Seventh Way to Get Money to Chase You: A Good Web Site

Know More: Entrepreneur, Entrepreneurship, Raising Money, Venture Capital 2.0, Venture Capital

The seventh way to get money to chase you should probably go without saying (in fact, when I gave this presentation for the first time, I didn't say it). Nonetheless, I think it merits a mention: every company in the modern age needs a good web site.

We presently have a client that is not an in the Internet or I.T. space, but it has no web site. Well, it has a one page web site that lists the officers of the company incorrectly and provides a phone number. That doesn't count!

The company has experienced softening margins over the last three years. There are two key determinants of margins, right? Price and cost. The web site has nothing to do with costs, but could it have something to do with price? If a company has excess capacity and a customer willing to use some, the company has no pricing power. On the other hand, if customers are banging down the door because of good marketing, you have pricing power.

A web site doesn't constitute a marketing campaign, but I can't imagine an effective marketing campaign in this day in age that doesn't include a web site. Let me add, as an aside, that some highly capable and exciting IT and Internet companies choose to operate in "stealth mode" before product launch. I don't get it. Often times these are venture backed companies with very smart people and real intellectual property protection. Why hide?

In large scale real estate development, the developers make a big deal about their upcoming projects in the media to discourage competition from even trying and to discourage bankers from financing competing projects.

Shouldn't the same apply in technology. If you are working on something great, shouldn't you tell the world to begin gathering customers and discouraging competitors? Maybe someone can tell me what I'm missing here.

hi,Deven.
excellent article.
as you tell us"a good web site for a company is agreat power to gather customers and discourage competitors"

Posted by: bill | August 24, 2006 5:29 AM | Permalink to Comment

Real estate development is visible and is near impossible to do it via stealth.

Technology has value that often decreases over time as competitors create substitutes. Once it is unveiled the chase begins. Delaying the introduction until revenue generation is imminent is a great strategy--maximize the innovation gap.

Posted by: Kenn | March 18, 2009 4:15 PM | Permalink to Comment

Middle Market Deals and how to buy, sell and raise capital from $5 to $500 million

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