Banks and telcos really don’t like new businesses
Banks and telco providers really don’t like new businesses very much.
When I set up Explore Communications last month, I opened a business banking account with a view to ensuring that all my business transactions were kept separate from my personal ones. The initial experience I had in setting up the account was an ordeal (see It’s the Little Things …), but I was astounded that the bank would not give me a business credit card, until I had been in business for at least two years. However, they had no problem giving me a cheque book (for what it’s worth).
I also just signed up online to a plan with a mobile carrier, and selected the option to connect as a registered business. Unfortunately, when it came to completing the date of incorporation and commencement of operation for Explore Communications, it was impossible to select ‘2011’ as the year. By default, I assume that the requirement is a minimum of 12 months for the business to have been operating.
Both situations are unfair and unrealistic. It’s pretty hard for a small business to operate without a mobile phone and credit card, and by forcing people to use their personal phone and credit card accounts for business activity adds complexity to financial arrangements that a new business can definitely do without!
Saasu, SurveyMonkey and WordPress
What a nice three-way coincidence today!
As I spent the morning learning how to use the online accounting system www.Saasu.com – so that I could issue my first-ever invoice for Explore Communications for work that I completed to put together a staff satisfaction survey for a client using SurveyMonkey – I saw a tweet from Marc Lehmann (Saasu’s CEO and founder) explaining why he has just moved his personal blog to WordPress.
(Sorry for the long sentence, but I needed to fit in Saasu, Surveymonkey and WordPress, and explain the context for each at the same time!)
All three are great examples of the cloud-based tools out there that give you basic capabilities for free, and a low cost of entry for advanced functionality. Each application give you incredibly rich capability, only enhanced by the premium services available. For a new business like Explore Communications, with little upfront investment, I can build my processes around tools such as WordPress and Saasu, and deliver services to clients with applications like SurveyMonkey.
When it came to deciding on a platform to host Explore Communications’ website, I had no hesitation in choosing WordPress. As Marc writes in his post, “It’s one less thing I have to manage. I want to consume and produce content, not manage applications.”
Content is Still King
I took this picture on Monday, one of many bus shelter signs in Sydney’s CBD advertising the just-defunct HP TouchPad for sale at Australian retail store Harvey Norman. In fact, the device had already been cleared off the shelves in a fire sale the week before – I know, because I picked up one of the 32GB models for $149 at my local store.
Having organised bus shelter advertising in the past, I know how difficult and expensive it would have been for Harvey Norman to cancel the ads or produce replacement posters. That said, it might prove to be a great strategy, now that word is out today that HP is going to produce another batch of TouchPads … but at what price point and where they will be sold, nobody knows.
At the same time as HP’s news, there is talk of an Amazon tablet, with analyst firm Forrester predicting it will be released at a sub-$300 price point.
The decisions being made by HP and Amazon are obviously having a destabilising effect on the tablet market, but it’s really no different to what happened with mobile phones. In their early years, mobiles were incredibly expensive – almost $4000 for a Motorola DynaTAC 8000X in 1983 – but for most handsets now (barring the top-of-the-line smartphones), the value is all in the contractual plan you sign up for with the telco. Apple’s managed to flip that model on its head and charge a premium for the iPhone, by making content – apps and multimedia – are more compelling proposition for consumers, but I reckon it’s only a short-term advantage.
When it comes to tablets, it’s all about content – over time, the device itself will become a commodity, like the paper used to produce books, and have little intrinsic value in itself. HP made a pretty good start with its Pivot apps magazine on the TouchPad – it’s just a shame to see all that time and effort put into the content likely to go to waste with the eventual demise of the device.
Digital content reminds me of all the excitement around PointCast 15 years ago. PointCast was an application that you ran on the desktop that delivered up-to-date news and information that you could personalise to your own needs. In some ways, it was probably 15 years too early. A PointCast-style model, licensing content from various news services and pushing it out through a tablet app, would stand up really well now.
As the price of the tablet comes down, in a couple of years, I can see the content owners themselves releasing their own tablets. Imagine a Gourmet Traveller or Vanity Fair-branded device, that gave you access to the entire back catalogue of magazine issues, plus an ongoing, paid subscription to future editions, together with some basic web and communication capabilities. On your bookshelf, instead of a stack of magazines and newspapers, you just have a short row of tablets, their titles visible on the spine, resting on a charging pad.
I’d sign up.
The Skivvy
While the big news of the day was the resignation of Apple CEO Steve Jobs, I’m not going to add to the millions of comments out there already. What was really interesting for me was the use of the very Australian term “skivvy” for Steve Jobs’ signature clothing – or what the Americans call a turtle neck and the British a polo neck.
