The first decision when choosing a computer is whether to purchase an IBM-compatible PC or a Macintosh system.

PCs currently dominate the business computer market, particularly in large firms and financially oriented departments. Most PCs come pre-installed with a popular operating system (OS) made by Microsoft Corp. known as Windows. The most current version of Windows designed for the business environment is called Windows 2000, but many computer manufacturers are still selling systems with Windows 98 or Windows NT, both of which are still perfectly adequate operating systems for your small business needs. And if you later decide that you need Windows 2000, an upgrade can be purchased at significantly reduced price.

Macintosh models have less than 10% of the overall market, but are very strong in the educational, graphics, and multimedia segments. Because of its smaller market share, some software is not available for Macs. As for its operating system, Macs use a homegrown windows-style OS called simply Mac OS. The current version sold in Macs is OS 9, but expect a newer version, OS X, sometime this year. If you purchase a Mac with OS 9, you'll be able to purchase an upgrade to OS X when it becomes available at a significantly reduced price.

Overall, the best choice for you depends on the work you will be doing. If businesses that are similar to yours use Macs or PCs, you are probably best off making the same choice.