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By Jennifer Ortakales Dawkins

Everyone’s asking ChatGPT to do something for them — which is no surprise, since artificial intelligence is expected to be a game changer for business in 2023.

If you’re unfamiliar with the tool, imagine typing a question into Google’s search bar, but rather than sending you to a highlighted answer followed by pages of search results, it talks back in a private chat window. It uses stored information from books, articles, and websites to give you an answer, in complete sentences and paragraphs.

ChatGPT, which is free to use, launched in November as a research prototype. Professionals have used it to write cover letters, and students have used it to write their papers — then New York City banned the app from public-school devices and networks.

ChatGPT may be able to write an English essay, but there are some things it can’t do, like help you start a business.

While it’s very smart, ChatGPT is only a chatbot; I knew it couldn’t physically start a business for me. But I wondered if it would at least walk me through the initial steps.

So I asked this AI program a series of questions about starting a business.

Here’s how it went.

8 generic steps for starting a business

The main page where you can ask ChatGPT for information.

ChatGPT

 

When I initially visited the site, ChatGPT served me a 404 page — regular outages are a side effect of its sudden popularity. I refreshed the page a few hours later and was finally able to log on.

ChatGPT doesn’t do much heavy lifting. Its responses tend to be formulaic and broad, lack inspiration, and leave out a lot of useful information.

When I asked ChatGPT how to start a business, it gave me the following eight generic steps:

Starting a business can be a challenging but rewarding process. Here are some steps to help you get started:

  1. Develop a business idea: Identify a problem or need in the market that your business can solve. Conduct market research to validate the demand for your product or service.
  2. Create a business plan: Develop a detailed business plan that includes financial projections, marketing strategy, and a plan for setting up your business.
  3. Raise capital: Determine how much capital you will need to start your business and secure funding through investors, loans, or personal savings.
  4. Register your business: Register your business with the appropriate government agencies and obtain any necessary licenses and permits.
  5. Build a team: Hire employees or contractors to help you run your business, if necessary.
  6. Set up your business operations: Establish your business’s legal structure, obtain any necessary business insurance, and set up your accounting and financial systems.
  7. Develop a marketing plan: Develop a marketing plan that outlines how you will reach your target market and promote your business.
  8. Launch your business: Launch your business, and be prepared to adapt your business plan as you learn more about the market and your customers.

Starting a business requires hard work, dedication, and the ability to adapt to change. It also requires a good understanding of the market, the competition, and the legal requirements. It’s important to have a solid plan, a clear vision, and the right team in place to increase your chances of success.

ChatGPT can cater its answers to the type of business

ChatGPT answering how much it costs to start a laundromat business.

ChatGPT

 

After asking the chatbot how to start a business, I tried more specific questions, like “How do I start a vending-machine business?” and “How do I start a laundromat business?”

These prompts led to slightly more detailed answers catered to the type of business, though they still fit within the same eight-step format. It suggested identifying potential locations for the vending machines and hiring staff for the laundromat.

Finally, I tested ChatGPT’s knowledge of startup costs. It outlined six overhead costs such as equipment, legal fees, and renovation.

In conclusion, ChatGPT is not a great source for answers to your deepest business questions, but it could be a helpful starting point to gather ideas, get cost estimates, and outline your business plan.

Feature Image Credit: Getty

By Jennifer Ortakales Dawkins

Sourced from Business Insider South Africa

By Jack Smith

“Sustained business success” refers to an organization’s ability to meet the demands and expectations of its customers, as well as stakeholders, over time. To achieve this, I believe aspiring business owners must commit to the following non-negotiables.

Starting a business is easy and every year, millions of new businesses are launched. However, to be a successful entrepreneur, you must take more steps than simply registering an LLC. Unfortunately, most people only succeed in launching new businesses. Reality eventually settles in, and difficulties arise.

It is tough to build a business that is sustainable, and it is challenging for entrepreneurs to attain long-term continued growth. Competent entrepreneurs understand that nothing is as good or as bad as it seems, and following a methodical approach in pursuit of their vision will allow them to maintain the growth that will enable them to do more.

In general, “sustained business success” refers to an organization’s ability to meet the demands and expectations of its customers, as well as stakeholders, over time. To achieve this, I believe aspiring business owners must commit to the following non-negotiables.

AIM FOR IT: HAVE A BOLD VISION

There is no amount of money that can achieve business success without a bold vision. Entrepreneurs must be prepared to take a full, perhaps painful, look at where they are today, and have the guts to draw out a bold vision for the future. A clear, compelling vision sustains the path when the going gets tough—when an organization experiences the growing pains of meaningful change.

Having a bold vision inspires an organization and draws together a team that can act. To effect change, your vision must be bold enough to be the change people want to see in the world. Be bold. Be daring. If your dream and vision isn’t bold enough to inspire action, it’s not big enough.

CARE FOR IT: KNOW YOUR WHY

Having a bold vision goes along with knowing your why. Everything you do should be motivated by purpose. Businesses with a clear sense of purpose increase consumer engagement, strengthen relationships with employees, and boost financial performance. Being able to define how your business or service impacts the community and adds value to people’s lives is crucial to becoming a successful entrepreneur.

Knowing the “why” of your business gives your team and your customers a way to connect with you on a personal level and view your business as a dynamic entity.

ACT ON IT: TEST YOUR BUSINESS IDEA

Successful entrepreneurs are aware that the first step in anyone’s entrepreneurial journey is a great business idea. But how do you know when you have a winner? Even though you believe your idea is great, it’s best to test it before you invest time and resources in a business or product for which there is no market. Testing is key to see if you have a viable business model.

Business is a trial-and-error process and being willing to act mindfully is critical to success.

LEARN FROM IT: UNDERSTAND YOUR CUSTOMERS

Testing a business involves both failure and learning; how entrepreneurs deal with failure determines whether it ultimately leads to success. Starting a business also requires you to be open to learning from potential customers. Successful entrepreneurs know how to become partners with their customers, understanding what they want and thereby creating the opportunity to be the solution their customers need when they need it. Without this knowledge, marketing efforts may be ineffective and no matter how brilliant a business idea may be, it may fail to take off.

