We simplify your life!
Home  |  Company  |  Clients  |  Solutions  |  Contact Us  |  Call 972.641.1607   
News: Entrepreneurs Online

By Mike Morgan
Project Manager, VirtualNerds Inc.


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.

 



Back | Top


Copyright © 1999-2004 VirtualNerds, Inc.   Legal | Privacy