Resurrecting e-business.

• Author: Lindberg, Kelley J.P.
• Position: Small Business Advisor

Strategies for surviving on the Web

Everywhere you turn, the news about e-business sounds bad. The tumble of technology stocks and the events of September 11 dealt a double blow to companies that market their products and services via the Internet.

However, not everyone believes e-business is dying. "The story is more positive than what the daily press reports," says Richard R. Nelson, president and CEO of the Utah Information Technology Association (UITA). "There is still this underlying, strong reservoir of high-tech and IT companies that are going to be successful."

While the euphoric mist of Web-mania has evaporated in the heat of intense scrutiny, many businesses are thriving on the Internet.

E-business isn't dead, it's just gone through a pruning season. Flashy brambles have been cut back, exposing heartier businesses focusing on steadier growth.

How e-Business Companies Succeed

Successful business ventures require money, careful planning, strong management and a large tolerance for risk. The dot-com industry was vulnerable because these four pillars were often shaky. Since money flowed freely, business plans were soft, management teams were inexperienced, and trigger-happy investors wanted instant gratification.

It's no surprise, then, that successful e-business companies today talk about conserving money, strengthening planning and business processes, and creating practical products that customers clearly need.

Solve a Big Problem

In today's economy, businesses are looking for solutions that will address their immediate needs and solve their largest problems. David Moon, general partner of Provo-based EsNet Ltd., a private investment firm that funds technology companies, says, "I think there is greater recognition that the solution a new company is proposing to build has to have a clearly understood return on investment. Businesses aren't inclined to spend a lot of money right now, so they're less likely to buy technology just because it's cool and exciting."

Bruce Law, vice president of Corporate Marketing at NextPage, Inc., in Lehi, agrees. "The number one thing is to absolutely understand your customer," says Law. "Then make doubly sure that your solution is going to solve their problem. Also make sure that the problem is big."

Focus on Profitability

Burned after jumping on the dot-com bandwagon, venture capitalists and banks want assurance that a business' financial goals are realistic.

"One thing that's important right now to...