Starting an Internet Based Business
There has been a notable increase in the number of new Irish businesses being set up online over the past few months.
Organisations like the Irish Internet Association (IIA) have monitored this growth and found several reasons for the surge in new businesses. One large driver is the current state of the economy. Companies and individuals are looking at ways to use the web to make doing business cheaper.
While there are advantages to entering the internet marketplace, there's no sense in going in blind. You first need to identify what you are trying to achieve and how the web can help. Without taking the right steps, a new online venture can quickly become a new internet bust.
Online surge
The recession has played a substantial role in the decision process for many new online entrepreneurs. While in some instances established businesses are looking at a new cost-effective way of trading by moving online, many new web ventures have been influenced by personal economic circumstances.
"Since about January we've noticed a marked increase in our membership numbers. When we analysed it we found that they are generally small one or two person operations that have a reasonably good idea and have decided to promote that idea online," says Fergal O'Byrne, chief executive of the IIA. "We did some calls to check out who they are. A lot of them are people that have been made redundant, who had an idea and decided to make a business out of it."
According to O'Byrne, the lower cost associated with trading online has proven to be a key driver. "One of the main attractions is that the cost of entry is reasonably modest. If you get a EUR50,000 redundancy cheque, it can go a long way online. You don't have all the costs associated with setting up an offline business. We have lots of cases of people who can set up an online business and literally run it from a home office."
O'Byrne also notes that getting started is relatively straightforward. "It's very easy in Ireland to set up a business online. There is a lot of support there. You can get a lot for your money in terms of web development, hosting and marketing."
Know what you want
While the costs associated with going online are relatively low, there are still risks involved. O'Byrne advises businesspeople to have a clear idea of what they want to achieve with a web venture before they start getting set up.
"We're always trying to advise people to set their expectations appropriately. You're not going to become the next Google overnight, but you can make a decent living," he says. "If you have a good idea for a service or a product that someone else isn't doing, the internet is brilliant for niche products."
The IIA chief executive advises businesses to set out a plan to present to web development firms so developers can deliver the optimum website to meet their needs. "We are hammering home the idea to write out a clear and cogent five-page document that sets out what you want the website to do. It doesn't have to be 'War and Peace'. We have a web development working group in the IIA and they are devising a document to help people write a template specification."
Web developers share O'Byrne's view. "The best sites we do are the ones where the company makes it clear what they need," says Gareth Dunlop, managing director of web development firm Tibus. Dunlop recommends that businesses go to a neutral body like the IIA to find potential web developers to work with. He advises firms to speak to at least three web developers before settling on a partner. "Define what you want to do and make sure the web developers understand what you want to achieve," he says.
Put the customer first
Without customers, a new online venture isn't going to get very far. When creating a website, the needs of potential clients should be at the centre of your thinking.
"Your starting point should be your customers and thinking about what they come to your website to do," says Dunlop. "Don't get dragged into choosing a technology or any other debates until you have worked out what your customers want."
A useful way to ensure your website is designed with customer needs in mind is to put yourself in their shoes. "Treat people as you would like to be treated yourself. Respond quickly to queries and deliver products as soon as the orders come in," says Aedan Ryan, director of web-based clothing firm Puddleducks.ie. "It's important to take customer service seriously so you can build trust and generate business."
Source: Enterprise Ireland http://www.ebusinesslive.ie/