Another way to track items involves RFID (radio frequency identification) tags, which use low-level RF signals to transmit stored information from a tag to an electronic reader. The RFID tags are simply microchips that transmit without the use of hand-held scanners, eliminating all manual labor associated with bar codes.

As previously discussed, all branches of federal government are required by law to migrate their business practices to a paperless operation. In implementing the new e-procurement way of contracting, it is clear that there is a need to ensure the confidentiality, security, and authentication of information exchanged between government and its contractors in the electronic environment.

The concept of electronic procurement for a small business not yet comfortable with new technology can be overwhelming. E-procurement takes many forms and has become a requirement for doing business with the government. But the electronic procurement requirements that we describe here are not unique to the government. They are the same as a large private-sector business requires of its suppliers. Therefore, it is essential that any business at least consider these issues, whether it does business with the government or not.

We can't stress enough the importance of this area. Simply put, if you are not capable of doing business using some kind of electronic commerce (e-commerce) or electronic procurement (e-procurement), you will not be doing business with the government.

Continuous quality improvement is the hallmark of successful companies, worldwide. Many successful Japanese companies have adopted continuous quality improvement as the number one operational principle for all employees and departments. Chrysler, Procter and Gamble (P&G), 3M, Compaq Computer, Microsoft, and many other less well-known U.S. companies clearly practice continuous quality improvement. P&G is famous for consciously developing and introducing improved versions of its own current products under different brand names as a method for continuous quality improvement and significant technological advances (e.g., improved effectiveness in laundry soaps).

Today's competitive market, in almost every category of products and services, is characterized by accelerating changes, innovation, and massive amounts of new information. Much of this rapid evolution in markets is fueled by changing customer needs. Significant customer behavior and market changes happen almost overnight. Changes in market preference or technology, which used to take years, may now take place in a few short months.

Many product categories have significant evolution and life cycles that may affect pricing decisions.

Sometimes the best, least expensive, fastest, and least risky way to introduce new products is to copy or improve upon a competitor's new product introduction.

Good ideas can come from anywhere! But can one consciously foster creativity and new ideas on demand? Certain successful companies and creative experts suggest that it is not as hard as most people think. Everyone can be more creative with technique, practice, and motivation. Perhaps "a leap of faith" is also required for the skeptical.

How often do small companies go out and test their products against competitive products with users of the product? Every five years? Ten years? Never? Even when a direct competitor introduces a new product, most small companies react by introducing a similar or slightly improved version of the same product instead of considering the sales potential and strengths of their entire line.

Today's accelerated rate of change and information growth means small companies will inevitably face increased competition in their market niches. Small companies need to embrace and seek out change, rather than avoid it or wait until change is forced upon them by competitors.

If you sell to other businesses, who turn around and resell your products and services, your buyers are predominantly channel buyers. Examples of channel buyers from the grocery and drug industry are:

Most of us fall into one of two categories: either we love technology and desperately want every new gadget or we loathe it and want it to leave us alone. Both types of people often have trouble managing their technology needs. But the business owner who can handle basic technology will have the productive capacity of approximately five people, thus achieving significant savings on employees or outside service costs.

Here are a series of suggestions for working smarter:

Locks and keys may be low tech, but they're a high priority for securing physical assets. And it's a good idea, by the way, to have your locks changed periodically.

If you're currently employed, you have first-hand knowledge of what it's like to be an employee. If you think going into business for yourself will mostly mean doing the same thing, but for yourself, you're in for a surprise. Small business owners are responsible for the entire business, which involves a lot more than just providing goods or services. It's likely that all the administrative and managerial duties currently performed by your employer will fall on you.