The Era of the Online Entrepreneur

As the economy decelerates, many companies are downsizing their operations, leading to an increase in employee layoffs. There is a widespread financial restraint at every level, and the extravagant expenditures of the previous year are now being scrutinized more critically.

So, what does this mean for the small-scale entrepreneur? Is it time to retreat and wait for more favorable times? The answer is a resounding no. Despite a slight increase in the unemployment rate to 4.2 percent, it's worth noting that the employment-population ratio, at 64.5 percent, remains near a record high.

The Perfect Time for Small Businesses to Thrive Online

Now is arguably the best time to promote your small business on the web. With less competition from the websites that have failed, not only will your potential market share increase, but the sites that have been monopolizing internet users' attention will no longer be there. People will be seeking other sources for their information. The question should not be whether to establish your own website, but when to do so.

Yahoo has significantly altered their policy of accepting websites for review. While it used to take several months to get a site reviewed, they now promise to complete the process within seven working days. This sounds promising, but there's a catch - what used to be free now costs $199.

The Age of the "Dabbler"

A quick look at the results of any web engine search reveals a lot of irrelevant content. Many of the sites are no longer active, or you have to sift through a lot of unnecessary information to find something meaningful. This could accurately be described as the era of the "dabbler". People who acquired a new computer believed they could make their fortunes on the web. The armchair entrepreneurs prevailed, and overwhelmed the serious ones with their submissions. When their free AOL account expired, they were out of business and their website disappeared.

Will Yahoo's new policy help? It's likely. A lot of the irrelevant content will vanish, and you will instead find ads from individuals who are serious about conducting business. Will other search engines follow Yahoo's lead? It's probable. So, what does this mean?

A Golden Opportunity for Online Businesses

If you combine this thought with the fact that many of the major companies are abandoning their web presence, it means that more people will find your site. This is indeed a golden opportunity to establish your business on the web. However, you can't expect to hastily create a website and have the world flock to your doorstep.

You must first establish a business plan. What will you market? What will it cost? Who is your competition? What is the pricing for comparable products? These are all questions that should be answered before you take the first step.

If your answers to the above questions are positive, secure your own domain and build your website. If you can't do it yourself, hire a competent firm to do it. Unless you are a "dabbler", expect to spend a few thousand to get your website up and running, register it with the search engines, secure a merchant account to accept credit cards online, and start advertising.

When you think about it, if you are serious, this is really a small expenditure to start a business. If you're not serious, forget about it, and consider a different part-time enterprise. You will probably make more money working part-time at your local fast food establishment than you will for the time you spend trying to develop a cost-free web presence. The old adage - "you have to spend money to make money" - is more relevant than ever.

Will it take some time? Absolutely - how long depends on what you do. A couple of months might be a conservative estimate. But you can't lose heart, and like the "dabbler", try some other harebrained scheme when you don't make your first million in 90 days.