Understanding, learning from and building on your customer knowledge and relationships will put you ahead of the game.

WORK FOR IT: ACCOMPLISH YOUR TASKS

A successful business is not magic: It meets its customers’ expectations while taking care of its employees. Instead of waiting for opportunities to present themselves, successful entrepreneurs create them. While the real entrepreneur closes deals, a “wantrepreneur” outsources development.

If thriving is your aim, you must stop procrastinating, stop writing that 100-page business plan, and start executing the tasks at hand. Turn your blueprint into a battle plan focused on outcomes. It’s simple: if you want it to happen, make it happen. Just keep moving.

FINAL THOUGHTS

Entrepreneurial non-negotiables are based on sound principles, and once you are clear on these, they will serve as your compass as you navigate toward sustained business success and overcome the challenges along the way. You must be tenacious and fully committed to the necessary effort and work. You must believe that achieving business success is not only possible, but also necessary.

Feature Image Credit: bnenin/Adobe Stock

By Jack Smith

Jack Smith is the Chief Executive Officer of Fortuna Business Management Consulting, a California-based, veteran-owned IT consulting firm.

Sourced from FASTCOMPANY

By Constantine Andriopoulos

Constantine Andriopoulos is a Professor of Innovation and Entrepreneurship at Bayes Business School, in City, University of London, and the Director of Avyssos Advisors, an innovation management consultancy.

Below, Constantine shares 5 key insights from his new book, Purposeful Curiosity: The Power of Asking the Right Questions at the Right Time. Listen to the audio version—read by Constantine himself—in the Next Big Idea App.

1. Uncover your itch and turn it into a project.

On November 20, 2020, Rocket Lab, a leading California-based aerospace manufacturer, launched its Electron rocket, a small reusable rocket. The launch was the brainchild of Peter Beck, an engineer from New Zealand and the founder and CEO of Rocket Lab. Beck’s itch was to figure out a cheaper way to get things into orbit. To do so, he had to figure out ways to bring down the cost of his rockets. While NASA’s rockets can cost up to $1.6 billion to launch, each Rocket Lab small-satellite low-orbit launch, costs about $5 million.

Beck’s fascination with rockets started at a young age. As a teenager, he became curious as to whether he could build one. He started by reading as much as he could about the subject and then began to experiment with different designs in his garden shed. At the age of 18, he strapped a rocket engine to the back of a custom-made bicycle and managed to ride at about a hundred miles an hour. Instead of attending university, he accepted a toolmaking apprenticeship, while at night, he continued to develop his rocket engines. In 2006, he founded Rocket Lab. Like Beck, we should start by focusing on a purpose that gets us up in the morning, and with a conviction that everything is understandable. So how can you ignite that spark?

First, you need to get yourself into the right mindset. You must activate a sense of wonder. Then you need to look for inspiration. Inspiration may come from everywhere. Try asking questions like; What if? Am I sure? What’s next? Have I looked closely enough? Have I looked everywhere?

Then select a topic that interests you enough and that you can pursue deeply for a long time. How do you choose which curiosity journey to follow? Three things make an itch worth focusing on: boundaries, purpose, and belief.

Pushing boundaries is about addressing hard problems, seizing exciting opportunities, or going where no one has gone before. This way, your curiosity journeys will be fuelled by lots and lots of smaller puzzles or mysteries. The purpose must be personal. Be emotionally connected to a worthwhile cause and immerse yourself in it. The belief must be concrete. As a point of departure, believe that everything is understandable or will eventually become understandable, with the help of others.

Then, grant yourself permission to explore. You have fallen in love with your puzzle but wonder if you can pull it off. It is all too easy to think of all the issues that stop us from embarking on a journey. You may have caught yourself thinking about starting projects, and then jumping from idea to idea without getting started. None of us is immune to this approach, but it is impossible to start a curiosity project if we explore haphazardly and butterfly-like. You must take control.

“Don’t wait for others to tell you what to do or confirm that it is OK to start.”

Take ownership of your curiosity project. Don’t wait for others to tell you what to do or confirm that it is OK to start. Grant yourself permission! When you find something that you are passionately curious about, rather than initiating your exploration in private, go public. Declare it to the whole world! Start investing time, energy, and resources. Hand yourself over to your curiosity either gradually, or by going all in.

2. Become an expert fast.

When Marshall Culpepper, the American serial software entrepreneur, founded KubOS with an aim to develop a secure, open-source platform for space-flight software, he had to become an expert quickly. He faced a significant challenge though: he had neither the formal qualifications nor any relevant experience in astronomy. Undeterred by his own naivety and seduced by the business opportunity, Culpepper immersed himself in the science of astronomy. Searching online for insights proved very useful, but what he found particularly beneficial was Coursera’s online course on astronomy and aerospace engineering. Like Culpepper, many people who work nine to five jobs decide to teach themselves new skills, launch a business, or explore a new area of interest. They shouldn’t let their lack of relevant formal qualifications or experience deter them from pursuing their curiosity journeys.

When you are passionate to learn as much as you can about the subject that stirs your curiosity, you can create your own learning environment, set your own learning goals, and plan your own lessons. How do you go about this?

First, establish your framework. Be specific about your learning goals. What do you want to know? Develop a timetable for the subjects that you want to study. Create your schedule and stick to it!

Now create your own curriculum. You have set aside the time you need to study, and you have claimed a distraction-free place for your work. Now comes the hard part, but it is also the fun part: Gather the resources you require to fulfil your curiosity. The internet has excellent resources, but be disciplined. Before you run every conceivable search you can think of, set some time constraints and focus your search. Start by gaining a broader understanding of your new area by reviewing other people’s work online. Knowledge that has already been collected and disseminated by others has two key benefits.

First, you understand the state of the field by looking at what others are doing, and you can build on that to make further improvements. During your research, ask two questions: What is really new? What is really interesting? Soak up expertise from a wide range of internet sources: articles, academic studies, reports, blog posts, online tutorials, and courses which are easily accessible. Select what is important by filtering the noise and questioning everything you read. Search online, immerse yourself in your new domain, and practice disciplined serendipity.

