Amazon FBA vs E-commerce Store: What Is Your Better Option?

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StrategyDriven Managing Your Business Article |E-commerce|Amazon FBA vs E-commerce Store: What Is Your Better Option?Selling online is a fantastic business opportunity. All you really need is an idea and an internet connection and you can start a business. The problem is that there are multiple ways to make this work. With so many choices and options, many people get confused and end up doing nothing.

To make sure that you make the right decision you just have to understand how certain things work. Your two main choices when starting out are to sell your product on Amazon through their Fulfilled By Amazon program or to open your own e-commerce store. In this article, we will go over both scenarios so you can decide for yourself the best route to take.

Your own e-commerce store

In theory, the best way to do business online is to have as much control as possible. If you have your own e-commerce store, you have far more control over the process, and even profits, than if you were to start with FBA.

The reason is that you are using your own website to sell your products. Amazon changes the rules, fees, and even algorithms so often that it makes things difficult for the sellers who have no control. You own your site and can do what you want with it.

In this scenario, you are responsible for fulfillment, but you are able to choose from many fulfillment companies and pick the one that works best for you. If you are early in the process, then you can also just pack and ship everything yourself from your garage until it becomes too much work.

The fees will range quite a bit to do this from the software needed to host your store, to the fulfillment fees. However, there are fees either way and you can keep more of the profits when you have your own store. You also have more responsibilities such as dealing with customer service and returns. You also have to be the one to drive enough traffic to your site to make enough revenue.

Doing FBA

Many people start their online business by selling on Amazon. One of the biggest advantages is that there are millions of people already shopping there every day. This means that you don’t have to drive traffic to your product page. As long as you use the best practices with regards to how you craft your listing then you will get plenty of free traffic to your page.

The other major factor is how hands-off it is. You don’t have to do any shipping, returns, or customer service. Amazon handles all of that. The biggest problem with doing FBA is that you pay a lot of fees. It is not unheard of to pay up to 50% of your revenue in fees to Amazon depending on the product. With how competitive the pricing is there, you have very slim profit margins. Then, there is the fact that Amazon changes their algorithm all the time meaning your product could become invisible in the rankings and sales will plummet.

How To Test Your Latest Business Project

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StrategyDriven Managing Your Business Article |Business Project|How To Test Your Latest Business ProjectComing up with new project ideas in business is what will drive growth and keep you ahead of the competition, but launching a project or idea without knowing that it will be successful (or at least having a good idea about it) is a dangerous thing to do; it could leave you out of pocket, and your reputation could be damaged at the very least.

Therefore, it is essential that you test your business project carefully before taking it any further. Here are some ways you can do it.

Outsource

Using a third-party company to test your project is a great way to see if your latest business project is viable. You will be able to receive a true assessment of the idea and some pertinent, accurate feedback about whether or not the product or service you want to implement is going to be successful for you. Not only will you gain these important insights, but you will also be able to fix any problems and flaws before you launch the product to the market. This means you will have a much better product overall, even if it takes you longer to start selling it.

Outsourcing is something that all businesses need to think very carefully about, not just for project or product testing, but for employment outsourcing, marketing, and much more. It could save you money and will certainly save you time.

Speak To Your Customers

Something else that can work hand in hand with outsourcing your product testing is to speak to your existing customers. By involving them, they will be more interested in what you are doing in the first place, but they will also be able to let you know exactly what it is they want to see in a product, what they need it to do, and even how much they are willing to pay.

Taking all of this information together means that you can come up with something that you know your customers will want to buy from you. You can even have a budget to work to if you know how much they would want to pay for it.

Speak To Other Business Owners

Depending on what your business is and what the project is you’re working on, it might be worth speaking to other business owners (not those in direct competition with you, of course) about whether or not they feel the idea is a good one. You might have a specific mentor who can help you here, but otherwise, speaking in general terms on a forum or at a conference could give you important insights.

Have A Marketing Plan

When you have a product or project that you are happy with, it is time to come up with a marketing plan. When you launch your plan, you will be able to instantly see whether or not the product is gaining enough attention. Although this is a potentially costly exercise, it is also extremely useful to see just what kind of interest your new project is getting.

There are ways to implement your marketing plan without paying out a lot of money, of course. Social media is a prime example and one that is often very cost-effective in terms of the reach it can give you.

