• Innovative Strategies That Create More Profits

Author: harborcapitalgroupinc

Part Two: Design Your Business Model

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Now that you have a basic business model put together, you do not want to accept that design as the best one automatically. Your goal is to find the best business model. The one that will set you apart from your competitors, deliver the most value, and offer the best revenues and profits. The business model canvas allows you to design alternative models easily by changing the data points in the individual modules and create an entirely new business model.

There are many, many examples of this design process. For example, Walmart changed the design of its business model several times before arriving at its current model. They had to reframe the definition of a big-box retailer. Even today, they are continuing to change their model with the economy, customer characteristics, and technology.

Another example is Southwest airlines. They were bankrupt trying to use the traditional hub and spoke business model of all the other airlines. They decided to redesign their business model and fly direct from San Antonio to Dallas or Houston and land at the suburban airports with far fewer gate fees. Passengers loved it as well as the suburban location was preferable because most of the business occurred in the suburbs. They also added some “viral marketing” like stewardess dressed in hotpants and great food and drink, Today, they are the only airline that has been profitable every year, since they redesigned their business model.

These examples point out three important things to remember when you are designing your business model (per Alexander Osterwald);

  • The product is essential, but not sufficient; you need a business model that makes it work

  • You can’t just copy the business model used by a competitor

  • A business model design is not proof it will work. It is a hypothesis and, therefore, a risk, and has to be tested and verified.

New products and services are opportunities that seem to get everyone excited. But, innovative business models also offer great opportunities. How could you redesign your business model to increase your value proposition?

 

The Business Model Canvas

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Creating an in-depth business plan for new, developing companies is not realistic. When I started work at Honeywell in 1968, one of my first tasks was to work on was the yearly, one, five, and twenty-five-year business plan for the commercial division. Honeywell had been in business for almost a hundred years, so they had lots of data. Today, things are changing too quickly, and for startups, just trying to get a business plan that works may take many iterations. That is why Alexander Osterwalder’s Business Model Canvas makes so much sense,

The business model canvas illustrates the nine fundamental drivers of the business model. And how they all work together to deliver value to the customer, including revenues and profits to the company. Also, because it is an illustration on one page, the entire business model is visible and defined so everyone can participate in the discussions about how best to deliver value to the customer.  

We are going to look at the business model canvas in three parts. First, the nine elements that make up the model. Second the “Design” aspects or capabilities you can use to experiment with the models until you get what you think is the right strategy and composition (referred to as a hypothesis). Third, the requirement initially proposed by Steve Blank, entrepreneur, and professor at Standford on how to get out of the office and into the market so you can test and iterate your hypotheses until you achieve product-market fit.  

Following is a description of the nine critical elements of the business model.

1  Value Proposition. This is, of course, your product or service, but it is why customers will buy and pay for your product or service or both.

2 Customer Segments. These are the people who will buy or use your products and services, This could be one segment or multiple customer segments. And it could be for multiple kinds of jobs, pain points or potential gains,

3 Channels. This is how you are going to sell and deliver your products and services to your customers (retail stores, internet, etc.)

4 Customer Relationships. This is how you are going to find, get, keep and grow your customers base,

5 Revenue Streams. This  is how you are going to capture revenues from buyers and users of your products and services (one time sales, subscriptions, etc.)

6 Key Resources. What resources are you going to need to make and deliver your products and services (physical facilities and equipment, Intellectual Property, human resources, and financial resources)?

7 Key Activities. What key activities must be done perfectly if you are going to deliver the value proposition you promised your customers. (e.g., Ikea must continuously find well designed, contemporary furniture that can be broken down and packaged into a box for customers to take home with then from the store,  

8 Partnerships. IN today’s world, we are not going to do everything ourselves, So, in addition to suppliers, who will you get to help you execute your business model.

9 Cost Structure. Knowing the eight elements above, what are your costs going to be to fulfill your business model?

These are the things you control. There are also four things not included in the canvas above, but which issues you will have to deal with when you design or modify your business model. These are the competition, the government, the industry, and the market. These issues will be dealt with here separately.

 

Prepare To Deal With New Regulations On Privacy Protection

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Starting on January 1, Americans – or at least 40 millions of them living in California – now have a comprehensive online privacy protection law in place called CCPA (California Consumer Privacy Act). Just like it’s European General Data Protection Regulation (GDPR) counterpart, which was passed in 2018. CCPA will eventually extend far beyond the State of California and reach the entire nation. 

