Pacific Business News
In Depth: Internet
February 8, 2002

Businesses have a range of options for online presence
Steve Jefferson
Pacific Business News

For many businesses, the Internet is a mysterious thing that sucked up lots of money from unsuspecting budgets in the late 1990s as companies tried to jump on the bandwidth bandwagon.

While much of the original promise turned out to be hype, the second coming of the Net is upon us and savvy businesses have much to gain from creating a compelling presence on the Web, Hawaii-based Internet marketing experts say.

"The first go-around really showed us a big excitement with no substance," says Yasuo Ogawa, rancher/president of Cowabunga Computers. "Right now we are getting to the substance."

In the second coming, businesses should be using the Internet to increase profits and efficiencies, says Elden Ito, chairman and chief strategy officer of RevaComm Inc., a Honolulu-based Web development company with offices in Los Angeles and San Francisco.

"Businesses are asking, `How can the Web increase my business process efficiencies and make it run more effectively?'" Ito said. "With the bust of the dot-com scene, you can see that the work that is coming up is [about gaining] back office efficiencies."

There are at least three levels of Internet use, each requiring an increasing amount of effort and resources, Ito says. Understanding each can help businesses decide how much they are willing to spend.

Establish a presence

Every business that wants customers can benefit from having a Web site, the experts say.

"We are going into this century and people need to get on board," says Ron Martin, president of business consultancy Success Dynamics.

For many consumers, the Web is the primary source of information about products and services, Ito says. It's important to have that channel available for potential and existing customers.

To start, create a splash page, Ogawa says. It includes a logo, the company name, contact info and a brief company synopsis.

Not surprisingly, Web developers Ito and Ogawa advise hiring a professional to design the site. That's good advice, says Martin, who does not build sites.

"Get a qualified person and don't pay too much. [The amount you pay] depends an awful lot on the business, but I think anyone can build a high-quality Web site for less than $5,000," Martin says. "You can certainly find a lot of people to build you one for $500, but it's going to look like it."

Companies should plan on spending 2 percent to 3 percent of their total budget on the development and maintenance of a Web site, Ogawa says.

"Through our experience, [most businesses] spend 5 percent to 6 percent of their budget on marketing and advertising," Ogawa says. "You should commit at least half of that to a Web site."