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"The new information technology-Internet and e-mail-have practically eliminated the physical costs of communications."
Peter Drucker, the "father of modern management," and professor at Claremont Graduate School in California.
Innovative small business owners already know that the Internet has had a large impact on the way they do business (see Figure 7). Simple things like posting brochures online instead of printing and distributing them save you time and money. Having the information available at the click of a button saves your customers time and inconvenience. Whether used as an inexpensive marketing tool (think of the postage you'll save), an aggressive sales technique, or in order to survive under conditions where their business would otherwise not be possible (an artisan in a cabin in the woods), small business owners agree that whether or not the Internet has leveled the playing field between small and large business, it has certainly made small business more competitive.
Source: AC Nielsen for eBay.
The Internet has helped small businesses expand and become more profitable as well as helping to reduce business costs.
Websites are the sign of an established business
Customers expect all reputable businesses to have websites, much as they expected businesses to have fax machines in the 1980s, telephones in the 1930s, and business cards at the end of the 19th century. And while small business owners often feel overwhelmed by all the options available online, a simple, but well laid out* (*this is important and will be revisited later) website is all you need for credibility.
On a smaller business's website, customers simply expect to find:
Larger businesses should also provide (where appropriate):
- Printable brochures
- Product catalogs
- Examples of past work
- A way to make inquiries
- Product / Warranty / Price information
- Coupons
- Signups for promotional alerts or newsletters
- Security features
- Shopping Carts
Academics, artists, business-to-business, not-for-profits, professionals, and retailers can also benefit from websites with customized features such as links to publications and portfolios of work (see table 1).
Customers look online for information about all kinds of products and services. Whether your business is large or small, your customers expect to be able to find your website.
Expect to find the information online - 63% of all Americans expect a business to have a website that provides them with information about a product they are considering buying.
More likely to buy - 47% of Internet users say that if a store provides product information online, even if it doesn't sell directly from its website, they would be more likely to go to the physical store to buy the product.
Gain business - 35% of small businesses with websites gain 10 to 99 % of sales directly or indirectly from their websites.
Case study: OM Yoga teaches yoga classes to both the public and to corporations, in addition to organizing yoga retreats and cruises, and selling yoga clothing and accessories. Louise Stewart, principal and founder of OM Yoga, believes the e-business is an integral part of a complete business strategy and uses the Internet as a low-cost promotional tool: "The website is my main source of advertising and referral. I do have business cards made up...that I can hand out, and I've got flyers posted around the city, but it all says go to the website. It's just a teaser. How can I possibly fit photos onto a flyer? And I always provide a phone number to call so I am giving them a choice. The purpose of this is to drive people to the website because I know that image is everything and I'm only one person." www.omyoga.ca
Websites are a growing trend
As the number of people connected to the Internet increases, so do their expectations of what they will find on the Web. Small businesses are realizing this and have been working hard in recent years to make sure their customers can find them:
Websites are showing an upward trend: Although fewer than 9% of small businesses have had websites for eight years, 65% of small businesses have had an online presence for at least the last year (see Figure 8). This suggests an upward trend for small business owners incorporating websites into their business plans.
Source: SBA.
Although very few small businesses have had websites for eight years, the majority have had a web presence for at least the last year suggesting an increasing trend.
Small business spending on Web hosting alone is growing by 12% annually and will top $7.8 billion by 2008, according to IDC.
If you are convinced that your business needs to be online, and just want to learn more about how you can get a professional looking website for a reasonable price with all the features necessary to draw customers, get leads, and make sales, check out our top picks for online website builders and web designers.
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