Posted: Thu, February 21, 2008
Wales takes on the world
How the internet is changing small business
by Dan Cobley
 On 25 March 1807, a steam train embarked upon the short journey from Swansea to
the Mumbles. The event was historically significant not only because it was the first passenger train journey ever made, but because it represented the economic transformation of Britain. Cheap, large
scale transport changed Britain from a local to a national economy; from a rural to an urban society; and shifted industry from small scale to mass production. It was the beginning of economic life as we
know it today.
Two hundred years later, another revolutionary innovation is driving unprecedented change and offering a world of new opportunities for businesses. The internet is fundamentally changing the way
businesses operate and go to market. There are now over 1.3 billion people online - all connected, creating, communicating and searching for information. That's a market businesses of any size can
now access, and no company can afford to ignore.
In the past it was often difficult for small and medium sized businesses to compete with their larger, more established national or international rivals. National print and TV advertising was only a option
for companies with a sizable marketing budget and a national presence, while smaller companies could only afford local advertising, generating only local leads, and thereby limiting growth opportunities.
The internet has levelled the playing field. Not only has it cut the costs of logistics, distribution and service, but it has also opened up national and international markets to smaller local players.
Consumers of every product and service are now searching online in their millions, before they buy, and by being 'found' online, small businesses can quickly win new customers outside of their traditional
markets. Think about how quickly eBay emerged and rewrote the rules for auction houses, or how companies like Expedia revolutionised the 'established' travel business.
Wales' global reach
As well as the opportunity to grow existing businesses through easy access to new customers, the internet also enables previously unviable businesses to thrive - and Wales is the breeding ground for
many of these success stories.
One such example is Linkword Languages, a Swansea-based company selling language courses written by learning experts
that increase the speed of learning by up to 3 times that of normal methods.
As its website is not limited by shelf space, Linkword can offer a huge range of products covering many languages from Mandarin, to Russian, to Portuguese, to Welsh. The internet offers huge
reach and allows the business to scale. In the last 20 years Linkword has sold over 750,000 courses worldwide in software, MP3 and CD format, but now sales are at an even higher level because of the
reach afforded by the web, allowing the company to invest in brand new courses. An independent high street store selling language products might never survive.
Then there's Limo Broker, for instance, a successful Cardiff Bay-based company offering limousine hire and chauffeur services.
Starting out with only one staff member and two limousine agents, managing director, Tej Randeva, built a good website and put in place a savvy search marketing strategy in order to grow the business.
Being 'found' on search engines when people are seeking information on limos or related services has been instrumental in the company's success.
The internet is enabling new business models and helping companies of all sizes acquire new customers they could never previously have accessed. It also affords them unprecedented levels of
transparency and accountability. With online search marketing, advertisers can bid to appear only against specific users' search queries, so they are sure to be targeting a relevant and interested
audience. And while the Internet opens up national markets, if a company only serves a local area, it can ensure that its ad is only shown to people searching in that area. Most importantly, with search
marketing programmes like Google AdWords, advertisers only pay when a user clicks their ad, meaning the model is fully accountable. Even the smallest company operating out of a garage, and with a
marketing budget of a few pounds a week, can tap into these new opportunities. All they need is a good product or service and a web connection.
Tomorrow's leaders
With the growing importance of the Internet, no industry or business can afford to believe it is established anymore - in Wales or anywhere else. The web has given any upstart with a superior product
or service the chance to be discovered, to win new custom and to unseat the 'established' players. Search for your product or service today and see who shows up. You might well be looking at Wales'
future business leaders.
 About the Author:
Dan Cobley is Director Marketing, UK, Ireland and Benelux, Google.
Send a comment about this article to editor@itwales.com.
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