I've done several interviews now with Jim Blasingame, and today we talked about cloud computing and Computer Troubleshooters upcoming initiatives in that area. Jim also got a little personal.... you'll have to listen to find out more.
Wednesday, April 7, 2010
Wednesday, February 3, 2010
What to do?
I like to think that Computer Troubleshooters is a good partner to our vendors. We're sometimes a little slow to review and sometimes a little disorganized, but overall we've got a great relationship with top vendors like Zenith Infotech, Dell, Robin Robins, MSPU, SuperAntiSpyware, Fonality, SUTUS, etc.
But there are a handful of vendors I would just as soon never hear from again, usually because of past unethical behavior. American Registry is one of those (americanregistry.com). They make these special plaques for companies who win awards, except they're really pushy about it. Seven years ago I had a problem where they shipped me a giant plaque with a note saying "if you don't like it you don't have to pay for it". I hadn't asked for it, and didn't like it or their sales technique, so I threw it away. For months afterwards I kept getting harassing phone calls from their staff demanding money.
Seven years later, they are STILL annoying me. Every time Computer Troubleshooters wins an award - and we do win a lot of awards (shameless plug) I can count on new emails and phone calls from American Registry. So far this year I'm averaging one email every 3 days, and a voice-mail about once a week. "Congratulations from American Registry on being recognized by Entrepreneur.com in its selection of Top Low-Cost Franchises." (or Top Home-Based Franchises, or Top Franchises, or Top 25 Franchises in Atlanta, etc.
I have asked them time and time again to stop emailing me. I've asked them to stop calling me. It's a minor thing in a way, but every time I hear from them I remember the scam they tried to pull in 2003, and it just irritates me.
So, internet friends, what would you do if you were me? Is there a way I can get these folks to stop bothering me or should I just grin and bear it?
But there are a handful of vendors I would just as soon never hear from again, usually because of past unethical behavior. American Registry is one of those (americanregistry.com). They make these special plaques for companies who win awards, except they're really pushy about it. Seven years ago I had a problem where they shipped me a giant plaque with a note saying "if you don't like it you don't have to pay for it". I hadn't asked for it, and didn't like it or their sales technique, so I threw it away. For months afterwards I kept getting harassing phone calls from their staff demanding money.
Seven years later, they are STILL annoying me. Every time Computer Troubleshooters wins an award - and we do win a lot of awards (shameless plug) I can count on new emails and phone calls from American Registry. So far this year I'm averaging one email every 3 days, and a voice-mail about once a week. "Congratulations from American Registry on being recognized by Entrepreneur.com in its selection of Top Low-Cost Franchises." (or Top Home-Based Franchises, or Top Franchises, or Top 25 Franchises in Atlanta, etc.
I have asked them time and time again to stop emailing me. I've asked them to stop calling me. It's a minor thing in a way, but every time I hear from them I remember the scam they tried to pull in 2003, and it just irritates me.
So, internet friends, what would you do if you were me? Is there a way I can get these folks to stop bothering me or should I just grin and bear it?
Wednesday, August 26, 2009
All Your Questions Answered (Well, 2 Big Ones)
So when people ask me what I do for a living, I have a really hard time answering that question. If I tell them I own a "computer company" they'll immediately start asking my advice on how to fix some strange thing going on with some strange relative's computer. If I tell them I own a "franchise", they for some reason assume it's McDonald's or something.
The best I can do is explain that my job is helping technology entrepreneurs be successful, which is really what Computer Troubleshooters does. Every day most of my day is spent supporting the 480+ Computer Troubleshooters locations around the world, and the rest of my time is spent working with people who are interested in joining the CT team.
That latter group always has certain questions, as you might expect. After all no one just decides to spend $20k buying a franchise license and jumping into the self-employed lifestyle without doing some research. And that's a good thing, becuase the folks who really dig into the details and do their due diligence almost always decide that Computer Troubleshooters is right for them.
So if you fall into that category, if you're considering starting your own IT solutions business or if maybe you're already in an IT solutions business and you're considering joining a franchise, I want to help you out by answering your two biggest questions:
#1: How Much Money Can I Make?
Yep, this is a popular question. Understandably. But it's also a really hard question to answer, for two reasons. First - I don't know you. Your income in any business venture is fundamentally based on you. If you sit home watching daytime TV your income is likely to be less than that of someone who uses that same time to reach out to potential and past clients, for example. More importantly, the FTC regulates franchising in the US and I can't answer that question unless I can back it up with some good statistics, which is hard for me to do because we aren't a royalty-based franchise and I just don't get good data from a lot of our locations. I can tell you that most of our franchisees came from high-paying IT jobs, and the fact that we're ranked higher than any other technology franchise by Franchise Business Review (based on franchisee satisfaction) should mean something. But I can't give you specifics - nor should you believe me if I do. Franchisors who do provide income guidance are often basing it only on their top performing locations, so it may or may not be indicative of what you'll make.
Now 5 years ago it was pretty easy to guesstimate your income. Almost everything we did was billable by the hour, so if you estimate how many hours your techs are likely to bill on average, and multiply it by your expected bill rate... presto, you've got your estimated revenue. But our business model today is increasingly complex (for good reason), with multiple revenue streams. You'll make money from hourly billing (break-fix) sure, but also from supporting customers on BEST service plans (our version of Managed Services), from commissions on Cloud hosted solutions, from VoIP installations, hardware/software sales, and more.
To help you plan your income I created the attached spreadsheet here. I still can't tell you what you can earn, but you can use this spreadsheet to better estimate how much revenue you expect from the various income streams. Use this, and talk with existing IT solutions businesses (if you're in the CT due diligence process now ask your sales coordinator to send an introductory note to all the CT franchisees in your country so they'll make time to talk with you) to see if they think your figures are reasonable.
#2: Why Should I Join Computer Troubleshooters Instead of Doing It On My Own? (Or Instead of Joining Geeks On Call, Fast-Teks, or CMIT, or Friendly Mobile?)
