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What Kind of Website Do I Need, Are Websites Worth It

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Now that you’ve decided to build a website for your small business – congratulations. Your company will receive more visibility, better branding, and eventually more sales.

Before you build your site however, there are several questions you’ll need to answer in order to to determine if you should build a site through a low cost, do-it-yourself website platforms such as Wix, SQUARESPACE or GoDaddy, or make the significant investment in building your own robust website:

  • What products are you looking to sell on your site, and how do you plan on selling them?
  • Are you selling subscriptions? Will the purpose of your site be to make appointments for people to come into your brick and mortar business to buy products or services? 
  • Are you seeking to sell products directly through your websites via online payments?
  • Do you plan to feature industry content or a blog on your site?
  • How will your site stand Apart From Competitors?
  • What Actions Do You Want Site Visitors to Take?

What Should Your Site Accomplish?

Now that you’ve answered those questions, you essentially have two choices: You can use a DIY website platform, which does have its advantages – most of them charge a low monthly fee; provide an easy-to-use website template, and provide web security and basic analytics. This may be the best option to choose if you’re simply looking to expand your presence and just check off the “web presence” box for your business. 

For example, if you’re an independent restaurant owner who wants visitors to use your site to make reservations, or a car dealership owner who wants your site visitors to make appointments for test drives of your vehicles, then a DIY site may be the best choice for you.

DIY platforms do have their drawbacks, though. Almost all of them charge additional fees if you look to add features to your site, and many of them will ask for a large percentage of your revenue if you are seeking to use your site for direct sales. Additionally, the web template that you choose may be being used by other customers, so your website may not look unique.

If you want your website to do more, however, such as accommodate direct sales of your products, offer sales or discounts, or generate industry buzz through a blog page, then building your own website is probably the best bet for you. 

Be warned, however: while building your own site will be well worth the effort from a sales and marketing standpoint, it will be a long, arduous, and expensive process, and one that will require you to first analyze whether it will be worth the money to do so. 

Figuring Out if it’s Worth it

Now the question becomes: based on your wishlist for a website, is building a site worth the money? The answer to this question is paramount in deciding whether to invest capital into building your own site. The process of answering this question is also a bit complicated and may require you to hire an outside web consulting firm to assist you. 

The first thing to do is to figure out the cost of building a website. A basic laundry list of things you will likely need to spend money on in order to create your own site can include:

Do some research to find out the fees of website consulting firms and the market price for a web designer/programmer, if you choose to hire those. In order to house your website and make it available to the public via the world wide web, you can either purchase your own server – the machine that will house your site and may cost upwards of $1,000 – or hire a website hosting platform such as Bluehost or HostGator for a low monthly fee to house your website for you. 

There are many advantages to using a web hosting service – you won’t have to pony up the cash for your own server, and they provide web security for your site. Keep in mind, however, that a hosting platform will charge you the monthly fee for as long as your business’ website exists (which could be up to $60 per year), and there could be add-on charges if you look to make changes to your site.

In addition to hosting costs, leasing an original domain name through services such as GoDaddy, Domain.com or Name.com can cost anywhere between $20 to $50 per year, on average; and purchasing a domain name outright could cost you thousands of dollars.

Other costs to consider: If you do not have expertise in building a website, you may want to hire an experienced web designer/programmer to help you. Hiring an outside firm or an internal employee to do this may be expensive but making a mistake in building your site could be even costlier. Also, you will need a payment processing app to enable your customers to purchase items from your site. Apps such as Merchant One, Clover or ProMerchant will enable them to do that.

Estimating Your Site’s future Revenue

Now that you have an idea of the cost, the next thing you should do is have your website consulting firm assist you in creating a general, one-year projection of revenue for your site, since the process can be complicated. Some lenders may ask for this if you look for financing to build your site.

Of course, we all know that a general calculation of ROI is income minus cost divided by cost, but how do you calculate that if you don’t know what the actual revenue of your site will be? 

