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Planning an Online Business With all of the hype about e-commerce and online businesses, taking your business online may sound like a perfect solution to making the big dollar with not so big of an investment. That can be true, but just the opposite may also be true. Going online takes just as much planning and forethought as starting a new brick and mortar business. It may even be a little more frustrating because for most normal business people it's like entering a new and foreign land. It's technology -- eeeeeekkk! If you're not at the cutting edge of the latest and greatest changes and upgrades then are you missing the proverbial boat? Does that mean you have to be a techno-geek to set up an online business? Not really. As long as you know the basics of what has to be done, plan well, have a good business idea, and can find good help to implement your plan, you'll be fine... just fine. In this edition, we'll go through the planning processes involved in online business -- whether you're starting a new online business or launching your existing business into the cyber world.
Let's start with the concept for your online business. Actually, let's start further back than that. In the beginning, there were stores and they were good stores. Those stores had "storefronts" and they also were good. They allowed people to see the store and, more importantly, see what was inside the store. From inside the store, people could purchase things. Sometimes they purchased things they needed, but many times they purchased things just for the heck of it. Those were called "impulse buys." To get to the stores people had to get in cars or on buses or trains and travel there. Then they had to carry their purchases back home with them. It was a hard time back then. Then came mail order catalogs. With a simple catalog that was delivered -- often as a surprise -- to people's mailboxes, stores could now sell more things to more people -- people who were all wearing their bathrobes and slippers. This was a great time for buying things -- especially for buying things people didn't realize they needed until they saw them in those catalogs. To get these catalogs to peoples' homes businesses had to spend lots of money creating the catalogs, and then lots more money buying mailing lists and mailing the catalogs. Then they had to have employees answering the phones and taking orders from the new customers who were sitting in their homes shopping. It was an expensive time back then. Then, one day some business person said, "hey, this is costing me a lot of money. How can I get people to buy my stuff without having to spend so much money on printing, mailing, and people answering the phone?" That's when the Internet said in its big spidery voice "Me! Me! Look at me! I can do it. Give me a chance!" And they did. Now, not only can customers shop from home, they can visit almost any kind of store in the world, buy almost any kind of product they could possibly need, and comparison shop to their heart's content, all while wearing mismatched sweats and holey socks. They can look at your storefront, buy impulsively, and leave if they can't find what they need. Their purchases come to them in big brown or blue or white trucks. Life is good. The rest is recent history. OK, so maybe that's not an accurate historical record of the evolution of business commerce, but it does loosely follow the evolution of convenience shopping. Read on to find out how you too can take your business online and sell to the masses wearing their bunny slippers and sipping lattes! If you are starting an online business from scratch -- meaning you don't have an existing business that you're thinking of taking online -- then the most important thing is to make sure you're starting with a good idea for a business. For some, that means thinking about what they do best and capitalizing on it, but for others it means looking out at the world of commerce and searching for holes, gaps, slight cracks and even just places where there is room for improvement. Either of these may work, but a combination of the two is more the ideal solution. If you are really good at something -- or pretty good -- or even just better than the average Joe -- AND you've seen a need for it in the market then you may have a good opportunity to succeed. If you're in that idea-forming stage thinking about what you're going to offer then take these things under consideration. According to Ernst and Young, the best-selling products online are:
You may decide on selling downloadable how-to or other information, products, consulting, services of some type for a regional or local area, providing auctions, hobby sites, or even selling words (e.g., syndicated Web content). You may find that distributing products for several manufacturers' would work well with your skills and could fill a need in the market. Maybe you have connections that will give you better deals so you could sell items at lower prices than your competitors can. Or, maybe you live in an area where a product is produced and could save on shipping costs from the manufacturer to you. Think about the resources immediately available to you. Specialize in something. In order to succeed on the Web you have to offer something slightly different, better, cheaper (meaning less expensive), or have some other "edge." There are many things to consider, but remember that people go to the Internet for information. You may find that your best bet for a successful online business is to offer something information-oriented like books, manuals, how-to's, or do-it-yourself kits. The ideal business idea will also have inherent positives and negatives, so think about:
Don't forget to think about what you would enjoy selling. Feeling good about and enjoying what you do to make a living is as important as being successful. Remember our motto here at HSW, "business doesn't have to be boring!" Do something fun. It keeps you young! As with any other business, before you get too far along in the process you need to write a business plan. Writing a plan, even if your business is small, is never a waste of time. It will always help you organize yourself and improve your chances of success. It will also help motivate you to keep plugging away if you've seen the potential right there in the pages of your own business plan!
