Is the Internet the Secret to Small Business Success?

No one can deny the impact of technology on business today. As a young entrepreneur, you may be used to using tech for your own personal purposes, but business presents a different scenario. Now you must transpose your personal knowledge into a professional arena. You’re lucky. Your digital and technological literacy will serve you well. The internet is the lifeblood of the modern American small business.

Starting a Business

When it comes down to starting your business, the internet is key. There are plenty of prerequisites and administrative boxes to check. Sit down and start typing, because you can begin online with the following:

• Do market research
• Write a business plan
• Secure funding
• Register your business name and structure
• Get licenses and permits
• Register with the IRS and for state/local taxes
• Find a location
• Get small business insurance
• Get a business bank account

The internet saves you a ton of time in accessing the forms and resources you need in order to do all of the above. That’s because business and information make the internet go round. Very little of what you see online would be there without entrepreneurs like you.

Rutgers University calls entrepreneurs “the backbone of American economy and society,” but warns that the majority of entrepreneurs don’t make a profit within the first two years — which is why about half of businesses close within five years. Because money isn’t guaranteed, it helps if money isn’t your goal. The most successful entrepreneurs simply love to compete and innovate, and they use the resources available online to make things happen fast.

How the Internet Helps Small Business Owners

There are a lot of ways the internet can help you run your business. Your business exists in a global context. According to Chron author George N. Root III, “The Internet has allowed small businesses instant access to any new product developments and technological advances that can help improve their products and compete with larger companies.” Market research is something you do when you’re writing your business plan. But why stop there? You can adapt and make your brand agile by paying attention to new product developments and customer demand in your niche.

Furthermore, you can exchange information quickly.

• Engage contractors and remote employees through email, video conferencing, and social media apps.
• Talk to vendors, graphic designers, web developers, and content creators.
• Arrange product distribution, website creation, branding, and marketing.

If you so choose, contractors are a great go-to at the outset. The more you develop your business, the better equipped you’ll be to hire on full time staff.

Internet Marketing

Marketing is an absolutely huge subject in this arena, with millions of articles and entire careers devoted to it online. But for the young entrepreneur, it helps to start simple. You won’t succeed without a product or service people really want. Concentrate on developing a great offering first, then enhance your business through the following:

• Develop a helpful website: Think about the number of times you’ve looked online for a local business’ hours and other basics, such as a menu; your website helps with visibility and accessibility, and you want to make sure it sends the right signals to search engines.
• Create a digital marketing strategy: This can be as simple as saying, “I’m going to do Google Adwords and Facebook marketing. Establish a social media presence and make sure your website has helpful content, such as product descriptions and videos.
• Develop an e-commerce platform: This isn’t marketing as much as it is sales, but the internet is forcing businesses to align marketing and sales as much as possible. If you can sell your product or service on your site, do it; Entrepreneur has a list of the best e-commerce platforms for small business.
• Develop your brand: Think about your message — your brand identity — and be consistent with how you present yourself across all social media channels and your website.
• Consider email marketing: This can be as simple as creating a newsletter and asking customers if they’d like to join your mailing list; if they do, ask them if they’d like to get special offers emailed to them too.

One advantage you have as a young entrepreneur is a built-in, personal knowledge of your audience. If you know they’re mostly young people who aren’t into clicking on ads, your digital efforts can be more about branding: posting pictures on Instagram and Facebook, making regular updates about the goings on with your business, sending guest posts to authoritative sites about the struggles you’re overcoming. In general, you can present your oh-so-human, warm presence. As your audience grows, you can start to do more overt, advertorial marketing.

Cash Flow Management

The cash flow problem is one of the main reasons small businesses fail. A look at some of the most effective cash flow management strategies for small business reveals a tip you’re probably pretty familiar with: if you’re not using some of your equipment, sell or lease it to another business and then use a marketplace like Craigslist to recoup what you need for a low price. Be sure to bookmark a resource online that offers cash flow management strategies. Consult it as you’re navigating the world of revenue and expenditures.

Another option is to check out various cash flow management tools. An app can be your personal assistant for far less than it costs to pay a person. Use an app and run your business responsibly, and you’ll eventually have enough income to hire a flesh-and-blood assistant —  should you need one.

You can also check: Business Insurance Resources

The internet is your secret to success because you’re already a digital native. Establish your physical presence as an entrepreneur in your community, use your fluency with the web to create online visibility, and you’ll be a step ahead of the competition.

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