While it is impossible to calculate exactly what the revenue will be, you can make a rough estimation by examining the benchmark for similar-sized companies in your industry. The web consulting firm you hire should have data on this, or you can use an online tool called Similarweb, which tracks that. You can also use a web service called Unbounce, which can give you a benchmark conversion rate – the percentage of visitors of an ecommerce site who end up becoming customers. 

“This way, you’ll have an idea of what to expect in terms of revenue,” said Lucie Loubet, director of digital marketing at web design firm DesignWare. “Just remember to look at the paid vs. organic traffic breakdown in Similarweb to understand how much additional money you will have to invest in customer acquisition.”

Dawid Zimney, product manager at web consulting agency NerdCow, added “Your web agency needs to know your conversion rate, your market and your audience. They need to benchmark this against the historical improvements of the conversion rate on their clients’ websites.”

Another marketing term to know is customer lifetime value (CLV) – the estimated value of a return customer. For example, if you own a restaurant and you see certain customers coming back because they love your food, or a retail clothing store and you see customers returning for the service, you can calculate the average amount they spend per visit and multiply that by the number of times they visit your business. 

The website firm you hire can help you estimate the percentage of customers who will become repeat customers, as well calculate their CLV.

Final Calculation

Nikita Chen, founder and CEO of item authentication firm LegitRails, said the final step in calculating your website’s future ROI is to multiply the number of estimated customers with the CLV, and then determine whether that number is greater than the cost of building the website. The web marketing firm you hire should help you with that. 

“If the number is higher, you are in profit, and it is, therefore, a good idea to create the website,” she said. “If the number is lower (which could be the case if you’re running excessive ads) it might not be in your best interest. The figure you come up with at this stage will also determine your ROI,” said Chen.

Financing Options to Pay for Your Site

If you’ve realized that your needs require you to build a custom website but you don’t have the cash on hand to pay for it, that’s okay. There are several financing options you can choose from. 

A business line of credit may be a good option for you since building a website will not be a one-off expenditure. A business line of credit – much like a personal credit card – will give you the flexibility to spend as you go along in the process of building your site, and you will only be charged interest on what you borrow. You can also pay it down as you go along.

If you’ve predetermined a budget for building your site and plan to stick to it, then a business loan may be right for you. If you go to a traditional lender, they may ask you for a business plan or projected ROI on your website. Alternative lenders such as Kapitus will generally just ask to see your company’s revenue history and approve you for financing more quickly than a traditional lender.

Test Your Site First

Now that you’ve decided to go ahead with your site, you should have your web designer/programmer build a test site, typically referred to as a beta site. Pick the top functionality of your site, have your programmer design and build it, and release it online. The beta site should be a limited release of your website with the goal of gauging audience reaction a nd finding bugs before the final release of your site. 

The site is usually opened up to a limited number of users, such as employees of your company or friends or family. The idea of the beta site is to listen to their feedback and use that to make improvements or adjustments to your final website. 

Next Up

“If you build it, they will come…”

Now that you’ve done the calculations and figured out that building your own site is worth it, how do you build a site that is visually appealing, user friendly and will generate additional sales? In the next article, we will discuss what your site should look like to make that happen.

Close up of a senior woman and her daughter having a doctors appointment

A Doctor’s Guide to Medical Practice Loans

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Getting financing for health care practices shouldn’t have to be as complicated as surgery. 

No matter what type of health care professional you are, you’re going to need state-of-the-art equipment, computers and office space to ensure a successful practice. 

A variety of financing exists that considers the unique needs and qualifications of health care professionals, such as high student debt, the fact that medical office revenue streams are more unique than other types of businesses, and irregular insurance payments.

Financial pressure ramped up on the US healthcare system during the COVID-19 pandemic, as many providers were forced to replace outdated equipment, expand their facilities and hire more professionals. Post pandemic, the demand for financing in this sector should be on the rise to tackle higher patient volumes and the need for new equipment and technology to accommodate new practice offerings, such as telehealth.

