Home business -- Join The Revolution at HandTech.com
Home business -- Join The Revolution at HandTech.com
Your Own Personal eCommerce Computer Business!
By Cheri Paquet McLane, Bridge News Commentary
Boston--Mar 23--Small-office, home-office (SOHO) users have been slow in warming to the idea of using the Internet to manage and expand their business. That is beginning to change and companies like Dell Computer Corp. and IBM Corp. are packaging offers designed to suit small business needs.
But how are small business users--some with little or no PC or Net experience--expected to make purchasing decisions to Web-enable their business?
Going to a local reseller to answer these questions may be a thing of the past if online reseller/e-consultancy Handtech.com has something to say about it.
The market is becoming a land grab for companies whose offerings, which range from computers to software to online services, are designed to bring the millions of SOHO users in the US online.
The SOHO market, including companies with fewer than 100 employees, is increasingly turning to the Internet to enhance their business opportunities, according to recent IDC findings. In the US alone there were 850,000 SOHO users selling online in 1999, up from 400,000 in 1998 and 150,000 in 1997.
Previously, high costs and complex implementations associated with getting a business launched online intimidated some--but that is beginning to change as companies have launched affordable e-commerce offerings for this sector.
IDC sees the number of SOHO users conducting business online doubling again in 2000 to total 1.6 million.
Aside from the obvious--Dell, IBM, SmartAge.com Corp., Encanto Networks Inc., and others touting products specifically geared towards small business, who stands to gain?
The SOHO market represents an enormous opportunity and companies are not as concerned with perfecting their offerings as they are about getting them out the door.
To date, no single company has gained significant mind share in this space--everyone is building out small, e-business products and/or services.
In the midst of this land rush is one online reseller/e-consultancy, Handtech.com, that is well positioned to do well, as it offers to "hand-hold" small business users as they assess their buying needs and make their purchasing selection.
Handtech.com offers hardware, software, technology and services to help small companies use the Internet and get the most they can out of it. With a staff of 12,500 consultants in the US, Handtech.com has partnered with companies such as Compaq Computer Corp. and Hewlett Packard Co., and competes primarily with local computer retailers, such as CompUSA, and reseller stores.
There is also an array of Net-based companies happy to sell PCs, like Amazon.com, that allow you click and buy. Sites like these work well for Net-savvy business users, a pretty small fraction at about 15% of the whole SOHO market.
Handtech.com acts as a personal shopper for small businesses trying to fulfill their technology needs, said Martin Slagter, president and co-founder of Handtech.com, in a recent interview.
SOHO misspending and the lack of investment payback has resulted in a number of businesses not taking the leap into e-commerce. Small companies use their PCs to perform accounting and use the Internet to establish a Web site, but continue to under-utilize the Net for things such as maintaining customer relations and expanding their target audience, even just within their localized region.
A recent study by Pitney Bowes Inc. and Yankelovich Partners found that keeping up with new technology is the primary concern of small business owners; 46% struggle to stay up-to-date and 67% feel they are not sufficiently tech savvy.
That expertise gap is where Handtech.com is targeting its portfolio of about 30,000 products, which include consulting services, some proprietary hardware and software, online training courses as well as resold goods.
Handtech.com targets small companies with fewer than 30 employees, typically home-based businesses that range from gardening services to window cleaning.
Small businesses are beginning to investigate Net opportunities involved with launching a Web site, the functionality they need--links, ordering, contacts, etc.--to promote themselves in their local community.
The SOHO sector is not there yet, though, and could stand to gain from a little handholding from Handtech.com.
Handtech.com customers appear to be happy, with a product return rate of less than 1.5%, compared to the 10% to 15% return rate in retail today. And their repeat purchase rate--about 70%--indicate well-satisfied SOHO users.
While many privately held online companies are rushing to the IPO forefront,Handtech.com is well-funded and will bide its time to go public when the market and opportunity are right, according to Slagter. Private capital companies, Macy's and Bloomingdales are among its early investors.
Watch for Handtech.com as an up and coming competitor in delivering to the SOHO market. Small e-business is set to really take off in 2000 and Handtech.com's ready to cash in.