Professionals and experts believe the odds are pretty strong that CCPA will be the foundation of privacy regulations in many other states or even U.S. federal online privacy law.

CCPA has established much stronger rights for Californians concerning their online data. For example, California residents now have the power to order any company NOT to SELL their data to any third-party for any purpose without their consent. Californian consumers can also ask just about every company that has collected their data and anybody else with which the company has shared it, to delete the information from the company’s record.

What Can a Business Do?

Under the newly enforced regulation, Californian consumers are entitled to know the categories of information that companies have collected and able to see any specific bits of the data, such as postal address and browsing history. Although CCPA is meant for consumers residing in the state of California, most companies will find it difficult to pinpoint the exact location of every single consumer. It is just the nature of the Internet that no one knows where a user is. Some businesses will have to apply CCPA across the board simply because they cannot effectively distinguish between Californian consumers and those from other states.

Another thing to consider is that Californian consumers have the right to take legal action for unlawful use of their online data in any form, so failure to comply may lead to disastrous consequences on companies’ part. CCPA applies to any for-profit entity which does business in California, collects consumers’ data, and meets any of the following thresholds:

  • Generates an annual gross revenue of more than $25 million
  • Trades (buys or sells) personal information of at least 50,000 consumers or households, or
  • Earns more than 50% of annual revenue from selling consumers’ data

The thresholds may appear to target medium-to-large-sized companies, but many small businesses and even startups can quickly meet one or more of the limits. But then again, this is not the end of the world. Online data privacy regulation has always been a hot topic over the years, and CCPA is the logical first step into the culmination of the discussion. There are several things businesses can do to ensure compliance without sacrificing profitability.

Read the fine print

Unless you have an executive team to do it for you, it is always best to try and understand CCPA yourself. This way, you can make notes of the things you don’t fully comprehend so that you can ask the more experienced legal professional for help later. While you’re at it, pay attention to the following rights granted to Californian consumers:

  •  the rights to know what personal information is collected about them
  •  the rights to know whether the personal information is being sold or disclosed to any third-party and who the party third is
  • the rights to decline the sale of personal information
  • the rights to access the personal information
  • the rights to receive equal price and services, regardless of how they exercise their privacy rights

And in the case of loss of personal information due to theft or other causes, California consumers have the right to seek damages.

Understand what personal information your business collects

As obvious as it may seem, many companies are not fully aware of the kinds of personal data their own businesses collect from consumers. Some probably don’t know that their businesses collect data at all. This is most often seen in startups where the focus is mainly on growing the business. Privacy regulation is likely considered an obstacle in growth, but now they cannot just ignore CCPA for the consequences can be severe.

Have your business partners read the law too

If you run a reasonably sized company, chances are you have multiple employees (or departments) to handle various tasks from bookkeeping to marketing, from networking to customer service. To properly implement CCPA and ensure compliance, make sure everyone in the company also reads the bill. Your officers, executives, and legal teams should understand the law better than anybody. Know the potential risk and craft a plan to avoid penalties.

You can read the full text here.

Privacy policy and regulation have the reputation of being the dark sides of business conduct. The reality is that many companies most likely takes advantage of personal consumer data for marketing or downright additional revenue by selling the information to third-party entities such as advertisers. CCPA is trying to get rid of the murkiness and provide a clear path for both companies and consumers to play it fair and square.

 

 

Recognize And Adapt To Your Stage Of Business

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Recognizing the growth patterns of small businesses and the peculiar set of challenges presented by every stage of development are indispensable for every budding entrepreneur who often seems to get lost in the process of penetrating the market. Businesses, especially small-scale ones, are in constant growth. They start with just a few employees and a very limited range of objectives, but they all have the potential to embark on major expansion with properly crafted and well-executed action plans. While all small businesses are unique in terms of organizational structure, strategy, and managerial style, they have one thing in common: they experience or follow the same set of growth patterns.

A business does not simply come into existence and become profitable overnight. Businesses have to go through a sequence of developmental steps and overcome all the challenges that every step creates. Believe it or not, the same pattern applies to every company including startup with just a handful of employees to the multi-million dollar software developers. 

