Buzz Gnosis

1. Support. Is there really anybody there? Send them a question by email and see how long they take to respond. You want to know if they’ll be there when you need them. Some offer 24-hour support and a few will respond quickly. Speedy customer service is rare and indicates a superior service. I think that this is the single most important consideration. Also, check out the quality of their online documentation.

2. Server performance. You want a server that is reliable and fast. There is a free tool available that allows you to evaluate this before making a decision! NetMechanic.com will measure the speed of access for all facets of access (network speed, DNS lookup, connect time, download time, and absence of timeouts). The “download time” statistic is the most important single item to compare. Collect your list of candidate hosting services and run side-by-side tests of all the candidates. Sample during peak and non-peak times for optimal comparison.

3. Are they familiar with the application you plan to use? If you’re planning to use a particular application that requires special setup parameters (such as Online Merchant, a popular online store), make sure your potential host is familiar with the application. Otherwise you may find yourself spending a great deal of time trying to figure out how to configure it – perhaps never succeeding!

4. Traffic allowance. Compare your traffic allowances. Some services give you a small limit on the amount of material that can be downloaded from your site each month and charge you large amounts when that limit is exceeded. Some offer huge traffic allowances (several thousand MB/month, where 1,000 MB = 1 GB) for the same price as others that limit you to a few hundred MB/month. Sure you probably need less than a hundred MB/month now, but why put yourself in a position where you have to move when your traffic takes off? Plan ahead and allow for growth.

5. Space. How much space do you expect to eventually want for your web site? Planning ahead can save you lots of money later. If you expect to grow, look for a place that offers sites of 100 MB or more. Some services offer 500 MB sites for less money than others that offer only 30 MB.

6. Features. Consider what features you want to simplify development of your web site.

-Do you want access to a cgi-bin so that you can install your own scripts? -Do you want many scripts pre-installed and pre- configured? -Do you want to be able to use Microsoft’s FrontPage? -Do you want autoresponders for email processing? -Do you want email aliases (automatic forwarding) so you don’t need to check email in more than one place?

7. Guarantee. With so many hosting services to choose from, why not choose one that offers a guarantee? Services that offer a moneyback guarantee are confident that you’ll be delighted with their service.

8. Cost. Look for hidden costs when comparing price.

-Do they expect you to pay for a long term in advance to get a good price? Choose one that doesn’t bait you with a low price that’s only available if you make a long-term commitment. -Will they handle the registration of your domain for free? -If you’re transferring an existing domain, will they submit the domain change to InterNIC for free?

Choosing an excellent service to host your web site doesn’t have to require luck. Knowing what to look for makes selection simple.

Good luck with your marketing and God Bless.

Business owners often contact us requesting an introductory meeting. They are contemplating the near to intermediate term exit from their business. The meetings generally have two major themes: 1. The beauty contest – they want to interview merger and acquisition firms or business brokers to evaluate their qualifications and process in comparison with other competitors and 2. Preparation for Sale – what should we be doing in anticipation of putting our company on the market?

One of the questions I ask on their first phone call is, “What is your Web Site address?” As a potential advisor, I want to go to their site and find out all I can about their business in preparation for the first meeting. If they respond that they do not yet have a Web Site, I already know what my top priority recommendation is in response to their questions on preparing their business for sale.

The spectacular growth of the Internet powerhouses Google, Yahoo, and Ebay should convince you that the Internet is dramatically changing the way America does business. Think about your own buying habits. It is so convenient to type in a few key words and have a world of choices presented on your computer screen. Try this simple exercise. Do a Google or Yahoo search of some key words or phrases that a potential customer of your business might use if they were searching for a vendor of your products or services. Does your web site come up? Click on some of the sites that come up on the first page of the search. Look at their Web Sites. Do you think they are getting additional business based on their search result success? Bet on it!

If you had asked me three years ago if I thought that a business owner would hire our firm based on finding us on the Internet, I would have said no. In the last quarter we have gotten two new engagements based on a client’s initial Internet search. It does not matter what type of business you run, you simply must have a Web presence. At the very least your company should have a Web Site consisting of “brochure ware”. That is very simple and inexpensive to implement. Brochure ware is simply taking your company’s collateral material and putting it up on a Web Site. If a buyer is evaluating several potential acquisitions, the absence of a Web Site will be perceived as a negative.

If you are able to integrate your Web Site into your customer service, ordering, order status, documentation, training, etc., (eCommerce) your investment could pay huge dividends when you sell your business. The new reality is that it is considerably more cost effective to conduct eCommerce than traditional commerce. The big payoff comes when potential buyers perceive your eCommerce initiative as scaleable. My translation of this over used term is that a large increase in sales can be accomplished with a small increase in fixed costs. Buyers pay for the potential you create in your business. Buyers make acquisitions to grow and if that growth can be accomplished with improving margins, your selling price will go up.

In real estate, the largest dollar for dollar return on investment for the home seller is their expenditure on landscaping. As a potential business seller, think of your investment in a Web presence in the same light.

Dave Kauppi is a business broker and President of MidMarket Capital. We help business owners with all aspects of Mergers and Acquisitions.