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Try land-locked Dallas. That's where you'll find ScubaToys, a
small retail dive shop whose incredible success was improbable, if
not impossible, before the Internet.
Larry Dague, president of this 10-person company, recognized
that ScubaToys' growth opportunities would be limited without the
power of the Internet. After a year in business, the company
decided to channel most of its sales and marketing efforts through
the Web. That included publishing an electronic newsletter
distributed to 8,700 subscribers, using a Webcam to demonstrate
equipment on demand, and creating a Web site where divers can
upload their dive photos and then vote on their favorites.
Competitive scuba-diving retail outlets in the United States
pull $355,000 in annual sales, but ScubaToys reached $2 million in
2002. Due to increased sales from the Internet, Larry Dague has
also been able to negotiate lower pricing through distributors and
improve profit margins. Remarkably, the company's marketing and
advertising budget is exactly the same as when it started in
business in 1998.
In the old days, small businesses often felt at a disadvantage
compared to larger companies with more staff, equipment, and
facilities. In the age of the Internet, however, a powerful
presence is not dependent on any of these things. Small companies
like ScubaToys can achieve great things with comparatively little
investment. The key is to suit up and dive into the world of the
Internet economy. And the good news is that you don't have to
start at the deep end of the pool — you can add Internet
benefits to your business a little at a time.
Here are five different ways that a small business can reap big
benefits by using the Internet.
1.
Getting your message out to a potentially global audience.
The Internet is where everyone goes to shop, research, and be
entertained. Every small business should have a Web site that
provides information about their products and services to
customers and suppliers. (To get a Web site, see bCentral's Web
Hosting service.)
With a Web site, even a company with two people can make the
same impression as its largest competitor worldwide, and reach a
targeted audience or a potentially global market for its products
and services.
2.
Providing goods and services online.
If your mother does her holiday shopping on the Internet and
then goes to the office and orders all of her supplies over the
Internet, that should tell you something. The odds are good that
your customers or prospective customers would want to do business
with you on the Internet too.
Electronic commerce (e-commerce), sometimes called electronic
business (e-business), is part of the vocabulary of all modern
companies, regardless of size. With the right network foundation,
you can offer your customers fast, secure, and reliable commerce
with your company around the clock and around the globe. (For more
information about selling online, check out bCentral's Commerce
Manager.)
Consider the example of an 85-person financial services company
that uses e-commerce to deliver origination and servicing products
that help lenders improve the efficiency and accuracy of mortgage
financing and refinancing. Virtually all of this company's
business takes place online, enabling the company to reduce
transaction times from days or weeks to a matter of minutes,
enabling lenders to streamline their own processes, boosting loan
volumes while reducing costs. The company is now approaching $23
billion in loan transactions each month.
3.
Improving employee productivity with Internet access.
By giving your employees access to the Internet, they can track
competitors, research potential customers, download and share
useful news and information, and use e-mail to keep in touch with
teammates, customers, suppliers, and other important business
contacts.
4.
Improving employee and partner collaboration through Internet
tools.
The Internet is an incredible tool for one-to-many
communication, but it's equally powerful for promoting one-to-one
collaboration and team collaboration as well. Once you're on the
Internet, you have at your fingertips tools like instant
messaging, virtual meetings, and videoconferencing, all of which
enable online collaboration and e-learning. This collaboration can
apply to internal teams or extend to external business partners
and even customers. (See bCentral's SharePoint
Team Services solution for software to create private Web
sites, also known as intranets and extranets.)
A construction company with 50 employees migrated to the Web
five years ago and created a project management and collaboration
tool that allows construction-industry professionals to streamline
project processes from design and preconstruction through
closeout. The company now boasts more than 20,000 user licenses,
and its clients include 21% of the top 400 general contractors in
the construction industry. The company has grown by more than 100%
over the past three years and expects sales to reach $30 million
over the next 24 months. Last year the company's Web site exceeded
2 million user logins.
5.
Expanding your business and markets with the Internet
Small-business owners can take their companies to new heights
by harnessing the power of the Internet. No matter what size,
industry, or competitive landscape, any company has the power to
transform its business using the Internet. Once you have the right
foundation in place, there's no limit to where you can take your
business.
ScubaToys believed that geography shouldn't be a limit on
business. Building on its network foundation, the company is still
coming up with new uses for the Internet to expand its business,
like adding computer-based training and e-learning tools to the
company's on-site classroom so that students can boost their
knowledge before receiving instruction in the pool.
Dague, ScubaToys' president, says it best: "The Internet
allows a relatively small company to act and operate like a big
company. Creativity is the limit."
For more information on networking systems, please visit
Cisco Systems' Web
site.
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