Online marketing is a large component of marketing for many small businesses. There are many aspects to online marketing that you’ll want to consider for your business. Here are just five for your consideration.
Content marketing is huge, and it consists of generating articles, blog posts, social media updates, white papers, videos, and other educational materials about your company’s products and services. Content marketing provides your prospects with something to read, watch, or learn from.
You can offer your content via your website, social media pages, a special landing page, in a blog, in the description portion of your profiles, via paid ads, or almost anywhere online. Your content should promote your brand as well as show your prospect how to use your product or service.
Video has become incredibly important. It’s no longer enough to generate text. Graphics are better than text, but video trumps them all when it comes to effectiveness, higher search rankings, engagement, and sales conversions.
The good news is you don’t have to hire an expensive video team anymore. A good video camera is less than $500, and you can also use your smartphone for some very decent footage.
It’s no longer enough to simply have a website. Being listed in online directories will help your business expand its visibility. Some common directories for small business include:
- Angie’s List
- Better Business Bureau
- Yellow Pages (online version)
- Your local Chamber of Commerce
- Google for Business (Google Places)
Some of these directories work best if you ask customers to post reviews. Be sure to also check out your industry-specific directories.
Including social media in your digital marketing is a no-brainer today. Graphic and video posts are far more effective than text posts, so it’s important to make this content switch if you haven’t already.
If you’ve focused on the “big 3” platforms – LinkedIn, Twitter, and Facebook – it might be time to try some new ones. Pinterest and Instagram lend themselves to graphic representation of your product. Google Plus is often overlooked but can help search engine rankings. And YouTube is a must because of the importance of video.
Digital public relations has been around for a while as well. If you don’t already have a Press page on your website, consider this addition. It can list contact information for reporters as well as a list of articles that your product, company, or employees have been featured in. You can also post press releases to this page.
Distributing press releases is less expensive than ever with options such as PRWeb and PRNewswire.
Make sure your digital marketing campaign has all the components above and that you have updated your content for these latest trends. Having an up-to-date digital campaign will help you generate more revenue and grow your business.
- Add to my Reminders List. If you click the button in front of this option, the current transaction will appear on your Reminders List every time it’s due. You might request this for transactions that will change some every time they’re processed, like a utility bill that’s always expected on the same day, but which has a different amount every month.
- Do Not Remind Me. Obviously, QuickBooks will not post a reminder if you click this button. This is best used for transactions that don’t recur on a regular basis. Maybe you have a snow-shoveling service that you pay only when there’s a storm. So the date is always different, but everything else is the same.
- Automate Transaction Entry. Be very careful with this one. It’s reserved for transactions that are identical except for the issue date. They don’t need your approval – they’re just created and dispatched.
- All areas of QuickBooks,
- Selected areas of QuickBooks, or,
- External accountant (you can grant us access to all areas of the software except for those that contain sensitive customer data, like credit card numbers).
- Sensitive Accounting Activities, like funds transfers, general journal entries, and online banking tasks
- Sensitive Financial Reporting, which allows access to all QuickBooks reports. The option you choose here overrides all other reporting restrictions that you’ve specified for the employee.
Before we get too far into 2017, let’s take a look back at 2016 results and five meaningful numbers you may want to discover about your business’s performance. To start, grab your 2016 income statement, or better yet, give us a call to help you compute and interpret your results.
Revenue per Employee
This number measures a company’s productivity with regard to its employees and is relevant and meaningful for all industries. If you have part-time employees, compute a full time equivalent total and use that as your denominator.
Compare this number to prior years to see if your company is getting more or less productive. Also compare this number to businesses in your same industry to see how your company compares to peer companies.
You may also want to compute other revenue calculations, such as revenue by geography, revenue by product line, or average sale: revenue by customer, if you feel these may be meaningful to your business.
Customer Acquisition Cost (CAC)
How much does it cost your business to acquire a new customer? That is the customer acquisition cost and is made up of marketing and selling costs, including marketing and selling labor. You’ll need the number of new customers acquired during 2016 in order to calculate this number.
Compare this number to prior years as well as industry peers. You can potentially do a lot to lower this number by boosting your marketing skills and implementing lower cost marketing channels.
Overhead costs are costs that are not directly attributable to producing or selling your products and services. They include items such as rent, telephone, insurance, legal expenses, and executive salaries. Although it’s not standard practice to break out overhead expenses from other expenses on an income statement, it’s valuable to know the numbers for performance purposes.
Compare your overhead costs to prior years and industry averages. You can actively manage your overhead cost by re-negotiating with vendors on a regular basis and trimming where it makes sense.
Your profit margin can help you determine which division of your business is most profitable. If you sell more than one product or service, you can compute a gross or net margin by product or service. You can also compute margins by geography, sales rep, employee, customer, or any other meaningful segment of your business.
Your accounting system may be able to generate an income statement by division if everything has been coded correctly and overhead has been allocated appropriately. Reach out if you’d like us to help you with this.
Seeing which service or product is most profitable can help you decide if you want to try to refocus marketing efforts, change prices, discontinue items, fire employees, attract a different type of customer, or any number of other important decisions for your business.
Do you know how many units you need to sell in order to start generating a profit? If not, the breakeven calculation can help you learn this information. The formula is Fixed Costs / (Sales Price per Unit – Variable Costs per Unit) which results in the number of units you need to sell in order to “break even” or cover your overhead costs.
The breakeven point helps you plan the amount of volume you need in order to ensure that you have healthy profits and plenty of cash flow in your business.
These five numbers can help you interpret your business performance on a deeper level so you can make better decisions that will lead to increased success in your business. If we can help with any of them, please give us a call any time.