True net gains?
True net gains?
February 02, 2010
“Small firms should increase their website presence,” urges BBC entrepreneur expert Howard Graham in a new piece on the BBC website.
He cites the well-established business wisdom that growing your firm depends on creating a unique selling proposition (USP) and communicating it to your target market. “The web is simply the best way of doing that,” he argues.
In many cases, he’s right. For example, an independent bookshop selling rare first editions could make invaluable use of a website to make its unique publications known to a wider audience, and of course sell them via an online shop.
But I’m surprised that Graham should believe it’s “extraordinary” that fewer than half of all small businesses have a web presence. Is it really that astounding when, as the Federation of Small Businesses says, “the vast majority of small businesses serve their local markets”?
I spoke to my greengrocer this week. I suggested the very thing Graham is advocating, that he should consider investing in a website. I expected a negative reaction based on likely cost, but I was wrong. He simply replied: “I’m based in Bristol, why do I want someone in Leeds to know who I am? He won’t want to buy from me, and even if he does, by the time he gets to me, the carrots will have rotted!”
My local grocer was more concerned with making sure families down the street know he was open for business. Graham’s firm carried out a survey that backs this claim up: “A recent survey we carried out at Made Simple Group clearly showed that… specifically improving visibility to generate new business was a key concern for many.”
But is a website always the best way to achieve this? How vital is a web presence to a plumber, mobile hairdresser or local newsagent? Surely good old fashioned word-of-mouth, attention-grabbing signage and business cards do the job just as well – if not better – than an expensive website?
This is not to say small businesses should ignore other avenues of online marketing - social networks such as Twitter, Ecademy and Facebook, as well as blogging. All can provide excellent, low-cost exposure for your business. The Start Up Donut has some great videos that provide an introduction to online social networking.
But a purely web-based approach to publicising a small business can be ineffective if not suicidal. Small firms should increase their website presence – but only if there is true value in doing so.
Mark Hook, BHP Information Solutions
Founding partner
Starting a new business - free advice, tools and resources | Start Up Donut
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Comments
Great thread, really good to see everyone's point of view.
If a small website is something you are looking for then BT run a great package called the Online Starter Kit for £149, which is fantastic value.Here are some examples.
Hopefully this helps.
Thanks everyone for contributing to this debate, it’s really great to read everyone’s opinion on this subject.
Let me clarify that I do believe a ‘web presence’ is essential for small businesses.
Facebook, Twitter, blogging and adding yourself to Google directories are all cost effective ways of increasing your businesses visibility on the internet.
I know I’ve often been hungry on a Saturday night and Googled ‘Bristol takeaway’ to quickly search for a local restaurant and its contact number.
Small businesses should of course take every advantage they can of this new medium.
But a ‘web presence’ and a ‘web site’ are different things. Businesses can (using the takeaway example) target local customers inexpensively through social media, so why invest in an expensive website when there are cheaper alternatives that potentially do a better job?
If you have a web savvy friend, partner or relative that can provide you with a glitzy website at a knock down price, then of course it becomes something to be seriously considered.
But what if you don’t have that option available?
You could invest in a cheaper website, in the form of one-pagers, but these often lack quality, are rarely viewed and compete in cyberspace alongside millions of other similar sites. As a poster above mentioned, a poorly created website can even have a detrimental impact on a person’s business.
So I’m sticking to my guns! Because of the expense and the alternatives available, I would always advise small businesses against paying out for a pricey website unless they can see real businesses value in doing so.
I think a website is just as important as a business card. In fact, a website can be as simple as an extension of a business card (as mentioned above).
There are so many free resources to get a web site up and running. Google Sites is probably a good example. The only cost should be paying someone to take a good background photo to put your words on top, or a designer to give your brand the edge. Neither of these should cost big bucks, but do allow another outlet for doing business, whether you're looking at local, national or international business.
No one would think twice of having a telephone number these days, but I'm sure this argument was probably just as common when the Yellow Pages was first developed. Now the web is our directory - use it to your advantage, or someone else will take your business.
It all depends on the business and what they sell and who there market is. I mean a local newsagent in a small town would not need a web site. They would be better spending the money on an extra paper boy/girl and shop maintenance. To ensure they looked good and provided a top quality service. In order to maintain a good reputation and avoid local customers going to another paper shop.
But a local plumber unlike a newsagent is not used every day by local members of the community. So it would make more sense for him/her to have a web presence. As people will search on the web for such services. This does not mean they have to have there own website. They could perhaps have a tradspace account to promote their business. As well as ensuring they are listed with yell.com and other similar on line services.
In turn a very specialist local business say a party shop. Could use the web to sell their products further than the local population.
All in all it's about what you sell or provide. Why invest time and money in a web site. When it would be more of an advantage to invest in local radio adverts. Of course like us we are a pure web business with no physical shop so the web is a must for us.
But let’s remember many local small businesses were trading very well before the www. appeared.
I've worked with many, many small businesses since I started designing websites 9 yrs ago including those you wouldnt necessarily think of as immediately NEEDING a website such as leather repair companies and dental surgeries etc aswell as those who actually trade fully online.
