Keys to Making Your Small Business A "Virtual" Success

by John F. Kennedy, CPA

Starting a small business in today's competitive marketplace is a daunting task. Keeping that fledgling business alive is an even greater challenge. However, the goal of starting your own business is not just to "stay alive," but to "thrive." Fortunately, the information age has opened up new frontiers of opportunity for success, both in the "real" world and the "virtual" marketplace.

Whether your business plan includes selling your products and services on the Internet or just advertising your business on the web, a well-designed web site is a must-have these days.

Location, Location, Location

Ask any business owner to name the three keys to a successful business and you will undoubtedly hear, "location, location and location." With the World Wide Web, any business can have the ideal location ... available to customers at all times from anywhere that has a connection to the Internet! Having a professionally designed, high-impact Web page for your business puts you in the "big league" without spending "big bucks." People are searching for products and services on the web in record numbers. Companies such as Amazon.com and Ebay.com have redefined the way products are marketed and sold.

The old business model of having an expensive physical storefront operation is still a necessity for many businesses. The nature of your business may require a physical location, but consider some of the additional benefits that a Web site provides.

How will it help MY business?

With a Web site, most products and services (unless they are region-specific) can be advertised and sold to customers across the country and around the world. While one-time newspaper ads may deliver a short message to a few thousand readers in a specific geographic area, the same amount of money, when used to create an effective web page, can be within the reach of millions of people worldwide. What a great way to really stretch those marketing dollars.

Many businesses have capitalized on the ability to track the number of "hits" (visits) their site receives in a given day with a counter. Web page hosts can provide invaluable statistical and demographic data gathered through on-line customer surveys. Web hosts can also capture visitors' e-mail addresses for use in future marketing efforts. The host can sort and summarize the data as part of the maintenance agreement, thus freeing up your company's valuable human resources for other tasks.

Web sites provide an excellent means for customers to gather more information about your business and to contact your company for more information through e-mail.

Won't this cost a lot?

Providing interactive pages on your site offers the world instant information about your company's goals, products, services and any other information you choose to share. This information can be maintained for a minimal cost compared to the cost of traditional marketing materials. For example, think how much you could save in printing and distribution costs if you used your web site to promote a new product line. The Web site could be modified quickly and inexpensively, while any paper brochures and literature would have to be trashed and reprinted. Consider using a more generic brochure that would not require frequent updates, and allow your web page to enhance your existing print media. Remember to post your web address on all your printed materials such as business cards, brochures and letterhead.

The cost of getting started can range from a few hundred dollars to several thousand dollars, depending on who you get to design, maintain and host your site. The initial start-up costs will be your greatest investment, and the best approach is to shop around. ISPs (Internet Service Providers) will often host your site for less than $25, or even free, as part of connecting you to the Internet. Hosting your web site means that you do not have to worry about providing hardware, software and telecommunication hookups. ISPs are easily found in your local Yellow Pages.

You will need a domain name (the web name or web address of your business), which costs approximately $70 for the first two years and $35 a year thereafter. Your ISP may help you with this cost by allowing you to use an extension of its domain name, but having your own "dot com" sounds more impressive and generally is easier for customers to remember. It's best to reserve your domain name as soon as possible, even if you do not plan to construct your Web site in the near future, to keep someone else from claiming the same name you wish to use. For example, if someone wanted to locate the Web site of "NBC," the domain name that pops into their mind first might be www.nbc.com, but if another company has already reserved that name, the user is taken to their Web site. There are several sites that can assist you in the registration process and some will even suggest alternate names for your site if your requested name is already taken.

For as little as $100 (you can spend much more), you can purchase a digital (no film) camera to use for posting pictures on your site. You can also use a color scanner to scan photographs into Internet compatible files, or have a local photo or copy shop can scan photos for you.

It has to stand out

Photographs are only one way to enhance your site. Eye-catching artwork, graphics and content will attract viewers to your site. Select a professional to assist you if you do not feel comfortable with the technology. Many companies exist solely to design and host web pages. Be sure to check out their work for others, to see if you will be happy with their style and the quality of the web sites they produce.

One of the greatest advantages of a web presence is image enhancement. Since a small business owner can have a web site designed that looks as good (or better) than sites of multi-million dollar businesses, through a computer monitor "David" and "Goliath" appear to be the same size. A simple site that does not use graphics or multimedia tools will not have nearly the impact and recognition as one that is fresh and colorful. However, be careful not to overload the site with graphics, because they can slow down the process of opening and viewing your Web site, particularly for users with slower computers.

So, what's the catch?

Making the commitment to get connected with the world is the first step. Then, decide what you can afford to spend on the initial set up. You can always add to and improve your site by the minute, but don't wait too long to get started. The companies that use the web first set the rules for the new way of doing business. Statistics show that followers just do not get the same results as the pioneers.

Keep the enthusiasm high. People who browse the web are looking at a large amount of information. Your company should project a dynamic image. Remember, once a Web site is designed, you are not finished. Use it to you best advantage by keeping it fresh and current on a frequent basis. You can do most of the maintenance yourself with very little training.

Get ready for the flood of information that could come your way. Today's Internet surfers send waves of e-mail correspondence and requests for information to businesses on the web. Set up a procedure to respond to these messages in an orderly manner.

Register your site with as many of the search engines (Google, Yahoo, etc.) as possible, so that your customers can find you easily. Many of the search sites and index sites will provide this registration at little or no cost. Web design companies can provide you with a fairly comprehensive list of search engine providers and even register your site with all of them for a fee. Using certain "tags" embedded in your web page code will also assist search engines in finding your site.

Include links to other interesting Web sites on your page. This allows your viewers to take advantage of information on the web without having to search themselves.

The future of business is e-commerce. Now is a great time to get connected and have fun in the process.

About the Author

John F. Kennedy, CPA, is an individual practitioner in Lebanon, Tenn. The Tennessee Society of Certified Public Accountants is the state professional organization for more than 8,000 CPAs in government, education, industry, business and public practice. For more information on small business issues, visit the Tennessee Society of CPAs' Small Business Resource Center on the Web at www.tscpa.com.