Tuesday 26 August 2014

8 Problems That Startups Are Lucky to Have

Starting a business is never as simple as you think. Businesses are increasingly diverse and countless metrics and variables need to come into effect for channels to work for the long term. Entrepreneurs and startups have to be smart and they need to be open to endless solutions. In fact, if you don’t think ahead, you can be buried in the success your business creates or possibly wrapped up in an endless supply of unforeseen work that can lead to dwindling profits.
 
All businesses face challenges in the beginning, but here are some “problems” facing startup entrepreneurs that might not be so bad after all:
 
1. Too Much Ambition

You need this. Are you starting a business so you can sleep in late or to create something real? Think long term and very smart, all the time.

2. The Industry Is Too Large

With luck your industry is a behemoth. Not that it has to be, it just helps when you’re trying to capture revenue from a $250 billion global block. Competition is a good thing and should not detour potentials from setting up shop.

3. Too Much Information

What type of business it is? Are you revamping mobile payments or are you bidding on city garbage contracts? You can find information on both. On the latter, there will be competitors and neighboring businesses that you should be able to contact and discuss. You have to like learning. There’s no such thing as a lazy entrepreneur.

4. Your Industry Needs Growth

Read forecasts and pay attention to industries. We are in a global world now, and global events change prices on commodities. Money is a necessity. If you don’t want overhead, don’t own transport buses. Maybe your industry is way behind, just make sure the business idea itself it not super easy to replicate (i.e., Groupon).

5. Too Few Professional Reqs

Remote workers? Why not. Make your office a large meeting and collaboration area. Overhead needs to be at a very low cost ratio. Maybe it’s an eCommerce site. These are businesses of the future. To a degree, you may need accountants and staff accounts, but be creative and outsource what you can, when you can, so long as you don’t lose quality.

6. Too Much Money

Holding out for revenue for five years only happens to a select few, and thankfully so. Take the startup scene of Chicago, for example. Many entrepreneurs are revenue-centric and place an early emphases on this. If you do the same, you’ll be glad you did.

7. Too Many Skills

If revenue doesn’t come early, you’ll still need funding. Ideas are cheap and often a red flag for the very beginning stages. If you have the skills, make it happen. You should be able to figure it out. Some of the most successful companies bootstrapped their finances and made it big. Maybe you need to ramp up one company while holding down another job.

8. Too Much Planning

You are obsessed and hyper-driven, checking your schedule at midnight to ensure efficiency and that you’re on top of it. There’s a healthy balance to it all, but everyone knows that hard work at the onset leads to better peace of mind. While you can’t control everything, you can control what you know and how you act during the most important times. Common sense will always be your friend. Would you start a French M&A company in Kansas? Perhaps you would if there were a high density of French conglomerate owners. Market research is key, but more so when your thoughts are analytical, logical, and wide encompassing. If you are the one in charge, you have to be the one leading the way, and you have work to see what others miss.
 

Monday 18 August 2014

Dot.com-ing Your Business

Eight Elements of a Successful Online Marketing Plan

Whether you’re excited, apprehensive, or both, you’ve decided that the best thing for your business is to get tapped into the opportunities available to you online. But where do you even start?

From building your own website to setting up social media profiles, joining directories, advertising, and more, your digital checklist is more than a little overwhelming.

One of the main challenges small businesses face in terms of influencing—or even joining—the online social conversation is that there is simply so much information out there. It’s difficult to know where to start, where to focus, and where to invest the marketing dollars and time you have. And as you may suspect, the stakes are fairly high: If you don’t connect with consumers in the right ways and invest in the right social channels, your efforts could very well have no impact—or worse, a detrimental effect—on your business. The following are eight specific tactics to help you establish and grow your company’s online presence:

1. Clean out the skeletons in your online closet. If you’re a newcomer to the Internet scene, you may be surprised to find that it’s already familiar with you. Specifically, one of many online business directories has probably pulled your physical address and other information together into what’s called a “skeleton profile.” The problem is, many skeleton profiles contain inaccurate or incomplete information. The same website (such as Google, Bing, or Yelp) might even have two or more different profiles for the same business.

