The Digital Business Start-Up Workbook E-Book

Cheryl Rickman

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2012

Seitenzahl: 545

Beschreibung

How do I know if my idea will work? How do I decide on the business model? How do I find my audience? Your digital business start-up journey begins here. From the bestselling author of The Small Business Start-up Workbook, Cheryl Rickman brings you a thoroughly practical guide to starting up a digital business, covering the full journey from idea to exit, with easy-to-implement strategies to make your online venture an ongoing success. With a combination of tips, exercises, checklists, anecdotes, case studies and lessons learned by business leaders, this workbook will guide you through each step of digital business. Learn how to: * Assess whether your business idea will work online/digitally * Choose the right business model for your proposition and avoid wasting time * Assess demand, viability and uncover untapped needs and gaps in the market * Build a usable, engaging website and mobile app * Create a buzz using social networking * Drive high quality traffic to your site and convert visitors into paying customers * Use search engine optimization (SEO) and marketing (SEM) tools effectively * Raise finance and protect your business * Build and maintain a strong brand * Recruit and retain a strong team * Sell the business or find a suitable successor. Reviews for the book: "If you want advice on starting your own internet business, don't ask me, read this book instead. It is more up-to-date and costs far less than a good lunch." Nick Jenkins, Founder of Moonpig.com "This book excels in providing practical guidance on how to create a successful digital business which exceeds customer expectations and keeps customers happy each step of the way." Scott Weavers-Wright, CEO of Kiddicare.com, and MD of Morrison.com (non-food) "If you read just one book on digital business, make it this one... It is inspirational, informative and interactive in equal measure. Highly recommended!" Rowan Gormley, Founder and CEO of NakedWines.com "Interspersed with inspiring and useful stories from successful entrepreneurs, this book can help aspiring business owners through a step-by-step process of refining their start-up ideas and building a solid business." Elizabeth Varley, Founder and CEO of TechHub

Leseprobe

Table of Contents

Cover

Endorsements

Title page

Copyright page

Dedication and Acknowledgements

Foreword

Introduction: Generation Entrepreneur: Open For Business

Greater Opportunity = Greater Competition

The Perfect Storm for Digital Enterprise

What You’ll Learn

Part 1: Starting Up Your Own Digital Business

Step One: The Big Idea – Create and Evolve Your Concept

Sowing the Seeds of Success

Stepping Stones: The Journey of an Idea

The Long-Term Vision

Good Idea Checklist

Step Two: Choose Your Business Model

All Change: The New Digital Currency

Digital Business Models Explained

Go Forth and Multiply

Step Three: Assess Viability and Create A Customer-Centric Business Plan

Diligence: The Importance of Planning

Destination and Direction: Plotting a Clear Path

Creating a Customer-Centric Plan

Knowledge Is Power: Gathering Evidence and Understanding

Testing Times: Get Your Product Out There

The Right Market

Research Competition: Uncovering Gaps in the Market and Growth Sectors

Creating Your Business Plan and Action Plan

Make It Official: Business, Trademark and Domain Name Registration and Intellectual Property