If you already have a company then your domain name shouldn't be too hard to come up with. If you're starting from scratch, however, you may have more of a challenge. Naming your online business is just as difficult as naming your traditional brick and mortar business -- and maybe even more so. Think about naming your business something that describes what the business does or is about so the people who simply type into the URL window what they're interested in and add a www. and .com to it may find you immediately. For instance, if your business is creating custom wood molding, you might consider www.customwoodmolding.com for your business name (or at least your domain name). The main rule is to make sure your name makes sense. Single word names that have a cool Webster's meaning but don't really describe the business's function won't stick with people, and may make it difficult for your online business to take off. (Unless, of course, you plan a media blitz announcing the new business to the world -- then you can have a little more leeway.) There are a few simple rules-of-thumb that you should follow when coming up with and registering your online business's name. First keep it short. Although your domain name can be up to 63 characters, that doesn't mean you should use them all! Make the name as short as you can so it will not only be easier to remember, but also easier to type in. Secondly, make it as logical for your business as you can. Third, you should register more than just your primary domain name. For instance, you probably should register any variations you think a customer might type in. For example, HowStuffWorks.com also registered, www.howthingswork.com, www.howstuffdoesntwork.com, and several other variations. And fourth, include at least the most common misspellings of your name.
How Do You Know What Names Are Available?
Domains, Sub-Domains and Hierarchies Or, you may register your company name as mycompany.com when you first start your business then later if you added another division to your company you could add the sub domain name division.mycompany.com. This is not a new name that requires registration, it is simply a sub domain of your existing name. Of course, you don't have to do it this way. You don't even have to have your domain name start with www. Usually, the www indicates the host or Web server and can be anything you would like it to be (may also depend upon your site host). Most people are used to the www part, however, and may have trouble accessing your site if you don't use it. The domain name system (DNS) is currently overseen by ICANN, the International Corporation for Assigned Names and Numbers. It is a non-profit private-sector organization that coordinates the technical management of the Internet's domain name system. Its Board of Directors is made up of a global membership of individual members of the Internet community and supporting organizations representing business, technical, non-commercial, and academic groups. There are currently six general top-level domain (TLD) name suffixes. Those are:
ICANN also approved seven more TLDs in November of 2000. Those are:
There are also some top-level domain names that make use of unused country codes (ccTLDs -- country code Top Level Domains). The most common ones are .ws, .md, .cc, and .tv. These can be registered just like other domain names, and can even still take advantage country codes within the address as well (www.companyname.uk.ws).
Registering Your New Name Also, don't hesitate to transfer your registration to a new registrar if you have any problems. Registrars won't typically refund any fees you have paid when you transfer away from them, but some registrars will credit your account with any fees you have already paid to the previous registrar you are transferring your account from. So you may be able to pay for two years with a new registrar and have the account term extended by the amount of time you still had left with your previous registrar.
Protecting Your Domain Name If your company name ends with "company," or "enterprises," or "incorporated," make sure you register variations on that. Don't abbreviate anything that would make it difficult for someone to find your site. Also make sure they won't miss your site and stumble onto a competitor's site. Your domain name can also be registered as a trademark, or constitute a trademark, depending on how you use it. Check with your attorney about how to go about protecting your domain name in this way.