That’s why your first task should be simply searching for your business on various online business directories (like Citysearch and Google). Make a list of the skeleton profiles you find and note any changes that need to be made. Most online directories will allow you to log in and claim your page. From there, you can report and correct any errors and merge duplicate pages. As you’re working, make sure that every online entity you manage displays your business information in exactly the same way to avoid accidentally creating more duplicates.

2. Set up an online storefront… As you first develop your online presence, you may not have much free time or extra money to devote to this task. That’s okay, it’s perfectly fine—even advisable—to take a minimalistic approach when building and furnishing your online storefront (i.e., your website). Bells and whistles aren’t nearly as important as making sure your website is professional, accurate, and representative of your offline storefront experience in terms of general tone and branding.

Specifically, your site needs to convey reliable, accurate, and up-to-date information. It should have a prominently displayed way to contact your business that allows browsers to easily get in touch with you if they want to. It should also have a trouble-free way for customers to read and write testimonials or reviews about the service or product you provide.

Most importantly, your website needs to have the right keywords (and enough of them) located throughout the main and secondary site pages to ensure that you’ll rank in the first few pages when prospective customers are searching for what you offer. Think about the terms customers might use when searching for a business like yours. For instance, if you own a heating and cooling repair company, you’d want to sprinkle words and phrases like “central heating,” “A/C repair,” “HVAC,” “broken heater,” etc. into your website’s copy.

3. ...and monitor the neighborhood. One of the most exciting—and most frightening—aspects of the Internet is that it opens up a constant conversation among businesses, existing customers, and potential customers. Consumers who have used your product or service can publicly post glowing reviews or scathing criticisms, neither of which you can completely control, and both of which can have a marked effect on your present and future success.

That’s why it’s important to keep an eye on what’s being said about your business, both on and off your website. Positive and negative online feedback is valuable, because each gives you real-time feedback about what’s working and what’s not. Plus, while you often can’t erase negative feedback, you can post information informing consumers how you have addressed the problem. Often, you can even apologize to the original poster directly. An easy way to track what’s being said about your business is to set up Google alerts, which will send you emails when your business name, your name, or any other relevant search term is found on the web.

4. Put yourself on the map. Most likely, you identified a few skeleton profiles when you searched for your business on popular online directories. Now it’s time to strategically augment them. Based on your location, identify the top three online directories that consumers use when searching for the product or service you offer. For instance, social and crowd-sourced sites like Yelp and Foursquare tend to be more popular in major metro areas, while more traditional directories like Yellow Pages, Citysearch, and MerchantCircle are utilized in more rural areas. Make sure you prioritize search engine directories like Google, Yahoo, and Bing.

Once you have identified the top three directories, set up a business profile on each of them. In addition to your basic information, add photos and a business description that tells a story to potential buyers. You can also comment on or address any existing reviews that need attention. Now, you’re in a great position to monitor and interact with your potential customers as time permits. Remember, the value you’ll get out of these online reputation outlets depends almost entirely on the quality of your engagement with customers.

5. Work on your social life. Unless you’ve been living under a rock, you know how popular social media has become. But did you know that, when used effectively, social media sites can increase your business’s visibility, give you an opportunity to present a more personal side to potential customers, drive awareness through social activity and check-ins, and turn casual buyers into true fans?

If you have the time-and-energy bandwidth to do so, set up profiles for your business on social media sites like Facebook, Twitter, and Instagram. A little research will usually show you which sites your target market spends the most time on. And don’t just stick to status updates. Bear in mind that the old saying, “a picture is worth a thousand words” is as true online as it is in the “real world.” It’s been shown that a Facebook status update with a photo and caption generates around four times higher engagement than text alone does, as long as the content is appropriate for the channel and your audience.

6. Do regular maintenance. It’s a given that over time, your business will evolve. You’ll modify your logo, employees will come and go, information and photos will become outdated, you’ll introduce new products, etc. That’s why it’s important to set up a regular online maintenance schedule—doing it at least quarterly—to make necessary updates to your website and various online profiles.

