The 21st Century Business Model
The 21st Century Business Model
Here in Vermont, we spend a lot of time and effort holding on to “the good old days”. Its nice to walk into a local store where you know all the sales people and the owner by their first names and they all know you. Mostly because of that, we don’t mind that the store’s inventory is not as large and prices are not quite as low as the mega-mart over in the big city mostly because of that good old fashion Vermont service. This is a 20th Century business model that is coming under increasing pressure to change.
Part of that change is that the growing use of computers and the internet is making it more and more possible for people to shop almost anywhere in the world for almost anything they need or want and at prices to which most store-front sellers can’t compete. Even without the competition of a nearby mega-mart big-box store, the global economy will eventually affect most merchants and many service industries.
One way to address some of that competition is to go online. Nowadays, even local stores are often expected to be listed in online directories with store hours, maps and phone numbers. It is becoming increasing important to have an online presence just to remain competitive but with a little extra effort, you can also create added income streams and cash flow with a surprisingly modest investment
The most elaborate web sites cost about $250 per page but it is possible to begin with building a simple static web site using free template-based applications and online web hosting services with monthly hosting fees as low as $10. Alternatively, you can use some easy online services or hire a programmer to create a dynamic web site in which you frequently change web-page content in as little as one hour per month. Annual costs can be as low as $360. Any business can break into this market with one of three basic options without the need for expensive computers or training.
The Menu Option: You can setup a simple static web site that offers a menu or inventory listing of your sales offerings. Similar to a restaurant menu, you list what you sell or just list types or groupings of merchandise or services, but without prices. You also list store hours, maps and contact information. The advantage is like having a large, detailed, online business card or permanent advertisement for about $120 per year.
The Take-Out Option: If you already have a small or computer-based inventory, you can easily setup an online version of a take-out order by allowing web users to see all or some of your inventory listing and place orders online for later store pickup. By adding a simple order save function, you can allow people to build their shopping list over some period of time (weeks or months) and then schedule the in-store pickup for a specific date or they can place special orders or orders that require preparation. The order could show up on an in-store printer and be prepared for customer pickup and payment. This avoids online money transactions but can still enhance sales and provide a value-added service for your customers.
The E-Commerce Store: The most elaborate online sales option is to put up a full function store web site. There are turnkey, off-the-shelf, e-commerce software packages and online services that can provide this capability starting around $50/month. Such a web site does everything for you except delivery. It takes the order, adds in shipping, handling and tax and then collects the payment. All you have to do is collate and mail the order or prepare it for pickup. Such sales can be for a very select portion of your inventory that might appeal to online buyers outside of your immediate store location.
Don’t dismiss these options too quickly because experience shows they can enhance customer service and might lead to large volumes of sales at less labor and lower overhead expense than in-store sales. These options are ideal for home-based or Vermont specialty stores and many small businesses.
This is the 21st Century and your sales competition as well as your potential buying market is growing every day. You need a 21st Century business model if you are to survive. It is possible that your regular customers of the future could be a rancher in Wyoming or a schoolteacher in Japan. They, too, might get to know you by name and you know them and they are repeat buyers from you because of your good old fashion Vermont service.