Given the need for financing, there are a lot of options out there. Healthcare financing, depending on the lender, can apply to (but is not limited to):

  • Independent primary care physicians
  • Ambulatory care facilities
  • One room surgical facilities
  • Specialists, such as orthopedists, ophthalmologists and podiatrists
  • Optometrists
  • Veterinarians
  • Mental health professionals
  • Chiropractors
  • Alternative medicine specialists
  • Licensed masseuses 

Types of medical practice financing include:

Alternative Lenders Such as Helix Healthcare Financing

If you’re a health care practitioner that needs financing, there are a lot of traditional lenders out there ready to offer you deals. Those deals, however, could require long wait times and complicated application processes. One alternative lending process you may want to explore is online lending. 

As such, Kapitus offers a variety of lending options through its Helix Healthcare Financing, an online financing option that specifically addresses health care practices. With Helix, you can get a wide array of financing options with a pricing grid that is tailor-made for independent medical practices and that can meet your unique cash flow needs. 

The qualifications for Helix financing are most likely simpler than the requirements from traditional lenders. You’ll need:

  • A FICO score of at least 600;
  • A practice that is at least six months old;
  • An annual revenue of at least $120,000, and
  • You must be a licensed practitioner. 

Helix financing can give you the ability to consolidate debt and get rid of those high interest credit cards you may have been using to finance your practice and can offer you everything from equipment financing and revenue-based financing to term loans to increase your cash flow. 

The bottom line with Helix and other online lenders is that they are generally more accessible and may be able to offer a better cost of financing than traditional lenders. Their emergence over the past year has been in direct response to the difficulty many medical practitioners have had in getting financing from traditional sources, especially after the financial crisis brought about by the COVID-19 pandemic. 

SBA 7(a) Loan

The most widely used vehicle for medical practice financing is often the one that is the most difficult to obtain: the SBA 7(a) loan. This is often sought after by medical practitioners because it typically offers the lowest APR rates and carries loan terms longer than most traditional lenders – 5 to 25 years. It also carries a maximum loan amount of up to $5 million, and 85% of the loans of up to $150,000, and 75% of loans greater than $150,000 are guaranteed by the SBA.

It does have its drawbacks, however. If you’re just starting your practice, this is not the type of financing for you, as an SBA loan usually requires years in business and a strong business credit score. It also requires collateral for loans of more than $350,000. Because the terms are so favorable, competition for this type of financing is fierce. You also are going to run into:

  • A long, competitive application process,
  • An extended underwriting process, and
  • A long timeline to capital access.

Traditional Bank Loan

The pros of traditional bank loans are that many banks offer financing products specifically tailored to the unique needs of health care practices. These loans, however, are difficult to obtain as they usually require years in business, high credit scores and high annual revenues. 

Approval for a traditional bank loan and access to cash can often take months, so this might be the right type of financing if you have long-term plans such as acquiring another medical practice or looking to purchase new real estate to expand your business. 

Term Loan

A term loan is a lump sum of cash that is paid back over a predetermined period of time. While term loans are offered by traditional banks, online lenders have become increasingly popular in the post-pandemic era as they more often offer lending services specifically designed to meet the needs of healthcare practices, have less stringent borrowing requirements than a traditional bank, and a quicker approval process.

Because online lenders generally may be willing to take on more risk than banks, however, they may charge a higher APR. You should take the time to explore the different pricing grids offered by various online lenders to see what is right for you.

Short-Term Loan

Short-term loans are generally provided by alternative lenders and are great if you need cash quickly. You generally can obtain these loans if you have a high, predictable monthly cash flow. 

If you are a veterinarian looking to quickly purchase a new dog kennel or a chiropractor looking to buy new beds for your patients, for example, this may be the right product for you. 

