Secure Server, Online Advice Key to Web Sales

Q: I already have a Web site and would like to add a virtual store to it. I know about Web designing and HTML. I just need a merchant account and someone to provide it. What would be your best advice?

--Mike Turtle, Culver City

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A: There are many places online that will supply you with everything you need for a virtual store: namely, a way for your customers to shop for inventory and a shopping cart system to keep track of the items that each shopper chooses. Almost all e-commerce providers will let you custom-design the store right online, and some will even let you establish an online store for free or at a very low cost--if you start out with an extremely small product offering. You will have to pay fees for credit card processing, however.

Probably the easiest and slickest of the e-commerce solutions is Yahoo’s online stores, which you can find at https://www.yahoo.com. If you have a really small shop, and want to have someone walk you through the process, take a look at https://www.icat.com (a division of Intel). The important thing is that you get a secure server for your shop. No shopper wants to give you their credit information if they think your site isn’t safe from scammers. You can find many other e-commerce providers on the Web by doing an online search.

Of course, once you get the shoppers, they have to pay for your merchandise. The safest and easiest way is by using their credit cards. Most companies will charge you a set-up fee for credit-card order processing and transaction fees, ranging from 1% to 4%, based on your credit rating. Some places charge monthly fees too. A lot depends on the type of business you have and how much volume you crank through the site. A transaction service provider, such as https://www.cardservice.com, is a good place to learn about credit card processing policies.

In order to process credit card payments, your company needs a merchant account with a bank. Many banks set up merchant accounts for businesspeople, and an increasing number of them are linking to Internet operations. I’d suggest contacting your own bank first. If they have a good program, with a good rate for their customers, why invent something else? If that doesn’t work, big banks have Web sites such as https://www.wellsfargo.com that provide information for free.

--Rob Frankel,

Web business consultant,

RobFrankel.com, Encino

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Q: I have created and patented a new consumer product and my prototype is nearly complete. I would like to partner with another entrepreneur or a retired executive who has experience in manufacturing consumer products, since I have marketing experience, but no manufacturing background and certainly no experience running a company. Where are some places I might look and resources I might use to find this sort of individual?

--Robert A. Lehrer, Tarzana

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A: This is a tough problem for anyone planning a new product introduction or business start-up. There is so much uncertainty regarding the basic viability of the product idea, the validity of estimates on marketability and sales volume, and the drive and staying power of the key individuals promoting the idea, that most people are reluctant to become involved in the very early stages.

Generally, you want to first identify some specific requirements for your management support needs, and then seek them out on a creative basis. If you are familiar with the industry category where your new product lies--kitchen appliances, sporting goods, cosmetic accessories, for example--you should contact individuals you know in that category for suggestions and advice. If you’re not directly familiar with the industry, you need to build contacts by working initially through the appropriate industry associations.

Beyond this general approach, there are some specific pathways you might explore. In each case, I’d suggest that you ask for referrals on whom you should contact, rather than ask directly for support from the individuals you speak with. I’ve found that people are more willing to review and consider a new situation if they are approached indirectly for advice and comment, rather than immediately put on the spot for support. Keep networking and following up on referrals until you find individuals who express direct interest in what you’re doing.

Your first group to contact should be immediate family members, close friends, close business associates and others you believe have an interest in the product. A second group would be local organizations of retired executives, generally groups set up to offer consulting advice to small businesses and start-up situations. An example is SCORE, https://www.score.org. Discussion with directors of these groups could lead to specific individuals who would be interested in providing you with desired management support. Another group would be presidents and owners of manufacturing organizations producing products serving the same market area. Since your product is already patented, there is no problem with disclosure or concern with regard to someone stealing your idea. Many manufacturers, in fact, will not look at new product ideas unless they are patented for fear of being sued by the inventor should they introduce something similar in the future.

Beyond these ideas, I can add that the primary factor in bringing a new product to market is the diligence and drive of the individual behind the idea. While finding appropriate management support for a new business venture or a new product idea is one of the many barriers faced by every inventor, in the final analysis it is he alone who has the vision and internal strength to push the idea through to the goal.

--Warren M. Haussler,

president, Keck-Craig Inc.,

product engineering and

industrial design, Pasadena

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If you have a question about how to start or operate a small business, mail it to Karen E. Klein, Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia, CA 91016, or e-mail it to kklein6349@aol.com. Include your name, address and telephone number. This column is designed to answer questions of general interest. It should not be construed as legal advice.