Step Four: Fund Your Venture

Suitable Sources of Finance

Raising Finance: Preparation

It’s Not All About The Money

The Right Match

Pitching Do’s and Don’ts

When the Ink Has Dried

Part 2: Building Your Business

Step Five: Build Your Website

Setting Up Your Website

1. Content-Rich to Attract and Retain Website Visitors

2. User-Friendly Navigation

3. Persuasive, Clickable and Indexable Web Copy to Convert Visitors into Customers

4. Aesthetically-Pleasing Design and Well-Managed Development

5. Accessible to All

6. Reliable and Fast-Loading

7. Secure and Customer-Friendly Logistics

8. Analytical

Step Six: Build Your Mobile App And Mobile-Friendly Site

Optimize your Existing Site for Mobile Across Multiple Platforms

2. Develop a Mobile-Specific Mobile-Commerce Website Which Accepts Mobile-Payments

3. Develop a Mobile App

Step Seven: Build Your Team

Staffing Options

Specifying Talent: Filling the Gaps – Defining Strengths and Weaknesses

Sourcing Talent: Finding People to Fill Those Gaps

Recruiting Talent

Retaining Talent: Keeping Hold of Your Best People

Step Eight: Build Your Brand

A Passionate Purpose: The Importance of Brand Values

Play To Your Strengths

Package Up Your Brand Identity and Image

Part 3: Running And Growing Your Business

Step Nine: Effective Online Marketing

Spark Interest Before Launch

Pick ‘n’ Mix

Digital Marketing Methods

Step Ten: Measure and Improve your Marketing and Website Performance

The Evolution of Marketing

Monitoring Marketing Performance: Accountability of Expenditure and Results

Monitoring Website Performance: Using Analytics, Tests and Feedback to Improve Results

Website Analytics: Secure All Exits

Using Customer Feedback: Listen Up

Step Eleven: Creating a Buzz Using People Power

Social Networking

1. Visibility

2. Credibility

3. Positivity

4. Profitability

Channel Hopping

Amaze and Empower Your Customers: Customer Retention and Referral

Reputation Management and Buzz Monitoring

Step Twelve: Selling Up

Timing: When is the Best Time To Sell?

Reducing Owner Dependency

Due Diligence and Value: Preparing For a Successful Exit

How To Maximize Capital Value

Selling to the Right Buyers

Selling for the Right Price

The Definitive Online Business Success Checklist

About Cheryl Rickman

References

Index

“The greatest opportunity for us in this digital age is the technology that is now available to us, yet this creates the biggest divide in business. I am often asked, what’s the ROI of social media and digital? After searching for a great quote I came across this quote, “the ROI for utilising the digital and social media tools is that your business will still be here in 5 years”. To ignore the importance of digital assets in your business is acutely naive and something that any investor, supplier or client should be wary of. Cheryl has immense experience as a researcher, writer and as a practitioner and her words will inspire and guide the beginner and the experienced business person.”

Penny Power, Founder and CEO of Ecademy and Digital Youth Academy

“If you read just one book on digital business, make it this one. This must-read workbook is brilliantly practical and, vitally, very readable. It is inspirational, informative and interactive in equal measure. Highly recommended!”

Rowan Gormley, Founder and CEO of NakedWines.com

“Cheryl Rickman knows her stuff. What makes this book stand out is that it takes you on a real journey of digital business start-up and beyond, that any digital entrepreneur will relate to; from having an idea and building your business and website, to running and selling it. The case studies are engaging and thought-provoking, the exercises are action-oriented and engaging. The result is an inspirational, practical and excellent book. I’ve always loved Cheryl’s writing, and this book confirms why.”

Thomas Power, Chairman of Ecademy

“Digital success is all about the customer – you need to excel in web experience / delivery / returns / customer service, but it’s vital to remember it’s about the customer. This book excels in providing practical guidance on how to create a successful digital business which exceeds customer expectations and keeps customers happy each step of the way. Tips, case studies and exercises within the book show you how to turn your customers into raving fans who spread the word – making this a must-read book for budding web entrepreneurs.”

Scott Weavers-Wright, CEO of Kiddicare.com, and MD of Morrison.com (non-food)

“It’s a golden moment for start-up entrepreneurs in the WIRED world – and Cheryl Rickman provides many of the tools and inspiring stories that could help launch the next digital success stories.”

David Rowan, Editor of Wired UK

“If you want advice on starting your own internet business, don’t ask me, read this book instead. It is more up-to-date and costs far less than a good lunch.”

Nick Jenkins, Founder of Moonpig.com

“Interspersed with inspiring and useful stories from successful entrepreneurs, this book can help aspiring business owners through a step-by-step process of refining their start-up ideas and building a solid business.”

Elizabeth Varley, Founder & CEO of TechHub

“Cheryl has got access to some of the best business minds and thinking in the UK.”

Julie Meyer, Managing Partner of the ACE Fund and Founder of Entrepreneur Country

This edition first published 2012

© 2012 Cheryl Rickman

Registered office

Capstone Publishing Ltd. (A Wiley Company), John Wiley and Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom

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Library of Congress Cataloging-in-Publication Data

Library of Congress Cataloging-in-Publication Data is available

A catalogue record for this book is available from the British Library.

