Imagine not having a telephone number that customers can call when they want to reach you. It’s unthinkable. Equally ridiculous in today’s information age is the fact that some small and medium size businesses still do not have a website, or at best they have a stale online presence that is never updated.
“Customers perceive a business to be more established and professional when it has an active website,” says Leigh-Ann O’Hagan, owner of website design company LIT Creations. “It’s a great way to market your business.”
Indeed, business owners who insist they do not need a website will soon find themselves going out of business, according to Rob Stokes, CEO of digital agency Quirk eMarketing. “Whether you provide investment advice or plumbing services, people must have the ability to find you on the web. If you’re not there, you will lose out to competitors who are online.”
Even cost-conscious SMEs have to acknowledge that times have changed. The Internet is now the fastest growing advertising medium and it has to be embraced by businesses of all sizes. An informative, well designed website enables a business to break through any local barriers and become accessible to anyone, anywhere, at any time.
Think about that — your business is reachable to people 24 hours a day, seven days a week. The convenience factor is huge, and can help to boost customer satisfaction from the word go. Your customers and potential customers can visit your site from the privacy of their home or office to find out information about the products or services you offer, making it possible for your business to reach a wide audience with a relatively small investment. And because you can change the content on your website, you can keep it looking fresh and tailor it to what your visitors are looking for.
What does it cost to build a website?
What should you pay for a website? That’s a tough question to answer. For SMEs looking to develop an online presence, O’Hagan’s company, which focuses on SMEs, charges as little as R200 per web page. “A website with four pages — a home page, About Us, services and contact — will cost R800 including all design. We also offer additional functionality for an extra fee. B&Bs may want a gallery for instance, while another business may want a shopping cart or a content management system.”
For start-ups, web design company Media Etc offers logo, letterhead, business card, email signature, a four-page website and your own domain for R8 100.
Interexcel’s web design package costs R7 600, which you can also pay off monthly.
Jasper Consultants web developer Gideon Oelofse, says business owners should budget between about R1 500 and R5 000 per page depending on the programming needs.
“Artwork is fairly standard at R1 500 per hour, but it’s the programming element that’s key. A weighing system or a catalogue that sits on the web page runs in the background and has to be added on to a standard design.”
At the higher end, Stokes says websites which typically provide About Us information and list the products and services available can cost from R20 000, up to R100 000. This type of site is perfect for businesses seeking to have a presence on the Net, but which do not transact financially with customers.
“You can employ a freelance designer to create a website that will cost you in the region of R20 000 to R50 000,” says Stokes. “Where companies make a big mistake is that they will fork out R100 000 on a website when they should rather spend 70% of that budget on actually marketing the website, and only 30% on creating it. The point is to get people to your site.”
Paid search is key to achieving this. It’s an advertising strategy that involves the purchasing of web traffic from search engines. Your ad appears in the search engine’s ‘sponsored links’ section and clicking on the ad will redirect visitors to your landing page. Google’s version of paid search is called AdWords.
Cost per click is the amount your company pays for having that link clicked on within a search result page. Also important is the click through rate, the rate at which a keyword listing is displayed against how many times it was clicked. For example, if an ad is displayed 10 times, and clicked on twice, the click through rate is 20%.
It is easier to determine the return on investment in this type of search engine marketing, because the data reflecting activity around your ad is generated instantly. “The advantage of this type of marketing is that it’s very controllable,” he adds.
Conversion rates are key
Stokes points out, however, that the conversion rate for South African websites — a critical consideration — is as low as 10%. The conversion rate is the ratio of visitors who convert casual content views or website visits into desired actions based on subtle or direct requests from marketers, advertisers, and content creators.
It’s defined as follows:
Conversion rate =
number of goal achievements
A successful conversion may be a membership registration, e-newsletter subscription, software download, or other activity that occurs due to a request on the site that directs the visitor to take action. To an online retailer, a successful conversion is usually the sale of a product to a consumer whose interest in the item was initially sparked by clicking a banner ad.
