Online companies fare well in today’s marketplace. The potential to grow your business through a robust online presence is tremendous. After all, over 55 percent of customers search a business online before availing its services. So, if you have a website or an online shopping option, you are likely to increase your sales turnover.
As a business owner, there are certain things you strive for. This includes increasing your customer base, achieving your bottom line and increasing the net worth of your business. Boosting your online business’s net worth can be easily achieved if you know what to do. Here are 4 essential tips you can follow.
- Improve your site traffic
One of the factors that influence the net worth of your online business is site traffic. The more online footfall there is, the higher the net worth of your business. Therefore, to increase your business’s value, start by analyzing your site traffic. Ask yourself the following questions:
- How much of your traffic is dependent on search results? (This will tell you the component of your traffic that might get affected by changing algorithms)
- Is your search engine ranking stable or does it keep changing? (This showcases the sustainability of your site traffic)
- Have you witnessed an increase/decrease in online footprint owing to changes in search engine algorithms? (This indicates the need to change your SEO strategy)
After answering these questions, implement the required changes to boost your website traffic and conversion rates. There are many ways of doing it.
For instance, start by improving your website design. Choose an ecommerce website design company to do it for you. It will help you boost the speed of your website while making it visually appealing. This helps in improving ranking, and hence attracting visitors. Additionally, create and manage your Google ‘My Business Page’. It has been observed that companies with an optimized listing are seven times more likely to be visited by online visitors.
- Target a blue ocean
Enhancing your online company’s net worth isn’t different from a solely owned brick and mortar store. Some tips remain viable either way. One such helpful tip is targeting a niche.
As a small business owner, you might have heard of red and blue ocean strategy. The former refers to an industry that is already saturated with competitors. Here, to increase your market share, you must take it from someone else. Compared to this, a blue ocean refers to industries that are novel and not yet been explored. Or, you can revamp an industry by offering something no one else delivers, therefore making all competition irrelevant. For example, if your city doesn’t have an online leather skin shop, you can start one. This will give you an edge over others and allow you to make uncapped profits.
Generally, these markets tend to focus on a niche. Multinationals are seldom present in small niches, thereby giving you room to grow and do well. Rather than trying to compete with established players, create a new industry and become the pioneer. This will ensure that you achieve high profits, and hence a high net worth.
- Develop your own products
There was a time when Amazon was only a platform where you could buy and sell books. It eventually grew into an online retail platform that made Jeff Bezos one of the wealthiest internet business owners of the world. Now, Amazon is also producing its own products.
Its business model is an excellent example of what online businesses should be doing to increase their net worth. Let’s say you are an Ecommerce store. You must strive to develop your own products if you wish to build your net worth. Rather than just being a bridge, being a manufacturer of products helps in adding value to a business. Not to mention it gives you intellectual capital, which is an asset just like machinery and equipment.
So, to improve your net worth, invest in product development. However, don’t just produce something that is already widely available. Develop something that is unique and aligned to customers’ needs. Remember, your business will only derive value from the said product if your customers find any use of it.
- Reduce or eliminate your debt
There are various different ways to calculate the net worth of your business. It can be based on your cash flow, profits, or traffic. One thing that remains constant in all is debt. Debt affects your net worth regardless of what method you use to measure it.
Any company with a high net worth has very low debt. You need a good debt to asset ratio to be termed as a successful business. While it might not be possible always but do try to get rid of all the debt that your company has. If you have any loans due, try to pay them off. This will help your business’s net worth as well as give you peace of mind.
A great way to boost the debt payoff procedure is by refinancing your current high-interest loans. By refinancing these to low-interest loans mean that you pay more principal amount in the same period. This will help you in paying off the loan faster than a high-interest rate loan. If this is not an option, increase the frequency of your repayments.
These 4 tips are very handy in trying to boost your online business’s net worth. Give them a try and witness a significant improvement in the value of your company. At the same time, ensure that you make your customers’ satisfaction your priority. Companies with a loyal customer base are ones that tend to stay in the game for a long time. And sustainability is essential for success!