Yes, he is right. Website is very important. You have not mentioned what is the nature of your business and whether you sell products or provide any service. If your business is on a smaller level then it would not require website. But if it is a middle level and above it then a website is mandatory. Because the customer would check your company profile through internet by looking at your website. A very neat and professional website would uplift the image of your company.
And the best part is that websites can be optimized so that when people search for products or services and if your website is related to that product or service then your website might show up in google and bring in business. So do create a website and that will definitely help.