Websites: Growth

Whether you have no website or are trying to redo a current website, it's worth it to think about what the goal is in updating the company's online image. The basics would be to generate new business, new contacts, and for customer communication. However, a website is simply another tool that any company can use and its uses are in no way limited to those few topics. For now, though, we'll go over those areas and hopefully get started down the correct path.

Generate New Business: In today's world, every business needs a website. Can you get by without one? Sure, but why? It's a tool that's available to everyone not just those people who know how to code. Statistically, people will search for a business online to learn about them before they ever consider buying a product. Therefore, generating new business is far easier with an online presence (which tends to be the case when people can actually find you...).

New Contacts: So these people found you, now what? One of the great things about having a website is collecting data from the potential customer (and this can happen anytime, day or night). Forms to collect potential customers are easy to setup and, in many cases, they can be linked into whatever contact management/email system that you're currently using. I know that this thought is nothing revolutionary, but I still run across sites, on a regular basis, that are not using a contact form, are poorly maintained, and are obviously not using all the tools available. Let the website work for you.

Communication: You got the attention of someone, now what? A website helps you to grow that relationship by putting out helpful content, alerting customers and potential customers of upcoming events or sales, and answering questions all while you're off doing any of the other task that have to be done to keep the business running. Helpful content could be in the form of how-to articles or videos. The site could be used to pass along an alert about important updates, closings due to weather, that you're at a particular event, etc. Of course, sometimes a customer simply has a question and maybe that question can be answered in a simple FAQ.

What to remember: These topics are a very high level overview of some of the very basic things that are possible. In other words, get started building and never stop because new amazing tools are constantly being developed.

Operating Income

Operating Income is a figure used in accounting that shows how much profit will be available after operating expenses have been deducted. This might include things like rent, repairs, payroll, delivery cost, travel, etc. This does not include things like taxes or interest expenses. Essentially, when the operating income is higher, it tends to signify that a company is more profitable.

The formula: Operating Income = Revenue - Expenses

Why is this important: Operating income is essentially an indirect measure of how efficient a company is operating. In other words, inefficiencies create waste which as we all know cost a company money. Therefore raising this number isn't just about higher profits but also about helping your organization to cut waste, inefficiency, and operating cost.

What to remember: This is a little cliche, but knowledge is power. Knowing this number can give you insight (if used properly) into a company that you may not be able to see just through observing operations.

Websites: The Importance of Mobile

If your site can't be easily viewed on a smartphone, then your design has fallen behind. For awhile, we had to rely on what was esssentially either a very poor interface for the client or a site that looked nothing like the original design. Maybe it had the same colors, maybe similar images, but it simply wasn't the same. Then came responsive design. Now you can build one website and it simply "responds" to the screen dimensions and/or device.

Why is this important? For starters, more and more people are using smartphones and tablets to search for businesses (when I say more and more, I mean a large majority of people). Sure, there are exceptions, but this is where we are heading. Desktops are on their way out, laptops are still viable, but forward thinking marketers are already referring to them as an outdated technology, which leaves us with tablets and smartphones. Tablets come in all different sizes and, while they don't vary quite as much, so do smartphones. Therefore, your website design needs to take into consideration all of these different sizes. Don't worry, it's not that difficult or complicated.

What does this look like? You'll want to design a site that responds to the various differnent sizes of screens available. This would include multiple sizes for tablets, smartphones as well as including desktops and laptops. A decent developer and/or many site builders these days can handle this task.

What to remember: Don't think of responsive design as make it or break it, but as a tool/asset that can help you to better reach your customer. Whether you're a CEO/Supervisor/Manager/Freelancer, you should be using all the appropriate resources available to you.

Gross Profit Margin

According to Investopedia, Gross profit margin is a financial metric used to assess a company's financial health and business model by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS). In other words, it's a measure (ratio) of how much a company keeps of every dollar that comes into the business.

The Formula:
Gross Profit Margin = (Revenue - Cost of Goods Sold) / Revenue

Why is this important? No one number is going to make or break a company, but the more information that you have, the better equipped you are to make sound business decisions. That said, this number can be used to help compare yourself to other companies in your industry. It won't give you the whole picture, but it will help to show whether or not you're on par with the standard. Outside of comparing youreself to the industry, this metric can and should be used internally to let you know that you're either on track or off track in regards to profitability.

To be more specific, if you sell a widget for $30 and it cost you $5 to make, then your Gross Profit Margin on the product would look something like this:

Gross Profit Margin = ($30 - $5) / $30 or 83%

83% is good, but what if the Cost of Goods Sold was $20? Then your Gross Profit Margin is 33% which is a far cry from 83%. Remember though that the lower margin may mean higher quality and lower returns/replacements/refunds/repairs. Therefore, this number must be viewed in light of the overall strategy.

What to remember: Numbers/Ratios/Metrics, however you say it, don't tell the whole picture, but are an invaluable tool and resource for analyzing the health of a company.