Also a popular and important question. I asked the same thing before I joined CT back in 1999. Even though we're one of the least expensive franchises on the market, $19,500 (the list price for a franchise territory in the USA) is a lot of money. What exactly do you get for all that, and would you be better off spending $25k on another franchise or better yet save your money and do it all yourself?
You might suspect I'm a little biased on this one, but I do honestly believe you get more for your money by purchasing a Computer Troubleshooters franchise than through any other alternative. And to show you what I mean, I took the time to document each and every benefit you get from Computer Troubleshooters, in nine categories, and put them all in THIS spreadsheet. And I left room where you can enter your estimated costs for any alternative business method - another franchise or the "DIY" option. And even though I entered what *I* think is reasonable as the value for each benefit, I encourage you to go through, think about each one, and change it to what you think is fair. As you can see, you get a LOT for your money in Computer Troubleshooters - especially over the five-year span in the spreadsheet (we look even better over longer periods, but 5 years seemed like a good basis for comparison).
Note that I also left you some blank room on each page where you can add things you think we're missing and that someone else may offer - but let me know if you do, because it may just be that we forgot to list something.
So, how much money can you make as a Computer Troubleshooter? Use the revenue spreadsheet, talk with existing (and former) CT's, and find the real answers for your personal situation. Why join CT instead of doing it yourself, or joining another franchise? Use the comparison spreadsheet to judge for yourself.
Today's economy depends on successful small businesses,and successful small businesses depend on technology. We've worked hard to make Computer Troubleshooters the BEST solution for small business IT support, and we're growing all the time. If you're looking for a franchise opportunity in a growing industry, do the research and check us out.
Chip
The best I can do is explain that my job is helping technology entrepreneurs be successful, which is really what Computer Troubleshooters does. Every day most of my day is spent supporting the 480+ Computer Troubleshooters locations around the world, and the rest of my time is spent working with people who are interested in joining the CT team.
That latter group always has certain questions, as you might expect. After all no one just decides to spend $20k buying a franchise license and jumping into the self-employed lifestyle without doing some research. And that's a good thing, becuase the folks who really dig into the details and do their due diligence almost always decide that Computer Troubleshooters is right for them.
So if you fall into that category, if you're considering starting your own IT solutions business or if maybe you're already in an IT solutions business and you're considering joining a franchise, I want to help you out by answering your two biggest questions:
#1: How Much Money Can I Make?
Yep, this is a popular question. Understandably. But it's also a really hard question to answer, for two reasons. First - I don't know you. Your income in any business venture is fundamentally based on you. If you sit home watching daytime TV your income is likely to be less than that of someone who uses that same time to reach out to potential and past clients, for example. More importantly, the FTC regulates franchising in the US and I can't answer that question unless I can back it up with some good statistics, which is hard for me to do because we aren't a royalty-based franchise and I just don't get good data from a lot of our locations. I can tell you that most of our franchisees came from high-paying IT jobs, and the fact that we're ranked higher than any other technology franchise by Franchise Business Review (based on franchisee satisfaction) should mean something. But I can't give you specifics - nor should you believe me if I do. Franchisors who do provide income guidance are often basing it only on their top performing locations, so it may or may not be indicative of what you'll make.
Now 5 years ago it was pretty easy to guesstimate your income. Almost everything we did was billable by the hour, so if you estimate how many hours your techs are likely to bill on average, and multiply it by your expected bill rate... presto, you've got your estimated revenue. But our business model today is increasingly complex (for good reason), with multiple revenue streams. You'll make money from hourly billing (break-fix) sure, but also from supporting customers on BEST service plans (our version of Managed Services), from commissions on Cloud hosted solutions, from VoIP installations, hardware/software sales, and more.
To help you plan your income I created the attached spreadsheet here. I still can't tell you what you can earn, but you can use this spreadsheet to better estimate how much revenue you expect from the various income streams. Use this, and talk with existing IT solutions businesses (if you're in the CT due diligence process now ask your sales coordinator to send an introductory note to all the CT franchisees in your country so they'll make time to talk with you) to see if they think your figures are reasonable.
#2: Why Should I Join Computer Troubleshooters Instead of Doing It On My Own? (Or Instead of Joining Geeks On Call, Fast-Teks, or CMIT, or Friendly Mobile?)
Also a popular and important question. I asked the same thing before I joined CT back in 1999. Even though we're one of the least expensive franchises on the market, $19,500 (the list price for a franchise territory in the USA) is a lot of money. What exactly do you get for all that, and would you be better off spending $25k on another franchise or better yet save your money and do it all yourself?
You might suspect I'm a little biased on this one, but I do honestly believe you get more for your money by purchasing a Computer Troubleshooters franchise than through any other alternative. And to show you what I mean, I took the time to document each and every benefit you get from Computer Troubleshooters, in nine categories, and put them all in THIS spreadsheet. And I left room where you can enter your estimated costs for any alternative business method - another franchise or the "DIY" option. And even though I entered what *I* think is reasonable as the value for each benefit, I encourage you to go through, think about each one, and change it to what you think is fair. As you can see, you get a LOT for your money in Computer Troubleshooters - especially over the five-year span in the spreadsheet (we look even better over longer periods, but 5 years seemed like a good basis for comparison).
Note that I also left you some blank room on each page where you can add things you think we're missing and that someone else may offer - but let me know if you do, because it may just be that we forgot to list something.
So, how much money can you make as a Computer Troubleshooter? Use the revenue spreadsheet, talk with existing (and former) CT's, and find the real answers for your personal situation. Why join CT instead of doing it yourself, or joining another franchise? Use the comparison spreadsheet to judge for yourself.
Today's economy depends on successful small businesses,and successful small businesses depend on technology. We've worked hard to make Computer Troubleshooters the BEST solution for small business IT support, and we're growing all the time. If you're looking for a franchise opportunity in a growing industry, do the research and check us out.