Keep in mind, however, that while the processing time for short-term debt is relatively quick, these types of loans typically carry a higher interest rate relative to a bank or SBA loan. 

A Business Line of Credit

Business lines of credit act like credit cards for your business and are offered by both traditional and alternative lenders. They could be ideal for mental health practitioners who are not seeking to purchase specific medical equipment, but perhaps are seeking furniture, larger office space and computer equipment. 

The advantages they offer are that, like credit cards, you will only pay interest on the money borrowed, and they will offer you quick access to funds and flexible repayment terms. They are not ideal, however, for one-off investments, and like a credit card, the fees and interest rates can add up if you’re not careful in your spending. 

Equipment Financing

Equipment financing is offered by both traditional and alternative lenders, but through online lenders, the borrowing terms are generally more relaxed and approval is often quicker. It is a great financing tool if you are a medical specialist such as an independent orthopedist and are seeking a new x-ray or MRI machine, or perhaps new computer equipment. Collateral on this type of financing is generally not required, and they are often easier to qualify for. If you are just setting up your practice, this could be a great financing tool for you, as you will own the equipment rather than leasing it.

The general cons of equipment financing are that the funds can only be used to purchase the equipment you specified in the terms of the loan, and that certain pieces of equipment that may become outdated quickly may carry higher interest rates. 

The Bottom Line

As a medical professional, you shouldn’t have a difficult time finding financing that is right for you, as lenders generally consider health care practices to be more lucrative than other business sectors. You should sit down with your accountant or financial expert to go over which type of financing is best for your particular practice, and target what the best terms and rates will be for you.

7 Reasons Why Customers Distrust a Business

7 Reasons Why Customers Distrust a Business

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According to a Gallup poll conducted earlier this year, two-thirds of American customers are highly confident in small businesses. The only other entity Americans have more trust in is our nation’s military. On the other end, only 6 percent of these same individuals have a “great deal” of confidence in big businesses.

While a small business owner might think this information bodes well for them and their burgeoning enterprises, there are caveats to consider. Numerous small factors can cause a customer to distrust your business.

1.Outdated, Poor-Performing Website

Research reveals two crucial insights about the importance of an up-to-date, high-functioning website:

  • 39% of users will stop engaging with a site if the image won’t load or it takes too long for them to load.
  • Given 15 minutes to review content, two-thirds of people would rather read something nicely designed than something plain.

Your target audience will notice if your site looks and operates as though it was built a decade ago. A site lacking any design aesthetic that is not optimized for performance is driving away more customers than you realize. Make sure to Invest in building a high-functioning website that is also visually appealing to build trust with your customers.

2. No Contact Information Provided

Did you know 51 percent of people think “thorough contact information” is the most important element of an organization’s website? A simple contact page with a phone number, email address, and contact form is so easy to create. It also goes a long way in helping to build trust with your customers.

3. No Pricing Information Available

Customers learning about your business want to know what your products and/or services cost. If a few clicks doesn’t reveal this information, people will think something fishy is going on. This will also cause them to feel like your business can’t be trusted.

4. Vague and/or Error-filled Copy

Whether it’s copy on your website or in your printed marketing materials, anything and everything you say needs to be clear, concise, and correct. A customer will assume you can’t manage their business needs if your company can’t handle writing error-free, informative copy. Vague content riddled with spelling and grammatical errors communicates that a brand can’t be trusted or relied on.

5. No One Knows Who You Are

Have you established yourself as an industry thought leader? Do third-party organizations vouch for your organization? Are customers leaving reviews on Yelp, Facebook, and/or LinkedIn? Even though you are a small business, your customers expect you to demonstrate your expertise. This can be through relevant and fresh content, and support that expertise using positive customer testimonials.

Third party badges, such as those provided by the Better Business Bureau or TRUSTe, must be prominently displayed on your websites. Don’t assume people will trust you solely because you have a functioning website. You have to establish connections in your vertical that demonstrate how colleagues and clients trust you.

