Admittedly, the prospect of expanding sales using an e-commerce site is compelling.  But a word of caution: keep in mind that most of these successful online businesses are backed by huge investment, both in time and money.

If you have a small business and you’ve been sold on the idea that you can expand your sales using a nicely designed e-commerce website, before taking that plunge, investing the substantial money and human resources necessary to support this move, it’s useful to consider whether or not you really can compete in this arena.

As a small to medium sized business you may be very successful in your local market, because you’ve worked hard building your business and developing a fine reputation with your customers.  Consider though, how much investment companies like Amazon, Apple, Buy.com, Wal-Mart and a host of others have made to get to where they are as online powerhouses.  Sure, there are companies that sell fully managed e-commerce sites, but this won’t necessarily translate into more sales and profits for your business.

Sometimes it’s better not to try to compete in the multiple markets reachable with a website, because you don’t enjoy the same advantages you have in your local market, with the personalized service and close customer contact which have contributed to your success.

We’re not saying you shouldn’t expand your business, just don’t be duped into thinking all you have to do is toss-up a website with shopping carts and credit cards, and “that’s when the big bucks start rolling in.”

If you do decide to make the investment, make certain you go in with your eyes wide open, not expecting to be an overnight success. Whatever you do, don’t place at risk what got you the measure of success you’ve enjoyed in your local market.

Again, most e-commerce success stories have had to weather a lot of start-up costs, pouring big dollars into marketing and advertising.  Most have had years of uncertainty, and have had to raise capital on more than one occasion before becoming profitable.  There’s a lot more to building wealth from doing business on the web than having a great looking e-commerce website, which is only the first step on a long journey to success.