If you’re looking for ways to increase revenue or to expand your business, but you haven’t made the leap to a business Web site yet, take a cue from small business owners just like you. New data indicates that more businesses than ever are moving online — and expect more profits as a result.
According to a new survey conducted this past April by Harris Interactive, a staggering 70 percent of small businesses in the U.S. already have an online presence, or will have one by the end of the year. That’s a massive change from the 35 percent of American small businesses that had their own Internet site at the end of 2002, based on a report by the U.S. Small Business Administration’s Advocacy Office.
The newest survey polled more than 1,000 U.S. businesses employing fewer than
100 people and was sponsored by Yahoo! Small Business.
The survey also found that 35 percent of small business owners feel that having a Web site is the most important tool to expand their business. Small business owners rate Web site presence as more important than having either a dedicated e-mail presence or online advertising efforts, both of which garnered support from about 30 percent of the respondents.
Small business owners surveyed by Harris believe that having a Web site is more critical for growth than even hiring more employees — a choice that received only 19 percent of the votes.
While most SMB owners involved in the poll said they anticipate increasing sales during 2004, owners with an online presence were more optimistic about their prospects. About 66 percent of the survey’s participants said they expect their annual revenue will rise during the coming year; the vast majority of these, 75 percent, were companies that also reported having an active online presence.
The research supports several other findings indicating that small businesses increasingly leverage the Internet to boost profits and are more optimistic about the future as a result.
In March, ACNielsen and eBay released a survey that found 51 percent of small businesses using the Internet believe that it has helped their businesses increase profits. Furthermore, 58 percent of the small firms polled report using the Internet has helped their businesses grow or expand, and 15 percent feel that using the Internet is critical to the very survival of their business.
That study, based on feedback from approximately 400 small businesses, also indicates that many small businesses view the Internet as a powerful sales tool. Thirty-three percent of small business owners use the Internet to sell goods and services online and 43 percent find sales prospects online.
“Clearly, small businesses realize the importance of establishing an online presence and leveraging the Internet as a way to reach new customers,” said Rich Riley, vice president and general manager, Yahoo! Small Business.