Big Online Dot.Com Failures Leave Great Opportunities for the Little Guys
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Big Online Dot.Com Failures Leave Great Opportunities for the Little Guys
Author: Colleen Seto
Date Added: Friday Apr 02nd, 2004
Category: Work at Home
Big Online Dot.Com Failures Leave Great Opportunities for the Little Guys
By Colleen Seto
In the wake of many dot-com business failures, there’s been growing concern about the demise of the Internet. Many smaller businesses have since aborted their plans to launch web sites, employ e-commerce or make use of the Internet at all. The truth; however, is the Internet is definitely here to stay.
Take it from Doug Dayton, \'techno-marketing\' guru. \"The demise of many ‘first-mover’ Internet companies reflects unrealistic business plans and investor expectations,\" explains Dayton, a founding member of the Microsoft® Dream Team. \"It has little to do with the opportunity for businesses to succeed with e-commerce in today’s market.\"
Dayton was instrumental in putting Microsoft® Windows on every computer desktop in the world. He has helped thousands of companies to understand the impact of the Internet and to develop winning sales strategies for the new economy. He is also the best-selling author of Selling Microsoft®, Total Market Domination, and The Information Technology Audit Handbook.
Small Business Success after Big Business Failure?
\"The Internet and e-commerce can help small businesses improve communications with their customers, provide better customer support, and develop new business opportunities,\" affirms Dayton. \"The Internet is a powerful tool for expanding a company\'s presence to reach new customers that are outside of its current market.\"
Consequently, small businesses should not be afraid of the Internet, despite the downfall of some of the larger Dot-Com’s. Instead, they should be getting on-line and finding out what Alene Shannon, founder and owner of Steel Daisy (www.steeldaisy.com), a unique Calgary-based company specializing in \"funky handmade wirework jewelry\", already knows. \"Having a web site seems to be a necessity in business today,\" observes Shannon. \"We have a lot of customers in the USA and other parts of Canada, and what better way to reach them than the Internet?\"
Across the country, Ottawa Entrepreneur Peter Pregel, who is president of Black Gold Coffee, agrees. His coffee distribution company, which is growing across Ontario, recently launched a new e-commerce web site (www.blackgoldexpress.com/retail). Residential and small office clients can now order Black Gold\'s exclusive blend of Colombian coffee conveniently off the Internet. Customers can also view products, request quotations and find out all about Black Gold’s coffee kiosks online.
\"I am very excited about our new site,\" says Pregel. \"We decided that the time was right to market our coffee to everyone. So many people have asked us where they can buy it. Now they can get it whenever they want. Simply click on our retail site and your delivery is set in motion.\"
Planning is the Key
Once you decide you want to expand your business to the web, sit down and plan before taking any action. \"The first and most important point to remember, is to have a business plan,\" stresses Dayton. \"All too often, people form an initiative, and go out and attack the web. In the process, they forget everything they know about business.\"
To develop an e-business plan, use the same approach as for a traditional business plan. Remember the basic elements you used to build your current business, including, offering products and services at a reasonable price and delivering a high-level of customer support. \"Web sites fail for the same reasons other businesses do. They offer poor value, and don’t give the customer support people want,\" asserts Dayton.
In addition, Dayton advises sticking to the basics. \"Don’t get bogged down in creating glossy business plans,\" says Dayton. \"What is most important is to spend enough time thinking things through in great detail:
-How will profits be made?
-How is the technology going to be implemented and supported?
-How will the technology work with your current systems such as inventory systems?
-How will you spend your business investment to ensure the success of your new business?\"
Decide what the purpose of your web site will be. Business web sites can incorporate a blend of marketing, selling and customer relations. Define these goals in your business plan, and tie them into your larger business goals such as branding, increasing sales, etc. By deciding what your business goals are, you can determine the direction of your web site.
Learn from others’ mistakes
One positive outcome of the large Dot.Com collapses is that it lets smaller businesses know what mistakes to avoid. \"Try a few little things to find out what works best for you,\" suggests Dayton. \"There is a level of trial and error. It’s important to realize a web site will evolve. Develop your web site as you gain experience and try different marketing initiatives.\"
Understand too, that the cost for a small company to launch a web site is minimal, as the larger companies have already created the infrastructure to facilitate e-commerce. For example, posting low-cost banner ads to other web sites to promote your own is a great way to attract new customers through the existing Internet foundation. While you may have to consult a technology expert to make the most of your site, they can help you develop your web site in the quickest and most cost efficient way. \"It is important to be honest about your strengths and weaknesses,\" cautions Dayton. \"In many situations, you will need to outsource functions that you have neither the skill or the time to handle.\"
This is advice Shannon has clearly heeded. Steel Daisy hired consultants to both design and maintain their web site. \"The look of our site is very important to keep people interested,\" she remarks. \"We had a very skilled design company work on our site and we receive positive comments every day on how people like the look. This initial investment is very important as well as having someone to attend the site on a regular basis. If this is set up, then go for it — there is no reason not to!\"
Hiring consultants need not be a huge expense either. You can:
-Ask other small business owners who they used.
-Ask your chamber of commerce and small business associations for resources.
-Search the Internet for web sites with free information.
-Make use of students in your area looking for portfolio projects in web design.
-Look within your own network. (Since launching the site, Shannon actually has her brother and mother, maintain and manage the site.)
Research how to profit from the still growing Internet
Despite the current gloom-and-doom surrounding the Internet, the web is still growing. Consumers are using the Internet to shop, and now is a great time to take advantage of this on-line action.
Start by doing research to find out what will work for your business, and continue to investigate to keep up with your clients. \"We did do an extensive on-line survey to determine our customers buying patterns via the Internet,\" says Shannon. \"This helped to answer the question: should we dedicate more resources to further the development of the e-commerce portion of our web site? The answer then was no. Now that our customers are purchasing more on the Internet, plans are in the works to develop it further.\"
One of the best ways to find out what will work is by checking out your competition. \"See what’s out there,\" states Dayton. \"Chances are, if you have a good idea, someone has already thought of it. Search on the Internet, and see how you can make yours better.\"
Now is the time to act!
\"Plan to get online as soon as possible,\" encourages Dayton. \"Build your experience and grow your site incrementally as you discover the best way to deliver a quality online experience for your customers.\"
Put yourself in the shoes of your clients. E-business consumers are expecting best prices, speed and convenience, product information and selection, and great customer service through a user-friendly interface. Devise a balance of appeal and functionality you can afford to build to meet your business goals. Remember you don’t have to do everything at once. Set smaller objectives for your web site such as generating 200 sales or obtaining 2000 visitors within the first three months. The most important thing is to act now!
Doug Dayton was the keynote speaker for The Liberty Health Small Business Summit in Edmonton and Calgary on October 2-3
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