Chip
Being a Mac Guy: The 1-year Review
So about a year ago I ordered a Mac. I've always been a PC guy, from my first 8088-based machine in collge up through the HP notebook I carried around last year. And as a "techie" I think there's still a certain expectation that you're supposed to be a PC guy - after all don't techies enjoy showing off all the obscure Windows commands that other folks complain about? (And, in fairness, I did teach a friend how to Alt-Tab for the first time yesterday, and it was a huge benefit for him).
But I'd heard good things about Mac and wanted to "play with" it, so I bought a used Macbook Pro on Ebay and started playing. A month later it had become my primary work machine, and a few weeks later I was blogging about my experiences as a new convert to the cult of Mac. Still, some of my PC friends were telling me things like "Yeah, yeah, you like it now because it's new and shiny, talk to me 6 months from now and you'll be back to a PC."
Well, it's been a year, and my regular computer HAS in fact changed again - to a brand new MacBook Pro (15", 2.66 GHz Core 2 Duo, 4GB RAM). I think at this point it's official - I'm a Mac guy. I still use VMWare Fusion every day to run my Microsoft Outlook (can't wait for the Mac version of Outlook due next year).
Why the switch? The main reason is that I'm a really busy guy, and using the MacBook Pro saves me at least 15 to 30 minutes every day. On my old Windows notebooks they would always take too long to "wake up" when I move from home to the office, or when I'm trying to get some quick work done in an airport or on a plane. Plus I'd get that frustrating "pause-for-no-apparent-reason" at least a few times a day, interrupting my workflow and just generally bugging the heck out of me. The Mac wakes up in seconds, and mostly very reliably (sometimes Outlook running in the virtual environment can't find the Exchange Server when it wakes up, but I've found an easy workaround). When I'm done I just close the lid and it sleeps - no waiting indefinitely while Windows tries to suspend it's programs. I reboot once a week or so, and in over a year of use I've had maybe 3 system "freezes" that required a shutdown & restart to correct. On my Windows machine that seemed like a daily occurance!
Now not all is perfect in the world of Mac. Apple software in particular has some wonderful features which are often missing from their Microsoft counterparts, like the ability to record a slideshow (Powerpoint) presentation with narration. But some of those features don't work (the audio narration invariably gets out of sync with the slides very quickly), and others only work if you are using only Apple software (like Apple's iMovie only being able to import pictures from iPhoto - which makes it almost unusable for me). Say what you will about Microsoft's Powerpoint and Movie Maker, but at least the features they do have actually work and don't require you to use other Microsoft products!
Still, the pros outweigh the cons, and I find I'm MUCH more productive now on my Mac. Looking at Apple's sales figures I'm obviously not the only one who thinks so, and in fact here at Computer Troubleshooters we've started doing some limited tech training on Mac Support as well (starting with a workshop last February where two Mac-certified trainers showed us the ins and outs of the Mac OS).
So for all my techie friends who still haven't tried the Mac, I'd say this: Try the koolaid, it's better than you might think!
But I'd heard good things about Mac and wanted to "play with" it, so I bought a used Macbook Pro on Ebay and started playing. A month later it had become my primary work machine, and a few weeks later I was blogging about my experiences as a new convert to the cult of Mac. Still, some of my PC friends were telling me things like "Yeah, yeah, you like it now because it's new and shiny, talk to me 6 months from now and you'll be back to a PC."
Well, it's been a year, and my regular computer HAS in fact changed again - to a brand new MacBook Pro (15", 2.66 GHz Core 2 Duo, 4GB RAM). I think at this point it's official - I'm a Mac guy. I still use VMWare Fusion every day to run my Microsoft Outlook (can't wait for the Mac version of Outlook due next year).
Why the switch? The main reason is that I'm a really busy guy, and using the MacBook Pro saves me at least 15 to 30 minutes every day. On my old Windows notebooks they would always take too long to "wake up" when I move from home to the office, or when I'm trying to get some quick work done in an airport or on a plane. Plus I'd get that frustrating "pause-for-no-apparent-reason" at least a few times a day, interrupting my workflow and just generally bugging the heck out of me. The Mac wakes up in seconds, and mostly very reliably (sometimes Outlook running in the virtual environment can't find the Exchange Server when it wakes up, but I've found an easy workaround). When I'm done I just close the lid and it sleeps - no waiting indefinitely while Windows tries to suspend it's programs. I reboot once a week or so, and in over a year of use I've had maybe 3 system "freezes" that required a shutdown & restart to correct. On my Windows machine that seemed like a daily occurance!
Now not all is perfect in the world of Mac. Apple software in particular has some wonderful features which are often missing from their Microsoft counterparts, like the ability to record a slideshow (Powerpoint) presentation with narration. But some of those features don't work (the audio narration invariably gets out of sync with the slides very quickly), and others only work if you are using only Apple software (like Apple's iMovie only being able to import pictures from iPhoto - which makes it almost unusable for me). Say what you will about Microsoft's Powerpoint and Movie Maker, but at least the features they do have actually work and don't require you to use other Microsoft products!
Still, the pros outweigh the cons, and I find I'm MUCH more productive now on my Mac. Looking at Apple's sales figures I'm obviously not the only one who thinks so, and in fact here at Computer Troubleshooters we've started doing some limited tech training on Mac Support as well (starting with a workshop last February where two Mac-certified trainers showed us the ins and outs of the Mac OS).
So for all my techie friends who still haven't tried the Mac, I'd say this: Try the koolaid, it's better than you might think!
Monday, July 6, 2009
Clear Internet - The WiMaxiest
We had a problem in our office. Our T1 stays pretty busy because it handles our phones, internal internet, and one of our FTP servers serving files to franchisees all around the world. The result: sloooow internet. Last year we signed up for Comcast Business Cable, but after several months of wrangling we couldn't get the owners of our adjacent parking deck to give Comcast access rights to run cable to our building.