I saw skivvy in the headline of an article in the Australian tech business publication Technology Spectator – ‘A skivvy for your vision’ – and it got me thinking – I couldn’t remember seeing the word used in a headline before, so I did a Google News search for ‘skivvy’. It came back with only 14 recent results (mostly about The Wiggles) but a massive 5341 related news articles (screenshot below). I’m sure only a very tiny percentage of those actually had the word appearing in the article, let alone in the headline.
What it does do is give a nice insight into just how sophisticated the algorithms are behind Google’s simple search text box, and the reach that any obscure word or phrase like ‘skivvy’ can have on the web.
In honour of Steve Jobs, anyone remember The Late Show’s Skivvies are Back?
It’s the Little Things …
There’s a golfing cliché “driving for show and putting for dough” that mirrors my experience in setting up my new business. Like driving the ball off the tee, so much of it has been easy and quick, and I’ve made a lot of distance on setting up the business in ‘one hit’.
And by quick, often blindingly so!
I’ve probably spent more than a year mulling around the idea of starting my own business, before making the decision to do so. After deciding it was time, I sat down with my accountant Trevor to get the ball rolling to register my new company. The meeting was at 3pm. At 5:55pm, the same day, an email arrived with both my ABN and ASIC certificate of incorporation. Within a couple of days, I had my first postal correspondence from the ATO and other regulatory authorities with documentation and forms relating to Explore Communications.
Similarly, my web experience has been rapid. Registering a domain name – www.explorecomms.com.au – was painless and virtually instant. Getting an email account established – maungle@explorecomms.com.au – was also fast. Setting up my blog on WordPress was simple and easy too.
So that’s the analogy with driving done. However, getting the ball in the cup can be frustratingly difficult.
Armed with my ABN and ASIC certificate of incorporation, I set off to my bank to set up a business account. I have multiple products with this bank – home loan, credit card, savings and insurance – but they were completely unresponsive when it came to working with me to set up a business account. I persevered over a number of weeks, with no joy. Even a tersely-worded complaint only produced an apology letter full of bland motherhood statements and no action.
Finally, I went to a second bank who signed me up on the spot. However, my personal ‘business banker’ has been virtually impossible to track down since – to the point that one day I waited in ambush for him when I heard he was at my local branch.
As for my email address and domain name, registering was the easy part. Getting them to work, another matter. My hosting provider gave me technical instructions to set up my email account , including this: “Outgoing : Your ISP’s SMTP server.” I hopped onto the web to see what information I could find, and quickly located the SMTP server settings I needed. I put in all the other settings and tried to set up the account, but it kept failing. Maybe the SMTP server details were wrong? No – all seemed OK. Did I need to authenticate to the SMTP server with my ISP user name and password? No, that didn’t work either. All this killed a couple of hours of my evening, and I still didn’t have a working email.
It turned out that I needed to select a different port number. The account uses POP, not IMAP, which means port 110, not 143. I only got that information the next day, a 24-hour delay on setting up email.
It’s been a similar experience with my domain name. I want my explorecomms.com.au domain to transfer to this WordPress blog (you can read about WordPress Domain Mapping here) but it has taken me a number of emails over a number of days, and at the time of writing this post, it’s still not done.
Now, the point of this post is not to complain about the service I’ve received from my bank and my hosting provider, but to highlight the fact that the more efficient and amazing technology becomes in the way we do things, the bigger the disappointment when we are let down by inefficient personal communication and response.
I’ve thought about how my new business can help in each of these scenarios.
First, my banking experience and the ‘sorry’ letter I received. If I had a say in it, I wouldn’t be sending out a letter to a high-value customer that didn’t have some form of action promised. I’d make sure the bank staff responding to complaints were armed with a number of communication options, that would be backed up by real action. As the customer, it actually made me angrier to receive a letter like that, and made me more likely to take my business elsewhere!
Second, my hosting provider could have done a much better job in advising me on setting up my email. How hard would it be to cover the basics in terms of setting up a POP account, which includes the required port number , and why not provide a list of the top ten Australian ISPs, their SMTP mail server addresses and whether or not you need to authenticate to them? Not only does it save your customers time and aggravation, but it saves you from having to field calls and emails from those customers when they can’t get their email to work.
As for my elusive business banker, there doesn’t seem to be much I can do to fix that … I just have to continue stalking him.
Explore Communications is Launched!
This is the very first post for Explore Communications Pty Ltd, a new Australian-based company established to provide marketing and stakeholder communications services to organisations exploring new markets, new territories, new technologies or new ways of doing business.
The company provides services across a range of disciplines including:
- editorial services;
- public and analyst relations;
- brand creation and management;
- print, video and web production;
- web and social media marketing;
- events;
- market research, client and staff satisfaction programs;
- internal communications; and
- advertising and direct mail.
Explore Communications can work with your existing marketing, design and advertising agencies; establish relationships with new agencies; or execute on projects directly.