At the same time, build your own community. Reach out to experts, find fellow curious seekers, and crowdsource wisdom by developing an outreach program. Don’t be afraid to ask questions. Always dig deeper. Curious people do not rely exclusively on digitized resources. They balance screen time with field trips. They search through archives, learn from specialists, and ask experts for recommendations. Piece together the puzzle by actively reading, looking for interesting insights, and spotting what others have missed.

3. Ask: Who is with me?

Click HERE to read the remainder of the article.

By Constantine Andriopoulos

Sourced from Next Big Idea Club

By Bill Murphy Jr.

Believe me, some of us need all the help we can get.

Feature Image Credit: Getty Images

By Bill Murphy Jr.

www.billmurphyjr.com@BillMurphyJr

Sourced from Inc.

 

By Kyle Krahl

As a startup, finding and procuring funding for your business is a vital step to enable growth. Impressing potential investors is only the first step in securing funding. Passing the due diligence process is just as important as putting together a stunning pitch deck. To ensure this all-important discovery phase goes well, avoid the red flags that may cause venture capital and angel investors to back out of a potential partnership.

Eventually, startups will require more funding than friends and family can provide, funding that angel investors or venture capital firms can supply. The first step to a partnership with one of these investors is the pitch meeting to interest them in your startup. If the meeting goes well and a partnership is agreed to, the startup must still go through the due diligence process.

Unorganized or nonexistent data room

To properly prepare for the due diligence process, a good first step would be to create a data room for your startup and grant investors access. A data room is typically a virtual file room where important documents and data, such as financial documents or customer contracts, can be securely stored.

The data room can be preloaded with standard due diligence requests but can also be added to as additional requests are made. Having a preexisting data room available can speed up the due diligence process and convey a sense of organization and professionalism.

Lack of founder integrity

Trust is irreplaceable for any partnership to work, including a financial one. As such, breaking that trust between the potential investor and the founder, even in a minor way, will eliminate the possibility of an investment. Behaviors to avoid include:

  • Overstating historical results.
  • Misrepresenting the use of investor funds.
  • Misrepresenting the development progress of a product.

An investment in a startup is the start of a long-term relationship between the investor and the founder. That relationship needs to be based on trust and any display of a lack of integrity will rightly cause the investor to walk away.

A weak or misunderstood customer base

As part of their investigation, investors may also review your current client or customer base. After speaking to customers, if investors discover that customers aren’t as enthralled with the product or service as had been represented, this can suggest a lack of customer outreach or a fundamental misunderstanding of customer wants.

Similarly, a small customer base can also be a red flag for investors, particularly in cases where a single customer accounts for the majority of revenue. In both cases, this may indicate that the potential growth of the startup may be limited unless it is better able to accommodate its clients.

Issues or incompetence within the founding team

One question investors consistently ask themselves during the due diligence process: Are they coachable? Refusing to accept advice or listen to an opinion doesn’t bode well for a potential partnership. Investors often have experience some startup founders may lack and, after investing so much capital behind your business and your idea, they’d like you to succeed. Guidance, mentorship and general advice are part and parcel of a relationship with a VC or angel investor and are one of the benefits of such a relationship.

In addition to coachability, investors will assess whether the founding team is competent. There will typically be three to four areas that need to be covered: operational, technical, financial and marketing. These areas do not need to be covered by separate individuals. Often, a founder can cover two or three and the others can be covered by other founders, employees, previous investors or maybe even a mentor. Investors will often probe for competence with some standard questions, based on company type.

If the company is:

  • A manufacturer, what is the contribution margin?
  • A software company, who does the coding?
  • A subscription company, what is the monthly recurring revenue?
  • A consumer products company, what demographics are you targeting?

Failure to answer any of these questions, correctly or at all, reveals a gap in the founding team that may increase the risk of investment beyond what the investor will accept.

Other considerations

Startups raise multiple rounds of funding from multiple funding sources, so a complex cap table isn’t an aberration. However, a cap table can move from complex to messy and drive off potential investors. Investors need to understand how they will get a return on their investment. If the cap table is so complex that they can’t determine how, when or why their investment will be returned, then the cap table itself has become a risk to the investment.

Investors will also examine any intellectual property (IP) a startup relies upon. This includes verifying whether the IP is owned by the company. If it isn’t, and it’s owned by a founder, an affiliated university or another third party, they need to understand what rights and exclusive rights the startup has to that IP.

The relationship between investor and startup founder is based on trust, so it stands to reason that the most impactful red flag for potential investors is either a lack of trust or a breach of trust. No sound financial partnership can be established on inaccuracies, whether they were purposeful or not. Impressing potential investors with a pitch is just the first step, now you’ll need to show them you are a trustworthy organization.

Need guidance on next steps with your startup? Anders CPAs + Advisors works with startups and entrepreneurs on their financial needs so they can focus on what they do best. Contact an Anders advisor to discuss your goals and how we can help you achieve them.

Every day at Anders, we serve as a catalyst for those striving to achieve their highest potential and carry this mentality on to our clients and community. Through a collaborative approach and a combination of tax, audit and advisory services, we help our clients achieve their goals.

By Kyle Krahl

Kyle Krahl is a manager in forensic, valuation and litigation at Anders with more than 10 years of experience valuing businesses and performing merger and acquisition due diligence. With experience seeing all angles of the financial due diligence process, Krahl is an asset for companies throughout M&A transactions.

Sourced from ST. LOUISINNO

Sourced from readwrite

Companies are constantly evolving, looking for new ways to diversify their marketing strategies to attract new customers while managing effective engagement with their existing followers.

The rise of social media, more than its traditional scope of practice, has meant that businesses and companies can increase their communication and marketing efforts towards previously under-recognized consumer markets.

As the internet spawned to become a platform through which several million companies now operate, managing direct social interactions on social media channels can be an arduous task if companies and marketing teams are properly equipped.

There are copious reasons why it’s important to have the right team and tools behind social media marketing and management. For many businesses, the idea of social media is more than basic use, but rather a place from which they can market new products and services, drive sales, increase brand exposure, offer social commerce options, and introduce brand awareness within their target audience and the greater public realm.

Aside from social commerce, these communication networks have also become a way to improve customer experience as studies show that 1 in 3 social media users prefer customer service and customer care being conducted via social media to phone or email.

