(This article appeared in the special edition of the Atlanta Business Chronicle that was distributed at the 2010 Annual Atlanta Small Business Growth Expo)

Whether you believe we’re headed into the second dip of a so-called “double-dip recession” or you think that the worst is behind us, one thing is clear: We have all learned how to do more with less.  And if we are headed into a second “dip”, I predict that there will be far less casualties than the first one, having learned our lessons the first time around… I hope.

More Cloud Adoption

Among those lessons learned was to preserve cash at all costs. This has certainly increased the adoption of Cloud-based solutions for everything from email (Hosted Exchange & Google Apps), to online file sharing and storage, as well as a large range of line of business applications (accounting software, customer relationship management software, etc.).

Adoption of the Cloud as a business’s core IT infrastructure will continue to gain momentum in 2011 for many reasons. As I have already stated, the Cloud lets you hang on to your cash by converting large upfront capital expense’s to much more affordable operating expenses, generally on a monthly basis. This is important for new businesses because it dramatically lowers startup costs and alleviates concerns about scalability. Existing businesses can benefit in a similar way. They can now upgrade their aging infrastructure at a much more manageable cost.

The Cloud is also a much more efficient way to enjoy consistent system and feature updates on a regular basis. Our helpdesk system is cloud-based and we enjoy feature updates once a quarter, versus the once per year that you often get with on-premise software solutions where you’re waiting for the next version to come out.

More Regulatory Compliance

Also in 2011, look for more fines from the Federal Government over violations of regulatory compliance. Despite its passage being 14 years ago, the Feds have started issuing the first fines for violation of HIPAA this year. The recent passage of the American Recovery and Reimbursement Act of 2009 (commonly referred to as “The Stimulus”) included another act called HITECH (Health Information Technology for Economic & Clinical Health Act) which reinforces HIPAA by specifically addressing the privacy and security concerns associated with the electronic transmission of health information.

The medical businesses aren’t the only ones that have to worry. All manner of financial intuitions have a wide range of regulations on them now: Sarbanes-Oxley (commonly called SOX), Graham-Leach-Bliley Act (GLB), PCI DDS (for credit cards), etc.

There are several technologies that companies worried about regulatory compliance will need to invest in:

• Email Encryption: Secures email communication so that only the intended recipient can view the message
• Email Archival: A record of all incoming and outgoing email communication. Most regulations require 7 or more years of retention
• Disk Encryption: secures the content of hard drives on computers. This is especially important for laptop users. There have been many stories in the media lately stolen laptops that contain sensitive data. The Veteran’s Administration is a recent one that comes to mind.
• 2-Factor Authentication: A 2-phase process of authenticating to a network or computer system. Examples are: a password and a thumbprint scan or a password and a token ID gotten from a special application on your mobile phone.

How to Grow Business in 2011

So after you’ve saved money by adopting the Cloud and made the appropriate investments to get the regulators off your back, how do you continue to grow your business in 2011? Ask this question to 10 people and you’ll get 10 different answers.  Some will say “more traditional marketing”, others will say “ implementing social media”,  and another might say “networking”. They’re all correct. You can’t just rely on one medium to market your business. My advice would be to get the online marketing (web site, Google ads, social media, etc.) as automated as possible (hire a firm to handle this for you if you can) and focus on your networking. Expand your personal network with the right people and develop strategic partnerships that are highly synergistic. Make sure that you are also connecting people together. It will pay off, I promise.

Did you learn anything from the recent recession? Or did it simply confirm what you already suspected? A combination? Tell me your thoughts.

What it taught me about myself:

It confirmed in me that I have the ability to lead my company through a crisis. Having started Carceron during the 2001 recession and surviving a 2nd one is no small feat and one that I am proud of. Hell, if anything, it has been invigorating.

What it taught me about business:

That all of the sales rhetoric about selling on value versus price is null and void during a recession. We had several clients with whom we thought we had very strong relationships that put our contracts out to bid and switched  to the competition for as little as a $100 difference per month. Put more simply, fear trumps value.

What it taught me about the world:

That money can truly brings out the worst in us and I fear that it will only intensify. I find it somewhat ironic that we all discovered a new found sense of unity and patriotism after 9/11 happened, but when the economy melted down we did little but get very angry and very afraid.

It reminds me of something I read long ago about the window and the mirror. The less evolved will tend to look out the window for the source of their problems, thinking that it could not possibly be from the outside. However, many people have a hard time looking in the mirror (even me sometimes) for the source of their problems.

It also reminds me of a dysfunctional family (of which I have ample experience). You accept your family members (in this case the banks and government) flaws and all, no matter how often they screw you, but when someone outside the family strikes a blow we become enraged. No one picks on my dysfunctional brother but me damn it!

Perhaps I’m being overly harsh. After all, what could have us little people truly have done?