Free with a catch
Free applications on the Web may sport the right price for your small business, but I don't think they're the smart choice for crucial components of your enterprise. Free services have a nasty habit of disappearing without a trace. Who remembers PlanetAll.com, the free PIM?
I don't advocate abandoning free Web services entirely, only that you be cautious about what you hand over to such outfits. I wouldn't risk accounting to a free service, nor entrust my e-commerce bread-and-butter to a free e-store hosting outfit. It's another matter entirely if e-commerce is a sideline at the start; free sites such as Bigstep.com provide an cost-effective way to introduce yourself to online customers. But think of such providers as an interim step, with the goal a reputable host that has legs and a long lifespan to prove it.
To stay be on the safe side, assign peripheral business duties to free ASPs. These might include such tasks as infrequent online meetings, or data sharing between your business and the occasional outside contractor. Tasks like these can easily be switched to another ASP if yours fails, if only because there's little or no data involved.
Assuming you do make the leap to an ASP, what's the crucial characteristic of a worthy provider? That's the next item on my tactical battle plan.