These networks drive sales and create brand awareness. Still, they also play an important role in analysing target audiences and consumer markets, giving companies a broader overview of the tools and resources they require to leave a lasting impression on their followers.

Let’s have a look at five free social media management tools any small and medium-sized business owner should be considering for their organization.

Later

While Later was originally designed and launched as an app dedicated to Instagram, the platform today supports several other social media networks while constantly adding new features as it grows.

Later is more than a social media marketing tool; it helps business owners create content that is striking and engaging and generates more click-through traffic helping owners direct their followers from their social media accounts to their websites.

There is a strong emphasis on visual content on Later, which makes it a more suitable add-on for businesses looking to increase their Instagram and TikTok following. Content scheduling still plays a big role, and in recent years the platform added tools and features that help to create and schedule images, videos, posts, and stories all under one umbrella.

What’s unique about Later is that it seamlessly helps tie together several important aspects of social media management, both visual and non-visual, to bring forth a powerful platform that can be used for free.

Free subscriptions on Later still give users access to features such as analytics, saved captions, and scheduled stories, among others. For small business owners who want to splurge a bit of cash on their social media management tools, Later’s cheapest plan starts at $9,00 per month, a good starting point for any small-scale operation.

Buffer

For quite some time, Buffer has remained a strong contender in social media management, allowing users more streamlined social media marketing features.

Although the platform only supports several social media networks, including LinkedIn and Pinterest, it does have some noteworthy free features that can help small businesses effectively manage their social accounts from one dashboard.

The basic layout of Buffer includes posting schedules, a Google Analytics campaign tracker, and a shuffling queue to create and enhance the variety of posts and content on a feed.

The platform helps to scale social media marketing efforts, and it comes with a friendly-to-use interface, which is perhaps why so many businesses and social media influencers are currently using it.

In a nutshell, one could say that Buffer is more of a social media automation tool with added features and resources. A majority of the core focus does help businesses queue their content and allow for it to publish automatically. For any small business owner, automated publishing helps them to post content that will keep their audiences engaged at all times, even when they are not present or seeing slower online traffic.

Free subscriptions include a small powerhouse of resources, but business owners who are looking to scale up their operations in the coming months or years will find more benefits with their paid plans.

TweetDeck

Twitter is one of the most underutilized social media networks for small businesses, and there’s no reason it shouldn’t be, as the app sees more than 229 million daily active users as of 2022. Although 67% of B2B businesses use Twitter as a marketing tool, there is a lot of potential for smaller businesses when it comes to this social media network.

For the businesses that are on Twitter, though, TweetDeck is a simple management system that helps users create customizable social media dashboards which they can use to send and receive different tweets, manage their accounts, and monitor their profiles.

Users can upload and save future tweets and posts in their scheduling domain and set their tweets to be posted on predetermined dates.

TweetDeck isn’t necessarily the most intriguing or complex platform out there, but it does serve a good purpose for business owners who are leveraging the possibilities of Twitter.

There are paid subscriptions, but smaller businesses that can get away with the basics will be able to enjoy the standard free features.

Friends+Me

Not many business owners and entrepreneurs know about this beginner social media management platform that includes several interesting features that are available for free to any person.

Something that sets Friend+Me aside from others is that it gives users the freedom to integrate with several browser extensions both on desktop and mobile devices and works on Android and iOS.

The basic free account also gives users access to post-scheduling options and automated actions such as creating new posts or even streaming content from RSS feeds.

All other integrations can be controlled and monitored from one account and work on Facebook, now Meta, Twitter, Tumblr, and Pinterest. Although there is the opportunity for the platform to become integrated with other popular social networks such as Instagram or TikTok, Friends+Me is a straightforward tool that gives small business owners just enough power to get their social media management under control.

There are some drawbacks, and the platform doesn’t come with all the bells and whistles that one would expect, but for a small team of marketers and creators, this could be the right tool that can help get them started with social media management.

Aside from the free and basic subscription options, users can also choose from paid plans which are between $9,00 and $1,200 per month. The bigger the plan, the more one can queue and schedule posts while also adding up to 50 team members when paying for the premium subscription.

CoSchedule

With so much cross-integration between social media networks while also including a business website, keeping track of and monitoring everything can be a tumultuous challenge at best.

CoSchedule is a bit more than a social media management tool, and it comes in different sizes depending on the scale of the business and social media marketing requirements.

For starters, CoSchedule has a built-in scheduling system that allows users to upload their posts and set them to be posted at a specific time. This might seem straightforward, but users can schedule a single post that can be posted across various social media networks at different times.

Users will also be able to view performance reports to see how a campaign or post has been performing. With this information at hand, it gives users a better chance to schedule posts to be posted at times when they are more likely to enjoy better exposure and interaction from followers.

Everything on CoSchedule can be done through a tailor-made publishing schedule, even messages to followers or follow-up messages. These features are all part of the free package, and for smaller, mid-tier businesses, there is a paid option that starts at $39,00 per month. Larger companies can request a quote directly from CoSchedule.

Performance is a key driver for CoSchedule, and that’s why many companies and entrepreneurs choose to work with a platform that allows them a lot more freedom, flexibility, and autonomy when it comes to managing their social media tasks and campaigns.

Social media has become such an integral part of organizations these days that some high-end and medium-tier brands spent an estimated $132 billion on social media advertising in 2020, with some experts suggesting this figure will grow exponentially in the coming years as more brands and consumers move online.

Traditionally, social media was seen as a powerful tool to connect and stay connected; nowadays, it’s a platform through which companies can establish an intersection of both media and commerce.

Rapidly changing consumer behaviour has led to companies adjusting their marketing strategies according to their customer’s needs; without change or innovation, many could see their profits being run into the ground.

Only in the last few years have we seen social commerce play a more prominent role in the way businesses operate. Changing consumer behaviour against the backdrop of younger generations – Millennials and Generation Z – now having more spending power is leading to surging demand for digital tools for companies to utilize properly.

Shopping on social media is big money, and in the United States, it’s estimated that by 2025 social commerce will inject close to $100 billion into the local economy. The majority of this comes from younger shoppers as they accumulate wealth and increase their spending power.