5 Innovative Software Systems For Your Business

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StrategyDriven Managing Your Business Article |Software Systems for Business|5 Innovative Software Systems For Your BusinessMany businesses fail because the owners often find themselves preoccupied with internal business processes instead of the actual business. Owners are thus encouraged to automate most of their internal processes, to prioritize their sales and marketing.

Businesses can automate their processes by implementing governance risk management and compliance (GRC) software to help them achieve their goals and objectives while robustly addressing risks.

An excellent example of a GRC is the Service Now GRC, which enables swift business transformation based on risk-informed business operations.

Software systems are perfect automation tools that businesses can eliminate unnecessary time spent on menial and repetitive internal processes.

These applications increase and measure productivity while performing other business functions accurately and efficiently.

Here are five innovative software systems for your business.

Accounting Or Payroll System

Accounting is by far the most tedious of all business processes. A business must keep track of its salary payments, tax calculations, and day-to-day bookkeeping records.

Although people can do all these operations, the high probability of human error is a significant risk leading to destructive financial and legal issues.

Project Management Software

Projects typically consist of many sub-tasks that are done concurrently or simultaneously. These subtasks have to be adequately monitored and managed through the project lifecycles. Usually, each task has its timeline, budget, and personnel.

Managing these tasks requires incredible transparency and oversight, which many businesses often struggle with. Implementing a project management system will consolidate sub-tasks into one central hub where the responsible parties will update each subtask’s progress, budget, and timeline.

This amalgamation of information will allow businesses to monitor the progress of each task closely and hence stipulate the overall budget and timeline of the project.

Communication Software

For a business to run operations smoothly, it must develop an open and direct line of communication between all involved parties. Without this direct line, a company may experience many omitted or incorrect flows of information, thus leading to poor productivity and outcomes.

With the rise of remote working amid the COVID-19 pandemic, businesses have had to figure out a way to keep their workers connected and informed about various operations.

As a result of this surge in demand, the use of video communication tools such as Zoom, Google Hangouts, and Skype have skyrocketed in the last two years. Along with messaging or chat-based apps such as Slack and Microsoft Teams.

Web Development Software

Another surge influenced by the pandemic is the demand for functional and visually appealing websites. Many blue-collar brick-and-mortar companies found themselves out of business due to the lockdowns. As a result, they had to pivot their business models to suit the new normal. Business owners had to get online to get to their customers.

Web development is not an easy skill to learn, and it is also very costly. In response to the demand, web development companies like WordPress made it easier for people to create their websites by creating a simplified drag and drop methodology that anyone with a computer can master.

Customer Relationship Management Software

Customer satisfaction is an essential aspect of driving sales and business growth. A customer relationship management (CRM) tool helps businesses establish and nurture long-lasting relations with their clientele.

The software allows direct and continuous communication with customers from the beginning to the end of their purchase. CRM provides support to customers even months after they have made their purchase.

Businesses can conduct email-based surveys and collect feedback on the buyer experience and service satisfaction.

Software systems are a practical approach to improve business processes, reduce lead times, and minimize overall costs. Businesses are highly encouraged to use these applications to avoid redundant tasks and solely focus on their core competencies.

4 Tips for Scaling Your SaaS Business

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StrategyDriven Managing Your Business Article |Scaling a SaaS Business|4 Tips for Scaling Your SaaS BusinessOnce your SaaS business is up and running, the next thing to do is start thinking about how to scale the business. Scaling the business is important because it allows for continuous business growth, growing profits, and customer number growth. Once a SaaS business stagnates, its competitors can overtake it, considering that this is a very competitive business environment. With scaling being so important, what can SaaS business owners do to ensure their businesses keep scaling?

Streamline Product Adoption

Product adoption is crucial for SaaS businesses because it makes referrals and renewals easier for your customers and those championing your products. Streamlining product adoption means adopting effective, targeted custom support so anyone who has an issue using your product can do so easily. Providing this level of support means your staff walks customers through every step of getting started with your products.

It is also essential that SaaS businesses offer as many options for product adoption as possible. These include free trials, walkthroughs and even scheduled calls with high-value customers to make the product adoption process as simple as possible.

Streamlining product adoption has various advantages – one of the most notable ones being an increase in the number of customers not only buying your products but also making recurring subscriptions. The subscription-based model is the reason for the uniqueness of SaaS businesses and should be protected and monitored at all times. An increase in the number of subscriptions and recurring customers increases the value of the business.

