Many saw the DOTCOM boom, and subsequent crash, of the 1990’s as a
disaster. In reality, it was part of the normal shakeout process experienced by
every emerging industry. The slower than expected adoption of the Internet by
the consumer was one of the main contributing factors in the failure of so many
DotBombs. Now that the Internet has become an accepted part of life, more and
more people are embracing the convenience of the Internet for shopping,
research, and recreation.
The steady increase in consumer Internet usage has changed the battle
for market share. Now that consumers are able to instantly compare prices from
multiple sellers, the competition to be the low cost provider is more intense than
ever. The greatest opportunity for many businesses to be competitive is by
adopting the strategy of “differentiation through personalized service”.
The greatest facilitator of mass customization of products and services
is the Internet. Businesses are rushing to move many of their processes online
to improve operational efficiency, and to deliver the new levels of service
demanded by their customers. New entrants into the online market appear every
day.
Big companies with internal IT departments would appear to have a huge
resource advantage over smaller organizations and start-ups. However, the rapid
growth of IT outsourcing levels the playing field. Larger organizations may
have their experienced IT staffers to design and mange their web applications,
but with careful planning, the entrepreneur can successfully execute a web
initiative as a stand a lone
business or an extension of a brick and mortar enterprise.
Starting an eBusiness
Starting an online business is identical to starting any
other business, and the development of a solid business plan is critical.
Business planning is beyond the scope of this article, so the topic will only
be touched on briefly.
Several Internet related questions must be answered in the
business plan:
o
What will
the business name be?
o
Is that
business name available as an easily remembered domain name?
o
Is the
online business going to be an extension of an existing real world business, or
will it be strictly an online effort?
o
How much
time can I devote to my online business?
o
What
resources do I have available to support the online business until it is up and
running?
o
Are there
any legal restrictions on the type of business or industry?
o
Will the
business accept credit cards online?
o
Are the
business’ products or services taxable?
o
How will
Products be delivered?
o
Will the
business serve international customers?
o
Is it legal
to export the products from the US?
The answers to these questions will aid in the development
of a functional eBusiness plan. Additional helpful information can be found at
the U.S Government Small Business Administration website. State governments may
also have small business information web sites. The local Chamber of Commerce
is an excellent resource for start-ups.
Finding a good web developer
The first step
in finding a developer is deciding what you want the developer to build. If the
concept is not clear in your own mind, then no developer will be able to help
you, although plenty of people will be happy to take your money trying.
Start with the business
plan, and try to identify all of the actions the system must be able to perform
automatically, and all of the actions a user would need to be able to perform
to run the business. Once you have a clear objective in mind, write a
description of the project. Make the description as detailed as possible. The
most important details to include are the actions, rules, and processes that
are mission critical to the business.
Example:
o
User shall
be able to Search/Add/Edit/Delete customer Accounts
o
User shall
be able to Search/View/Edit Customer’s Orders
o
System shall
send customer “thank you” email after order is complete
After you have your description prepared, developers can be contacted via many
online listing services. Use a search engine to search for individuals and
companies offering “web application design”, "web design", and
"web site development" services.
The developers
will ask many questions about your project. Use your project description to
answer as many questions as possible. Don't be afraid to say, "I don't
understand" and "Please explain that." Good developers
understand that most people do not know how computer systems work, and many of
them are happy to take the mystery out of it. Shopping for a developer is a bit
like shopping for an auto mechanic. If the developer cannot explain what he is
going to do, and why the work is necessary, you should probably talk to someone
else.
Ask to see samples of the developers’ work, and insist on talking to some of
their clients. If their business is legitimate, they will not mind. Call the
references. Ask questions about timeliness, and the developer's attitude when
dealing with problems. You will be working closely with the developer, and you
need to know how they treat their clients.
When talking to
potential developers, make sure to ask about the availability of support after
the sale. Ask for a proposal on your specific project. It should include a
system plan, cost estimate, and a sample contract. Read the proposal and
contract carefully before sending any money.
Choosing a web developer is like choosing an interior
decorator that also happens to be an auto mechanic. The selection method can be
broken down into three pieces style, price, and communication.