The only choice we had really was DSL, which means AT&T. To be honest I just dread dealing with AT&T so much (based on past experience) that I kept putting off ordering the circuit. Then I ran across an ad for Clear (aka Clearwire), a new soon-to-be nationwide WiMax service provider. I'd heard about Clearwire in the industry press, but what I'd heard was somewhat skeptical - the "let's see if they can really make a business out of this" sort of thing. But they launched service in Atlanta on June 16, and the price was certainly right ($55/month for 4Mbps downstream and 1Mbps up) so I figured I'd give it a try.
That was two weeks ago. After a great experience at work, I ordered it for my home ($40/month) and set it up tonight. Here's the thing - I've been setting people up on the internet for 15 years now. I know my way around a router, and I've seen about every possible way to get online that's ever been invented. This Clear system is hands down the best I've ever seen in terms of setup. It goes like this:
Coverage can be a problem. You can see a huge speed difference just by moving the modem a few inches left or right, and it's going to work best when it's near an exterior wall or window. The nice thing is there is an easy 5-light indicator on top of the modem that makes it easy to see when it's getting the best signal.
Right now Clear is only available in Atlanta, Las Vegas, and Portland but they plan to roll it out to several more cities this year. For me my $40 Clear bill ($45 with a leased modem) let's me cancel my $100 AT&T home phone & DSL service (since I only use my cell phone anyway). That's a net savings of $55/month or over $600/year - PLUS I don't have to deal with AT&T customer service, which is an extra bonus.
Time will tell, but so far I'm definitely a Clear fan.
The only choice we had really was DSL, which means AT&T. To be honest I just dread dealing with AT&T so much (based on past experience) that I kept putting off ordering the circuit. Then I ran across an ad for Clear (aka Clearwire), a new soon-to-be nationwide WiMax service provider. I'd heard about Clearwire in the industry press, but what I'd heard was somewhat skeptical - the "let's see if they can really make a business out of this" sort of thing. But they launched service in Atlanta on June 16, and the price was certainly right ($55/month for 4Mbps downstream and 1Mbps up) so I figured I'd give it a try.
That was two weeks ago. After a great experience at work, I ordered it for my home ($40/month) and set it up tonight. Here's the thing - I've been setting people up on the internet for 15 years now. I know my way around a router, and I've seen about every possible way to get online that's ever been invented. This Clear system is hands down the best I've ever seen in terms of setup. It goes like this:
- You order the service.
- A box arrives at your door (actually I had to go to Fedex to sign for it, which was pretty annoying)
- You open the box.
- You remove the modem.
- You plug modem into your computer (or router).
- You plug modem into an electrical outlet.
- You are online.
Coverage can be a problem. You can see a huge speed difference just by moving the modem a few inches left or right, and it's going to work best when it's near an exterior wall or window. The nice thing is there is an easy 5-light indicator on top of the modem that makes it easy to see when it's getting the best signal.
Right now Clear is only available in Atlanta, Las Vegas, and Portland but they plan to roll it out to several more cities this year. For me my $40 Clear bill ($45 with a leased modem) let's me cancel my $100 AT&T home phone & DSL service (since I only use my cell phone anyway). That's a net savings of $55/month or over $600/year - PLUS I don't have to deal with AT&T customer service, which is an extra bonus.
Time will tell, but so far I'm definitely a Clear fan.
Monday, April 27, 2009
Entrepreneurship Lessons from the Third World
Last month I had the opportunity to spend 4 weeks in Kenya, Rwanda, and the Democratic Republic of the Congo. And even though most of the trip was not business-related, I couldn't help but notice some significant entrepreneurship lessons in all three countries. These probably won't shock anyone as they aren't really new, but they helped me rethink some of the assumptions I make about my business, so maybe they'll do the same for you.
Right off the bat let me say that the lessons I saw were very clearly divided into two categories, call them micro-entrepreneurship and macro-entrepreneurship. Let me start with the lessons from the micro (individual business) level.
Nowadays we don't tend to refer to places like Rwanda as the "third world", we're more likely to call them "developing countries", and that's very appropriate. Most of the people I met were living perilously close to what we would think of as "just surviving". Incomes - when they had incomes - of $10 to $20 per month were very common, and things like electricity, running water (or clean water), health care, or even a second set of clothes were rare. No one I met was starving - food is plentiful and easily accessible, and things like flour and bananas may be boring but they'll keep you alive. But for people living at this subsistence level, any development that improves in their standard of living can be huge, so even though they may not have formal educations many of these people have lived through a crash course in entrepreneurship.
(a GodCares micro-finance client, who buys charcoal wholesale and sells it on a street corner in Kigali)
I have to admit I've never really understood micro-finance until this trip, so let me share what I learned in case you're in the same boat. Micro-finance programs are typically setup to loan small amounts of money (anywhere from $20 to $200 US) to entrepreneurs in developing countries. So how does this help?
The clearest example of a micro-finance success story I can share was the lady who sells used shoes. Before the micro-finance program she had a small stand in Kigali (capital city of Rwanda) selling used shoes (which is a big thing in a country where many folks don't have shoes). The problem she had was that her inventory was typically only 8 or 9 pairs of shoes, so when customers came by there wasn't much to choose from, and it was unlikely she would have a pair close to their size. The micro-finance program loaned her $40, which was enough to buy over 20 additional pairs of shoes for her inventory. Her monthly sales jumped from an average of 4 pairs to about 12 pairs, tripling her income (from around $8/month to $24/month).
In the village of Buqarama we talked to the residents who were requesting help to be part of a micro-financing program. They're a very poor village. The adults in the village mostly work as day laborers (even though some are way too old to be doing manual labor), and earn anywhere from 40 to 80 cents per day working in someone else's field. But if they could borrow $200 they would be able to rent their own "block" (a section of a field), raise their own crops, and sell them at the market. Instead of earning $50 for 6 months work, they would earn $200 - quadrupling their income, and their standard of living. (For perspective, pens cost 10 cents, and health care for kids is $2/year).