Like others have said already I also search online for pretty much everything even (or especially?) local businesses.
A google local listing is one thing but I'd normally prefer to be able to actually read a little more and a small website isnt hard or expensive to set up. There are very few instances I can think of where someone would actually NOT benefit from having a website.
I do totally agree with Luc though - make sure it represents your business properly. I doubt many businesses would stick a bit of plywood they had painted their business name onto themselves on the outside of their business premesis - the same is true with the image you are presenting on the web. Keep it professional.
Mark and Howard
What a great debate. Can I risk fanning the flames by pointing out that, actually, you're both giving businesses the same - essential - advice?
Seems you're both telling SMEs...
- web marketing can be better value financially than traditional 'work on the geographical platform' (that's a business card to us non-techs)
- firms can measure what business online marketing is delivering to them, unlike the mystery fate of the trusty leaflet
- whether a firm's blogging, tweeting, fbooking or even youtubing, nipping online sooner rather than later can give your business the edge it needs.
Thanks to you both - very useful.
Here’s a firm that's already taken this advice: Blendtec. An SME who invented a new type of liquidiser, they were battling to make sales until they launched a website featuring their prototype test videos of unusual objects... in the blender.
Once they started streaming vids of blended Ipods, golf balls, glow sticks and their indignant retail manager's new mobile phone, customers flooded in. Next step was luring visitors to email requests through the 'Want to see something blended?' page – handily positioned next to the online store.
Find a collection of videos that are NOT safe to try at home and a great e-marketing lesson to small firms here http://www.blendtec.com/willitblend/
As the original author of the piece on which you commented on, I had to reply to your post.
I think perhaps you may have taken my original article out of context. I was in no way suggesting that a website on its own was essential for all businesses. In addition, a website or a web presence doesn’t have to be a traditional website but as you rightly point out could be a blog. However, I can’t support the notion that a web presence, in whatever form, is not a “must” for every small business. Even the examples you provide could easily benefit from a web presence. I know a one man plumber whose website provides details of his services, a request to quote function, what makes us different, customer testimonials, our service standards, a guarantee if they are late in arriving etc etc. His wife, who is particularly web-savvy, measures the number of visitors and the number of enquiries on a regular basis and despite the fact that they only serve a small local market, they have seen a significant increase in business.
I talked about differentiation in the original article, now for me this is the key to the whole thing. There are so many samey businesses all over the country and anything that can help them stand out from the crowd will help. Word of mouth, attention grabbing signage and business cards are important, but everyone has them. The fact of the matter is that so many small businesses are struggling and I am a great believer in that old mantra “if you always do what you always did, you will always get what you always got”.
Additionally, in terms of marketing generally I am a firm believer that there is more value to be had online than there is with traditional, immeasurable off-line activities. By all means have your cards and do your networking, but as an addition to your web presence, your blog, your Twitter and Facebook or whatever else it is, but definitely not as an alternative.
Get on the web and do it now.
It seems very strange to advise a business not to set up a website. As Michelle states, it can take five minutes to make a site and if your name is unique enough you can top google rankings easily. The best example is takeaways, all they need is a PDF of their menu and their phone number and they will already stand out from other local takeaways.
This takes no time to maintain, is free and can only increase business.
Word of warning: just make sure it looks professional, if a website looks shoddy, people will think your product is shoddy.
Mark and Richard, I think you are missing the point. We are living in a digital age and digital is not going to go away - it's only going to become more dominant. In fact, digital experts predict there'll be no tangible media in a little as 5 years! As Rob mentions about - the internet is now his directory - and he's not alone. Of course, marketing utilises many channels, word of mouth, flyers, door drops, advertisements, radio, telesales - traditional media, which we now refer to as 'push' channels - where we are pushing messages out. But digital has also enabled 'pull' channels - where users are attracted to what they are looking for via opinion or keywords. It's not necessarily about having a website, but about having an online presence. And as Rob mentions, Google's Local Business Centres, Twitter, Linked In, Facebook, other online profiles, blogs all suffice - as indeed does a website.
When I receive a business card I now expect to check out the business via their website. It's a given. If there isn't a website, I question credibility. And a website doesn't have to be an expensive thing at all. I played around with wordpress and created a very simple and effective website for an artist friend of mine - at a cost of absolutely ZERO! Just my time - one Saturday afternoon.
You can still supply a personal service - having a website or online presence doesn't mean that all of a sudden you have to change your business model and supply to people in far flung distances!
It didn't surprise me at all to see that my 'milkman' has a website - and I can change my order online with him. I can also ask for a loaf of bread dropping with my milk too!
So Mark - don't take things so literally and see the context of the message. It is a digital world out there...
A website maybe overkill for some small businesses, but a web presence is crucial.
So many times do I struggle to find a local hairdresser, cafe, greengrocer or butcher because, as a consumer, the internet is now my directory.
That doesn't mean you have to have a website. The cited example of using social media is one, but then you can also list yourself in Google (and locate yourself on Google Maps) or on online local business directories.
Websites if done poorly can be detrimental, a waste of time and an irritant for customer and business owner, but the importance of a web presence cannot be underestimated - nor should "web presence" automatically mean "website"!
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