Improve Customer Satisfaction

Keeping customers happy is the backbone of any business that wants to remain profitable. Unhappy customers will leave and use your competitors’ products. Improving customer satisfaction helps you scale your business by helping increase not only your revenue but also your market share. Increasing customer satisfaction is also the best way to reduce customer churn which can hugely hinder your business’s growth.

Fortunately, there are a few things you can do to improve customer satisfaction. Making product adoption easy is one way, but asking for feedback, being interested in customer satisfaction through evaluations and paying attention to negative reviews will also work.

A low customer churn rate is also great for your exit strategy, especially after you have scaled your business as far as you would like and want to exit the business.

Leverage Referral Programs

Referral programs are a great way to create brand awareness and to turn loyal customers into brand ambassadors. To get started with a referral program, reach out to existing customers to ask for feedback about your products. Once you have the feedback, you should then inform them you will work on this feedback and introduce them to your referral program. You can incentivize them to share your business and its products on the platforms they have access to in exchange for potential rewards. Getting your customers to become your advocates can have various positive effects including increased brand awareness and an increase in revenues and profits.

Enter Global Markets

Entering international markets can be a scary prospect for SaaS businesses, but it remains a great scaling strategy. Doing so gives you access to more markets and opportunities, many of which might be unavailable or hard to acquire in your home country. Additionally, entering international markets allows you to provide 24/7 support while boosting your standing in the SaaS market.
Before you take this step, do your research first to see which markets would be compatible with your business. Next, establish a headquarters in the new markets and partner with other businesses to bring your products to this new market.

Scaling your SaaS business can position your business for growth and success, especially in a very competitive sector. The tips above are a great place to get started and offer something to think over as you weigh up your options.

How to Improve the Aesthetics and Professionalism of Your Company

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StrategyDriven Managing Your Business Article |Improve Aesthetics|How to Improve the Aesthetics and Professionalism of Your CompanyWhen it comes to shoppers, investors, and even future employees, initial impressions can make all the difference. If you want to move up the corporate ladder, you will have to comply and make your company more visually appealing as well, even if the way you operate it is what matters most in the long run. Let us lend you a hand by suggesting some excellent methods by which you might accomplish just that.

Staff uniform

Make sure your employees look their best so that they can represent your company as well as you do. Ensure that all of your employees are dressed in the same uniform, regardless of the type of task they’re engaged in. Customers will be able to recognise a representative of your company if they need assistance, in addition to giving you and your company a more polished appearance.

In industries where uniforms aren’t required, such as construction, having a line of items for your employees to wear can help them look more professional while simultaneously advertising your business. Consider the following:

  • T-shirts
  • Sweatshirts
  • Hats

Even knitwear such as scarves and gloves can help you all maintain a professional appearance.

Curb appeal

To make a strong first impression, you should consider strategies to make your business more visually appealing from the outside. Possibly you’re in a shabby-looking old building? Or has your company been there so long that it has faded into the background? Regardless of why you’re trying to boost your office’s curb appeal, here are a few simple ideas:

  • Design and develop a new design for your company’s logo. Bright and bright colours perform best when combined with basic logos, but the final decision is up to you and what works best for your company.
  • If you have a space for outside seating, if you run a cafe for example, consider installing a commercial patio canopy to provide shade and a nice area to sit.
    Debris-free parking lots and other outdoor areas are a quick method to boost your company’s image.
  • Cleaning your business’s windows is more beneficial to you than you might expect!
  • Consider repainting the structure to give it a fresh appearance and to attract the attention of onlookers.

A reception area

If you own a company where visitors are welcomed by a secretary, it’s important to establish a positive first impression. Customers and visitors alike will be impressed if you design an entrance hall that’s the best of the best. Here are some ideas:

  • A big, welcoming greeting area with a cheerful and welcoming staff member at the ready.
  • Walls painted in light, airy tones, and polished concrete or marble floors add refinement and sophistication to the space.
  • Plants can be strategically placed throughout your entrance hall to keep the air fresh and to give a burst of colour.

Staff room

Finally, what’s behind the scenes can have a major impact on whether a prospective employee accepts your job offer if it’s presented to them during an interview. They’ll spend a lot of time in the staff area during breaks and even before work if they arrive early enough. Providing comfortable chairs, paintings, coffee and snack machines, and maybe a radio or television will appeal to new workers.