Micro-financing programs, when run properly, are highly beneficial to the recipients, and generally have a 90%+ repayment rate (GodCares reported 98% of their clients were paying back their loans, generally on time). But nothing is 100% successful, and what I noticed was that while GodCares screens the people who receive the funds and loosely checks their idea, they really don't have a good way to verify that the new business venture will be successful. They're counting on these budding entrepreneurs to come up with good ideas for how they will use the money to build a more effective business. Usually that works, sometimes it doesn't.
For example many of the clients we met had chosen some sort of distribution business, often buying goods in bulk and selling them locally. Several ladies in Kigali had setup businesses selling charcoal, which they purchase in bulk from a distribution truck and then sell in small buckets to local residents. That works well, but others in the Byumbe refugee camp had decided food distribution was their best option, so they would purchase rice, flour, or cooking oil in bulk from the nearest market (several days walk away), and resell it to local residents in the camp. Not a bad idea, but because several of them were doing the same business, and the residents of the camp didn't have enough money to support all the businesses, their businesses were unsucessful.
Lesson learned: Find something people need, and will pay you for, and you'll be successful. But keep an eye on your competition, and make sure there is a market for what you’re selling!
(at a gas station in Butare, this kid sells nuts, and does a little dance to get attention)
Kids are natural entrepreneurs, and this is very evident in Africa (and elsewhere). Not in the “lemonade stand” sense of entrepreneurial efforts but more in the “find a skill that brings reward” vein. Begging is an entrepreneurial skill, and is commonly employed by kids in many countries, but we didn’t see much of it in Rwanda. But instead, in the rural villages you’d find kids who had practiced specific english phrases, which they were taught would help them make an income from white visitors. “Give me money.” was not uncommon, but more often I heard “give me pen”, “give me paper”, and “give me bible”. Now the interesting thing when you hear these phrases – which by the way are difficult requests to refuse when given by a pitiful looking child – is that you forget these kids don’t really know english. So no matter how you respond, they don’t know what you are saying. They just hope that your pen, paper, bible, or cash will find it’s way from your hand to theirs. Trying to explain to them that you only have one pen, and you need it, will get you nowhere because they don’t know what you mean. They also ask for empty water bottles – the disposable kind that we throw away every day. In rural villages they’re useful, so much so that they can have a noticeable impact on a family’s standard of living. (Remember they often have to make daily treks to fill up a 5 gallon container with fresh water from a source that may be miles from home).
The reason they ask for pens, paper, and bibles, as was explained to us by teachers at a school in Buqarama, is because they don’t have anything to write with, write on, or read. In school the teachers will fill a chalkboard with information, then wait patiently as the kids stare intently at the board and try to memorize what’s there, then they have to erase it and write the next lesson and the cycle starts again. Having a pen, a simple 10 cent pen, can dramatically change a child’s ability to learn, and so it’s worth all their time practicing “can I have pen?” just in case a visitor might one day give them one. Everywhere we went, whether we were talking to kids or parents or local officials, one thing was clear – the “reward” everyone was most interested in was a better education for the children.
Lesson learned: Investing in your own skills, whether it’s learning a few english words or getting through a difficult education, is the best reward for any entrepreneur.
Finally one thing that really stood out to me about my time in Africa was how much government matters in issues of entrepreneurship. Don’t get me wrong – even in the most inefficient & corrupt countries entrepreneurship can flourish (in fact you could argue that the Somali pirate situation is an example of unchecked entrepreneurship gone bad), but governments have the power to create an environment where entrepreneurship can grow and thrive, and as a result lift the entire economy. I call this macro-entrepreneurship.
Consider Kenya. Long considered one of the more stable African countries (despite last year’s violence), Kenya has advantages that help local businesspeople be more successful. First and foremost, because the government is (relatively) stable, there are some fundamental things that those of us in the “west” may take for granted. Authority, for example, so that crime is limited. A stable and connected banking system, so businesspeople can get loans, deposit money, send and receive money overseas, and even accept credit cards (a rarity among African economies). A fair justice system, so a business’s assets and rights are protected. And a democratic government (though some would argue that point), which means continued improvement because the voters demand it.
More specifically, Kenya’s leadership has recognized that Kenya has some unique assets that could help it’s businesses compete globally. It’s a former British colony, so most people speak english, and the education system is above average (for Africa). This means that outsourcing companies, similar to those that have been such a huge boost to countries like India, Indonesia, and the Phillipines in recent years, could easily setup shop in Kenya and take advantage of very low labor rates. The big weakness there for land-locked Kenya is their internet connectivity: right now everything is via satellite, which makes it very slow, and very expensive. Since 2005 however the Kenyan telecom industry has embarked on multiple projects to bring fiber-optic connectivity to the country, from the middle east (UAE) and from South Africa. When the first links begin operation this summer, the speed of Kenyan internet connections will dramatically go up, and the cost of internet connections will drop. It’s a win-win for any Kenyan with a Facebook addiction, but especially for businesses who will now have a level playing field with other BPO (Business Process Outsourcing) countries. This is expected to stimulate a lot of economic activity in the country, even during the current global recession. (See http://www.washingtonpost.com/wp-dyn/content/article/2009/04/16/AR2009041600941.html and similar articles).
Rwanda’s government is making similar efforts. Recognizing that their country lacks oil or minerals that might be a traditional way to improve their economy, the Rwandan government has decided their best hope for an improved lifestyle will come from positioning their country as the Communications and Technology hub for eastern Africa. Already Rwanda boasts a nationwide 3G cell phone network (very handy for me), which is not uncommon in developing countries – it’s cheaper and easier to build a network of 3G cell towers than to run old-fashioned copper phone lines to each and every village. Rwandan universities are turning out computer science and electrical engineering majors to help build and support tomorrow’s networks, and just in the last few months Rwanda has changed their national language from French to English. This was partly a political move (tension has been high between Rwanda and it’s former colonial powers, France and Belgium, since the 1994 genocide), but also an economic one as Rwanda realizes that English is becoming the world’s business language.
