business on the 'net

How to do business on the Internet

General Considerations

Generally speaking the Internet should be incorporated into the business' normal day-to-day operation. A business presents itself to customers on the street in the form of a shop-front and signage, it advertises it's phone number in the telephone directory, it might also promote itself in relevant magazines and newspapers.

When a business has a web presence it should also promote it's web address and/or email address wherever possible, including in printed literature, because a lot of customers prefer to communicate via the Internet, especially those in remote or distant locations.

In the same way a business person answers phone calls and checks their mail delivered every day, so too should they check their email and respond promptly. Ignoring an email is the same as ignoring the phone or ignoring the customer who walks in through the door - definitely not good for business!

Doing business on the Internet is easy and need not be expensive. It can increase turnover, reduce costs and improve the bottom line. What works for one business might not work for another, therefore it is important to get good advice from any number of sources and ideally include an Internet strategy into your business plan. Don't ask the question "Will it work?". Ask "How can I make it work for me?"

Brochure Site Only

For the operator that simply wants to present their business to the online community, the simplest and cheapest way is in the form of an electronic 'brochure' - a website that shows customers the business' products and services.

Compared to printed brochures, this form of brochure has numerous advantages:

• Relatively inexpensive:
  • 2 page full colour printed A4 leaflet, 5,000 copies costs say $500 to $2000, depending on printing company, plus distribution costs.
  • 12 page website costs approx $500 to produce, plus approx $150 per year to host.
  • Printed brochure needs to be reprinted regularly at full cost.
  • Updates to website can be done at any time at minimal cost.
• Updates are easy, inexpensive and can be done at any time.
• The look and feel can be changed at any time to suit changes to the business.
• Customers can easily communicate with the business by simply clicking on an email link.

Interactive Site

One small step above a brochure site, need not cost any more, depending on the size of the site.

Uses various website tools:

• Forms for communication and feedback.
• Forms for ordering goods and services, booking accommodation etc.
• Other interactive tools such as a guestbook, chat, events calendar, site search, online poll.
• These tools are driven by scripts, normally available for free, but there is a cost in personalising and branding them.

Commercial Site

Actually only a small step again above an interactive site. The cost is not much greater also, depending on the size and complexity of the site and product range.

Involves being able to transmit sensitive data such as credit card details securely over the Internet. This can cost as little as $30 per year (plus your normal merchant costs of course).

Considering the small cost of being able to conduct online transactions, the increase in sales should offset that cost and contribute positively to the bottom line.