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Photo: N/A, License: N/A, Created: 2012:02:16 10:23:13

What it takes to make big dreams a reality

E-commerce can be for any business.

And for most, it can be a useful tool to expand, says Robert Williams, the director of the Center for Economics and Entrepreneurship Education at Misericordia University.

We talked to Mr. Williams about why even mom and pop shops can benefit from joining the Internet age.

Q:How do you expand business through e-commerce? Is it worth it?

A: At this point the Internet isn't going away, so if you plan to expand as an already established business you should start by creating an online vehicle to service customers who use the Internet as a primary resource. It is fairly easy, every bank has an e-commerce function connected with credit card sales or PayPal. It becomes a matter of how much business you will conduct online. Many small businesses shy away from credit card machines because they see the added cost, but in many instances they lose business by not having debit and credit card paying options in the store, much less online.

Q. What steps does a business have to take to go e-commerce? How much does it cost? Are there any studies to show how successful going e-commerce can be?

A. Each business is different, but the first step is going to your local bank. Yes, every bank at this point has the capability of creating the e-commerce banking you require. To be safe, I would create a separate account simply to deal with the e-commerce, it makes tracking cash flow much easier and you can quickly identify hidden cost and adjust. Most of this can be done online. I am assuming the business has online capability already - if they don't have online capability they should start there. They can buy a laptop and upgrade either their phone or cable package for Internet use and they are in business. I have not heard of any studies on how successful e-commerce can be; but, I will say this: It takes a bit of courage to open any traditional business. ... (With) as little as $50 anyone can start a business online. The problem becomes you must compete with everyone online. Barnes & Nobles is competing for dollars with not only Target and Amazon, they're competing for dollars against Kokopelli Book Shop. If you're online, you're in the game.

Q. What type of products are appropriate for e-commerce? Which are not?

A. I can't say which products are appropriate for e-commerce. You can get anything on the Internet. I would avoid breaking local, state and federal laws here in the U.S., which means sales of alcohol and tobacco out of state. This will probably get you a visit from the FBI quicker than most other legal things one can sell on the Internet! On that note, I would be very sure to research out of state tax rates and if that state requires the business to report the taxes of the sale if shipped to their state. For beginners, I would stay in state until I got a handle of the shipping rates taxes and reporting.

Q. Can someone with a home business use e-commerce successfully?

A. Of course! Most home business wouldn't exist without e-commerce.

Q. Can a "mom-and-pop" business benefit from also using e-commerce?

A. Yes! It's just, most "mom-and-pop" businesses, who do not have a e-commerce presence, view it as a monster. Once they start feeding it, they have to keep feeding it, and they don't know where the extra time, money or energy will come from. They are already living, breathing and eating their business. If they have to add another hour to reconcile online receipts it doesn't seem worth it. What they miss are the other tools which accompany having e-commerce, tools that make their business more efficient. Things like, QuickBooks, online banking, structure marketing tools, coupons and many other advantages.

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