ISBN 978-0-857-08285-5 (paperback) ISBN 978-0-857-08304-3 (ebk)

ISBN 978-0-857-08305-0 (ebk) ISBN 978-0-857-08306-7 (ebk)

Dedication and Acknowledgements

I dedicate this book to the memory of my warm, inspirational and coura­geous mother, Denise Rickman, née O’Farrell. Thank you for smiling, believing, encouraging and loving.

I’d like to thank the two most important people in my life for bearing with me while I wrote this book – my wonderful daughter, Brooke Denise and my brilliant ‘mister’, James Suddaby. Thank you both for being there, being you and being awesome. Thanks also to my additional support network of friends and family.

Many thanks to all of the inspirational and successful digital entrepreneurs who have given their time to be interviewed for this book, and to Holly and Jenny at Wiley/Capstone for believing in me, guiding me and publishing the book. Thank you all.

Foreword

I am lucky enough to hold the slightly grandiose title of ‘UK Government’s Digital Champion’ and as such I often meet people who are not online or who have recently started using a computer for the first time. Here in the UK, 8.4 million adults are yet to experience the wonders of the web. In stark contrast, the UK is top of its league for e-commerce with online retail now accounting for 17% of total retail sales – higher than any other country in the world – and with the rise of mobile commerce and the huge numbers of tablet devices sold last year, these figures can only keep increasing.

This epitomizes the dichotomy that existed when Brent and I co-founded lastminute.com in 1998 – for a long time, it was tech evangelists vs. technophobes. We spent countless hours trying to convince investors, theatres, hotels and airlines that the internet wasn’t going to blow up – and now I am having the same conversation with offliners across the UK – but in the world of business, my, how things have changed! Last year more than one billion parcels were shipped from online purchases in the UK. That’s hyper growth.

We have a great opportunity to build on the success of existing digital sector successes. I believe that by embedding digital thinking in more of business, more of government and more of the charitable sector, we can create a truly remarkable digital UK. Starting a digital business, even if it fails, is a great grounding for a career. Don’t go into a bank, don’t go into accountancy, go into a start-up. You will learn a bucket load more and you will gain solid experience. We don’t encourage enough in people to take the risk and go it alone. Whether you are in education, in work or unemployed there may well be an idea burning in you or there may be someone that needs your help. Now, more than ever let’s encourage digital start-ups.

The UK has created so many world class tech businesses – from moshi monsters to autonomy to tweetdeck, but there are certainly many more that we should all take every opportunity to encourage. The current economy creates the necessity for much more entrepreneurial and digital thinking from everyone. Whether you are looking for work, struggling to cut your cost base or launching a new product, creativity, boldness and the ability to deliver astonishing things on shoestring budgets are all more important than ever.

I am often asked what we can do to encourage the next wave of digital entrepreneurs, particularly women, of whom there are still far too few in the technology sector. My advice is ‘be bold’. This is a rallying cry for you to make that first scary step; I won’t pretend it’s easy so anything that can make it less scary is worth trying. You will need to be agile and hard working and you will never stop learning. Cheryl’s workbook will help you on your first steps towards the rollercoaster start-up journey that is both exhilarating and terrifying in equal measures. I highly recommend it.

Martha Lane FoxUK Digital Champion and Co-founder of Lastminute.com

Introduction Generation Entrepreneur: Open For Business

This global village of ours is now virtual, digital and mobile. The omnipresent World Wide Web has enabled anyone to access revenue-generating audiences from anywhere with an Internet connection at anytime, 24–7. Ultimately, where there’s an Internet connection, there’s a potential enterprise and, where there’s scale, there’s colossal opportunity.