Research by the Influencing Marketing Factory revealed that more than 40% of Millennials and Gen Zs shopped on social media last year.

This marks a strong turning point in how companies not only present themselves online but also how they engage and sell to customers.

While there are a lot of factors that are directly woven into the success rate of social media performance, with the right guidance and management tools, smaller companies can achieve a success rate faster and more sustainably.

Cost Factor

From afar, social media management can seem intimidating, especially for younger entrepreneurs and small business owners.

Running a single-person operation or managing a team of a couple of employees is already taxing enough; checking up on social media performance only adds more burden to any business owner’s schedule. Not only this, there are specific costs involved when looking to hire a professional or purchase specific tools that can help to automate processes.

Social media management is more than posting a picture on Facebook and Instagram or responding to customer questions and comments directly. It’s also more than uploading short YouTube content videos hoping to receive countless views in a couple of days.

While customer experience is a key differentiator between a well-thought social media strategy and a lesser-planned one, analytics, and growth help to paint a better picture of where a company should be better focusing their efforts.

Sprout Social found that although brands will spend differently on social media management as this is largely based on their needs and goals, on average, some businesses will spend roughly $12,300 per month on managing their social accounts.

The breakdown consists of content creation ($5,250 per month), social advertising ($5,000 per month), and platform management ($2,050 per month), among other types of expenses that are not always accounted for when starting.

For small business owners, entrepreneurs, and freelancers, social media management costs can take a hefty bite out of their monthly budgets and profits. Using the right tools not only makes the work a lot less streamlined but can help deliver better insights on how strategies need to improve to gain more followership, grow brand awareness and drive sales.

The Takeaway

While social media has allowed businesses a new opportunity to gain better market attention while also increasing their profitability and brand loyalty, it’s also given them a new set of challenges that are not easy to overcome without the right set of tools.

Digital advancements have made it easier and more convenient for businesses to develop a social media marketing strategy that will help them become more efficient while also delivering engaging content on multiple social network channels.

These tools are becoming omnipresent, and for small business owners, it means that they have a way to build their social media and increase followership while at the same time managing all these properties from the comfort of a single dashboard.

Featured Image Credit: Pixabay; Pexels

Sourced from readwrite

By Nell Geraets and Billie Eder

he early days of TikTok were defined by catchy dance videos and cute puppy content. Nowadays, the social media platform influences global trends and consumer appetites, transforming the structure of modern-day advertising for companies big and small.

TikTok, which was launched by Beijing-based tech giant ByteDance in 2016, is quickly becoming a leading advertising platform, challenging the likes of Instagram, Facebook, and YouTube. In January 2022, creative agency We Are Social reported that the platform achieved an ad reach of 885 million users aged 18 and over, 60 million higher than in October 2021.

Its rapid marketing rise is largely attributed to two things: authenticity and shifting marketing models.

“TikTok is the way,” said Brent Coker, director of brand partnership at influencer agency Wear Cape. “Social media helps customers feel something. It’s almost the opposite of old-school, traditional marketing, which we called ‘push marketing’, where we would push our message on people. TikTok is more like ‘pull marketing’ where we’re providing entertainment value or informational value, and people are drawn to it through engagement.”

Australian TikTok stars Maddy MacRae, Millie Ford and Ella Watkins in paid partnership videos.
Australian TikTok stars Maddy MacRae, Millie Ford and Ella Watkins in paid partnership videos.Credit:TikTok

The platform is dominated by Generation Z and Millennials, with those aged 18 to 24 making up almost 43 per cent of the platform’s total audience aged 18 and above, according to We Are Social.

This demographic seeks entertaining and relatable content. According to the Global Web Index’s 2022 Millennials: A marketer’s manual report, 32 per cent of Millennials are spending less time on social media, but it doesn’t mean they’re losing interest in influencers. Rather, they’re curating their online time by engaging with accounts that are “more authentic”, with 53 per cent of Millennials saying they want brands to be reliable and 42 per cent saying they want brands to be authentic.

Where users once sought out brands that sponsored professional models to promote their products in a manicured way – generally through formal photo shoots on Instagram – Coker said TikTok’s core demographic are now bent on the honesty policy. They expect content that is “rough around the edges” from comedians, actors, or even everyday people offering a genuine assessment in a way that cuts through the glut of content and encourages engagement though likes, shares, comments or even a visit to the company’s landing page.

“TikTok is the way,” says Brent Coker, director of brand partnership at influencer agency Wear Cape.
“TikTok is the way,” says Brent Coker, director of brand partnership at influencer agency Wear Cape.

“We have more clients asking for TikTok than ever before,” said Coker. “The average engagement rate on Instagram is about 3 per cent. On TikTok, we’re looking at people with 18 to 20 per cent regular engagement.”

Australian Maddy MacRae is an example of a TikToker who has entered into paid partnerships with brands and created videos around their products. After going viral in February 2022 from a video about being a slice of white bread, fans and brands alike flocked to MacRae, who now has a following of 1.4 million people, and is known for her relatable videos about sex, mental health and the female body.

Some of the recent brands that MacRae has worked with are Modibodi, the Melanoma Institute Australia, V Energy Drink and L’Oreal, but it isn’t about working with every company that lands in her inbox, said MacRae. The brand and product needs to align with her values and her following.

“It needs to be something that I would use, and then it needs to be something that my audience would also like, and it also has to align with the style of content I make,” MacRae said.

For paid partnerships to be successful, TikToker Maddy MacRae said she needed to believe in the brand.
For paid partnerships to be successful, TikToker Maddy MacRae said she needed to believe in the brand.

“If I can’t make it funny and engaging, I’m going to find it hard to advertise that product, and it’s not going to fit on my page.”

Since her partnerships are curated to reflect the funny and authentic videos she makes, MacRae said she doesn’t really get any criticism for advertising products for brands.

“I think 99.9 per cent of my feedback for all partnerships is positive. People enjoy the content.”

University of Melbourne honorary professorial fellow John Sinclair said TikTok’s marketing success was further evidence of the shift from the mass-media age to the social-media age, where “native advertising” – in which the distinction between entertainment and advertising is blurred – dominates.

