The sukip blog

1. Emphasize what your site offers is of value to users and how your services differ from those of key competitors

Compliance rate: 27%

This is one of the most important issues in homepage design, so it’s particularly sad that it’s the least followed of all the guidelines. Websites are incredibly bad at explicitly stating what they offer users. Instead, they hide their offerings in generic marketese that makes very little impression on prospective customers.

Remember: when users have needs, they typically query search engines and allocate only a few seconds to scan each of the sites that the search engine drags up.

2. Use a liquid layout that lets users adjust the homepage size

Compliance rate: 28%

Fighting frozen layouts seems a lost battle, but it’s worth repeating: different users have different monitor sizes. People with big monitors want to be able to resize their browsers to view multiple windows simultaneously. You can’t assume that everyone’s window width is 1024 pixels: it’s too much for some users and too little for others.

3. Use color to distinguish visited and unvisited links

Compliance rate: 33%

Knowing where you’ve been is one of the three basic features that all navigation designs should support. (The other two are “Where am I?” and “Where can I go?”)

It’s sad that only a third of corporate homepages tell users at a glance which site areas they’ve already seen. Navigational confusion results when designers disable one of the few useful features of a standard Web browser: having visited and unvisited links appear in different colors. Our testing has shown that violating this guideline is particularly harmful for elderly users.

4. Use graphics to show real content, not just to decorate your homepage

Compliance rate: 35%

For example, use photos of people who have an obvious connection to the content as opposed to using models or generic stock photos. People are naturally drawn to pictures; gratuitous graphics can distract users from critical content.

Stock photography sellers are doing a brisk business, but users don’t believe that your product will make them happy just because there’s a smiling lady on your homepage. Better to show your actual product.

5. Include a tag line that explicitly summarizes what the site or company does

Compliance rate: 36%

Our recent study of how people use “about us” information on websites did find that most users could eventually dig up information about a company’s purpose. But why do most sites make prospects work so hard?

In keeping with most advertising slogans, content-free tag lines abound. Once you’ve paid millions to get a useless slogan developed, it’s probably hard to accept that it won’t work for your website.

I suggest a compromise: put the useless slogan in a graphic banner next to your logo, where it will be ignored. Then add a true tag line in plain-text format in the content area where people will actually see it.

6. Make it easy to access anything recently featured on your homepage

Compliance rate: 37%

For the Alertbox, 80% of the readership happens after a column has passed from the homepage into the archives. In general, users remember when they’ve seen something interesting on a homepage. However, unless that homepage lists recent features and offers links to them in the archive, users will never be able to find what they’re looking for on subsequent visits.

7. Include a short site description in the window title

Compliance rate: 39%

This is mainly important for search engine visibility, but why not take advantage of this superior — and cheap — form of Internet marketing?

8. Don’t use a heading to label the search area; instead use a “Search” button to the right of the box

Compliance rate: 40%

This is a small point, but there’s no reason to label the search box if there’s a “Search” button right next to it. Interaction design’s less is more principle tells us that extra elements in a dialogue distract users from the salient points and reduce their ability to understand an interface. (In other words, with less to consider, people understand more of what’s there.)

9. With stock quotes, give the percentage of change, not just the points gained or lost

Compliance rate: 40%

This guideline only applies to sites that provide stock quotes, either in the investor relations information or elsewhere. With stock quotes, the general principle is to help users understand the relative magnitude of a change, and thus its true importance. (A similar guideline applies to presenting other statistics that change over time.)

A stock increase of $0.75 means very different things if the starting price was $8 (a booming 9% leap) versus $60 (a modest 1% gain).

10. Don’t include an active link to the homepage on the homepage

Compliance rate: 41%

This is a special case of a guideline that applies to all website or intranet pages: never have a link that points to the current page. (A button to refresh stock quotes or other changing information is a different matter, and should be presented as a command button rather than a navigation link since it doesn’t lead to a new location.) Active links to current pages cause three problems:

If they click it, a link leading to the current page is an utter waste of users’ time.

Worse, such links cause users to doubt whether they’re really at the location they think they’re at.

Worst of all, if users do follow these no-op links they’ll be confused as to their new location, particularly if the page is scrolled back to the top.