On the other hand you have countries like the Democratic Republic of the Congo. Poor despite possessing great natural wealth in it’s mineral deposits, corrupt at all levels of the government, and with an infrastructure wracked by years of war (5.4 million people have died in DRC since 2002), Congo is not exactly a haven for entrepreneurs (particularly in the east). But even here there are signs of change. Seeing the success of Rwanda to the east, and Kenya to the north, and realizing perhaps that they’re missing out on a better way of living, Congo has seen many signs of improvement lately, especially in terms of government, authority, and justice. Whether it will be enough, and whether the government will have the will to continue along this path is still up in the air, but the people I know there are hopeful that things will continue to get better.
So what does all this teach us as entrepreneurs in the west?
1) In concept, entrepreneurship is easy. Find something you can do that people are willing to trade value for, and do it.
2) In practice, entrepreneurship is hard. Competition, funding, suppliers, and customer loyalty are universal concerns for any entrepreneur.
3) Government can’t make entrepreneurs successful, but it can help create an environment that fosters innovation and growth. To do this requires authority, justice, banking, and infrastructure.
One last consideration: even in the current global recession, African countries are seeing economic growth far above any so-called “developed” countries. Even with a recently reduced forecast, the IMF expects annual growth in Rwanda, Kenya, and the DR Congo of between 4% and 10%. That compares with negative growth in the US and most European countries (i.e. recession). For true entrepreneurs, now is a GREAT time to bet on Africa. (See http://www.ratio-magazine.com/20081113290/News-Analysis/Rwanda-News-Analysis-IMF-Projects-Slowdown-in-GDP-Growth-to-6.html)
Right off the bat let me say that the lessons I saw were very clearly divided into two categories, call them micro-entrepreneurship and macro-entrepreneurship. Let me start with the lessons from the micro (individual business) level.
Nowadays we don't tend to refer to places like Rwanda as the "third world", we're more likely to call them "developing countries", and that's very appropriate. Most of the people I met were living perilously close to what we would think of as "just surviving". Incomes - when they had incomes - of $10 to $20 per month were very common, and things like electricity, running water (or clean water), health care, or even a second set of clothes were rare. No one I met was starving - food is plentiful and easily accessible, and things like flour and bananas may be boring but they'll keep you alive. But for people living at this subsistence level, any development that improves in their standard of living can be huge, so even though they may not have formal educations many of these people have lived through a crash course in entrepreneurship.
This was especially true with the people I met who were clients of (or who wanted to become clients of) GodCares' micro-financing program.
(a GodCares micro-finance client, who buys charcoal wholesale and sells it on a street corner in Kigali)I have to admit I've never really understood micro-finance until this trip, so let me share what I learned in case you're in the same boat. Micro-finance programs are typically setup to loan small amounts of money (anywhere from $20 to $200 US) to entrepreneurs in developing countries. So how does this help?
The clearest example of a micro-finance success story I can share was the lady who sells used shoes. Before the micro-finance program she had a small stand in Kigali (capital city of Rwanda) selling used shoes (which is a big thing in a country where many folks don't have shoes). The problem she had was that her inventory was typically only 8 or 9 pairs of shoes, so when customers came by there wasn't much to choose from, and it was unlikely she would have a pair close to their size. The micro-finance program loaned her $40, which was enough to buy over 20 additional pairs of shoes for her inventory. Her monthly sales jumped from an average of 4 pairs to about 12 pairs, tripling her income (from around $8/month to $24/month).
In the village of Buqarama we talked to the residents who were requesting help to be part of a micro-financing program. They're a very poor village. The adults in the village mostly work as day laborers (even though some are way too old to be doing manual labor), and earn anywhere from 40 to 80 cents per day working in someone else's field. But if they could borrow $200 they would be able to rent their own "block" (a section of a field), raise their own crops, and sell them at the market. Instead of earning $50 for 6 months work, they would earn $200 - quadrupling their income, and their standard of living. (For perspective, pens cost 10 cents, and health care for kids is $2/year).
Micro-financing programs, when run properly, are highly beneficial to the recipients, and generally have a 90%+ repayment rate (GodCares reported 98% of their clients were paying back their loans, generally on time). But nothing is 100% successful, and what I noticed was that while GodCares screens the people who receive the funds and loosely checks their idea, they really don't have a good way to verify that the new business venture will be successful. They're counting on these budding entrepreneurs to come up with good ideas for how they will use the money to build a more effective business. Usually that works, sometimes it doesn't.
For example many of the clients we met had chosen some sort of distribution business, often buying goods in bulk and selling them locally. Several ladies in Kigali had setup businesses selling charcoal, which they purchase in bulk from a distribution truck and then sell in small buckets to local residents. That works well, but others in the Byumbe refugee camp had decided food distribution was their best option, so they would purchase rice, flour, or cooking oil in bulk from the nearest market (several days walk away), and resell it to local residents in the camp. Not a bad idea, but because several of them were doing the same business, and the residents of the camp didn't have enough money to support all the businesses, their businesses were unsucessful.
Lesson learned: Find something people need, and will pay you for, and you'll be successful. But keep an eye on your competition, and make sure there is a market for what you’re selling!
