Master the 'Net

Continued

T. Gary Remy, president of the business Internet services unit of Prodigy Corp. in White Plains, advised small businesses to create a presence on the 'Net, promote that presence to other Internet users, then use their website to collect data on customers and communicate with them. Send them a birthday card each year, he advised.

"I hear from a lot of small businesses: `I don't want that much traffic.' As a small businesses, I always wanted to grow. That's why I was in business. But you're not going to be the next Amazon.com just `cause you have a website," said Remy.

Remy went into business in 1996 as a reseller of AT&T long-distance service. As long-distance rates fell, Remy switched to web design and hosting and renamed his business BizOnThe.Net. In October 1999, Prodigy bought that business for $100 million and renamed it ProdigyBiz.

For small businesses that focus on a limited geographic area, Remy said, the answer is local websites. Though he gave no examples, The Westchester County Association (www.westchester.org) and the county chamber (www.westchesterny.org) have listings of their members arranged by product and service categories.avenue for businesses seeking local customers via the 'Net is the portal GoWestchester.com.

For small businesses, panelists agreed, Internet presence will expand as the 'Net becomes more widely available in cars, and perhaps someday, even on refrigerators and wherever else people go.

"You'll have the ability to promote your products to business people and consumers all the time. That means virtual 24-7 access to the Internet for everybody," said David J. Samuels, chief executive officer and founder of FSEdge.com, a B2B online marketplace for food service businesses in New City. New technology, he cautioned, will not negate the age-old rules of business especially the need for smaller entrepreneurs to satisfy customer needs and generate enough revenue to operate at a profit, no matter how much hype money-losers may win through news reports, or buy through advertising.While traditional intermediaries between customers and the things they want retailers, for example faced new 'Net competition, entrepreneurs can still make money as a middleman even in the age of the 'Net, Samuels said. Only the types of middlemen may differ: Amazon.com as opposed to a traditional bookstore. Panelists said small businesses need not fear for the security of their transactions on the 'Net. More merchants will require customers to produce the three-digit cardholder validation code as well as their credit card number, said Abrams, who grew MasterCard's business credit card revenues six-fold to more than $18 billion between 1993 and 1998. Panelists were reluctant to predict the future of the 'Net but did agree the next few years will see different businesses emerge to capitalize on the changes they said they cannot foresee.

Advice for growing small businesses on 'Net Anthony Iati and his AJIInc. of Mount Vernon run businesses that design, import and distribute jewelry to department stores like Nordstrom Inc. and Federated Department Stores Inc. CHALLENGE: Iati wants to use the Internet to build brand recognition among retailers and identify more overseas manufacturers. He doesn't want to sell his products online and alienate retailer customers. 'NET STRATEGY: "I came here without a strategy," Iati told the seminar. Sales reps do communicate via e-mail, but there is not much 'Net usage within the business.   ADVICE FROM PANELISTS: Edward L. Jenny, IBM Corp. Focus on retailers that are convenient places for working women to buy from. J. Samuels, FSEdge.com Forge partnerships with an online jewelry retailer like Ashford.com. Make product info available via a website, and keep it simple. Drapkin, Columbia University and Drapkin Technology the 'Net to automate office processes, improve communication by e-mail, or conduct research on manufacturing sites and competitors. "I'm not sure the Internet is going to help you generate more buyers than you have now," said Drapkin, co-author of "3 Clicks Away" with Jon Lowy and Dan Marovitz. The book is set for publication in November (John Wiley & Sons). n ALEX PHILIPPIDIS

"Technology is always based on change. Things change all the time. There are always going to be new things that create new opportunities to be new entrepreneurs," Drapkin said.