The similarity of the growth pattern makes it easier for startup founders to understand the opportunity and obstacles ahead of time, and create an effective plan in accordance with market conditions, so they can survive and thrive in the long run. 

Such an understanding is the foundation for business owners to devise a creative plan that ensures the efficient use of available resources.

Growth Pattern

Various studies have attempted to come up with a definitive model to examine the growth of a small business, but the most commonly used pattern is as follows.

 Planning

At this very early stage, the business to be established must answer these questions:

  •  Does the idea (of goods or services) fill a need in the market? 
  • Will the company make a profit?
  • How will people react to the product idea?
  • What is the right business model for this business?

The “initial” plan is just that: initial. You cannot stick to that same plan over the years and expect steady growth. The key to a successful startup is adaptability, meaning the business plan must change in accordance with current market conditions and consumers’ demands. Every single part of the action plan must be under constant review and ready for quick adjustment. Many times the plan also includes a requirement for outside investment.

 Establishment

The next growth stage is Establishment, in which the business is starting to take shape, and therefore a change of plan is most likely necessary. A small business undergoes a massive difference at this stage because the initial plan can no longer sustain growth. Some of the most common challenges include:

  •  Seeking outside investment because the actual budget exceeds the allocated amount
  • Hiring more employees to support day-to-day operation, which also adds more expense
  • Establishing market presence and customer base
  • Ensuring a balance between cash reserves, expenditures, and sales
  • Determining more appropriate management styles due to market demands

In the establishment stage, the most important thing to achieve is sustainable operating procedures with risk management.

Early Growth

A significant milestone in building a business is the ability to gain steady cash flow from the customer base. It is a sign that the production and delivery of goods and services are well-managed. At this point, small businesses have overcome all the difficulties endured during the earlier stages of growth and are in the process of generating revenue. As profit starts to come through the door; however, competition is catching up and bringing some new challenges:

  •  Fulfilling the demands of an increasing number of customers
  • Streamlining company operation to minimize operational cost
  • Keeping up with competitors
  • Increasing the volume of cash reserves

During the Early Growth stage, the deciding factor is whether the company can recognize the key profit driver and optimize its impact on the business itself.

 Profitability

With more reliable distribution channels and effective marketing strategy in place, small business has earned its place in the market despite fierce competition and makes money. Being profitable is a sign that the business is moving toward the expansion process. Naturally, the company is seeking to:

  •  Stay ahead of competitors
  • Acquire competitors whenever possible
  • Expand the business sectors
  • Increase the volume of production

 Many small business owners think that Profitability is the final stage, and they are not entirely wrong. After all, the purpose of building a business is to earn a profit. However,  complacency at this stage often leads to a decline, mostly because the competitors can afford to stay creative. There is always room for improvement, for example, employee engagement, customer satisfaction, brand image, and collaborations with partners.

 Revitalization

 Also often referred to as the maturity stage, Revitalization is the beginning of a process where the business must think about new and improved products or services or an effective exit strategy. As you know, the market is always changing; your goods and services need to stay relevant if you want to stay in business. Go back to the drawing board and craft a new plan to support and encourage innovations. But this time it will be easier because you have reliable financial resources to get the job done.

Considerations When Launching A Startup

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Launching a startup business from scratch is a massive undertaking. It is as if you have to manage somehow an engine in which there are many moving parts,  all moving at the same time. Every small business owner understands how complicated this process can be, mainly because the company is in an early stage and unable to afford a lot of professionals’ to help.

In most cases, a one-person owner serves multiple roles as manager, bookkeeper, marketer, and customer service. There are fun parts such as brainstorming business, a name or drawing a product design. And then you have to deal with the stressful parts, for example, registering with the government, filing the taxes, and making financial decisions.

 The entrepreneurial world is full of stories of success and failures. With careful planning, however, you can avoid the latter and lean toward the former. A business plan exists to help you launch and run the business using the methods you prefer; every action listed in the document allows you to take a step back and review your strategy.

A useful approach to getting the business off the ground as smoothly as possible is to consider all possibilities and think through every aspect which may affect the company as it grows. In short, you have to consider the legal side of the business, marketability, organizational structure, and of course, investment.

Key considerations

 There are at least ten significant considerations to think through, even before the business officially exists.