(at a gas station in Butare, this kid sells nuts, and does a little dance to get attention)The reason they ask for pens, paper, and bibles, as was explained to us by teachers at a school in Buqarama, is because they don’t have anything to write with, write on, or read. In school the teachers will fill a chalkboard with information, then wait patiently as the kids stare intently at the board and try to memorize what’s there, then they have to erase it and write the next lesson and the cycle starts again. Having a pen, a simple 10 cent pen, can dramatically change a child’s ability to learn, and so it’s worth all their time practicing “can I have pen?” just in case a visitor might one day give them one. Everywhere we went, whether we were talking to kids or parents or local officials, one thing was clear – the “reward” everyone was most interested in was a better education for the children.
Lesson learned: Investing in your own skills, whether it’s learning a few english words or getting through a difficult education, is the best reward for any entrepreneur.
Finally one thing that really stood out to me about my time in Africa was how much government matters in issues of entrepreneurship. Don’t get me wrong – even in the most inefficient & corrupt countries entrepreneurship can flourish (in fact you could argue that the Somali pirate situation is an example of unchecked entrepreneurship gone bad), but governments have the power to create an environment where entrepreneurship can grow and thrive, and as a result lift the entire economy. I call this macro-entrepreneurship.
Consider Kenya. Long considered one of the more stable African countries (despite last year’s violence), Kenya has advantages that help local businesspeople be more successful. First and foremost, because the government is (relatively) stable, there are some fundamental things that those of us in the “west” may take for granted. Authority, for example, so that crime is limited. A stable and connected banking system, so businesspeople can get loans, deposit money, send and receive money overseas, and even accept credit cards (a rarity among African economies). A fair justice system, so a business’s assets and rights are protected. And a democratic government (though some would argue that point), which means continued improvement because the voters demand it.
More specifically, Kenya’s leadership has recognized that Kenya has some unique assets that could help it’s businesses compete globally. It’s a former British colony, so most people speak english, and the education system is above average (for Africa). This means that outsourcing companies, similar to those that have been such a huge boost to countries like India, Indonesia, and the Phillipines in recent years, could easily setup shop in Kenya and take advantage of very low labor rates. The big weakness there for land-locked Kenya is their internet connectivity: right now everything is via satellite, which makes it very slow, and very expensive. Since 2005 however the Kenyan telecom industry has embarked on multiple projects to bring fiber-optic connectivity to the country, from the middle east (UAE) and from South Africa. When the first links begin operation this summer, the speed of Kenyan internet connections will dramatically go up, and the cost of internet connections will drop. It’s a win-win for any Kenyan with a Facebook addiction, but especially for businesses who will now have a level playing field with other BPO (Business Process Outsourcing) countries. This is expected to stimulate a lot of economic activity in the country, even during the current global recession. (See http://www.washingtonpost.com/wp-dyn/content/article/2009/04/16/AR2009041600941.html and similar articles).
Rwanda’s government is making similar efforts. Recognizing that their country lacks oil or minerals that might be a traditional way to improve their economy, the Rwandan government has decided their best hope for an improved lifestyle will come from positioning their country as the Communications and Technology hub for eastern Africa. Already Rwanda boasts a nationwide 3G cell phone network (very handy for me), which is not uncommon in developing countries – it’s cheaper and easier to build a network of 3G cell towers than to run old-fashioned copper phone lines to each and every village. Rwandan universities are turning out computer science and electrical engineering majors to help build and support tomorrow’s networks, and just in the last few months Rwanda has changed their national language from French to English. This was partly a political move (tension has been high between Rwanda and it’s former colonial powers, France and Belgium, since the 1994 genocide), but also an economic one as Rwanda realizes that English is becoming the world’s business language.
On the other hand you have countries like the Democratic Republic of the Congo. Poor despite possessing great natural wealth in it’s mineral deposits, corrupt at all levels of the government, and with an infrastructure wracked by years of war (5.4 million people have died in DRC since 2002), Congo is not exactly a haven for entrepreneurs (particularly in the east). But even here there are signs of change. Seeing the success of Rwanda to the east, and Kenya to the north, and realizing perhaps that they’re missing out on a better way of living, Congo has seen many signs of improvement lately, especially in terms of government, authority, and justice. Whether it will be enough, and whether the government will have the will to continue along this path is still up in the air, but the people I know there are hopeful that things will continue to get better.
So what does all this teach us as entrepreneurs in the west?
1) In concept, entrepreneurship is easy. Find something you can do that people are willing to trade value for, and do it.
2) In practice, entrepreneurship is hard. Competition, funding, suppliers, and customer loyalty are universal concerns for any entrepreneur.
3) Government can’t make entrepreneurs successful, but it can help create an environment that fosters innovation and growth. To do this requires authority, justice, banking, and infrastructure.
One last consideration: even in the current global recession, African countries are seeing economic growth far above any so-called “developed” countries. Even with a recently reduced forecast, the IMF expects annual growth in Rwanda, Kenya, and the DR Congo of between 4% and 10%. That compares with negative growth in the US and most European countries (i.e. recession). For true entrepreneurs, now is a GREAT time to bet on Africa. (See http://www.ratio-magazine.com/20081113290/News-Analysis/Rwanda-News-Analysis-IMF-Projects-Slowdown-in-GDP-Growth-to-6.html)
Sunday, March 22, 2009
PC Repair, Jungle Style
GodCares, the organization that invited me on this trip to rural Africa, has two volunteers/members in Rwanda, Prosper and Isaac. Between them they have had one notebok computer to use for typing reports and keeping track of things like our micro-financing program. That is until, in Prosper's (translated) words, the notebook was "possessed by the devil". Prosper joined us for a day in Cyangugu yesterday and I asked him to bring the possessed machine so I can work on it.
So last night he arrived at dinner and after dinner while the others met I went to work. It was somewhat urgent because there had been photos on the machine of our projects in Kaliba, and if they were sufficient then we wouldn't have had to try and sneak two of us (Wolfgang and myself) back into Congo today to get new ones.