However, there are some updates you should make immediately. If you’ve moved locations, changed your contact information, modified your hours, or made any other change that could make it difficult for customers to find you with existing online information, it should also be updated online. Don’t make yourself crazy doing online maintenance, but bear in mind that the more accurate your website and profiles are, the more useful they’ll be in attracting, informing, and helping customers.

7. Consider hiring pros to boost your reputation. After you have established a basic online presence, the sky is the limit in terms of how involved, extensive, and creative your interactions with consumers can be. But if you’re like most small business owners, the basics are all you have the time and resources to cover yourself.

If that’s the case, don’t worry—you’ve done what’s necessary to set up an online storefront in which customers can connect with you. But if you still want to up the ante, know that there are paid-for services to help you connect even more quickly and effectively with potential and existing customers. For instance, you can invest in “paid search,” which enables you to purchase the rights for a higher display rate when consumers search for specific terms. You can also advertise with business directories like Google and Yelp and post deals directly on your business profile; for instance, offering a discount to first-time buyers.

8. Be smart with your budget. In one very important way, establishing and growing your online presence is no different from establishing and growing your physical one: You need to be financially savvy. For instance, the last thing you want is to blow your overall budget in the course of creating a too-ambitious online marketing plan.

Especially at first, figuring out how much you should allocate to online marketing can be tricky. Start by cataloguing your current marketing allocations, categorizing by group (e.g., direct mail, events, print marketing, broadcast marketing, etc.). Then, figure out which category or categories are least effective. These are the marketing efforts you’ll want to scale back in order to test new online channels. HBM
 
 

Monday 11 August 2014

Is it Time to Move Your Business Out of the Spare Bedroom?


Moving from a home office, where occupancy costs are effectively zero, to rented space is a big decision.

Obviously, monthly expenses will increase. You’ll have to pay rent. If it’s not included in the rent, you’ll have to cover utility costs. In some circumstances, there may be other monthly fees for services such as cleaning and grounds maintenance. There will also be one-time costs. You may need to hire movers or purchase furniture, office equipment, or phone systems.

However, there are solid reasons to set up shop in a location other than in your home.

1. Not a home-based business. Regardless of expense, there are certain businesses that cannot be run out of your home for legal, regulatory or infrastructure reasons. For example, you cannot operate a business that produces large quantities of toxic chemicals in most neighbourhoods. Similarly, if the equipment you use in your business requires large amounts of three-phase power, the power delivered to your home is likely to be insufficient. Clearly, some enterprises are simply not meant to be home-based.

2. Revenue benefits from moving out of your home. Consider a business where prospective clients routinely visit you before making a decision to purchase your product or service. There is a perception that rented space is more professional than a home office. Moving may attract additional sales. In fact, the increase in monthly revenue may be greater than the extra cost associated with renting space. In such a situation, you should move the business out of your home as soon as you can cover the one-time costs.

3. Hiring employees. When you decide to hire your first non-family-member employee, a move to rented space may be justified. You may not be comfortable having your new employee come to your home every day, particularly if you have to spend considerable time out of the office. Alternatively, you may find that it’s difficult to hire the type of employee you want while working out of your home. In the employment market, there is a bias against home-based businesses. For instance, many colleges and universities prohibit home-based organizations from advertising positions on their job boards.

4. Space limitations. If you have employees and your business grows, physical space may become the limiting factor. As your enterprise expands, the time may come when you can no longer operate effectively out of your home because there simply isn’t enough space. Still, in these cases, we advise staying in your home office as long as it’s feasible. Moving will mean higher costs with limited corresponding benefit. If possible, allowing some employees to work virtually can slow your need for additional space.

5. Productivity boost. Perhaps your home provides too many distractions that keep you from staying on task. If you find that the ability to work at any time creates a casual or informal relationship to your work, you may need to move. An informal attitude can promote procrastination and other habits deadly to entrepreneurs. Sometimes physically leaving home to go to an office may help you to be more effective. The different environment triggers a “now-I-am-at-work” mindset that will improve your output.