 1 Legal setup

 Here is one thing to put in mind: venture capitalist or any other investor will not want to pour money into a startup that doesn’t have a reliable legal structure. If the legality of your business is in question, outside investment is hard to come by. Do not make rookie mistakes such as failure to register with the local authority, registering incorrect business forms, having poor contract agreement with co-founder, poor employment documentation, or using a weak contract. It can be a headache to have proper legal setup from the start, especially if you have no help, but you cannot ignore the importance of this matter.

 2 The market

 Startup owners are naturally excellent problem-solvers. They have ideas on how to create products that will solve existing problems consumers have. But in reality, everybody can have ideas; the most significant difference between business owners and everybody else is the ability to transform ideas into a profitable venture. Market research is the key. You need to conduct research continuously to see how consumers at large (or those in your target market) respond to the solution you propose. Document your research, for example, the problems your products solve, who the customers are, what the competitors do, and how big the demand is. In short, you need practical knowledge of the market before you launch.

3 From ideas to reality

 All business ventures have challenges. One of the first obstacles is bringing your idea into reality. Chances are you don’t have a factory capable of mass-production or a team of professionals to provide services. YOu will need to develop collaboration with other businesses to help you execute the ideas, run production, and bring the products to market.

 4 Organizational system

 It would help if you had constant report updates to know how the business is doing on a day-to-day basis. Critical financial information of the company must be accessible and current at all times. Otherwise, you cannot devise an effective plan to keep the venture going.

 5 You need advice from professionals.

 Admit that you don’t always have the right answer to every question that arises during the launching process. There can be all sorts of legal issues and organizational problems for which you need advice from more knowledgeable people. It costs money to consult professionals, but it would be money well-spent. Investors will also take you more seriously if you make the right decisions based on suggestions from the experienced.

 6 Fundraising

 Unless you have a lot of money at your disposal, you cannot stay away from investors. Just like with everything else, do your research regarding potential investors, for example, their track records in your industry/niche and how to get in touch with them. Investors have the money, and sometimes you have to devote serious effort and time to meet them. 

7 Not every investor you meet will be interested

 Your startup is not worth a billion-dollars; you are not a Unicorn. It only makes sense if some investors turn down an offer to invest. Improve your ideas or look for other investors. Sometimes an investor wants to wait a little longer until a startup shows signs of development, and only by then, the decision to fund the company comes to the surface.

 8 Startup ownership

 Every investor has share ownership of your startup company. Be careful with what you give away. Otherwise, you may lose the company entirely. Remember that you can always seek advice from professionals to avoid this mistake. Investors will appreciate your decision not to give away too much.

9 Vesting

 Most investors want you to stay active in the company, at least for the first several years of development. You understand the idea better than anybody, and therefore you are the best person to oversee how the plan transforms into profits.

 10 Have a legal counsel

A lot of startup owners rely on their investors’ legal teams for documentation and advice. Although it is not always a bad idea, you’ll feel more confident with a legal counsel who works for you and your best interests. In every negotiation and tough financial decision, the legal counsel will help you understand all the risks involved, including when you have to deal with your investors.

7 Ways To Sell Subscriptions

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This information is from John  Warrillow’s, book: The automatic customer: Create subscriptions in any industry and from Zuora’s blog,

1 Think 10x vs. 10%

Customers are aware that a subscription is more valuable to you than a one-time purchase. So, to get hem to commit, you need to give then a significant return for their investment., They are unlikely to subscribe to a “Save 10%” but might if they could enjoy 10x the value of the alternative.

Net; “provide a ridiculous amount of value.”

2 Appeal to their Rational Side

The subscription model has gone mainstream, and people are demanding a better value than the alternative. Subscriptions are sold by appealing to convenience — especially B2B.

3 Give Customers an Ultimatum

Most customers would prefer to keep their freedom and buy your product a la carte, on an as-needed basis. YOu might consider making a subscription the ONLY alternative (they have) you sell, You can’t buy one movie from Netflix.

4 Give Them a Freemium Option

Give them a free taste of what they will get from a full-blown subscription. Magazine publishers found it virtually impossible to sell first-time visitors a subscription to an information product (e.g., magazine or membership website) until they have first opted into a free email newsletter to sample the value of the content,

Once they opt into the free newsletter, they convert to paid at a rate of 3% to 30% per year depending on the number of offers are presented and how carefully the publisher manages the list (weeds out undeliverable addresses and those who have opted out.)

