The Internet brings many opportunities and advantages to small businesses but these firms are not grasping the concept of how and why to use the Internet to increase sales. Many small businesses use word-of-mouth advertising from satisfied customers, which generally reaps local revenue. In most cases, due to limited revenue generation, prices of products and services from small businesses are higher compared to larger competition. This in turn can further decrease sales due to customers looking for products that fit within their budgets. Small businesses such as consignment shops, shoe stores, and consumer product firms are failing to see the potential in using the Web for advertising their existence and selling their products and services.

There is a large consumer base that prefers receiving information via the Internet and will most likely be exposed to a firm due to a website or affiliate link than a phone book. Such customers most likely does not even own a phone book or yellow pages because the Internet in an online directory itself that provides much more than just a phone number and an address for a business but detailed information that leads to more company awareness. When individuals are too busy to travel to malls and other shopping centers for products, they turn to the Internet for advertisement information and to potential buy products as to less the constraints on their free time that can be garnered from traveling to stores, physically searching for products, and waiting in longs lines. Small businesses that do not have store websites are missing out on potential sales because they are not factoring in the manner in which many consumer purchases products and services or at least become familiar with local business through information presented on websites that can satisfy their needs.

Most small business owners tend to stay away from advertising and selling online to keep the mom and pop feel and their uniqueness but these owners are not understanding the demographics and purchasing trends of their existing and potential customers. Today's society warrants more time to accomplish multiple tasks and the Internet provides such a luxury for very busy individuals. Small business owners not exercising the advantages of their own online presence will continuously be upstaged by the larger competition that are accessible 24 hours 7 days a week for information sharing or purchasing. Many of these small business owners that are not using the Internet are older and do not feel the need to learn such technology or find it frustrating but there are ways around this such as hiring someone to create the website and manage its functionality. The biggest advantage of using the Internet is to increase awareness of one's business so that sales can increase as well and if there is the option to buy online, these firms will see revenue generation from two models of business: the traditional and e-Commerce structures.

The following are some strategies for small business owners to examine to determine if a web presence is the correct tactic for them:

1. Research statistics of a website's influence on increased purchases due to additional advertising that reaches numerous individuals

2. Determine who their customers are from those that buy within the store or who they want their customers to be based on their products or services to indicate if these individuals use the Internet for information gathering and purchasing

3. Ascertain the cost effectiveness of owning a website by conducing a cost/benefit analysis between how much the website and its maintenance will cost compared to the potential increase in revenue generation

4. Evaluate the competition's web site to evaluate their strategies for delivering information and selling techniques and examine how to benchmark themselves against these firms

As small businesses determine the best methods to increase their operations, the Internet should not be discounted. This vehicle can translate into higher traffic for physical stores if websites are information based and into higher sales if the website has a purchasing function. When businesses are first established, there is the notion that the owner would want to be prosperous and have longevity. Small business owners need to utilize all applicable methods to bring awareness to their stores, especially in a society that is immersed in technological tools to make their purchasing experience much more rewarding. Business owners must stay abreast of the trends in their industries to fully have access to the techniques that will generate prosperity and steady expansion. The Internet is such a tool that will assist in the continued existence and growth of any firm that choose to use its structure for advancement and competitive advantages.

Copyright © 2007 Michelle Hill

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