In many parts of the world, it is essential for businesses to have a presence on the Internet. Starting a website or online business can either be an alternative to a brick-and-mortar store, or a supplement to an existing business. After a business concept is decided on and a feasibility test has been carried out, the information technology (IT) issues related to starting an online business need to be addressed. The many things that need to be taken into account are things such as hardware and software and choosing the right providers for the business website. This guide will help to establish the main IT requirements needed to set up an online business for a small or medium enterprise (SME).
Although it seems intuitive, the first IT related device needed to start an online business is a computer. When choosing a computer factors such as mobility, computing power, and disk space need to be taken into consideration. If the computer that is chosen is a desktop computer, as opposed to a laptop, all the hardware needed to operate the computer (mouse, monitor, keyboard) must be purchased as well. A business may also consider purchasing a printer, scanner, and fax machine for administrative tasks; however, it is possible to purchase all-in-one printer, scanner, and fax machine. Other periphery devices needed many include a web camera, and speakers depending on the nature of the business.
Once all the hardware requirements are met, the next thing that is needed is an Internet connection. The main types of internet are dial-up, high-speed, and satellite; however, these types vary depending if you are in a rural or urban setting (Marlow, 2010, para. 7). A business will want to choose a relatively fast internet speed if it is to conduct e-commerce because of the amount of data in the form of pictures and possibly video that will need to up uploaded onto the website. Many telephone providers offer Internet service and the best thing for a business to do is to contact their telephone provider and request an Internet connection. Along the same line of the Internet is securing a domain name for your business. A domain name “allows users to refer to web sites and other resources using easier-to-remember domain names (such as "www.icann.org") rather than the all-numeric IP addresses (such as "192.0.34.65") assigned to each computer on the Internet” (Internet Corporation For Assigned Names and Numbers, 2011, para. 1). It is important to choose a short and easy to remember domain name that your customers will remember, or you may risk losing business and traffic. When choosing a domain name it is also important to consider “the right-most label in a domain name [that] is referred to as its ‘top-level domain’ (TLD)” (Internet Corporation For Assigned Names and Numbers, 2011, para. 1). The top-level country domain assigned to Canada is .ca (dot ca). According to the Canadian Internet Registration Authority (2010) in Canada there are currently 1,616,786 domain names registered unter the .ca domain. There are many benefits to having a .ca domain if you are a Canadian company: 1) the .ca domain is “instantly recognizable as Canadian to Internet users around the world”, 2) “domain names are kept safe and secure in an independent national registry”, and 3) “Over 60% of Canadians prefer .ca for online shopping” (Canadian Internet Registration Authority, 2010).
After deciding on an easy to remember domain name, finding a web host is the most essential decision that needs to be made. A webhosting company “rents out web space and bandwidth to those who wish to publish a web site” (Erack Network, 2008, para. 2), essentially, a webhost is constantly connected to the Internet and provides a space on their server for a website to stay constantly connected as well. Things to take into consideration are numerous when choosing a webhost such as
· Bandwidth: the amount of data transfer available
· Disk space: storage space
· Reliability: how often the webhost’s server is up and running and available to customers
· Cost
· Customer service
Other features to look for are the ability to use a template to build your website, as opposed to building one through hypertext mark-up language (HTML), which if you are a beginner could look amateur, the ability to have, a shopping cart, database support, e-mail addresses, newsletters and guest books for your website. These features will be more or less important depending on the nature of the website or online business. For example, if the online business involves buying and selling things online, it is important to look for a host that offers a shopping cart. Taking payment for goods or services will also have to be considered. The Government of Canada (2011) suggests that business “get a merchant account from a bank...[or] use a service that will process the credit card or other method of payment (para. 1)”. According to the article 5 Payment Platforms to Consider for Your Business (2009), PayPal and GoogleCheckout were among the most popular and trusted payment options. If the webhost chosen has provided compatibility, these payment platforms can be downloaded and installed on your computer. Customers will have to have an account with the payment platforms, but they are assured that their information and payment is secure. For this service, businesses usually have to pay a certain percentage of the sales amount to the payment platform operators. It is usually a small price to pay to have customers feel safe and secure with doing business with you.
Hardware, and Internet connection, and a webhost are the basic IT elements needed to start a website or online business. Having a good understanding of what type of products or services a business wants to offer will a SME decide on the specifications of hardware, speed of internet connection and the features of a webhost the business will require. Knowing these things will help to make opening a new business online or creating supplement to an existing business an easier task.
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References
5 Payment platforms to consider for your business. (2009, July 28). In Open Forum. Retrieved February 18, 2011, from http://www.openforum.com/idea-hub/topics/technology/article/5-payment-platforms-to-consider-for-your-business-ben-parr
Canadian Internet Registration Authority. (2010). Why.ca. Retrieved February 18, 2011, from http://www.cira.ca/why-ca/Government of Canada. (2011, February 2). Payment for online sales. In Canada business: government service for entrepreneurs. Retrieved February 18, 2011, from http://www.canadabusiness.ca/eng/145/148/4368/
Internet Corporation For Assigned Names and Numbers. (2011, August 13). Top-level domains (gtlds). In Internet corporation for assigned names and numbers. Retrieved February 18, 2011, from http://www.icann.org/en/tlds/
Marlow, I. (2010, November 15). Rural Canada loses as politics and business fail to get broadband down the last mile. In Globe and Mail. Retrieved February 18, 2011, from http://www.theglobeandmail.com/news/national/time-to-lead/internet/rural-canada-loses-as-politics-and-business-fail-to-get-broadband-down-the-last-mile/article1799640/page1/