In this freemium, you want to leave plenty of value off the tale to instill a sense of intrigue about what the customer will get from subscribing. A good taster gives just enough to access the product but leaven plenty of temptations behind the curtain

5 Offer a Trial

If your product or service is hard to describe or has to be used to be understood, it (the benefits) consider offering a trial subscription. Unlike freemium, usually available forever, a trial has a start and end date.

6 Offer Your Subscription as a Gift

The problem with a gift is that it is forgotten in a few days, but if you give a subscription, it expresses that appreciation over time, Standard Coca offers 1, 3, and 6-month subscriptions. They get a 75% increase in sales for Christmas and Valentine’s day. BUT, gift subscriptions are difficult to renew, but you can use them to top off your regular subscribers,

7 Set Fire To The Platform

One of the best things about a subscription company is it is always on, always available. Customers love it, but it is challenging to sell a subscription if it doesn’t change from day to day, why buy today?

One thing to do is artificially simulate a burning platform that causes the customer to act to avoid losing something (they keep thinking about it but never do it). You could put a compelling offer out there (e.g., buy the first year for half price) through the end of the month (BUT only for those interested but not signed, don’t advertise it, use it discreetly.

 

How To Write Headlines

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What makes a headline go viral?

Following are some suggestions from Optinmonster.com

People want to share, want to increase the quality of their relationships with others, and want to increase their self-esteem and standing with their peers.

There is a magic 3-word phrase “will make you ____” This states that the topic will have an impact on you and often an emotional one.

There are five basic types of headlines that go viral

 

1 List posts — 50 Smart Ways To Segment Your Market

2 How to posts — How to optimize your site for the holidays

3 Resource posts — the ultimate guide to a simple option vs a double option — which is better?

4, Question post — How long should it take to earn revenues?

5. Heart-to–heart posts — An open letter to writers struggling with their first book

 

Now, if you add an infectious agent to those headlines your chances of going viral are much greater because they trigger emotion.  For example awe, anger, anxiety, fear, joy, lust, surprise, shock.

Examples

“40 belief-shaking remarks from a ruthless nonconformist”

Type: list post

Infectious agents: awe, anger, surprise, shock, anxiety

Belief-shaking — challenges you by stating its content will shake your beliefs

Ruthless — image of someone who doesn’t care

Nonconformist — someone unafraid and nonconventional

 

“How to hit 1,000,000 visitors in a year by blogging”

Type: How to

Infectious agents: awe, surprise, shock

“1,000,000” who wouldn’t want that. Even if you are skeptical, you will want to check

“In a year” desirable deadline

“Blogging” pinpoints its target audience and their biggest desire

Net: promise the desired result and a timescale for achieving it,

 

“Where to find free images”

Type: Resource post

Infectious agents: Awe, joy

Net: look for common questions or problems that people have, and write a headline that directly answers their question or solves a problem.

 

“On dying, mothers, and fighting for your ideas”

Type: Heart-to-heart

Infectious agents: awe, anger, surprise, shock, fear

“Dying” — strong emotive word, it congers up images in people’s minds

“Mothers” — emotive whatever your relationship with mother 

“Fighting” — emotive, congers up images in people’s minds of struggle, aggression

Net: fighting for your idea suggests motivation and inspiration 

 

“Are you good enough?”

Type: Question

Infectious agents: anger, anxiety, fear, surprise, shock

Net: are you good enough to challenges people. It asks a question everyone asks themselves, Ask a big question that drums up deep, human desires.

 

How to start writing viral headlines

1 Get to really know your audience

2 Know where your audience hangs out (media,etc.)

3 Discover your audiences’ infectious agents (follow them on social media, what are they sharing, any patterns in words and phrases? (topics, headlines, links)

4 Lay in those infectious agents.

Are Search Engines Missing Your Website?

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 Some people have been saying that SEO (Search Engine Optimization) is dead or at least no longer relevant to the current World Wide Web landscape. Believe it or not, the idea of the ineffectiveness of SEO has been going on all across the web for many years now, and it still creates quite an intense debate among website builders and business owners alike.