Buying an Existing Domain Name
OK, you hopefully now have an idea, a name, and one of those flashing "under construction" signs at your URL. Now let's move on to the real work in putting together an online business. What will your site DO?
The first question you should ask yourself -- after you've asked yourself if you think you should really tackle taking a business online, that is -- is what is your Web site's purpose? Why do you want people to come to your site? For a lot of people that question would make them think "well, duh, to buy things! Why else?" But, that's a little short sighted. Web sites are created with all sorts of purposes in mind. Those that don't really have clear purposes end up being big meandering passageways of cyber-fluff. Here are a few ideas to help you give your Web site purpose.
Prospecting
Sell, Sell, Sell
Customer Support
Educating Surfers Seriously though, you can bring people to your site by loading it with good, unique information, in which case you could either follow a pay-per-piece revenue model, a subscription revenue model, a syndication revenue model, or an advertising revenue model. If the information is truly unique and good information, then this will increase the likelihood of turning visitors into customers and hopefully creating loyal "repeat" customers or subscribers. Or, if you are planning a revenue model based on Web advertising then you have to have content that people want to come and read. People as a whole are naturally hungry for information. You may also think of educating your visitors as a side function of your site. Think about this as you would a client newsletter. You may already send out an informative newsletter as a service to your clients (and subtle marketing tool), and you probably spend quite a bit of money doing it. By putting that information on your Web site and directing your customers there, you'll not only save money, but save trees too! You can create vast archives of information that will be extremely useful to your clients and potential clients. Your subscription list will also grow more quickly because others will find your site via search engines and outside links. (We discuss this in more depth in our article about promoting your online business.)
Who is Your Audience Say, for example, you are a realtor in the suburbs of a large metropolitan area and you want to build a Web site. Your Web site's purpose might be to promote your listings to home-owners-to-be in your immediate area as well as those across the U.S. who have plans to relocate to your area. With that in mind, you would want to include information not only about the houses you have listed, but the entire area, schools, job market, entertainment, cost-of-living calculators, etc. You want to fill the needs of your audience and encourage them to stay at your site and request more information. You are using your site for prospecting. Think about who your customers are and what types of things would encourage them to stay at -- and return to -- your site. What are their interests? If your market includes teenagers then you could play up the fun aspects of the site, add some interactive games, resources for homework, colleges, etc. All, of course, as they relate to your business. If your market is working moms then you could include useful information about balancing work and family, childcare tips, etc. Again, as they relate to your business.
Content is Still King
Structuring Your Pages Put yourself in your target audience's shoes and think through the processes you want them to go through. For instance, you want them to first of all find your site, but I'll talk about that later. Then you want them to easily find the information they are looking for while being amused and titillated at your comedic antics or the elegance of your site design. You want them to be moved to act on your offer -- whatever that may be -- and bookmark your site for future visits. Start your brainstorming by getting a large piece of paper and a pencil and drawing a small square at the top center for your home page. Add squares below it for each category page and connect them as you would an organizational chart. The lines connecting the boxes represent links between those pages. For each page that would link from the category pages, draw another box below the category page box. Make lists for the content of each page. Continue this until you get your entire site mapped out. This may require a lot of erasing and redrawing, but it will make you think through the navigation process. It won't guarantee that you won't have more changes down the road, but it will help get your site design off to a quicker start, and will help you or your designer set up the actual site. Once you have a picture of your site and its functions in mind, move on to our next session that covers the tools your site will need to have in order to perform those functions.
Your Web site is an excellent medium for customer service. Don't neglect this very important side of your business by inadvertently leaving it off of your Web site. You can easily provide your customers with a good chunk of the information they would normally have to call you for. Things like product support documents can be put into searchable databases so they can be found and printed easily. Assembly instructions and part replacement guides can make life much easier for those do-it-yourselfers you sell to. The old standby, FAQs (Frequently Asked Questions), is invaluable for saving your live customer service staff (or person -- or you) from high therapy bills for that repetitive speech issue. Here are some other tips for the Customer Service section of your site:
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