Helpful Advice from the Small Business Administration

Question:
What can a small business do to get started in electronic commerce without a investing a lot of money?

Answer:
As the Internet and digital economy continue to shift, vendors and service providers will continually try to find unique ways to provide low-cost services to small businesses. One quick example is the numerous websites offering free development and hosting. For example, the sites offer a web development application in a 'wysiwyg' (what-you-see-is-what-you-get) style that allows each person the ability to create his own type of web site.

(Editor’s note: check out http://www.quicken.com/small_business/ for resources).

Other options include participation in an online marketplace. These sites are designed to simulate a real marketplace that will attract customers who prefer a shop-at-once approach instead of randomly surfing the Internet for goods and services.

The use of ASP’s (application service providers) can also be a boon for a small business. ASP’s sell many low-cost, off-the-shelf operating applications needed to run a business--i.e., finances, human resources management and inventory processing. They also provide the convenience of having someone else manage and host the data. Small businesses should also explore strategic partnering--finding similar organizations to share resources and expenses.

The key role of the digital economy and electronic commerce is to help streamline your traditional organizational processes and daily routines and automate them through the Internet. Sharing the burden of making that happen can help minimize the expense and difficulty and stimulate a potential relationship for furthering your business.

Question:
What quick advice can you give on marketing a small business in the digital economy?

Answer:
First and foremost, put your URL (or website address) on all of your organization's correspondence. That includes business cards, stationery, posters, flyers, e-mail headers or footers, and any other advertisement activity. Remember, you never know who may read information about your company. Make sure they have the ability to reach you.

Second, you have to do your research. No matter what location you're in, most likely your local government has some sort of economic development office as well as a Chamber of Commerce. Both are great resources to ask about events, promotions and other activities that will allow you to get your name out into the marketplace. Another great resource is the US Small Business Administration . From regional offices to local business development centers, SBA is ready to help you out by providing contact information or counseling you on a particular business endeavor.

Third, work on all of your vendor and partner relationships. The best marketing technique is still word-of-mouth. And no one is more effective at spreading the word about your organization to potential customers than those who already do business with you.

Additionally, many business partners cooperate by listing each other's URL. Be cautious, though, in working with linking agreements. You don't want to “water down” your site with too many links. The goal should always be to link to another site only if it builds your business or provides value to your clients.

Question:
How often should a web site be updated?

Answer:
Similar to a company's advertising strategy, new ideas built on customer response and organizational direction must be put in place or an organization can be viewed as “aging.”

There is no standard time for how often a web site should be updated. However, the market indicates that most companies are making substantial changes every two to three months on average. Most of these changes reflect better service to the customer and the roll-out of a new product or service. Others are based on keeping the customer interested or entertained enough to come back to the site.

Organizations may want to consider using an advisory board to provide feedback on their site. This group is would suggest changes to the current website’s structure based upon personal use as well as by comparison to competitors' sites.

For more helpful information for small businesses, go to www.sba.gov
or contact your local Small Business Administration.