While paid search brings people to your site, you must ensure that the site is designed to achieve certain goals and makes use of the appropriate visual and textual cues.
When it comes to website development, a great amount of emphasis is placed on design. Equally important, however, is the content. Too often, copywriting is an afterthought in web development. No matter how attractive, clever or interactive a website is, its main purpose is to convey information. A great website is designed around the content. User experience is what it’s all about. When people visit your site, is it worth their while? This has nothing to do with size or impressiveness. It’s simply about relevance.
“The key consideration when it comes to content is what your user is looking for, not what you want to tell them,” Stokes says. “There are some really great looking sites out there that just don’t deliver on that. If you’re a fast food company, for example, make sure your website is optimised for use on a mobile phone. It’s when I’m driving home from work that I’ll want to call and place, so I must be able to find your contact details on my phone.”
Business owners must not underestimate the power of email marketing. It’s become the forgotten child, but it can be extremely effective in driving people to your site. Take a décor business as an example. People who visit your site are interested in decorating their homes.
That provides you with an ideal opportunity to send out a regular newsletter that gives them an update on the latest trends in décor and design, rather than merely sending out an email about your products. Maybe you can include a discount coupon in the newsletter. By providing information and value for your newsletter subscribers, you can convert them into active supporters and customers. n
Professional design or DIY? Paid or free hosting?
Make these choices based on the needs of your business.
The publishing platform WordPress is a full content management system (CMS) which comes with thousands of plug-ins, widgets, and themes. An open source CMS, it is the most popular one in use today. It simplifies the publication of web content to websites and mobile devices in particular, allowing content creators to submit content without requiring technical knowledge of HTML or how to upload files.
There are also a number of free website options available. Among the most popular is Yola, which offers three levels of service. The most basic website is free, while a professionally designed site from Yola Premier will cost $349,95. You simply let the designers know what you want and they’ll make a custom five-page website for a one-time fee. You’ll have full control of the completed website, and you can make changes or updates at any time at no cost. The website is also hosted for free and comes with technical support.
The bespoke route
If you have R100 000 or more to spend, and you want more than an online brochure, you may opt to have a custom-built website. These are usually created with programming languages like ASP and PHP. Unlike static HTML web pages, websites built with ASP and PHP are more dynamic and can allow users to interact and exchange information using the website’s databases. This route is ideal if you want to build an e-commerce site, or any other site where there is a lot of interaction between the business and the website users.
When it comes to costing and expenses, ASP costs more, while open source PHP can run on a Linux server which you can get at no cost. PHP is also more flexible when it comes to database connectivity and it can connect to several. If you are particular about speed, then choose PHP. It runs much quicker than ASP.
Just as a free or low-cost website may be ideal for your business needs, both free and professional web hosting have their benefits and downsides. For a simple website, a free hosting service will provide what you need.
The biggest problem with a free service, however, is that the amount of traffic to your site may be limited, as may the size of the files. You also have to ensure that the hosting company does not experience downtime as this will impact the number of visitors to your site. Avoid sites covered in sponsors’ banner ads as these look very unprofessional.
Paid services provided by a good web hosting company should come with far better customer service. They will also offer ample web space and disk space. Often large amounts of uptime will be guaranteed. So yes, they cost more, but the service is far more advanced.
Why Smart Business Growth Means Smart IT Budgeting
(…And how to do it)
For any business today, no matter its size or sector, getting the IT budget right has become a critical part of success and sustainability. The difference between a three-device network and a fifty-device network has significant ramifications for your IT spend and your overall budget outlook.
Let’s take a closer look at several potential costs and how to plan for them…
Network: The driving force
Essentially, the network is the backbone/core of your IT infrastructure. It needs to be reliable, fast and efficient. Often, a young and growing business will have a piecemeal network in place, bolting on new sections over time. This can lead to the network becoming inefficient and slow.
The important thing to note is that when you have reached capacity on your current network, is it’s sometimes better to start from scratch and also leave room for expansion down the line (rather than adding to the existing network as a quick fix).
While it may appear more costly (and scary), the end result is a reliable network that you won’t have to worry about revamping for many years.