6. No Social Media Presence

Don’t fall victim to the misconception that social media is only for teenagers who want to post selfies. People don’t use social platforms just to connect with friends and family. Today, customers go to social channels to learn about companies. Data from an online survey by BrightLocal last year found that 84 percent of people trust online reviews as much as a personal recommendation. 74 percent of consumers say positive reviews make them trust a local business more.

While it is up to your marketing team to decide which social channels are most relevant to your business and its audience, it is imperative that you have an active presence on these platforms. Regularly updating your pages and engaging with those that reach out to you is an absolute must if you want to build trust.

7. Poor Email Practices

Are you contacting people who did not opt-in for your emails? Do your emails make it challenging to unsubscribe from them? Did you skip segmenting your email audiences? If you answered “yes” to one or more of these questions. Change your email practices if you want people to trust your business.

If your business goal is to build long-lasting relationships with customers that trust your organization, you have to invest in fixing any errors that might be deterring these individuals. Discuss funding options with Kapitus now to discover how to develop a trustworthy organization.

Have the USPS Clean Up Your Mailing List

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Before you send out your next direct mail pieces, make sure your mailing lists are 100% accurate. It’s awful to have to pay for postage, only to find out later that you had incorrect addresses or duplicates in your list. Going through a 1,000+ contact list can be tedious and time consuming. However, there are ways to make this process easier.

The USPS actually offers and suggests various verified tools to clean up your list before it gets mailed out. You can submit a printout to the postal service and they will make note of any required changes. While there is a fee associated with this service, the money you save clearing out incorrect addresses in advance can cover that cost and then some. There are also other USPS verified sources that you can use to check and maintain your mailing lists, such as NCOALink. This licensed vendor will run your mailing list through their software and will update the addresses of people who filed a change of address through USPS.

 

Consistently utilize these services and you’ll never waste money on an undeliverable mail piece again.

Book More Tables at Your Restaurant

How to Book More Tables Online

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To give customers what they want, traditional brick and mortar retail is rapidly morphing into e-tailing, or electronic retailing. Providing customers a seamless omni-channel experience across multiple platforms requires technology to manage everything from online ads to checkout and payments.  But how do restaurants book more tables?

Many restaurant owners haven’t made the leap to e-tailing, either because they don’t see the benefits, or because they find it a challenge to adapt; however, effective tools for online booking with up-sell capabilities can turn a restaurant’s website into a robust online marketplace.

Online Booking Systems

Different than reservation systems, online booking systems manage venue rentals for events, accommodations and tours. Most booking systems use software that seamlessly integrates into your existing website using modules or plug-ins, unlike a third-party reservations sites like OpenTable. These systems feature calendar management, photo galleries, payment management, contract execution, and cancellation processes.

Additionally, these systems give you the ability to create alternative revenue streams.

Up-Sell Using Add-Ons

Seek a booking software provider that includes the “add-on” feature. It’s an extension that allows for the customization of add-ons during the online checkout stage. An add-on is the inclusion of additional products or services. This unique up-sell tool is a great way to maximize revenue generated through space rentals and special events.

Why stop at holiday parties when you can host year-around events? For instance, what about booking professional networking events, social mixers, wine classes, cooking classes, or selling online gift certificates? Bar owners might offer advanced seats when broadcasting sporting events.

Cost-Efficiency

Depending on your web platform, you may be able to use a free or a low-cost cloud-based service provider. Check out providers like Event Compass, Skeeda, Zozi Advance, or Checkfront.

And don’t panic if you’re not tech savvy. Most website management systems permit module and plug-in installs using “one-click install” from website control panels. If yours doesn’t, most providers offer tech support and easy to follow guides to get you up and running.

Read Attracting Holiday Business This Year for tips on booking more parties and creative add-on ideas to book more tables.

 

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