How to get started on your company website

In today's world almost any new business wants to have a website.  But having a site that is under construction indefinately is not the right way to go about it.  Like anything else about your business if it is something you start then be prepared to finish it.  If not you may lose more than you have gained.

First of all, be clear on the purpose of the site.  There are many very good reasons to build a company website.  It can provide credibility, information and enhance relationships.  You can sell products 24/7.  You can reach new markets worldwide; you can increase your company's profits.  Decide Which of these functions are most important to you as the site owner.  Then decide what features your site will need to have the site serve the function you first chose.

Often it is too easy to say, I would like to do everything!  Believe me the web designer will love you.  Be selective as to what features your site needs.  Be aware that there will be costs to keep those features running.  80% of the time the cost will be your time.  For instance, you can have a company blog on your site.  Who is going to keep it up to date and relavant?  You can track to most minute detail about the visitors who visit your site like the O/S they use or the time the spent on your site.  But who is going to review the data?  Most importantly how is it going to change the way you do business.

Assuming that you have a legitimate business providing a product or service, then I think it is safe to say you want your website to provide information about the service or product along with contact information.

A decision will need to be made whether or not your product can be sold over the internet.  If it can be sold over the internet YOU need to decide if you want to sell it over the internet.  If you do then you will need to have shopping cart system and payment system.

At the start I used Yahoo! to build an online store.  Yahoo provided hosting and the software. http://webhosting.yahoo.com .  The process is simple and it is really user friendly.  You have to pay monthly fees and/or percentage on revenues to Yahoo!  After my customer base built up I decided I wanted to have my site to have features not available on Yahoo!  I hired a designer in house and we created our current site.  We used open source software and modified it to meet our needs.  We host the site with GoDaddy.com and we use our bank service provider to handle the secure online payments.  I am not saying it is the only way to go but it is the way I went.

With the site up and running this way for almost 2 years, I am glad to say it is still running.  There are still struggles ahead such as increasing visits but that is something I can talk about next time.

Another big day for the CAD

This blog is not only about foreign exchange rates and the Canadian dollar even though I know my latest post and this one have focused on it. It is just that the volatility in the markets does have an effect even on small businesses.

Having the Canadian dollar gain almost two cents against the US dollar is bound to have an affect on the price of our goods compared to our US competitors. The US dollar was hit again due to concerns about the effect the proposed $700 billion bailout package for financial institutions holding bad debt. In addition the CAD was supported by gains in oil price as crude oil futures saw the single largest one day gain in the contract's 25 year history.

This morning the release of Canadian CPI numbers for August and the headline data was in line with expectations while core CPI was actually stronger than expected. With this rise in core inflation, it looks like the Bank of Canada might not be able to impliment rate cuts as the market had been pricing in recently.

In the US, Fed Chairman Bernanke is scheduled to speak before the US Senate at 9:30 AM, however, Bernanke's remarks were leaked before 7:00am today and he is sounding very dovish. In his statement he said that global markets are under "extraordinary stress" and that "action by congress is urgently required to stabilize the situation and avert what could otherwise be very serious consequences for our financial markets and our economy".

A lot has changed over the past few days. Since Friday morning the CAD has gained 5 cents on the US dollar and continued strength in the CAD seems likely.

Wild Wild Week but CAD steady.

Last week was one of the wildest weeks in financial market history. As an exporting business all this noise going around immediately affects my business with the changes in the foreign exchange. Strength in the CAD means my goods are more expensive to my customers.

Last week the Canadian dollar remained fairly steady until Friday when news of the massive bailout plan for the US financial institutions caused the CAD to strengthen versus the US dollar. How the US is going to pay for the bailout remains to be seen and this weighs on the US Dollar. Canadian retail sales came out this morning weaker than expected, however, the market appears to be largely ignoring the data so far as the CAD continues to gain strength.

Tomorrow we will see the release of CPI numbers for August but then that is it for Canadian data for the rest of the week. The US data calendar is also relatively light this week so the market will inevitably continue to look toward equity markets for direction. Continued Canadian dollar strength seems likely in the short run.

Relationships with your Suppliers

At the start of my business, I had the advantage of already having a relationship with my main supplier.  This may not always be the case for a new business.  There will be many sales people eager to have you carry their products.  But how many of them are willing to go the extra mile to help you succeed?  How many of them will be patient enough to work with a start up company or an entrepeneur?

When you are dealing with export markets there are many ways that you will need support.  Here are some ways that a supplier can help you when you are starting a business:

- provide marketing or promotional materials

- provide samples or demonstration support

- offer credit or flexible payment options

- provide documents or certificates for registration

- provide discounts or promotional pricing

- make product or packaging adaptations to fit your market needs.

Industry tradeshows are a common way of meeting suppliers.  They are great places to learn more about your industry and get in touch with many companies.  You will still have to filter which suppliers you can work with from those you wouldn't want to work with.  Pushy salesmen can be annoying.  However, tradeshows are great places to start new business relationships.  By attending several tradeshows you can let suppliers know that you are serious about this business; it will give you more creditability.

Another great networking tool is to sign up for industry related courses.  While attending these classes the person sitting next to you could be your next newest supplier.  During the course, you will be able to demostrate your savy and have opportunities to bond with them in a friendly setting.

Having good relationships with suppliers is key to establishing your business.

Getting Started is the Hardest Part

My feeling about starting a blog is probably the same feelings that a lot of people have about starting a business. I’ve always wanted to start one. It seems like everyone else already has one. It’s just hard to get started.

For me, I hope that getting started on the blog is not as hard as a business. I have had my own business for almost 12 years. I was working for a manufacturer of vitamins and health food supplements when it became apparent to me that many products were not as readily available in other countries as in Canada. So with the blessing of the manufacturer I began to offer mail order service to reach customers that could not be met by their traditional distribution network. Fast foward to the present and I now employ 9 people not including myself and I have a growing network of customers and suppliers around the world. By no means are we a huge company but I am happy with the company to date.

Here are some insights I have on starting an exporting business in Canada.

Boring Stuff – (I call it boring but it probably where most people stop)

- Legal Structure: I chose to incorporate to limit the personal liability. The cost of incorporation and maintenance in Canada is not high so I felt it was worth. It probably cost me about $1500 because I used a service. You can effectively do it yourself. http://www.fin.gov.bc.ca/registries/corppg/

- Business Number: After incorporation you can get a GST Number/Business Number. The business number will also be used for your payroll and tax remittances. http://www.cra-arc.gc.ca/gsthstregistry/index.html

- Business License: when you have your location then you will need a business license from your municipal government. In my case, it was the city of Burnaby. http://www.city.burnaby.bc.ca/business/permits/bsnssl.html

- Export License: You do not need one for vitamins and supplements. Most of the time it is on the other end that you will need licenses or registration. So we’ll save that for another posting.

- Bank: With your filed incorporation documents and personal information you can open a business account quite easily.

- Insurance: it is what it is. Not only for your property but for liability. i.e. someone falls in your office or store.

I was able to complete the “boring stuff” without many headaches. Mostly because all the parties involved want small businesses to succeed. The cynic in me says, it is so they can make more money from you in taxes or fees.

What I think most people fail to recognize is their relationship with potential suppliers. This is critical in the start up of phase of your business. (Next topic)