Homepage links on the homepage typically result from using a universal navigation bar that includes “home” as an option. Fine. But when users are on a page that’s featured in the navbar, you should turn off that option’s link and highlight it in such as way that indicates that it’s the current location.

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1. Look for Genuine Problems

Above all else high-growth companies must solve painful problems. These are problems so pressing that a customer is compelled to spend money on your product to solve them. And the greater the pain the customer feels, the more they’re willing to pay.

Translating the pain of the problem into the solution involves two steps. The first step is to define the problem well by understanding the size of the problem, the severity of the problem, and the likely alternatives. Once you’ve determined the problem is real, the second step is to translate the size of the problem into the monetary value of the solution.

2. Size up the market

Illustrating the severity of the problem only illuminates part of the picture – the fact that a potential customer would be interested in our solution. You still need to demonstrate that the problem is bigger than just one person. Look for the larger application of the problem. If it’s severe and affects a huge audience, you’re on the right track. If it looks like the problem only affects a select group of people, you may not have much opportunity to grow the business in the future.

3. Scale Quickly

Look for some aspect of your business that can be created once and sold many times. It could be a piece of intellectual property (like a market report), a method (like the formula for how you solved a client’s problem), or the solution itself (you can resell the e-commerce software you built for a client).

Identify the aspects of your business that increase in value to your customer as more customers are added or the service gets larger. What can a customer contribute by using your service that will add more value to the next customer behind them? That’s where you find your market leverage.

4. Address Big Markets

It’s impossible to become a billion-dollar company if your vision is for a product that can only service a $10 million market. Addressing big markets is all about going after the biggest pie but start off only taking small bites you can swallow. Look for big markets that can be addressed incrementally. Put yourself in the position to address those markets by tackling smaller problems extremely well and using that momentum to become a bigger player.

5. Grow Profitably

Analyze your growth projections. Does scaling really make you more profitable or just bigger? If your business doesn’t need size to be profitable, why aren’t you profitable right now? Make sure you understand when profit requires scale and when the two are independent.

Startup companies can therefore grow very quickly at the cost of profitability and that’s a huge problem. Companies must go to market with business models that put profitability and sustainability at the forefront and use “give it away for free” tactics as a means to an end – not the end.

6. Compress Time

It doesn’t take much time to get a company into the market anymore. For some ideas it doesn’t take much more than the creation of a website to get your company ready to start serving customers. A company as big as Yahoo! can get started by two guys in a room with a collection of Web links.

Startups these days need to learn how to “compress time” in their formative stages so that they can get to market as fast as humanly possible. Many of the oldschool rules don’t apply anymore.

7. Build Backwards

Starting with the end in mind encourages focus on what we are setting out to accomplish. This in turn makes it easier to eliminate any tasks that won’t bring us closer to our goal. Organic growth is interesting, but it’s fundamentally unfocused. Chasing random opportunities and figuring it all out as you go can be disastrously slow.

Most companies never look past the next year in real, quantifiable terms of growth. Building backwards forces you to lay out the milestones of exactly where you want to be in the future so you can figure out the shortest path to that destination.

8. Cut Out the Fat

Startup companies simply cannot afford to waste time, especially in today’s business climate when a year can mean the difference between being the next Google and being one of the dozen companies who tried to follow them. To stay lean and mean you need to remain intensely focused on the few aspects of your business that matter – getting customers and proving the business model.

9. Squeeze out the air

Squeezing the air out of your business is critical to get to market faster. Big companies live by the motto “anything that can be done faster, should be done faster!”

It’s all about taking as many shortcuts as possible. And you have to, because if you can’t find a faster way to get your company up and running quickly, your competitors will. Once you are established and growing you can begin to fill in the holes you created along the way. The goal right now is to be around long enough to worry about those holes.

10. Identify Growth Factors

Having big visions and big dreams means nothing without a strategy to make it happen. I can tell you first hand that what I’ve found to work best is to set a course for big growth and to keep making adjustments along the way. No one plans for “Google growth” on paper and just executes from the same playbook they devised on day one. You need to keep testing your assumptions and making changes with an eye on fast growth the entire time.