6. People interaction. Working from home can be a lonely experience, especially if you are used to having colleagues. While interaction with vendors and customers can provide some contact, long days spent working alone can wear on your creativity. Co-working space can provide a low-cost, low-commitment option if you are feeling a bit like Robinson Caruso. Co-working spaces often supply printers, internet, copiers and coffee -- essentials for most entrepreneurs. In addition, co-working spaces allow collaboration, interaction and support for start-ups and more established businesses.

Moving your home-based business into rented space will increase expense. However, there are good reasons to make this decision. Make sure you know when the time is right to give up your very short commute and move out of the spare bedroom.
 

Tuesday 5 August 2014

Ten pros and cons of online advertising


Pros & Cons of Digital Advertising

The digital world has made online advertising an absolute must for many companies. While it is the primary way to get your name out there and attract the billions of dollars that flows through e-commerce and retail stores as a result of online advertising, it’s not without its downfalls. When you’re setting up an online advertising campaign, it’s important to understand the pros and cons of the situation before you invest a significant amount of time, money, and effort into the process.

Pros

  1. You have the ability to reach your potential customers at the places they visit online. Online advertising through search engines, social media sites, and popular websites gives you adspace on some of the most trafficked places on the Internet.
  2. Ad targeting. While you can simply get impressions on high traffic sites to get as many eyes on your advertising as possible, your marketing results tend to be much better if you do some targeting before you start running the ads. Many sites have extensive data on the type of reader who visits and uses their sites on a day to day basis. Some have ad platforms that allow you to only display your ads to certain user segments, such as the way Facebook handles their advertising. Since a significant amount of demographic and location information is shared by Facebook users, this allows the social networking site to give you a great deal of opportunity for laser focused ads.
  3. A wide range of costs. Whether you’re just starting out or you’re a massive business, there’s a site that has an advertising cost that meets your needs. Smaller niche sites also have the advantage of attracting your target demographic, so you’re getting high quality traffic without having to pay an exceptionally high price.
  4. Responsive testing. In the print and television advertising world, it takes time to change marketing collateral to adjust to errors in the advertising, change marketing tactics, or update the information. Online advertising allows you to quickly change your marketing materials, sometimes even without the direct intervention of the publisher. For example, the Google Adwords backend allows you to make on the fly adjustments of existing advertising so you can see the phrasing or style that works best for you, and what’s falling flat for your company.
  5. Easy split testing. Many online advertising platforms allow you to load several versions of a particular ad, as well as how often you want to run a particular ad type, so that you can test several ads at the same time. This makes split testing and other types of online advertising testing easy to accomplish.
Cons
  1. Many website visitors are so inundated with online advertising that they experience ad blindness. Their eyes simply skip over the locations that banner advertising and other types of advertising are located, and may have a negative view of sponsored content.
  2. Ad blocking. All current versions of popular Internet browsers such as Google Chrome have access to ad blocking extensions. Instead of experiencing banner blindness and not seeing your ads, they completely block the ads from getting to their browser. By default, these extensions block a majority of ad servers and are updated to adjust to new ones on the market as well.
  3. Competition. You have a great deal of opportunity on the Internet, but you also have a great deal of competition. You can’t just set up an e-commerce site and expect the money to flow in. If you don’t have any way to set yourself apart from your market, you’re going to be drowning in a saturated market. Your online advertising is likely to be displayed alongside competitors, so it’s important that you have a way to stand out.
  4. Distraction. When you’re advertising through a search engine or on a site that has a lot of content curation, your potential customers are getting distracted by dozens of things on the screen at once. The amount of traffic leaks can easily lead your online advertisements to not be as effective as they are.
  5. Analytics learning curve. To completely take advantage of online advertising methods, you need to spend a lot of time tracking the data and adjusting your advertising by watching stats tracking and other analytics programs. If you haven’t used this before, there is a learning curve before you understand how all of the stats interact.
http://www.toptensocialmedia.com/social-media-social-buzz/ten-pros-and-cons-of-online-advertising/