Is Your Small Business Missing Out Without a Website?

Being opinionated is something I've been accused of more than once, but no matter how hard I try to temper that part of my personality, it remains a defining trait. In this article, I’ll share my strong opinion on why, even if your target market is strictly local, your small business cannot afford to operate without a website.

The Growing Importance of the Internet

Let’s start with some statistics. In 2003, Canada had approximately 12 million households, and 8 million of those had regular access to the internet, whether from work, home, or school. That's about 60% of the total households with a computer and internet access at home.

Now, what were these households using the internet for? Almost 90% used it for browsing, but more importantly, 34% of them used the internet for purchasing goods and services. That’s nearly double the 1999 figures for online shopping. Industry Canada reported that in 2000, Canadian e-commerce sales reached $7.2 billion, marking a staggering 73% increase from the previous year. And yes, you read that right $7.2 billion.

This trend was not isolated to Canada. In the United States, projections made in December 2001 by tamingthebeast.net forecasted that 157 million online users would spend $47.8 billion in online retail revenue in 2002. By 2006, this was expected to grow to 210 million users spending $130 billion. The numbers alone should be enough to convince any small business to invest in a website, especially if their target market extends beyond the local area.

But My Business is Local Why Do I Need a Website?

You might be wondering, "My business is just a small local shop." Why should I get a website? What good will the internet do me?” It’s a common question, one that I’ve heard often, particularly from my friend David, who owns an auto shop.

David’s shop is in Saskatoon, a city with a population of just over 200,000 people aged five and older, and nearly 90,000 households as of 2001. Nearly every household in Saskatoon has at least one vehicle, which means there are around 90,000 potential vehicle problems that could require David's services. Of course, not every vehicle will break down in a year, and David certainly won’t capture all of the business. However, the potential is vast.

In 2003, 72.5% of households in Saskatoon had internet access, equating to about 65,000 households. And that doesn’t even include the rural population surrounding Saskatoon, who also need a mechanic from time to time.

The Power of a Small Business Website

Let’s say David decides to go all-in on marketing and spends $2,500 on a website. This might seem like a lot, especially for a small business web site, but the potential return on investment is significant. However, having a website is only beneficial if it can be found by potential customers.

Statistics show that most people stop looking after the third page of search engine results, meaning that to be effective, a small business web site needs to rank within the top 30 results for relevant keywords. Let’s assume David’s $2,500 investment includes professional search engine optimization (SEO). His website copywriter researches relevant keywords, integrates them strategically throughout the site, and submits it to small business directories, further enhancing its visibility.

Within three months, David’s website ranks #2 in a Google search for “auto repair Saskatoon.” This visibility opens up his business to potentially 65,000 households. Even if he only captures 0.1% of those households, that’s 65 new clients. Considering the average car repair bill might be around $100, those 65 clients could bring in an additional $6,500 making that $2,500 investment well worth it.

Maximizing Returns with a Small Business Website

Beyond just repair services, David’s website could also attract clients for regular maintenance, further increasing his revenue. The bottom line is that a small business web site is not just an additional expense it’s an investment in the future of the business. The internet is where consumers are, and even local businesses need to meet their customers where they are spending their time.

Conclusion

If you’re still on the fence about investing in a website for your small business, consider the numbers and the potential return on investment. In today’s digital age, your small business can’t afford to not have a website. It’s more than just a digital business card it’s a powerful tool to attract and retain customers, build credibility, and ultimately drive sales.

So, next time someone tells you that their small business doesn’t need a website, show them these statistics. As the numbers grow, so does the importance of having an online presence. And if you’re like David, who’s logical and numbers-driven, this might just be the argument that convinces you to take the plunge and get your small business online. The potential for growth is there don’t let your business be left behind.