Style:
This is the easy part. Once you have decided on the type of business you are
starting, go look at the sites owned your competition. Then look for other
sites you find attractive. When you find one you like, look at the bottom of
the home page. Usually the web designer's name will be shown. If not, contact
the site owner and ask for a referral. While talking to the site owner be sure
to ask if they still do business with the original developer, and if so, ask
the questions above.
Another option is to locate a designer using one of the developer listing web
sites. Most of these sites allow the developer to post links to previous work,
or to their own site.
Price:
A web site can cost as much as you are willing to spend. Do you have to spend a
lot to get a good product? Not really. Most designers have an hourly rate, and
an idea of what they charge for an "average" project. Many of the
developer listing sites have auction functions where you can list your project
and accept bids from the developers. This process can go a long way to reducing
the price of your web application.
Communication:
The designer you select must be able to communicate well. They must be able to
listen to your ideas in an open manner and to be able to express themselves in
both verbal and written form.
Computer systems are really not very complex, and your
designer should be able to explain how each piece works, why it is necessary,
and do it in language you can understand. You will probably never want to know
how to write computer programs, but you have every right to understand how your
business runs.
A critical component of communication is availability, and
responsiveness. The developer you select should be able to offer several ways
for you to contact them, and they should return messages promptly. A designer
that can't be reached is of no value when you have a problem with your site.
Beware of any
developer that wants to charge a “maintenance” fee. This works like the putting
an attorney on retainer. If you expect to have trouble with your site, then it
might be a good idea. In most cases it is an unnecessary expense.
Once you find a
good developer, keep their number handy because you will want to update your
web site periodically.
Selecting a Web Hosting Company
Just as critical as the selection of a web developer, is the
selection of a web host.
A web server is a computer with a connection to the
Internet. This connection allows people to find the site and view the contents
of the pages. A web server can be set up on a company’s network or “hosted” by
an outsource company. Some companies operate their own web servers, and others
prefer to outsource this service to a hosting company.
Hosting companies come in all sizes and price ranges. These
companies rent space on their web servers, and sometimes, entire servers, to
their clients. Selecting the right host is not a complex task, if the needs of
the web system are allowed to dictate the host selection criteria.
The main criteria where hosts are judged are:
- Disk space is the
amount of room on the server’s hard drive that is allocated to each
customer for storage of the files that make up the website.
- Bandwidth refers to the speed of an
Internet connection. Think of it like a water pipe. The more the better.
- Email Accounts are
normally provided as part of a hosting package. Each host offers email
accounts based on the number of accounts and the size of the mailbox. Some
hosts offer Web Mail service that allows the customer to check email from
any Internet connection.
- Operating System (OS) defines
what types of software will run on a given web server. Most hosts offer
Windows and UNIX based servers, but some hosts only support a single OS.
- Database support are used to
store information. Web applications are normally designed to interact with
one particulate type of database, and a host must provide a compatible
database product in order to be a candidate for selection.
- Technical Support is critical
to every online business sooner or later. Look for a company that lists a
toll free tech support phone number on their site. This is a good
indication that they are big enough for serious consideration.
Try to locate several host companies with acceptable
performance levels and general system compatibility before starting to compare
prices. Smaller, cheaper companies are often less reliable, and offer less
accessible technical support than larger companies. Many of the larger
companies outsource their technical support to call centers outside the US, and
the quality of service suffers greatly.
Call each prospective host company and ask for a list of URLs of their
customers. Surf these sites, and look for sites with similar content to your
own, (Equivalent amount of graphics, forms, or other components). Watch how
they perform on your own PC. This should be a good indicator of the host’s
general network performance.
Ask about toll-free phone numbers for technical support. If
the host offers only email support or a “ticket” based support system, pick
another host. Call the host’s clients and ask about their experiences with
technical support, and general network reliability. A few minutes on the phone
could save you a lot of suffering later.
Conclusion
With a bit of research and reasonable
care, almost anyone can plan and execute a successful web initiative as a stand
a lone business or an extension of a brick and mortar enterprise. Consultants can help write business plans
and the technical specifications. Many of them make a handsome living doing
just that. However, nothing they produce will have any value if the client does
not have a clear vision of how the business should operate. The key to a
successful project is having a solid understanding of your own business’
processes and the project’s goals before you begin searching for the technical
talent to bring your plans to life.
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