Major search engines such as Google and Bing are continually updating their search algorithms, so to say that SEO has changed quite a bit over the years is an obvious understatement. Despite the doubts, many websites or businesses continue to practice various methods of optimizations to increase online visibility and thrive. On the other hand, some who have tried implementing well-known tricks and techniques to acquire top spots in search engine results gain no benefit at all. Now, this begs the question about the specific practices those naysayers did.

 SEO is not math; while it does involve a lot of calculations, the practices do not follow the same formula all the time. When search engines change their algorithms, websites must also implement different optimization methods to stay relevant. Failure to keep up with the changes will render your website invisible.

SEO is not dead. It just evolves and gets better.

When it comes to digital marketing, especially increasing website traffic, you cannot afford to rely merely on links and keywords. While they are still essential parts of today’s SEO practices, there are just many more methods (and therefore works) required to obtain results within reasonable measure. Instead of just focusing on keywords and link-building efforts, today’s version of SEO demands constant attempts on your part of providing real values for visitors, such as user-friendly interface, relevancy to search queries, and useful, informative contents. A strong online presence is also the result of seamless integration with social media (and sometimes) advertising strategies. Having only one or two of those elements will not yield the results you need.

Every algorithm update aims to make the Internet better, more useful, and more effective for those searchers. When people say that SEO is no longer relevant, useful, or even dead, they most likely refer to specific optimization techniques that are now considered obsolete. SEO failed them because they used outdated methods.

Dead SEO Techniques

Older websites probably used the following methods to gain popularity. Still, you cannot merely follow their footsteps because some of those methods are now ineffective (or even bad) for website development. A few examples of dead SEO techniques:

All-out link building

Link building is an important part of SEO, both in the past and present. The most significant difference is that the old method did not care about the sources of the links. You could build or create as many links as you can, and almost certainly, your website would start to rank much higher. In many cases, people made dozens of sites and linked the contents heavily.

In today’s SEO, link quantity is no longer a reliable indicator of a good website. Other authoritative domains will link to an accurate, informative website. If your contents are fresh, well-written, and useful, it is not impossible to get linked by more popular sites.

Aiming for a high number of keywords

Targeting specific keywords remains an effective method to increase page rank, although, in the old days, there was an entirely different approach to that. It used to be that having more content target the same keyword was enough to gain more online exposure, but then search engines knew that it was a bad idea to rank websites based on the number of content they have. Some search engines do not rank an entire website, only individual pages. The new approach is to write a longer post and target multiple keywords instead.

Keywords Overuse

When you have tons of keywords within a single post used to be a great idea, all you needed to do was cramp as many keywords as possible in a relatively short post to reach sufficient keyword density. Search engines now despise the practice.

Appropriately implemented, SEO can do wonders for your website. Some of the most effective methods right now are as follows.

Page readability: not only does the interface need to be user-friendly and easy to navigate, but the contents have to be human-readable. People demand informative content relevant to their search queries, delivered on a website that is pleasing to the eyes in an instant. User experience and value of materials play crucial roles in today’s SEO landscape.

Topic and keywords: a combination of text- and keywords-focused content is preferable. You can use Google Trends to look for recent popular search queries and related keywords. Focus on trending search with low-competition keywords if possible.

 Let’s not forget about the marketing efforts. You must be willing to (slowly) promote your websites to gain popularity. Part of modern SEO is to integrate sites or your profile with social media, online communities, and relevant Internet forums. Be active and promote your ideas throughout the web; now and then, you can create a thread or give answers to others’ questions and link them to one of your pages.

What you need to know about Search Engine Optimization (SEO)

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We are now live in a world where people Google before they shop, visit Yelp before hiring services and use social media to get informed about the latest discounts from local retailers. Some even rely on YouTube or Instagram to get a glimpse of the products they consider buying.

Regardless of the business niche, you need a website to establish a presence in the virtual world and therefore stay ahead of the increasingly competitive market. Whether you are a retailer, contractor, consultant, or offering services of any sort, having no website is just as bad as giving away customers to your competitors. It doesn’t even matter if you run a small startup or a bigger sized company.

But having-a-website-alone is enough to attract visitors and customers; bear in mind that your competitors also have websites of their own. Your website must be optimized in terms of security, layout, performance, keywords, links (both inbound and outbound), and of course contents. You need to implement Search Engine Optimization (SEO), which refers to the practice of increasing traffic to your website. There is a large variety of SEO software you can use to generate a website analysis report you can use to plan and execute your optimization strategy.