“Social media like TikTok enable advertisers to target prospective consumers because the platforms collect data on users’ behaviour, and this data lets advertisers reach prospects selectively, even individually,” said Sinclair. “Also, TikTok is ‘sticky’, keeping users engaged for longer to continue to be fed advertising.”

Subway Australia, which has entered into paid partnerships with TikTok stars such as Millie Ford and Christian Hull since launching on the platform earlier this year, said TikTok added a level of authenticity that wasn’t necessarily found in conventional advertising.

“TikTok partnerships, and social media partnerships more generally, have become another word-of-mouth tool that can have a similar level of credibility as if you were to get a recommendation from a relative or friend,” a Subway spokesperson said.

Subway is an example of a brand that is using TikTok to make brand messaging more relevant and niche to groups of like-minded audiences.
Subway is an example of a brand that is using TikTok to make brand messaging more relevant and niche to groups of like-minded audiences.Credit:TikTok

“This is of course only successful when like-minded content creators are engaged that then create content in line with their own personal brand and values creating a more authentic outcome.”

Subway said embracing TikTok wasn’t about trying to stay relevant by jumping on the social media bandwagon, it was more about making “brand messaging more relevant and niche to groups of like-minded audiences – not always possible through traditional advertising platforms such as billboards”.

To measure whether campaigns and partnerships are successful, Subway said they track data such as views, likes, comments and reach, and that sentiment and reaction were important in modifying content to make it better next time.

According to TikTok data, 67 per cent of surveyed users agreed the app inspired them to shop even when they weren’t looking to do so in October 2020, and 74 per cent said it inspired them to find out more about a brand online.

The Global Web Index’s “Connecting the dots: Discover the trends that’ll dominate 2023” global report similarly highlights the influence that TikTok has on young people’s purchasing habits, showing that 41 per cent of Generation Z and Millennials make an impulse purchase online every two to three weeks, a figure that rises to 48 per cent among daily TikTok users.

However, the report also indicates that in 2023 it’s going to become harder for companies and social media platforms to capture the attention of their consumers. Internet and screen time, which skyrocketed during lockdowns, has now returned to pre-pandemic figures, which “is a potential sign that people have reached a kind of internet saturation point”.

And, despite TikTok’s promising trajectory, advertising on the platform could seem like an expensive uphill battle, particularly if a brand is not willing to adapt its core image to suit the app’s upbeat and natural tone.

 

Cassie Hayward, associate professor in psychology at the University of Melbourne, says one of the best ways for a brand to develop trust and rapport with potential consumers is by sponsoring user-generated content that features the product or service.

“That relies on you letting go of the reins and seeing where the creators take it – that can be hard for a brand that is used to curating and micromanaging every aspect of their image,” Hayward said. “It is also a fast-moving world on TikTok … In traditional advertising, it can be months for an idea to go from conception to production, but on TikTok you have to be lightning fast.”

For some, social media can prove fickle, says Coker. An ad may trigger a surge in traffic one week and none the next. TikTok ads are a long game – if a company is unable to invest in maintaining a relevant campaign that carefully slots itself into the algorithm of the correct demographic, it becomes unlikely it will see a return in profit.

“I think some brands will try and fail on TikTok because they simply copy-paste their ads onto the platform and that will not lead to the desired engagement and results,” said Hayward.

The platform’s speed could also accelerate costs, given ad campaigns need to be renewed to keep up with ever-increasing competition. A TikTok spokesperson said while there was no “one size fits all” approach to costs, basic ads cost as little as $5 a day, while more advanced advertising campaigns would incur a greater price.

Hayward said companies such as cosmetics retailer Mecca can thrive on such a youth-oriented app; however, insurance companies or public health advertisers targeting an older audience or adopting a more serious tone may not fare as well.

All sponsored content on TikTok must comply with Australian advertising codes.
All sponsored content on TikTok must comply with Australian advertising codes.Credit:Getty

“It’s mainly about being where their audience is,” said Hayward. “It’s very easy to come across as trying way too hard to be cool – you’ll get the cringey eye-roll reaction as users scroll past … The platform itself advises brands ‘don’t make ads, make TikToks’, encouraging brands to drop their traditional notions of advertising and embrace the creativity of the platform. But this can be very hard to get right.”

All sponsored content on TikTok – whether created directly by a company or a sponsored content creator – must comply with Australian advertising codes, including the prohibition of false or misleading claims, said a TikTok spokesperson. Any branded content must be obviously signposted as such, either through the caption or video dialogue.

But since most ads on TikTok are user-generated, Hayward said it can become harder to tell when one is being sold something, thus creating a potential ethical dilemma. And since one doesn’t need to be following an account to see its content on their “For You” feed, users have little control over how often they encounter branded content.

“More so than the influencers on Instagram, many of the TikTok creators just come across as nice people, perhaps even a friend, often with an interesting niche – vintage fashion, running, wardrobe organising, vegan recipes, life hacks – establishing this sense of community is smart marketing, but I think that’s when the line between entertainment and advertisement can get blurry,” said Hayward.

By Nell Geraets and Billie Eder

Sourced from The Sydney Morning Herald

By Roshni Wijayasinha

In an ever-changing landscape, today’s marketers are required to stay on their toes. As technologies advance and business conditions shift, so do the components that make up an effective marketing strategy. This is especially important for startup founders, who consistently need to find creative ways to market their innovative products. Despite operating on a limited budget, startups can indeed execute successful marketing strategies and campaigns by leveraging trending tactics while remaining up to date on evolving sociopolitical and legal changes that impact marketers.

As a fractional CMO at a number of growing startups, I too must stay on top of the constant evolution of the marketing space, strategies, tactics and tools to provide accurate and timely marketing guidance. Here are four of the most powerful marketing trends I have come across that you should consider when you’re developing your startup’s marketing plan in 2023.

1. Data Privacy And User Centricity

The last two years brought about major changes to the way user data is collected and used. These changes were driven by increased government legislation; consumer mistrust and an extreme level of competition in the technology industry may also have contributed. Consumers seem to be more aware and outspoken than ever about who is collecting their data, how it is being used and what rights they should have to protect it. From the death of third-party cookies to Apple making significant changes to its privacy features, the management of big data is becoming rapidly more user-centric. Companies are handing power back to the user and letting them control how much data they are willing to share. I think this trend is only going to continue through 2023.

