by Lori Canterbury, Georgia SBDC Everybody's on the Internet these days, including small businesses—especially small businesses. Why would a local deli or pawn shop want to go to all the trouble to set up a web page, pay the hosting cost, and spend precious time continually updating information and checking e-mail? Simple: a website produces revenue. Small businesses are catching the technology and Internet fever. A recent nationwide survey of companies with fewer than 100 employees conducted by International Communications Research (commissioned by Prodigy Biz Corporation) found that the number of small businesses using the Internet has almost doubled since 1998. The study further states that the trend will continue to increase. However, the study did find that 66 percent of those small businesses do not see the immediate benefit in using the Internet because they are local businesses. "Small businesses can market to more than just Main Street. Even their local presence can be expanded," said Prodigy Biz president Gary Remy. "A toy maker in Peoria can sell more dolls in her hometown, her home state, or clear across the country. The Internet shatters geographical boundaries, giving all small businesses a virtual local and national sales force with just a few clicks." What are some of the ways small businesses are using the Internet? Many use it to promote new products and services to prospective customers. It is a much cheaper way than direct mail pieces or other traditional forms of advertising. Or, what about in addition to the usual means of promotion? It serves to enhance what a company is already doing. Other ways in which small businesses use the Internet include selling products online, providing better customer service, communicating with employees, and creating a corporate image. If one of the primary uses of the Internet for many small businesses is promotion, then what are some ways to use the Internet to promote a business's products and services? According to a study by SmartAge.com and Millward Brown Intelliquest, small businesses use a wide variety of online promotions, including direct mail, reciprocal links, affiliate networks, community chats, bulletin boards, free banner ads, and paid banner ads. Interestingly enough, the study found that "38 percent of respondents are primarily trying to reach a national consumer base through their online promotions, while 35 percent are primarily trying to reach a local market." As many as 35 percent of these businesses believe there is a benefit in marketing online to their local markets. If e-commerce is the goal, whether it's business-to-business or business-to-consumer sales, Carolyn Brackett in E-Commerce Times has some advice for small business owners in her article "Setting up Shop in Cyberspace." She says there are five steps that a small business must consider when setting up an online store:
 domain name registration,
web store design,
server hosting,
payment solutions, and
traffic coverage. She congratulates the new cyberstore owner by saying that "After completing these five steps of development, your electronic storefront is open and ready for business, 24 hours a day, seven days a week, accessible to the millions of consumers logging onto the Internet each day." Whatever the reason for joining the thousands of small businesses that are already logged on and ready, having an Internet strategy is the key. In his article "E-Commerce Starter Kit" in Guides @ inc.com, Shane McLaughlin writes, "The reality of the virtual world is that there are millions of e-commerce ideas that can drain entrepreneurs of time, energy, and most important, capital." Just as every business needs a business plan, it is crucial for small businesses to have an Internet plan or strategy that outlines the Internet goals and objectives, how these goals will be achieved, and how the results will be measured.
To obtain small business assistance contact a consultant at a Small Business Development Center.
See also:
Web Marketing: Getting Them & Keeping Them and eCommerce
Free small business web site! | 