Why SEO?

By now, every business owner knows that a website is like an online representative of the company, ready to welcome customers any day anytime. It is the place where customers and partners can learn more about the company as well as its products in a convenient manner. People can even place an order via the Internet on the website from the comfort of home.

One thing to remember is that having a website does not guarantee you will gain more customers. Just because your company has a website, it does not necessarily mean you will generate more sales in an instant. You can only make money if customers are at your storefront, or visit your website to buy what you’re selling. The following are some of the things you can do to improve your chances of attracting visitors and converting them into loyal customers.

SEO Basics

Creating a website is the first step to establish an online presence, and thankfully it is quite easy. You don’t have to be a computer or software engineer to get the job done. There are free domains, free hosting services, and free templates you can use to see if the website can run as intended; if not, you can always try again without spending a dime. While free options are available, the premium ones are almost always miles better for business purposes. A website is a powerful marketing tool, and that is why you want to have it built and optimized by professionals. In addition to using a useful (and relevant) domain and reputable hosting service, you also need thorough and complete website optimization practices, including but not limited to the following.

On-page SEO: there is nothing complicated about this step. All you need to do is to make sure that you use the right title for every page, the right keywords relevant to the title, human-readable contents, useful Meta descriptions, quick loading time, and the likes. On-page SEO is about making the website function as it should.

Off-page SEO: the more challenging part is the off-page optimization. It involves more sophisticated techniques to acquire quality backlinks (links directed to your website/content) from the more authoritative sites, social media integration, guest blogging, and brand popularity, among others. The purpose of off-page optimization is to build a better reputation and make the website more authoritative.

Internal linking: make it a priority to link a post to another on your website. The goal is to tell search engines that all your contents are relevant to each other. It also promotes the idea that visitors will remain engaged with the website because it provides detailed information about a particular topic. Visitors will stay longer on the site, improving your chances of converting them into customers.

Key-phrase instead of keywords: while keywords are most likely inevitable, you may also want to target key-phrases. You use more words to target a specific idea and insert the same phrase several times in a longer post. Longtail key-phrases (consisting of at least three words) are traditionally seldom-used, which means you don’t have to compete with more websites. Search engines prefer key-phrases to keywords because key-phrases give more specific information.

Reinforced website security: search engines are more eager to index secure websites with “https” as opposed to “Http” in their addresses. HTTPS features an SSL certificate to indicate an encrypted connection to the site. Your information is secured as well as the visitors’. If your website is also an online shop, secure online transaction processing is a must.

Fast loading speed: minimize the use of large-sized multimedia files such as videos and images on every page, or at least compress them to the smallest size possible without adversely affect view quality. Another excellent method is to use a dedicated server rather than a “shared” one. Switching to a “lighter” theme and enabling browser caching also help. Mobile-friendly: search engines have now moved to prioritize mobile-friendly websites in their indexing processes. Every day, more people are using smartphones to access the web, so it makes no sense to skip this step. Being mobile-friendly means your website will work the same way across devices of multiple platforms.

Last but not least, you need good SEO software to perform detailed analytics of website performance. Based on the analysis, the software may offer suggestions on how to fix errors and increase online visibility.

 

Why Your Strategy’s General Policy Is Critical

Posted on by harborcapitalgroupinc

SnapDeal is an Indian company that is very successful in selling high-transaction products to value-conscious customers. They have been successful because they adhered to the General Policy of their strategy. What they were willing to do and not willing to do. Sometimes the decisions were very difficult.

While merchants everywhere were touting the latest cell phone, they decided not to sell them because they could not make the transaction efficient enough to be profitable. Many people told them not selling cellphones was a mistake. They didn’t rule out selling cellphones, they ruled out selling cellphones until they could do it efficiently and make a profit.

Based on their strategy of selling to the value-conscious customer, their General Policy was if they were unable to make the transaction profitable, they would not sell the product regardless of its popularity and selling price.

By sticking to their general policy, it did not turn customers away. In fact, it solidified the  “Positioning” in their customer’s minds as a retailer of value products. Today the company is thriving in a very competitive marketplace,

This story illustrates the value of having a long-term strategy and adhering to the strategy’s general policy and coherent action.

Are you staying on the path laid out by your strategy?