With more people starting their own businesses to regain control of their lives rather than work for someone else to make a living, this new vast and permanently wired world is exciting for entrepreneurs. As someone who is reading this book, you probably don’t need persuading about the benefits of the digital revolution. You already know that wider access, opportunity and connection are the vital fruits of its existence; that despite not existing 20 years ago, the World Wide Web presents an unmatched opportunity for entrepreneurs to sell their products, services and expertise to a larger yet more targeted market than ever before.

Thanks to technology and the digital revolution, global web operations can be orchestrated from any location. (Amazon and Google started life in their founders’ garages, eBay was established in a spare bedroom).

Today, when start-ups open their doors for business, they can do so to the world. Indeed, living in a global village means that, as well as seizing the chance to sell, entrepreneurs can also tap into a global talent pool and source low-cost supplies from far-flung corners of the planet. The world is quite literally an entrepreneur’s oyster.

Distributed teams, suppliers, partners and customers can be effectively managed and coordinated from a single location. Workforce productivity can be boosted as enhanced mobility makes us more able. We can perform tasks from anywhere – on the move, from home, on a train or plane … And, by using advanced technology, we can perform those tasks better and faster than in previous decades.

Consequently, entrepreneurship has been enabled. We can better connect, engage, interact and collaborate with target consumers and business partners on both a local and global scale. We can involve consumers in the decision, selection and marketing process. We can analyze and fine tune our marketing messages to better inform, educate and sell to others.

Generation E (Generation Entrepreneur and Generation Web) is an ‘open’ generation. For, not only are we as human beings more open and receptive to new ideas than we have ever been, today the world’s information, products, people and opportunities are openly accessible to all.

The open participatory platform of the Internet has opened the doors to opportunity, something that entrepreneurs embrace, while the market for online trade is continuously growing. Indeed, as the physical world metaphorically shrinks and gets smaller, the world of opportunity grows in size.

Greater Opportunity = Greater Competition

However, while opportunities and the ability to leverage them have increased, so has the threat of global competition. As such, opportunity in the digital world is mutual. So, while technology provides us with the opportunity to compete on a level playing field with companies of all sizes across the globe, it enables our competitors to do the same. We share that opportunity.

Ease of access has therefore created hyper-competition, particularly in the digital space. It has created an abundance of content producers and online enterprises as everyone strives to take advantage of the digital revolution and seize their slice of the digital pie. As such, in an increasingly competitive world, where local competition has become global, digital businesses face significant challenges as they strive to survive.

And therein lies a core reason for writing this workbook: to provide a truly comprehensive guide on how to start, build and sustain a successful Internet enterprise that will stand the test of time and stay ahead of the competition; to equip entrepreneurs with a blueprint and toolkit to start up, survive and succeed in the ever-changing super-competitive realm of digital enterprise.

That said, while competition and opportunity have increased in parallel, the fast-changing nature of the digital realm has created an ideal time for enterprise to thrive.

The Perfect Storm for Digital Enterprise

Over the past decade conditions have changed. These changing conditions have created the perfect storm – a time when a culmination of events creates a unique situation. According to Skype founder, Niklas Zennstrom, ‘now is the healthiest [the European start-up market] has ever been.’1

Costs of communication, production, distribution and marketing have all been dramatically slashed, while consumers and companies alike can save time and money by comparing prices and doing things faster. Technology has evolved and become lighter and more accessible; open source software, VoIP, video conferencing and cloud computing, have all come of age. Globalization has made the worldwide talent pool, supplies and services readily available to anyone. Furthermore, the way we access the web has changed. Today you can access the Internet via a number of devices, not just via a web browser and a dial-up connection. In the early days we had to go to the Internet. Today, the Internet comes to us, wherever we are. Ultimately then, the Internet and digital realm has facilitated entrepreneurship for all.

What’s more, while the growth of digital and access to technological tools enables a faster speed to market whereby entrepreneurs can experimentally dip their toe in the water for minimal cost, entrepreneurs can also apply digital DNA to each strand of their business, not just their sales channel. Digital can filter through to each business function from data storage and telecoms to fulfillment and recruitment, making each area more efficient, productive, secure and scalable.

In order to take advantage of the technological tools at your disposal it’s vital to learn all you can about each area of digital enterprise to thoroughly enhance your chance of prosperity. This road-map to digital success will therefore equip you with the knowledge and focus you need to achieve your goals.