Licensing: Pricey but critical
Software licensing often comes as an unexpected (and unpleasant) cost to many business owners and their financial teams. Indeed, purchasing legal software can be pricey if you aren’t prepared for it (and don’t understand how it all works!). However, if you buy software licenses in bulk, or commit to a longer term, they can cost far less…so again, budgeting intelligently for your business growth can save you money in the long term. Also remember that many software licenses nowadays can be rented on a per user per month basis so its flexible and always up-to-date.
Maintenance: Be realistic
As the business grows and expands, so too will your IT maintenance needs. The key factor to note is to carefully consider the potential costs of IT failures and hardware issues. You need to take into account that you will undoubtedly have to spend money on maintaining your computers and overall network – and breakdowns can be extremely costly in downtime and lost productivity.
Some businesses find that it makes good financial sense to employ someone to be an IT technician in addition to taking on other responsibilities – but this person may not have the right expertise and experience to manage everything. The other increasingly popular option is to outsource your IT management. With flexible pricing options now available to businesses, this is becoming a viable and often much more flexible route to take.
Think Beyond The Box
With a holistic view of your business finances and admin in place, Sasfin’s new digital banking platform is engineered to help you grow your business.
Welcome to the banking platform designed to support your banking needs. In response to more than 50 years of financing and supporting SMEs, Sasfin has launched a digital banking platform, B\\YOND, to help address the pain points and pressures that business owners face in South Africa.
“We’ve spent decades understanding what makes SMEs succeed or fail, and a lot of it begins with how well a business owner understands their finances,” says Sasfin CEO, Michael Sassoon.
“Failed SMEs often tend to either neglect or become completely consumed by their finances and admin. We wanted to create a platform that could help them take control of these factors, and give them a full 360-degree view of their businesses.”
B\\YOND was built to enable businesses to attend to their finances and admin seamlessly, thereby ensuring that entrepreneurs can focus on their clients — driving revenue and enhancing their products and services in the process.
Everything you need on one platform
According to Sassoon, entrepreneurs on the B\\YOND platform will never need to set foot in a branch again. The sophisticated technology incorporates many value-added services at no additional cost, including:
- B\\YOND online applications: Businesses with multiple shareholders and directors can apply online, by uploading documents and signing the application digitally.
- B\\YOND payroll: A simple-to-use and SARS-compliant payroll function enables business owners to perform their own payroll management.
- B\\YOND invoicing: Businesses can create and send personalised quotes and invoices directly from the platform.
- B\\YOND insights: Smart dashboards generated through clever account and transaction classification and tagging helps manage revenue and expenses, and keep track of projects.
- B\\YOND integrations: Direct-feed integration into Xero ensures that small businesses and their accountants can safely and seamlessly connect their Sasfin Bank transactional data with Xero, the fastest growing cloud-based accounting software provider in the world.
Serving the entrepreneur
While there is much in store for the next versions of B\\YOND, the platform currently offers business leaders the basic tools they need to run their businesses smoothly in one place at no additional cost, with the ability to bank at their convenience.
“Sasfin has always existed to serve the entrepreneur and investor, the two key drivers of the South African economy and it bothers us that there is such a high failure rate of entrepreneurs in our country. We have spent the last three years building B\\YOND — a future-fit digital banking platform to help these entrepreneurs,” says Sassoon.
Engineered for success
Sasfin has gone above and B\\YOND to bring you a new digital banking platform that gives you the tools to make managing your business simple and profitable.
B//YOND is a value-add to all Sasfin Transctional Banking clients
Bank outside the box
The Sasfin Transactional Banking Business Account is designed for SMEs who want to focus on what they’re most passionate about — their business — while their banking platform not only sweats the small stuff for them, but helps manage and grow their business.
- Do you spend unnecessary time on banking?
- Does your bank pay you market-leading annual interest rates?
- Does your bank give you easy cash management in real-time?
- Would you like to manage your payroll and invoicing from your bank account?
