by Dan Stout

Created on: July 16, 2009   Last Updated: July 19, 2009

Technological literacy is the key to prosperity in 21st century... but not in the way that you may be thinking. The constant push to adapt the latest trends in technology has caused many entrepreneurs to Tweat, IM, and Status Update themselves into distraction. In order to sell magazines and draw page views, publishers inundate entrepreneurs with articles about how each new iteration of a given technology will be the silver bullet allowing us all to work less, make more, and retire early to that private island we've been eyeing.

In fact, the technological literacy that entrepreneurs need is simply the ability to be aware of new developments without becoming distracted from their core business model. Tech "flavors of the month" carry three main dangers: distraction, empty-use, and bugs. There is a never-ending procession of shiny, exciting new products vying for your attention, each with seemingly unlimited potential to expand our businesses and suck up your time. If, as an over-eager entrepreneur, you try to adapt every new time-saving technology, you will quickly have a collection of semi-useful gadgets, but no time to actually work on the heart of your venture-little things like sales and production.

There's no doubt that the latest in technology is fun to play with, but maintain a laser focus on your core goals and metrics; if that gadget that's the envy of all your friends isn't helping grow and sustain your business, leave it for downtime. Users of new technologies also have a tendency to use them just for the sake of using them. Do you have a following of customers who want to know as soon as your new products will be released? Or are you sending out updates to an uncaring void? Do you have a "lifestyle" brand with loyalty similar to Jeep or Harley Davidson, or are you Twittering away about what you had for breakfast? It is vital to the life of your small business that you be aware of new trends and tools, but do it by keeping an eye on how they can be conformed to meet the needs of your business, rather than the other way around.

The great advantage of small companies is the ability to adapt to changing circumstances without having to battle through a bureaucracy to get executive sign-off. You may not benefit by making announcements on Twitter, but you may be able to keep an eye on competitors, vendors, and industry insiders. If a sales prospect has a Facebook page you might learn that they're a fan of a particular movie or tv show, giving you

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