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Setting Up and Running a Limited Company

Using The Web

Robert Browning is a chartered accountant formerly in public practice, with many years' experience of advising small businesses. He is based in Ware, Herts.

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No book on setting up in business in the 21st century would be complete without a chapter on the World Wide Web. Many businesses have been taken by surprise at the speed at which the internet has intruded into our lives. And when you are in business you avoid the advantages of using the web at your peril.

This chapter looks at:

  • Using the web for information
  • Designing your web pages
  • Marketing and trading on the web
  • E-Mailing

USING THE WEB FOR INFORMATION

There is nothing worse than feeling left behind. So unless you are in the business of computers you may find the prospect of using the internet in business daunting. Admittedly it is a steep learning curve but a relatively short one.

The internet is an international computer network with answers to all the questions you may wish to know the answer to, with the ability to send messages across the world instantly, transfer documents, obtain supplies and technical information and generally do anything with numbers, words and pictures that you can do by any other means. In business it is becoming as integral as the telephone or fax machine.

Businesses are being set up at a very fast rate currently in a frenzy of activity so you will not be alone in using it as a business tool. But don’t get carried away. It is essential to decide what your business can best derive from using the web.

The setting up of a limited company referred to earlier in this book can now be done on line. Company agents have web sites where registration forms can be filled in and the whole process completed without you leaving your computer. Sample memorandum and articles can be sent to you for checking that they adequately cover your needs. Names can be checked with the Registrar of Companies to ensure their validity.

The Companies Acts and other legislation can be accessed at any time to enable you to check that you are not acting outside company law. All PAYE and National Insurance rules and regulations are available on line.

Bank accounts may be opened on line and access to the details of your accounts can be made using appropriate security pin numbers. Monies may be transferred from one account to another and your accounts can be managed by you without the need to contact a person at the bank to do it for you.

As time goes by and security is improved you will be able to transact almost any business which requires data transference from the comfort of your own office.

One of the latest developments is the use of Broadband which enables you to access the internet through your telephone line whilst at the same time making normal telephone calls. This effectively gives you permanent access to the internet and is particularly useful where you need to obtain information rather send it. Your Internet Service Provider will give you full details.

DESIGNING YOUR WEB PAGES

The World Wide Web is the main commercial area of the internet used for selling, marketing and information about products and services but it is advisable to spend some time researching and getting to know how the internet works. Unless you have a brilliant and unique idea selling on the web involves hard and labour intensive work and small margins. You can, of course, design your own web page. This can be done with the use of special software but you may be well advised to use an expert. After all it is not putting your advertisement on line that is difficult but getting people to look at it. It may be wise to use the web as part of your promotion rather than rely on it alone.

Before you can do anything about designing your web pages you have to get your internet access provider to give you space on their hard disc. They usually give a small amount of space when they connect you and if you need more there will be a charge. Having published your pages and transferred them to your provider’s site you must now hope that people will visit it.

Case study: Dean

Dean has always appreciated the need to market his products well and has been using his computer for some time on his accounts. He has now registered with a service provider and intends to set up a web page for his business. He will use his existing logo and general corporate image to enhance the look of his pages but realises that he will need some training to get the best out of his site. He decides to enrol on a quick evening course at the local further education college which has a course on designing web pages.

Case study: Diamond Designs

The constant bombardment of www sites on television prompts Hannah and Usha to consider opening a web site to market their jewellery. Neither of them knows how to go about this but they are aware of the many advertisements for free access to the internet and decide to take advantage of one and explore the possibilities. They ring several free numbers for details and information packs. They are particularly worried about the cost of calls and who pays for them, They are also interested in 24-hour support which they feel they will need.

MARKETING AND TRADING ON THE WEB

You must make sure you know what you require the web to do for you. You may use it purely for customer awareness of your product. This can be as simple or complicated as you like. However if you intend to sell on the web then you must design how the customer will contact you. Orders can be completed on a form on line showing details of name, address, date required, products ordered and price. But to do this the range of products must be available to the customer with suitable references so that the correct product is sent out. The catalogue or list of products can be incorporated on the site but the more information you include the more it will cost to set up. It may also increase your rental of the site.

If you are selling on the internet your new customers will expect you to be carrying the stock to fulfil the orders. Your stock position is therefore very important and be aware that you may, if you are lucky, obtain a significant number of new customers. Failure to send out the goods could be detrimental to your business and gives the wrong impression.

You must also consider how goods ordered on line are to be paid for. Normal terms do not usually apply as you have no means of assessing your customer before you take him on. Payment in advance is preferable and this will probably be by credit card. You must see your bank manager to set up the system for receiving credit card payments.

E-MAILING

If you are looking for one good reason for using the internet look no further than e-mail. Once you are used to conversing by e-mail and have built up a suitable address book of all your contacts you will turn to it as your first line of communication.

You can send an e-mail to anyone in the world with an e-mail address of their own. It will enable you to write more letters, more often and get a response more quickly. In fact it is possible they could get your message quicker than you could print it. E-mail is always a local call and you can programme your mailreader to check for incoming mail at whatever interval you like.

E-mail is better than faxing as you never get an engaged signal and you receive the actual text instead of a photocopy. As the image is original you can send messages in colour. You can send messages at any time, even when the recipient is in bed asleep and he or she can reply while you are asleep so that you get it in the morning. You do not therefore have to synchronise telephone calls and there are no answer-phones or receptionists to battle through. You cannot be put on hold. In other words you can, if you know his address, get straight through to the boss. But remember they can also get straight through to you.

There is another great advantage to using e-mail. You can attach a file to a message which means you can send pictures, spreadsheets, advertising material and many other documents or files and, because of this, your accompanying message can be brief and to the point. Business correspondence has, through e-mail, become much less formal and has got rid of the need for letterheads, logos, typesetting, signatures and deals only in words. It does mean you can deal with many more people than you otherwise would.

Incoming mail can be read at your leisure and can be answered immediately by returning the correspondence with your answer attached. Like a telephone call it is courtesy to reply quickly and you must be ruthless with deleting unwanted mail and filing only that which will be useful later. If a more considered reply is required then a quick acknowledgement is in order. It is possible to ‘word process’ your answer by using the text of the sender’s message and inserting the answer immediately below it. This saves time and money and ensures accuracy.

E-mail can therefore be used for many of your communication needs and should be used for ease and speed. The finished product at the other end will not be as sophisticated as the printed word and or picture but where speed is essential it has no rival. And an attachment will solve the other problem.

Case study: Harry does not need a web site

Harry has access to the internet at his office and can see no reason to set up a web site for the company. All the shareholders are neighbours and e-mail is not necessary for communication. He asks his shareholders if they are personally on e-mail and is surprised to find they all are. This confirms that the facility is not required by the company.

ACTION POINTS AND REMINDERS

  • 1.Consider whether there is a commercial reason to be on the internet.
  • 2.When constant and speedy communication is advisable the use of e-mail will be essential.
  • 3.Check out service providers thoroughly before signing up.
  • 4.Make sure you are aware of the costs involved both as monthly rental charges, if any, and telephone charges.
  • 5.Find out what courses are available for training on web site design.
  • 6.How will you make your web address available to your customers?
  • 7.Do you intend to sell products on line? If so, suitable forms will have to be designed.
  • 8.Remember to make reading of e-mails part of your daily routine as orders may be missed or messages not dealt with.
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