Websites: SEO

Search Engine Optimization. There has been so much written on this topic, both good and bad, that I've chosen to stick to the basics. Essentially, this is optimizing your website so that it shows up higher in the search results and more specifically the search terms that a company/organization has chosen to align themselves with.

What does this look like? Most people immediately jump to content optimization. While this is definitely a large part of SEO, it is by no means the only area that needs to be optimized. Some areas to look at would be:

Of course, content:

This everything from your welcome message to your product description(s) to the about us page. Don't try to force this or add in words that wouldn't normally be there. Instead, write the content as it would naturally occur, this will work better in the long run.

Imagery:

This is both about the size and a little thing called meta data. You want the images to load quickly, so use the size and file type that is needed.

Meta Data is the information attached to the image. It's actually data that gives information about other data, but that's a different article. You might hear someone refer to this when talking about the alt attribute, they go hand in hand. Basically, include an appropriate description of the image.

https:

We should all recognize the s on the end of that http, but don't take it for granted. You might have hear about SSL (Secure Socket Layer), this means that your site has another layer of security and that your customers information is more protected, specifically on the transmission side.

Having that little s on the end tells the search engine that your site is more secure than another site that doesn't have it. Therefore, it's one more thing that will help boost your rankings.

What to remember: SEO is part science and part art. In the end, remember to write content with integrity and for your customers not the search engines.

Operational Efficiency

This is another metric used to test if the organization is truly profitable. It's definitely a big picture metric, but a good manager/supervisor/CEO will always know this number. It essentially tests how efficient the work input was against the actual output of the organization.

The Formula:
Operational Efficiency = (Work output ÷ Work input) x 100%

Why is this number so important? There have been many companies in the past that, despite good sales, simply are struggling to break even. This could be due to many reasons, but knowing how efficient the operations are could help to narrow down the search. On the other hand, even if a company is doing well, it still wouldn't hurt to know this figure given that there may and probably still is room for growth. In the end, no business should waste any resource that they have available. #KnowYourNumbers

What this looks like:

• Set objectives and make sure the team knows the benchmark.
• If specific jobs need to collaborate, then put them near each other.
• In manufacturing, make an assembly line, building and rearranging where necessary.
• Identify where the waste is occurring and eliminate it.
• Setup and maintain a maintenance schedule (properly maintained tools function better).
• Eliminate bottlenecks (no one should be held up from completing a task because someone else needs to finish their job).
• Clean up and organize workstations (clutter makes it difficult to find things).
• Continuously monitor and manage performance
• Provide better support to the employees

What to remember: just because money is coming in doesn't mean that the company is operating at maximum efficiency. To be profitable and sustainable in the long run, a company must eliminate the waste.

May 21, 2018/ James Mantrozos/

James Mantrozos

Websites: Goals

I don't know how many times I've said that every business needs a website, but that truth still stands and can be a vital asset to a company. However, a bad website can arguably hurt a company as much as not having one. That's why there needs to be goals and a plan for the site.

Questions to ask yourself?

• Why are you creating a site?
• What are you trying to accomplish?
• Who are you trying to reach?

These questions may seem similar, but they cover very specific areas. For starters, just like choosing a path for the business you need to know why and the why needs to be focused. Otherwise, the site could easily become disorganized and unfocused. This is different from what you're trying to accomplish. What are your goals? Do you want to sell on the site? Are you looking to start a blog? These questions will help determine design and setup of the site. Lastly, the demographic is extremely important. Along with helping tp determine design and setup, this will also help determine the marketing and SEO aspects of the site.

What to remember: Planning is key. Before you ever start to develop a site, whether with an outside developer or with someone in your organization, create a plan.

Working Capital

What is working capital? This is very simply the difference between your current assets and liabilities. In other words, the difference between the amount of "cash" that a company has readily available and its current debts. The current assets can be thought of as the various forms of cash that a company has available. Basically, if you can turn an asset into cash within a year without taking a loss on its value, then, generally speaking, it's a current (also called quick) asset. Current liabilities are basically anything debt/bill/obligation due within a year.

The formula for this one looks like this:
Working Capital = Current Assets - Current Liabilities

What to remember:

• Working capital deals with the short term financial health of a company.
• It can be a good indicator of whether or not the company is operating efficiently.
• This is a good figure to know, but it doesn't tell the whole story.
• This shows whether a company's short-term assets can cover its short-term debts.

Websites: The Big Picture

Conversations can go many different directions when we're talking to customers. Sure, we can try to direct them towards where we want them to go, but that can be difficult some times. This is why having a website with great and curated content is so valuable.

What does this look like? A website can be used to fill in the gaps that were missed in your conversation and help the customer to see the big picture. Trying to convince someone to part with their hard-earned cash can be difficult, especially as the price goes up. Pointing that customer to curated content explaining why the investment is worth it can help to bridge the gap.

