Does a Small Business Need a Website?

A few weeks ago, I wrote a post asking whether a small business needs a blog, but I realized while writing it that I had jumped ahead of myself. The question I should have first posed was whether a small business needs a website. The answer to that question is no.

Small businesses don’t necessarily need a website, but they do need a web presence. A web presence is simply a foothold on the web that a business can direct its customers to. It serves the function of providing basic information, whether that be about products and services, hours of operation, or even simply contact information.

Ten years ago, the only way to have this kind of presence on the web was to have a website, and that probably meant learning a bit of HTML and getting yourself a Geocities account. A website was a collection of linked together static web pages. When was the last time you heard someone use the term web page? The term has fallen out of use because a page is only a useful term when it is static. Today’s websites have evolved where they’re no longer a collection of individual pages, but a single interactive platform.

Web site design has come a long way since the days of basic HTML and Geocities. You could still create a site using basic HTML and a free web host, but if you expect that to stand side by side with a professionally designed site, you may be kidding yourself. It’s the equivalent of erecting a lemonade stand next to a Starbucks.

As website design capabilities have evolved, though, a curious thing has happened. Websites have become more than what most small businesses need. Most small business don’t need fully interactive sites with integrated CMS, AJAX capabilities, check-out carts, and user review functionality. More importantly, most small businesses can’t afford all those bells and whistles.

That’s why I predict that after several years of consecutive growth, the percentage of SMBs that have a website will now begin to fall. The reason for this is not that SMBs are going to turn away from the web – that would be a huge mistake – but rather because they now have other options for crafting their web presence without investing in a whole website. So, you’ll actually see the percentage of SMBs with a presence on the web continue to rise, all while you see the percentage with websites falling.

There are three reasons why we will soon start to see this trend towards a web presence that is not a website. The first is because SMBs now have alternatives to websites for creating their web presences. Things such as internet directory profile pages (internet yellow pages, yelp, etc.), Google local business center, Facebook fan pages, other social media profiles, blogging platforms, and many other standardized options offer the ability to present the necessary information without all the bells and whistles that SMBs don’t need for the right price: free or just about. The standardized pages look very similar, and offer similar content, to the websites of a few years ago. The difference is they’ve now been commoditized.

The second reason we’ll see a move away from websites is that the web design industry will actually push SMBs away from websites. Web design for SMBs is a high-touch, low-margin business. Because of the availability of cheaper alternatives, the only way for web design firms to justify charging enough to be profitable is to offer customization. However, customization means that the work isn’t scalable, and if it’s not scalable, it isn’t very profitable. Instead, web design firms will prefer to work with bigger customers, who will have deep enough pockets to pay for a truly customized experience, and remove the need for these firms to worry about scalability. As the web design firms focus on the high end, SMBs will naturally look at other forms of web presence.

The final reason we’ll see a shift away from websites is that the new forms of web presence come with a pre-existing method for generating traffic. One of the biggest issues SMBs have with standalone websites is that they pay good money for them, but then once they’re built they need to spend more money to get people to visit the them. The standardized web presences often come pre-packaged with at least one method to be found. Registering with Google Local Business Centre makes you eligible to appear in Google’s local search results. Creating a Facebook fan page allows you to easily attract word of mouth traffic by spreading word through your Facebook friends. Creating a profile with an internet directory means that anyone using that directory will be able to find you.

In my next post, I’ll look a closer look at some of the options for setting up a SMBs web presence.