What You’ll Learn

180,000 people per minute search Google and visit a website following their search. This book aims to help you ensure that as many of those people as possible find your website and buy from you rather than from your competitors. It includes everything you need to know about search engine optimization (SEO) and marketing (SEM) plus easy-to-implement strategies to drive high quality traffic to your site along with tips on converting those visitors into paying customers.

From having the right idea and hiring the right people at the right time; to rolling out the right business model to the right niche audience to create rapid growth; there are many variables that can impact the level of success or failure that an entrepreneur achieves.

In this book you’ll learn the do’s and don’ts of raising capital to finance an Internet venture, discover how to manage relationships with a growing team and investors alike, plus learn how to implement sustainable online revenue streams to generate the best return on investment for both you and your financiers.

You already know how fast the digital world is moving and how quickly things change. We’ve frequently had to realign our goals and adapt with speed to market challenges and changes. As such this book recognizes the importance of being nimble and will explain how plans of action are as important as business plans to digital entrepreneurs.

We’ll also review traditional and emergent disruptive business models. Where entrepreneurs feel that consumers are getting a raw deal at the hands of big brands and the high street, new business models are emerging. We’ll examine these methods of enabling consumers and enterprise alike, from Freemium and Revenue Share models to Me-tail, E-tail and Apps.

Furthermore, you’ll notice that I’ve chosen the word ‘digital’ over ‘Internet’ for the title of this book. That’s simply because we no longer merely access the web through a browser. We can now connect to the Internet and interact with other forms of digital media in a number of different ways and through a number of different devices. There are now more mobile phone users in the world than Internet users (up from 12.4 million – 0.25% of world population in 1990 – to 4 billion – 67% of the world population). Subsequently, the Internet has become the ‘Splinternet’ – a term which describes the splintering of Internet technology and a move away from standardization. This means a well-rounded approach is needed to cover all aspects and device standards within the digital realm, from m-commerce to mobile apps; from interactive TV and radio to GPS and beyond. Forward-thinking is prerequisite to seizing digital opportunities.

So this book will guide you through the entrepreneurial journey: from concept and validation to commercialization and exit via 12 key steps. Because, while starting-up your own business can seem a daunting process, the biggest dreams are achievable if they are approached one step at a time.

This workbook will give you a master class in digital enterprise enabling you to take advantage of the digital opportunity, avoid costly marketing mistakes and, ultimately, gain and sustain that all-important competitive advantage. You’ll effectively learn how to put a great idea to work on the web. Each stage: from planning and assessing your idea through to building your website, your team and your brand, and then making plans to sell your business will be covered.

In

Step 1

you’ll examine your big idea, what makes an idea a good one, and how to evolve your idea from ‘light bulb moment’ and ‘process of elimination’ to ‘vision’ and beyond.

Step 2

will encourage you to think about your idea commercially, as different digital business models will be examined in detail and you’ll figure out how your big idea will make money.

In

Step 3

you’ll discover how to validate your opportunity, plot a clear path, research your customers and competition and ultimately decide whether your idea is likely to work or not.

In

Step 4

you’ll learn how to fund your venture, assess sources of available finance and understand how best to prepare and pitch for that finance.

Step 5

will guide you through the process of building your website, outlining the key variables to get right from engaging content and intuitive navigation to persuasive web copy and clean design.

Step 6

will talk you through how to build your mobile site and/or mobile application.

From product to people,

Step 7

will show you how to build your team and fill the gaps by sourcing, recruiting and retaining the best talent you can find to help you create a successful digital enterprise.

Step 8

will take you through the ins-and-outs of building an engaging purposeful brand that people will relate to, believe in and, crucially, trust.

In

Step 9

we’ll examine how to drive traffic to the website you’ve built through effective traditional online marketing, from affiliate and e-mail marketing to online advertising and search engine optimization.

Step 10

reveals how to harness response-boosting web analytics and testing methodologies to increase conversion click-through rates and generate the best return on investment (ROI).

