t care about the goodies. I think you want a copy of this book no matter what. It’s well worth it all on its own.

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The New Small
Phil Simon

Phil gets that small business now has an advantage over big business. He pinpoints some technology that has changed to get us here. I sent Phil some questions about how this relates specifically to small towns.

1. You clearly say that small companies now have an advantage over big companies because of 5 changes in technology. Do you think that extends to small towns, too? Will small town businesses still be able to carry off those advantages?

“It sure does, although some towns in the US and other countries still have challenges with respect to broadband penetration and high speed internet access. Many small towns benefit from increased speeds and the decrease in the price of storage, but many doesn’t mean all. So, to answer your second question, it depends. In theory, no.”

2. Are there any of the 5 enablers that you think are especially potent for small town businesses?
“They all are. Not one is exclusive to big cities.”

3. What do you mean by long term greedy, and why do you think it’s a good thing? (I think there is some relation to a small town environment there.)
“The New Small understands that bad business exists. You don’t want to take on a client knowing that red flags will make it success untenable. Yes, it’s a good thing. Long-term relationships based upon trust and past performance inhibit clients from searching for the lowest cost solution. Remember, we live in a flat world now.”

4. Do you have any small town examples of The New Small?
“Well, only one of the companies profiled in the book (DODOcase) is located in a big city. Ten of the eleven companies would qualify–and there are others not profiled in the book!”

5. Ultimately, how do we help more small business owners step up and join the New Small in adopting these technologies?
“Read the book! Beyond that, don’t be afraid of technology. Jump in. Experiment. Don’t be afraid to fail. You’ll make progress and see results. It’s not rocket science.”

6. What about keeping up? Where do normal everyday small town business owners find out about the most enabling new tools and technologies, and how do they keep from falling behind?
“Ah, that is the challenge. Paying attention to key people, blogs, resources, webinars, and etc. is essential. I struggle myself sometimes. It’s a very fast moving world.”

7. Anything else you’d like to share or emphasize?
“There’s never been a better time to be small. Emerging technologies do not obviate the need for a solid business model, service, or product. They can help, but major business fundamentals still exist.”

Overall, I recommend this one if you want to get a better understanding of the types of technology now available to small business and why they matter. Find more at The New Small.

The Entrepreneur Equation
Carol Roth

One of Carol’s strengths is dissuading those ill-suited for entrepreneurship. She cultivates a reputation as a blunt truth-speaker.

I sent Carol only one question. How does this apply for small town business?

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Follow smart people has long been my best Twitter advice. Paper.li is a new tool that makes it easier to follow and learn from smart people without investing all your spare time in Twitter.

Paper.li is a kind of daily newspaper made from links, photos and videos shared on Twitter by a selected group of users or about a selected topic.

Here are five ways to use paper.li:

Here are the positive points:

• This thing is quiet, very quiet. It also runs cool.
• The wide aspect monitors are excellent. I hooked up two monitors, with no trouble at all.
• Energy efficiency and greener manufacturing seemed to be well thought out. I appreciate that.
• The enhanced boot and shut down sequences developed by Microsoft and IBM have paid off. I noticed that start up and shut down are quick.

I also appreciated some of the listed features that seemed particularly good for small business:

• Migrate software tool. I didn’t test it, but it’s a good addition.
• One button recovery. I haven’t had to test this yet, but I’m glad to know it’s there.
• Room to add a second hard drive and tool-less entry. I still think of myself as the person ready to break open the case and install something. :)
• Rigorous testing. Looks like they took this pretty seriously. Good to know.

OK, what didn’t I like?

• Ads. Lenovo includes some proprietary software, Idea Notes, that puts ads on your screen. It also handles updates, etc, but ads? Really? When you shut Idea Notes off, it gives a dire warning about missing out on important product support messages. I found no option to receive only support messages and not ads. This, I think, is a bad move for Lenovo. 
• Trial ware. This is a huge pet peeve of mine. I don’t want trial versions of software, especially for the small business market. Give us a good price on the software, or leave it off. Still, it’s easy to uninstall.
• The cheap feeling keyboard and mouse. I promptly tossed those aside. A minor point, but if they are serious about the small business market, a decent business-like keyboard would make sense.
• It’s big. Really, this is not a home office-friendly size.

Overall, I like this machine. It’s solid. The quiet fan is a bonus in a business setting, and the ability to easily handle two monitors is a plus. The extra work on the streamlined boot and shut down pays off. Now, Lenovo, let go of the trial ware and ads.

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His booklet, StartUp: 100 Tips To Get Your Business Going, is an outstanding short, punchy resource. I found myself nodding and agreeing. A lot. If I was teaching entrepreneurship as a course, I think I would use this book to start discussions. If I knew someone starting a business for the first time, I’d hand them a copy.

If you want your own copy, you can get it for free, as a PDF download. Download a copy of Startup: 100 Tips to Get Your Business Going.

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