Legal/technology services firm partner Robert J. Scott said today, “There are two types of companies: those that have been audited [for software violations] and those that will be.” Scott sees the trend. In the last year, the Business Software Alliance, the main copyright enforcement watchdog for Microsoft Corp, Adobe systems and Symantec, reaped $13 million in software violation settlements, almost 90% of which came from small businesses.   

Here are five things a small business owner can do to reduce the risk of being hit with a software violation claim:

Now is a popular time for small business entrepreneurs to cast vision and set objectives into the new year.  For a long time, managers have been using the goal setting formula known as SMART (Smart, Measureable, Achievable, Realistic, Timely) to set their annual goals. Ray Silverstein is a sales columnist for Entrepreneur.com.  In his article, A Guide to Goal Setting, Silverstein explains what SMART goal setting is and how it works.  

Also this month, blogger Mark Horstman has posted a 3-part podcast entitled How to Set Annual Goals.  Horstman hosts the blog, Manager Tools. In an innovative and fresh look at SMART goal setting, Horstman claims that the seasoned formula is “intellectually flawed” and generally not applied properly in the workplace. Mark Horstman suggests an alternate method, which he predictably calls MT goal setting. 

For small business entrepreneurs, the important thing about annual vision casting and annual goal setting is to do it. It is valuable time spent if the business’ vision and goals are used as “filters” for the choices that are made throughout the new year. 

Whatever method used, having a clear vision of the purpose of the company is essential for both setting meaningful goals and maintaining the momentum of success throughout the year. When Starbucks Chairman Howard Schultz recently reassumed the CEO position of Starbucks, a “back to basics” statement was released by the new Chairman Craig Weatherup. He said that Schultz’ purpose was “ . . .  to relentlessly focus the entire organization on the customer.” Meeting the needs of the customer is the fundamental purpose of every business.

As restated by Starbucks’ management, the fundamental purpose of a business is a good beginning point for vision casting and goal setting. Asking how the business’ product or service meets the need of the customer brings focus to the process. 

Have a very successful business year in 2008 – just as you planned.

Courage is contagious.  When a brave man takes a stand, the spines of others are often stiffened.