These changes could impact your startup’s marketing strategy, as marketers must now meet consumers’ high expectations when it comes to safeguarding their data. You should cultivate trust among your customers by being transparent, such as by including easily accessible privacy policies and terms and conditions on your website. And without third-party cookies to rely on, your startup may have to target consumers differently, without using their specific data. For example, you might do so contextually. Additionally, consider incentivizing your consumers by offering them a discount or promo code in exchange for their email address or phone number, and always provide an option to opt out. This way, you are connecting with consumers who feel that they are gaining something in return for their data.

2. Podcasts And Audio Advertising

According to Statista, “the number of podcast listeners [could] surpass 160 million in 2023 after increases of around 20 million each year.” The versatility of podcasts makes them a great opportunity for marketers in that consumers can be reached anywhere at any time about virtually any topic. In the case of startups, you can use podcasts to showcase the innovations and solutions you provide, which can help position your brand as a thought leader in the industry. Consider starting your own podcast or have your startup’s founder be a guest on a podcast with an established following.

Audio advertisements in podcasts also flourished this year, and I expect this to continue into 2023. A study by Signal Hill Insights and Cumulus Podcast Network found that three out of four weekly podcast listeners say they have taken action after hearing a podcast ad. Podcast listeners can enjoy a seamless listening experience when the host integrates ads into the show instead of using prerecorded audio ads that do not fit in and disrupt the content. Podcast advertising can be an effective tactic in your startup’s marketing strategy, as it can raise awareness among your target consumers, especially if you run ads on podcasts with topics that are closely related to your product.

3. Augmented And Virtual Reality Experiences

The Covid-19 pandemic’s acceleration of all things virtual caused businesses to invest in innovative technologies that would help them weather the storm. When physical stores were forced to close, many brands developed augmented reality experiences so that consumers could get the in-store feeling at home. For example, Burberry’s Pocket Bag AR campaign in 2021 allowed consumers to design and view their own 3D handbag sculptures based on Burberry’s new campaign. In years to come, I expect that AR and VR technologies will only become more integrated into marketing campaigns as consumers signal that they want unique experiences and interactions with the brands they love.

AR and VR experiences can provide a space for startups to flex their creative muscles and do what they do best: innovate. From virtual try-ons to wearable NFTs, there are plenty of ways to incorporate augmented reality into your marketing strategy. While it can be expensive, startups may also be able to find more affordable options.

4. Purpose-Driven Marketing

While purpose-driven marketing is not a new strategy, it seems to have become more prevalent in recent years in response to consumers’ interest in social causes. Purpose-driven marketing involves centering your organization’s marketing and communications efforts around a social cause. This strategy not only humanizes businesses but can also help consumers foster a deeper connection with the brands they use and trust. There are copious examples of purpose-driven marketing from small and large brands alike, but one of the most famous is that of the footwear brand TOMS and its “One for One” model that donated a pair of shoes to someone in need for every pair it sold. Supporting a social cause through your startup’s marketing strategy is a great way to build consumer trust and brand loyalty, especially when the cause is something closely related to your startup’s core values.

Staying up to date on marketing trends in your respective industry can help you understand what channels and tactics are in demand. By applying this knowledge to your marketing plan, you can ensure that it is timely and relevant and allow your marketing communications to reach their target audience exactly how and when they need to. Startups working with limited resources can start by implementing one or two of the above trending tactics to strengthen their 2023 marketing plan.

Feature Image Credit: getty

By Roshni Wijayasinha

Founder of Prosh Marketing, a Fractional CMO & Marketing Agency that helps Startups & SMBs build their marketing practice and go to market. Read Roshni Wijayasinha’s full executive profile here.

Sourced from Forbes

By David Cohen

The research firm suggests treating the beleaguered platform like an emerging channel

A new report from Forrester, “Twitter Isn’t Canceled; It’s Downgraded,” stresses that Twitter is far more relevant to users than advertisers and provides suggestions on how marketers should treat the platform moving forward.

Forrester data reveals that 22% of online adults in the U.S. used Twitter weekly in 2022, well behind Facebook (63%) and Instagram (40%).

The company said in the introduction to its report, “Twitter ranks highly on the cultural relevancy scale but low on the advertiser priority list. It’s where news breaks, politicians debate, activists organize and niche communities meet. And despite Twitter users threatening to leave the platform, application downloads are up since Elon Musk took over. No other social media platform—not even Reddit, Mastodon or Hive—can replace Twitter for consumers.”

Principal analyst Kelsey Chickering delved further into the advertising side in a blog post, writing, “The advertising community has given Twitter more oxygen than it deserves since Elon Musk took over. The reality is that Twitter has never been a critical media channel in the overall media mix, comprising just 1.3% of 2022 digital ad spend based on Forrester’s 2022 Advertising Forecast, U.S. Why? The ad experience on Twitter has never quite caught up with other ‘legacy’ social media platforms such as Meta’s family of apps. According to media buyers and social media strategists who spoke with Forrester, Twitter doesn’t quite deliver on lower-funnel performance.”

Forrester said in the report that advertising executives it spoke with believe Twitter’s direct-response ad products pale in comparison to those from Meta when it comes to meeting lower-funnel media goals, and they only rely on Twitter for mid- to upper-funnel media goals like awareness and consideration.

Advertisers also told Forrester Twitter’s targeting and personalization capabilities are less mature than those of other social media platforms.