The notebook itself is a 2004 HP with a Pentium M processor, and when I plugged it in and turned it on the power light and fans would run for about 20 seconds and then go off. No other lights, no video, no audio. This isn't good- I'm guessing it's a faulty mainboard at this point but with no replacement parts within a few hundred miles (at least). At this point I'm kicking myself for not packing my USB-to-harddrive universal converter (which I did seriously consider packing) so I could connect the HP's drive to my MacBook Pro (which Prosper also brought for me, courtesy of my friend Jean). But it's not here so to start I have an all-but-dead machine and no idea if the hard drive is still intact or if it has the photos we need.
I decide I may as well try some things. Reseat hard drive. No change. Reseat memory. No change. Remove memory. No change- and that tells me the mainboard isn't responding correctly because I should have had audio and/or visual error signals when booting with no memory. Not good. I figure there's maybe a 5% chance I can do anything with this here- especially considering I'm in a Catholic Guest House (hostel) without much light and with no equipment to speak of. But 5% is still something, so I decided to disassemble the machine to see if I could find anything fixable.
I'll spare you the details, but it took about an hour to reduce the machine down to component parts. The rest of our team kept circulating by and taking pictures- I always forget that most people, unlike me, probably don't disassemble their own computers just for fun like I do.
When fully disassembled (just a mainboard +cpu left) I plugged it back in and tried again. This time- something different! (When diagnosing different is always good because it let's you triangulate which pieces are having problems). Without a screen there was obviously no video, and there was still no audio, BUT this time the three keyboard lights flashed, then began a slow blink, and this time the power and fans stayed on! (This is normal behavior for a mainboard- the keyboard light flash is an error message that would tell me more if I had enough internet access to look it up). But I felt like a doctor who thought his patient was dead but sudenly has a pulse! Something at least is still working here.
Leaving the computer disassembled I managed to reconnect video and reinstall the memory. Success! We have video! I powered off and added the hard drive. Not good- it went back to just a power light and fans, no video and no flashing lights. Removed the hard drive, still the same.
Long story short I was able to get the notebook working again, but with a weird caveat. The first time you turn it on you usually get the "dead condition" - power light and fan, nothing else, and it powers off after 20 seconds. But if you TAP ON THE CPU before pressing power, it works fine nearly 100% of the time. (Yes, I've removed and reseated the cpu and it's heat pipe several times).
I've had to leave some pieces out (internal braces and the top piece of the keyboard) so that the cpu is easily (?) accessible for "tapping".
My best guess is that there is either a short or electrical problem in the vicinity of the cpu, and that the "tapping" is fixing it enough for the computer to start- for now. I have no doubt that this won't last for long. But for now we were able to recover all the files and reports to a thumbdrive and make our plans for today.
So I've had lots of "firsts" on this trip. First time in Congo, first time kicked out of a country, first time having to use my high school french to get around. And now I can add "my first 3rd world notebook repair". :)
So last night he arrived at dinner and after dinner while the others met I went to work. It was somewhat urgent because there had been photos on the machine of our projects in Kaliba, and if they were sufficient then we wouldn't have had to try and sneak two of us (Wolfgang and myself) back into Congo today to get new ones.
The notebook itself is a 2004 HP with a Pentium M processor, and when I plugged it in and turned it on the power light and fans would run for about 20 seconds and then go off. No other lights, no video, no audio. This isn't good- I'm guessing it's a faulty mainboard at this point but with no replacement parts within a few hundred miles (at least). At this point I'm kicking myself for not packing my USB-to-harddrive universal converter (which I did seriously consider packing) so I could connect the HP's drive to my MacBook Pro (which Prosper also brought for me, courtesy of my friend Jean). But it's not here so to start I have an all-but-dead machine and no idea if the hard drive is still intact or if it has the photos we need.
I decide I may as well try some things. Reseat hard drive. No change. Reseat memory. No change. Remove memory. No change- and that tells me the mainboard isn't responding correctly because I should have had audio and/or visual error signals when booting with no memory. Not good. I figure there's maybe a 5% chance I can do anything with this here- especially considering I'm in a Catholic Guest House (hostel) without much light and with no equipment to speak of. But 5% is still something, so I decided to disassemble the machine to see if I could find anything fixable.
I'll spare you the details, but it took about an hour to reduce the machine down to component parts. The rest of our team kept circulating by and taking pictures- I always forget that most people, unlike me, probably don't disassemble their own computers just for fun like I do.
When fully disassembled (just a mainboard +cpu left) I plugged it back in and tried again. This time- something different! (When diagnosing different is always good because it let's you triangulate which pieces are having problems). Without a screen there was obviously no video, and there was still no audio, BUT this time the three keyboard lights flashed, then began a slow blink, and this time the power and fans stayed on! (This is normal behavior for a mainboard- the keyboard light flash is an error message that would tell me more if I had enough internet access to look it up). But I felt like a doctor who thought his patient was dead but sudenly has a pulse! Something at least is still working here.
Leaving the computer disassembled I managed to reconnect video and reinstall the memory. Success! We have video! I powered off and added the hard drive. Not good- it went back to just a power light and fans, no video and no flashing lights. Removed the hard drive, still the same.
Long story short I was able to get the notebook working again, but with a weird caveat. The first time you turn it on you usually get the "dead condition" - power light and fan, nothing else, and it powers off after 20 seconds. But if you TAP ON THE CPU before pressing power, it works fine nearly 100% of the time. (Yes, I've removed and reseated the cpu and it's heat pipe several times).
I've had to leave some pieces out (internal braces and the top piece of the keyboard) so that the cpu is easily (?) accessible for "tapping".
My best guess is that there is either a short or electrical problem in the vicinity of the cpu, and that the "tapping" is fixing it enough for the computer to start- for now. I have no doubt that this won't last for long. But for now we were able to recover all the files and reports to a thumbdrive and make our plans for today.
So I've had lots of "firsts" on this trip. First time in Congo, first time kicked out of a country, first time having to use my high school french to get around. And now I can add "my first 3rd world notebook repair". :)
Subscribe to:
Posts (Atom)