- Does your bank help you keep track of your cash flow, manage your admin, and provide you with the set of tools you need to help run your business successfully?
Sign up today and have access to a whole new world of banking better for your business.
Call 0861 SASFIN for more information.
A Short Cut For Corporates To Digital Innovation: Start-ups
Charlie Stewart, co-founder and CEO of Rogerwilco shares his advice for turning to start-ups for solutions.
If there is one anathema in corporate culture, it is failure. With profit to be made and share prices to increase, failure is simply not an option. And yet, when listening to stories about success in the digital space, failure is there to put one on the right path to success. The phrase ‘Fail fast, Fail often’ is often bandied about, and innovation can be seen as a constant process of iteration, test and failure, repeating this until a well refined service or product is on the table.
Many corporates are waking up to the uncomfortable fact that at a structural level, the type of innovation required to grow in today’s digital landscape, is out of their reach, at least when trying to come up with it internally. So what to do? Charlie Stewart, co-founder and CEO of Rogerwilco shares his advice for turning to start-ups for solutions.
1. The start-up solution
Corporates comfortable in the digital space – Apple, Alphabet, Facebook and Amazon – have been buying startups for years, and now companies are realising that when it comes to Blockchain, artificial intelligence and machine learning, they need to turn elsewhere. And they are. Matt Garratt, Vice President of Salesforce Ventures noted that of the roughly 1500 tech acquisitions Stateside in 2016, half of them were bought by non-tech companies, showing that buying a start-up is a quick way to acquire new technologies, skills or patents.
But purchasing a company with a fully developed product can be an expensive and often risky play. Instead we are beginning to see a trend where corporates are framing agile startups as solution providers, offering them seed funding to come up with answers to digital headaches.
In the US, defence contractor Lockheed Martin has turned its investment strategy around, focusing on young startups instead of more mature companies. In the region of $20 million was ploughed into startups in 2017, helping Lockheed Martin to get a slice of the pie in fast moving spaces such as cybersecurity, autonomous vehicles and nanotechnology.
2. Outsourcing the problem
For corporates turning to start-ups, there are two benefits. Firstly, by doing so companies are casting their net a bit wider, with not only more eyeballs on the problems but, importantly, without the restraints of the corporate boardroom. There is more out-of-the-box thinking involved, no internal politics to worry about and far less of a threat of somebody’s career being jeopardised.
Secondly, if a start-up comes up with a solution, investing in the fledgling company can be cheaper than purchasing one with an established solution. If a buy-out is on the cards, it is less risky too since the due diligence process has been worked through and cultural challenges have been ironed out.
But not all start-ups actually want a buy-out. Some rather prefer access to market and skills transfer, especially around the commercial side of business. Yes, they do need investment, so companies can provide them with a proof of concept to take their idea forward, or potentially a more structured form of investment in their business.
3. Cape Town: the start-up hub of Africa
Locally, Cape Town can be seen as the tech start-up hub of Africa, and is certainly a good place for corporates to start sniffing around for that digital innovation golden ticket. Events such as last year’s AfricArena conference proved that Cape Town can be a fruitful hunting ground. 80 start-ups from across Africa attended the inaugural event, and were tasked to find solutions to problems provided by corporates beforehand. Air France, for example, was looking for innovative mobile solutions, the City of Cape Town wanted to see how technology can be used to improve the tourism industry, while RCS asked for a loyalty programme to match a new credit programme.
By all accounts the event was a major success, connecting start-ups with corporates and investors, both attending the event and dialing in. The winner of Air France’s challenge, mobile payment solution provider WeCashUp, received multiple offers of investment and the project has moved on to the proof-of-concept phase.
4. The start-up lifeboat
Many companies need to face up to the fact that the current corporate structure they are working within does not allow for the type of innovation required to adapt to, never mind thrive, in a digital world. South African companies were perhaps sheltered from the digital tsunami that has eviscerated the analogue business world, but the wave has hit our shores. If it is innovation that is needed, it is time to turn to agile startups, far better adapted to a sink-or-swim digital environment, to come up with the solutions.
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