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June 30, 2004
Technology and Growth
Anita over at Small Business Trends posted a summary of a survey conducted by Yahoo Small Business. It looks like technology is on small business people's minds these days. Although the survey is sponsored by Yahoo, it was conducted by Harris. It still could be slanted by Yahoo's involvement, but is interesting even with this possible bias.
"In a survey of over 1,000 small business owners, the following activities were listed as the most beneficial to the growth of their company, in order of importance:
Having or establishing an online presence (35%)
Having or obtaining dedicated business email (30%)
Increasing online advertising (30%)
Hiring more employees (19%)"
Technology can certainly level the playing field a bit, and can create opportunities that could not exist without its support. However, just as I used to tell small businesses that not all of them needed to be in the Yellow Pages (most usually thought they did), not all businesses today need to have a web presence.
Think like your customer.
If your customers look for your type of business in the Yellow Pages then be there with your advertising (restaurants still get much of their business from this source of information). If they look for your type of business on the web, then that is where you should be.
This is a transition time, however. Many businesses are finding that they have to cover multiple media for their message as customers are not all using the same source for product/service information. Some customers within the same target market are more technologically inclined while others still are not.
In this case, think like your customers.
NOTE: If you found the relatively low priority for hiring interesting, as I did, make sure to read my post from yesterday.
Posted June 30, 2004 07:35 AM
Comments
It is very interesting how large companies and start-ups alike sometimes view technology as a strategy to grow their business. Technology is simply an enabler not an inherent source of value for your organization. I think most IT guys would not disagree with this statement after a few hours of brain washing.
Business people need to understand that technology can and will affect a business, but very rarely will be the source of a competitve advantage because technological advances are easily copied by any other organization thereby eliminating the advantage. An online presence has become almost a commodity and no longer differentiates a business from its competitors.
I agree w/ Mr. Cornwall's assertion that businesses need to be selective about where they spend their advertising dollars depending on the market segments they are serving. The same goes for all business investments really. I shouldn't assume that just because everyone has structured their business a certain way that I must do the same in order to be successful. I need to always keep in mind who I am serving and how I can create value through my distinctiveness.
Have mercy on my ramblings--TJ
Posted by: TJ Burdine at June 30, 2004 11:03 AM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
