Web site not working? Points to Ponder _Part Three
Keep It Lean Many of readers of this column do not have huge cash reserves or large amounts of venture capital to establish their on line business. The dotcom bubble has burst and now that the capital markets have dried up, many dotcoms, especially in the business to consumer e-commerce space are going to simply run out of money before they are able to attain profitability. If you are building a real e-commerce site you must be focused on economic viability. Low capital resources force real business to look at profitability rather then high capital cost.
"Too much capital can cause the operators of a company to forget that profitability, for themselves, their employees, and their shareholders, is their central mission. When the business operators are young and inexperienced, a large amount of capital seems infinite, and they do stupid things with it," comments John Audett of Multimedia Marketing Group. When funds are limited think in terms of ROI (return on investment) for every single expense.
"Money can often be an inferior substitute for passion, energy and commitment. It can make you lazy and complacent. Keep it lean -- even if you have the capital. Your company will be better for it." Build community!
Building community has become a cliché on the Internet. People do business with people they know, like and trust.
Communicating builds community (that means regular and quick responses to e-mail inquiries). In a business context; if you can build a community that is comprised of people who are potential buyers of your product or service, it will be a potent part of your marketing. A very effective and powerful tool is a discussion list, which; in the short term does not appear to be viable, a waste of your time, and of little importance. However, over the long range, it becomes a powerful marketing tool to build customer loyalty (and much repeat business) and a way to continuously generate new leads. The best opportunities are in niches, particularly niches that you are passionately interested in. Once you identify your niche, find a way to serve it. Best of all, a way to serve it and to build community at the same time.
Build Scalability
The decreasing price of computers (relative to inflation) has made the desk top computer available to many more people at less cost per unit. Personal software has become more sophisticated and can provide, if used properly, a more efficient way of doing business. Canada and US enjoy one of the highest Internet access rates in the world. Many homes and businesses routinely use the Internet for a wide variety of activity. The Internet and its technology is inexpensive and accessible, making it easy to incorporate it into any businesses. Scalability can be achieved in your business or department by using technology every step of the way. The more scalable you make your operation, the more you will facilitate growth and high profit margins. Try to solve problems with machines instead of people. Scaling allows you to keep your team smaller, enabling everyone to have a larger piece of the pie.Communication.
The Internet and the use of computer data bases enables us to maintain a detailed data base on our customers and an ability to easily communicate with the majority of them through e-mail and our web site. An old cliché, which still holds true, is that the majority of our repeat business comes from of our existing customers . They are our most valuable resource. The web site and its service should be built on their needs and wishes. It should be easily accessible, and convenient to do business with our customers at home or at work.The Internet gives us unprecedented opportunity to listen to our customer base -- and listen we must as they are in charge. The more we listen and respond appropriately (i.e. serve their needs), the more business we do with them and with others.