Step 11

explains how to create a buzz using people power. From social networking and building hives of influencers to reputation management and buzz monitoring. The importance of collaborative partnerships is also explored, including how to make them work for both/all parties.

Having validated and implemented your ideas, built and promoted your business, the final part of your journey is

Step 12

, which explores the final destination: selling or passing your business on. It examines the best time to sell, how to prepare for a successful exit and how to reduce owner dependency.

In 1999, after writing a couple of booklets on the subject of Internet business and online marketing, I founded my own digital business as a sole trader: WebCritique – a business which reviewed other people’s websites and provided appraisals on what people were doing right and wrong. I sold the business in 2005 to concentrate on my writing. In 2000 I co-founded online music magazine, I Like Music (ilikemusic.com) with my partner, James. Eight years of organic growth later, the company merged with a music service provider and moved operations to London. James continues to run the company alongside his CEO. This all puts me in the fortunate position of being able to share my experiences, insights and lessons learned with those embarking on their entrepreneurial journeys.

However, I have also interviewed a number of digital enterprise leaders, successful entrepreneurs who share their insight; from the founders of Moonpig.com, and Kiddicare.com to the founders of iwantoneofthose.com and NakedWines.com. From Martha Lane Fox and Brent Hoberman to Sarah Beeny and Saul Klein. Everyone contributing to this book has succeeded in digital business. So, here’s your opportunity to gain insider insight and learn from them all – both from what they’ve done right and, crucially, what they’ve done wrong.

‘Never believe anyone who says they’ve not made mistakes’, says Martha Lane Fox. ‘We made mistakes all the time. We hired the wrong people at the wrong moment, we put technology live too early before we’d tested it; we bought companies that weren’t very easy to integrate; we spent too much money on bits of technology … you should be very suspicious if you’re not making a mistake at least every month and learning from it.’

Ultimately this book condenses a wealth of entrepreneurial expertise and real-life experience (warts and all) into an easy-to-digest guide to help you to pursue your dreams of succeeding in digital business and learn from the mistakes and achievements of those who have gone before you.

In a culture of enterprise and media with such a plethora of participants, this book will help you to stand out from the crowd. Some might choose to lament such a culture that enables everyone to be expressive and entrepreneurial but that world exists, whether we like it or not. So it’s time for you to optimize that opportunity, use the tools at your disposal properly, and win!

Part 1 Starting Up Your Own Digital Business

Step OneThe Big Idea – Create and Evolve Your Concept

‘Just as our eyes need light in order to see, our minds need ideas in order to conceive.’

Napoleon Hill

We all have ideas, some of them brilliant. However, an idea is merely an idea and nothing more until it is acted upon. Ultimately, the difference between those who build their own businesses and go on to sell them and those who don’t is very simple … the former do it. They act on their ideas; they just get on and make it happen. Simply put, there are two types of people in the world: those who make stuff happen and those who don’t. If you’ve had an idea and bought this book, you’re on your way to being part of the former group.

Certainly, as soon as you had an idea and decided to act on it, you’ve taken the first step on the journey of The Big Idea from imagination to reality, from thought to action, from idea to business. What matters now is how you deal with your idea; how you fertilize the seed that your mind has sown; how you convert your idea into being.

By the end of this chapter, you should understand:

The journey you will need to take your idea on, from light-bulb moment to vision.

How to fertilize the seedling of your idea and enable it to grow and flourish.

Why it’s OK to change your mind, evolve an idea and ‘pivot’ accordingly.

What criteria to follow to create an idea that is commercially viable in the digital realm.

The type of ideas that tend to work well on the web.

Sowing the Seeds of Success

Ideas drive innovation. They stimulate creativity. They furnish enterprise. Ideas are essentially the seeds of success that, when nurtured, turn into seedlings, grow and thrive. According to research by Dr Fred Luskin of Stanford University, the average human has as many as 60,000 thoughts per day. Many of them are fleeting. Within those thoughts, new ideas spring into our heads in the shower or whilst driving; some (frustratingly) arrive just as we’re drifting off to sleep.