Web Business – Another side of the coin

 

Working with the web draws a great cross section of people, more so than any other profession than I can think of.  It requires a number of different skills and different areas of interest to run a successful and, more importantly, profitable web site.  There are a number of obvious skills, which for most of us are taken for granted, such as web design, knowledge of HTML and associated technical skills.  There is also the ability to generate the right sort of content and media, as well as an understanding of niches and web marketing.  One of the surprising things that I have found in my experience of working with a number of web ¢â‚¬â€œ entrepreneurs, for I am strictly a word man, a hired word slinger, is that most if not all of these amazing people pay little attention to the fundamental business practices employed by main stream entrepreneurs.  This is of course not to say that many of them aren’t successful people, indeed many of them make a good living from their respective sites.  It has, however, left me wondering how much more successful they could be if they had access to a number of the tools and tips that apply to mainstream business.  Moreover, I have often wondered why they often don’t do these things automatically.

I suppose that the one thing that I have learned from the work I have done over the last few years in web publishing is that the web is so diverse, so very varied, and that the people who own and run sites are just as varied.  Is this then the reason?  Because web entrepreneurs come from so many different backgrounds, and have to have so many other skills, such as copy writing/editing and programming that the business side of things, beyond working out a profit margin, is often the last thing on their mind.  Indeed the paragon of web based success, Google, was run out of a garage, and the idea was borne of two very clever computer guys; the business acumen came much later.  A similar parallel can be made of the mighty Bill Gates.  It is, however, important to note that these two examples demonstrate that a good idea and superb technical knowledge are vital, but so too is the business model that is put into place soon after inception. 

Therefore it can be seen that as the internet develops along its learning curve that the money will increasingly become the provision of not just those web entrepreneurs who have mastered the blend of technical, content and market, but who also have a clear and well executed business model.  This is as important for providers of web based tools, web sites which offer goods and services, and even the sites which publish online.  The thing is that most of those people who I have worked with have had a good concept of many of the things which are standard in mainstream business without even knowing it.  A sense of revenue streams, a basic understanding of profit, market and marketability are all inherent in them.  So what is the benefit of introducing more formal business practices for these people?  The answer lies in another common denominator between these people which I have often observed; sometimes the sheer weight of pressure, from having too much to do in too short a time, stops them from having a clear and present vision of how to achieve their goals.  One thing all web entrepreneurs agree on is that there is never enough time, and things move so fast online that it is too easy to miss out on an all important opportunity.  Business practices, such as Business Plans,  Cost/Benefits analysis and Cash Flow Analysis offer some respite in this respect and can prove very beneficial in maintaining a competitive edge in the most competitive business environment, the internet.  So where do we start, I hear you ask, well keep reading my posts because I am going to share some business fundamentals with you over the next few weeks in what I hope will become a series on adapting Business Skills for the web.  Stay tuned!