What to Remember: Help the customer to fill in the gaps by creating a curated and, if needed, custom page for them. This page should go over the things that were talked about and give further explanations. This is a chance to help show them the big picture.

Current Ratio

This ratio is simply a calculation used when examining short-term liquidity. In other words, can you pay off your liabilities with your assets? Just as we wrote in last week's article, this is just a ratio, just a number and doesn't take into account the complete picture. However, it can be used as a tool in determining the financial health of a company.

The Formula for this ratio is:
Current Ratio = Current Assets / Current Liabilities

What to Know: Generally speaking, this number should be above 1, 2 would make a company appear very financial healthy, and below 1 would signify that the company has some potential issues. Of course, as is the case with other ratios, it doesn't tell the whole story. For instance, retail sometimes has a number below one given that a supplier may offer a longer credit period, while the retail shop offers a shorter credit period. Regardless, keeping this number above 1 and closer to 2, is where you want to be located.

What to Remember:

• This ratio:
• Includes all current assets and liabilities.
• It is an indicator of a company's ability to pay back its liabilities with its assets.
• This number should generally be above 1.
• A liability is generally considered current if it is due within a year.
• This is merely a rough estimate of a company's financial health.

May 07, 2018/ James Mantrozos/

James Mantrozos

Websites: The Need

I recently heard someone say, "do you really need a website? I mean isn't that what facebook is for?". While social media does help create a presence for many businesses, it's not a website and shouldn't be used as such. Social media should be part of your overall web presence, but not your customer's only source for finding out about who you are and what you do.

What does this look like? A website makes your company visible to the general public 24 hours a day 7 days aweek and because of that it should represent you well. When you've called it a day and no longer have the energy to keep going, your website is still hard at work, unphased by the days activities. With that in mind, your site should have images that convey who your company is and how you operate. It should also have content that "sounds" like you. We all have a voice that comes out in our writing. Customers know when it's not you and they know when the writing sounds generic. Be yourself.

There's also the customer perspective, when I've found a new company, I always google them, check the website, maybe see what they're doing on social media, but regardless I always search for their site. This is how I find out about the company, find where they're going to be, or where their business is located (those last two can be very different). Regardless of whether I want to read up on a product or just check the hours of operation, making this information available and easy to find is critical. Your site and how well it functions could either remove or put up a barrier for the customer.

What to Remember: a good website is different from that thing you call a website that hasn't been touched in years...

Quick Ratio

The quick ratio or acid test is simply a liquidity test. It's another metric for letting a company know where it stands and how healthy it is financially. Now, this ratio certainly doesn't tell the whole story, but simply is a good metric to keep around when doing a financial check-up. If you don't know the formula off hand, then here it is:

Quick ratio = [cash and cash equivalents + marketable securities + accounts receivable] / current liabilities.

The quick ratio probably derives it's name from the fact that it deals with the assets that are readily avaiable to pay bills should they be needed. i.e. your warehouse and inventory don't count... but cash in the bank, stocks (in general), and accounts receivable can be used in this calculation.

Why are inventory and the warehouse left out of the picture? Well, if you had to use inventory to pay off a debt that was due immediately, whether that be the electric bill or debt, then you would probably have to sell at a discount in order to move the inventory quickly. Therefore, this isn't the best option and, regardless of the economic environment, selling even a small building can take time.

What is consider quick assets? Generally speaking, assets that you can turn into cash quickly without incurring a loss. That's why, going back to the previous example, things like inventory are left out of this calculation. I look at as a collection of your various forms of cash.

What to remember? Numbers, ratios, statistics, etc. aren't everything, but they're great tools in determining the financial health of a company. Therefore, however you accomplish this, know these numbers. Whether that's a CPA and/or your in-house software, make sure to check these numbers on a regular basis. This will help to avoid big issues from unexpectedly popping up.

Remote Working?

Remote working isn't becoming a big thing, it already is. Obviously the millennial generation is making up a big portion of this demographic and this is definitely in part due to the ever growing need for coders/software developers/programmers/etc. The big question is how this idea of working remotely applies to everyone else?

One of the most obvious is simply as a benefit to your team. It's not that your person in charge of billing is going to suddenly start working from home 100 percent of the time. However, given the option, this idea can make it possible for everyone to be more productive. Working remotely also doesn't have to be all or nothing. It can be one day a week, every other day, on an as needed basis, or any other combination. All a person needs is the ability to log into their work computer/server or work from a laptop that they can take with them. What this does is make it possible for employees to work from home when say their child is sick. We could come up with all types of scenarios (like how the ability to work remotely is a great tool for disaster preparedness), but the key is to be creative and to look at this as an opportunity to offer a great benefit to your team.

Do you have a remote work policy? if so, let us know (just click here). We'd love to hear how you've implemented the idea of working remotely.