Forrester suggested that marketers treat Twitter as an emerging channel within the advertising maturity spectrum, breaking out that spectrum as follows:

Always on:

  • Meta: Ad formats for every part of the customer lifecycle and proven performance

Campaign-dependent:

  • Pinterest: Original Pin formats still useful but finding its way in video and commerce
  • Snap: Leader in augmented reality and advanced in providing creative resources to brands
  • LinkedIn: Top channel to capture consumers when they’re in a business mindset

Test and learn:

  • Reddit: Rising star in advertising capabilities and advanced in brand safety
  • TikTok: Social media’s darling but hard to succeed without creator partnerships
  • Twitter: Unevolved ad experience and growing brand safety concerns, but still offers a unique experience for live updates and news

The research firm added that marketers should consider the following questions when planning for the remainder of 2023:

  • Will my brand consistently appear in a space that complies with our safety guidelines? Forrester noted that Twitter’s policy on brand safety and moderation is a moving target at best, suggesting that as these policies change, brands should evaluate them against their own overall digital media brand safety guidelines.
  • To what degree is my target audience spending significant time on Twitter? Forrester said even if an advertiser’s target audience loved Twitter before, they may be shopping around, so brands should determine if their time on Twitter is growing or waning and whether they’ve transferred that time to other platforms.
  • What share of social media spend has Twitter historically held on my media plan? If Twitter hasn’t taken up a large portion of a company’s media spend to date, the dollars are probably easily absorbed elsewhere.
  • What material impact has Twitter had on our business results? Forrester believes advertisers should look at whether they have seen a dip in brand health metrics or sales after shifting their Twitter budget to other channels.
  • Does Twitter deliver an ad or user experience that’s not available on other platforms? Forrester suggests keeping a pulse on Twitter’s changing ad experience and whether other channels can deliver on a brand’s goals and audience.

Chickering wrote in the blog post, “Advertisers such as Chevrolet and Chipotle paused their Twitter spend for fear of appearing beside extremist, racist and inflammatory content. The Washington Post found ads for over 40 advertisers on white nationalist Twitter pages recently reinstated by Musk. At the same time, not every major advertiser has decided that Twitter is unsafe. Amazon continues to run paid media on the platform. Musk also introduced a ‘flash sale’ in an attempt to lure lost advertisers back.”

She suggested that brands that are not comfortable with Twitter in its current state under Musk:

  • Refrain from posting any brand content to Twitter. Direct social media teams’ efforts to other channels that meet brand safety requirements.
  • Monitor and respond to customer-service-related questions. If customers are reaching out for help or have questions about products, continue responding in order to ensure a positive customer experience.
  • Listen for relevant cultural trends or product feedback. As usage continues on the platform, use social listening tools to find out what trends are popping and how consumers are talking about your company’s category to inform your marketing strategy.
  • Test other social media channels. Twitter has downshifted into a social media startup rather than an established platform. Roll your previously dedicated Twitter dollars into a pool of test dollars for channels including TikTok, Reddit and Snapchat.

Finally, Forrester shared the reasons cited in a survey last November of 101 adults in the U.S. who stopped using Twitter or planned to do so in the next month:

  • 31% found content on the platform to be too hateful
  • 29% said there were too many bots or fake accounts
  • 28% found content on the platform to be too political
  • 21% didn’t like the amount of misinformation being spread
  • 21% thought the platform’s moderation process was too strict
  • 18% felt they needed to stop for their mental health
  • 17% don’t support Musk as Twitter’s new owner and CEO

Feature Image Credit: tanyamcclure/iStock

By David Cohen

David Cohen is editor of Adweek’s Social Pro Daily.

Sourced from ADWEEK

By Beth Simpson

More people are turning to social media, not least vertical video behemoth TikTok, for search queries far beyond entertainment. Beth Simpson of Connective3 tells us how to reach those searchers.

For years Google has held over 90% of the search engine market share. TikTok, meanwhile, labels itself as an entertainment platform, rather than a search engine. However, the latest research shows a shift in consumer behaviour, with 40% of 18-24-year-olds now turning to TikTok rather than Google for searches.

This shift should prompt brands to think about their own SEO strategies on the channel to ensure visibility across all aspects of the app, across all ends of the funnel.

The future of social SEO

In recent months we have seen a shift in consumer behavior, driven by gen Z wanting a more visual representation of what they are searching for. TikTok can fulfil these desires by providing short-form, quick, to-the-point videos as search results.

TikTok also allows people to produce user-generated content providing reviews, tips and advice on products and services. This appears to be the future of social SEO, with 79% of users admitting that UGC impacts their purchase decisions. Users are turning to TikTok for a more authentic experience, sharing content with like-minded individuals. TikTok operates by word of mouth, which we know 92% of consumers trust above other forms of advertising.

Understanding the algorithm

What distinguishes TikTok from other social channels is its algorithm. The algorithm quickly learns what type of content users want to consume, and displays content accordingly. If these preferences change overtime, the algorithm will adapt.

But what factors influence the algorithm? The largest influence is user engagement: accounts you follow, likes, comments, shares and saves. The algorithm also works with keywords in video captions, hashtags and audios to identify what videos are about and assess what content you may be interested in.

Joining the search

TikTok is an enormous contributor of new customers to all sorts of brands. Your marketing strategy on TikTok should be a combination of both paid ads and SEO; this will help you leverage new audiences across the funnel.

With search ads beginning to roll out across the channel, there is yet another opportunity to get in front of your target audience, with a high purchase intent. However, this is based on intent through search queries, rather than user behaviour (in comparison to standard social ads).

Effective SEO strategies on TikTok: 4 steps

This is still a very new feature to TikTok, which gives brands the opportunity to test, learn and make mistakes while cost per mile (CPM) is still low. Your first priority is to understand your audience and what they are searching for, understanding their intent.

Second, research and understand the keywords your audience will be searching for and capitalize on this. Consider search volume and relevance.

Third, Incorporate keywords into your video. In September 2022, TikTok increased post descriptions from 300 characters to 2,200, allowing brands to make their videos more discoverable and reach a larger audience. Don’t forget to incorporate hashtags.

Finally, as with all marketing strategies, learn from your mistakes and continue to test. TikTok search tools are constantly evolving, and new features are being implemented. Don’t be afraid to try new things and see what drives results for your brand.

While TikTok remains a relatively new space to test, now is the time for brands to make mistakes and develop a strategy that works while remains low. There is also a huge opportunity for brands to get ahead of competitors who have not yet established a presence on the channel and get in front of a new audience. An SEO strategy should therefore be just as important as a creative strategy when it comes to being successful on TikTok.

Feature Image Credit: Firmbee / Pixabay

By Beth Simpson

Sourced from The Drum