Winnipeg entrepreneur Glenn Beckwith went to the Manitoba E-Future Centre with a vision of launching an online specialty gift business, and walked out with the knowledge he needed to avoid the pitfalls of starting an Internet-based enterprise.

Preparing to launch his own company, a line of casual apparel with intimate messages embroidered on the inside, Beckwith was taking seminars offered by the downtown Canada/Manitoba Business Service Centre when he became aware of the consultation services of the E-Future Centre.

The centre-within-a-centre is an initiative of Industry Canada, Western Economic Diversification, Manitoba Industry, Economic Development and Mines and the Community Futures Partners of Manitoba designed to help small and medium-sized enterprises use and adapt to technology solutions.

"I knew I wanted a very professional website and to do online commerce," Beckwith says. Not only did the centre help him conduct necessary e-commerce research, from defining his target market to choosing the most convenient and cost-effective option for accepting online payments, but he was able to use the staff as an informal IT department.

Charles Shilliday, Business Edge
Glenn Beckwith, right, launched his online apparel company LoveAffect.com with the help of Grant Ferley at the centre.

"Working with the E-Future Centre made a big difference in getting started," he asserts. "When I was getting quotes from website developers, I hadn't a clue about what was necessary and how much I should be paying. So I'd go down to the centre, dissect the quotes and discuss what I really needed for my business. It certainly kept me grounded."

Beckwith officially opened his online storefront, LoveAffect.com, in March. The bulk of his receipts come from online sales, and so far his Manitoba-made garments have connected with customers across Canada, the U.S. and New Zealand, while inquiries are coming in from as far away as Hong Kong.

"Glenn was a client who came to us with a solid idea and a good product who was looking at the Internet as a sales channel," says Grant Ferley, manager of the Manitoba E-Future Centre. He says that like Beckwith, most clients understand the need to have an Internet presence, but are unsure of how to take the first steps toward implementation.

"Knowledge about e-business has increased over the years and that's spurred more clientele coming in who are more advanced," Ferley says. "I would say 60 per cent have an idea about the Internet, but don't know how to capitalize on it, whereas 40 per cent are very knowledgeable - they have an established web presence or are utilizing other facets of e-business - and are now looking for information on topics such as exporting or supply-chain management."

Statistics Canada reports that in 2004, online sales from private companies increased 45.5 per cent to $26.4 billion over the previous year. Private-sector firms accounted for 93 cents of every dollar of goods and services sold online, and yet - despite the substantial growth - e-commerce accounted for less than one per cent of their total operating revenue. It would appear that private companies have only scratched the surface of electronic commerce's potential.

In simple terms, e-business is the use of technology to continue business, while e-commerce can be defined as the buying and selling of goods and services by utilizing the Internet or a private network. An example of such a network is EDI, or Electronic Data Interchange, a mechanism for companies to buy product, sell inventory or trade information.

"Back in the day, EDI used to be the way to sell to major manufacturers," Ferley says. "But then the giant that is Wal-Mart comes along and says: 'We want to do EDI, but over the Internet.' As a result, the businesses that supply Wal-Mart are forced to (comply) and whether they want it to or not, e-business suddenly becomes a major aspect of their organization."

Helping businesses remain competitive or access new markets is why the E-Future Centre was started in October 2000 as one of four e-business service centres in Western Canada: Winnipeg, Saskatoon, Edmonton and Vancouver.

"In 2004, there was an initiative for the centres to have a common brand and unified presence to provide e-business counselling under the banner of E-Future Centre," Ferley says. (B.C. opted to keep the established name eBusiness Connection.) "It allowed us to pool our resources and to work on initiatives that may otherwise be too big for one centre to tackle on its own."

The E-Future Centre, funded by the federal and provincial governments, offers free programs and services, from professional consultations and use of its information library to access of its provincial supplier database.

"We're not here as a referral service by any stretch of the imagination. We're not here to build someone's website or fix their computer. We're here to provide information that will make clients better informed about their decisions," Ferley says. "We'll make sure they understand how to correctly engage a partner and suggest they come back with three quotes. We'll give them a little IT project management counselling and help prioritize which phase is important now versus six months down the road."

Ferley estimates that the centre carries out 100 client interactions a month, including in-person visits, document requests and phone consultations. "With some, we have an ongoing relationship, but in general, it's kind of a hit and run - they'll come to us for the information they need, then move on. Then you'll hear from them a year later about another issue."

Business owners looking for an easy, just-add-water solution to their e-commerce conundrum are out of luck. Ferley says there are few shortcuts.

"There are many factors that can dictate the timelines for a business to go from ground zero to selling goods online. However, saying to someone that it may take three to six months - which to me, sounds relatively quick - can often be way too long for them."

Ferley says it's understandable that some small business owners get caught up in conflicting information promising overnight e-business success.

"We're here to help clients set up their business correctly, so we never recommend that they rush into things - especially when we may be talking about a potential investment of thousands of dollars."

According to Statistics Canada, 82 per cent of Canadian firms used the Internet and 37 per cent had their own website in 2004. Fifty-one per cent of merchants in the wholesale trade sector had a website. This number is expected to increase, meaning that more companies will likely turn to the E-Future Centre to further their own opportunities.

"We're here as a resource as they go down this path," Ferley says. "The concept of bringing business back into e-business is what really opens their eyes."

Web Watch: www.e-future.ca/manitoba

(Barbara Chabai can be reached at chabai@businessedge.ca)