11. Act like Number one

What you’ll find is that these Number One positions have very little to do with the actual size or growth of the company (at least initially). They are about the intelligent positioning of a company to be perceived as a leader, or said differently as the winner before the race has begun.

It probably goes without saying, but thinking like Number One is a mind set that starts with the leadership of the organization and is ingrained in the culture of the company. It’s not enough to simply say “we should think like Number One.” You need to live it and breathe it every day in everything that you do.

If you can find a meaningful niche to dominate, especially if you are just getting started, you will have created a very powerful weapon to use against your competitors large and small. The trick is knowing where to place your bets.

12. Create Capital

While we ultimately want to race to get to profitability and big riches, it’s important to understand how being broke shapes the character and focus of a company for the better. Growing a great company isn’t just about the executive corner office and the perks of ownership.

It’s about creating a living, breathing enterprise that can compete and sustain effectively over the long term. Knowing where you are going to spend the money is easy. Knowing exactly how that money is going to translate into a big profit is what investors really care about. That’s the part of the model that you are really trying to prove. If you haven’t demonstrated that you have found a pattern for success that simply needs more capital to get more success, you’re not ready to move forward.

14. Raise Capital Last

So when the time comes that you’ve proven you’ve located the silver bullet in your business, you’ve validated the model with some real paying customers, and you’ve found yourself at a point where the only thing that can force you to grow faster is to add more capital, it’s time to talk about raising money.

15. Small is the new BIG

Big companies have more weaknesses than ever before, particularly in markets that are evolving quickly. Look at what happened to the music industry just a few years after the first copy of Napster hit the Internet and downloading an MP3 song for free became a lot easier than buying one.

However you decide to position your company in the long term, the one asset you cannot afford to lose is your speed and responsiveness. These days the best way to Go BIG is to stay small!

(I am a little superstitious so you will not find a point number 13 on this post )

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To completely understand this post, I suggest first you read my earlier post on “Why this is the Best Time to be an Entrepreneur?“

So what does all of this mean? It means that the windows of opportunity to address new markets are closing much faster than ever before. You simply have less time to get a lot bigger than ever before. Each of these changes will manifest itself into a handful of challenges that every startup will have to deal with.

#1: Competition will show up faster

When you significantly reduce the barriers to entry for new companies to get to market you create more competition a lot faster. Your competition is no longer just a few well-financed companies; it’s every college kid with a big idea and some time on his hands.

For you this means that your window of opportunity to be first to market is tiny at best. You don’t have time to “feel the market out” and see what happens.

While the lowered cost of starting a company is great for you, it’s just as great for your competition. As a result, you need to be prepared for an onslaught of competitors in a very short period of time.

#2: Companies will grow bigger, faster

Telecom companies like Skype grew from startup to 50 million customers in less than three years. Google went from obscurity to a company with a $100 million market cap in just a few years. The rate at which the new generation of startups can grow is astronomical.

This means that unless you are ready to grow madly you are going to get run over by the next competitor. The maturity of the Internet has created a thriving platform for companies to scale quickly and cost effectively. Unless you have a plan in place to take advantage of these opportunities, you’ll wind up being a footnote in the history of your industry.

#3: Number One will take everything

Not only do startups like Google, Skype and NetFlix enjoy the spoils of new market opportunities, they also get all the attention from the people that matter most – customers, the media and investors. If you’re not sure about that, can you tell me who is Number Two next to Google, Skype and NetFlix? If you’re like most people you have no idea.

In order for your startup company to compete (and win, because that’s what it’s all about, right?) it needs to think BIG, grow fast, and take a Number One position before anyone can possibly challenge you.

Oh, and that all needs to be done in about three years, not ten!

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You first need to understand that the game of starting companies has changed a lot in just the last few years. In particular, some important things have happened that made the startup game much easier and far more competitive at the same time. Also read my other post on “Top Challenges in the Changing Business Scenario“

#1: The key ingredients got cheaper

In the last few years the price of each of the key ingredients of starting businesses such as payroll, marketing, technology and such has simply plummeted, which in turn has significantly lowered the barriers to entry for startup companies.

#2: Technology

Software has gone open source (read: free), connectivity and hosting are dirt cheap and you c
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an buy a fully functional PC on eBay for almost Rs 10k. Even the ridiculous costs of long distance telephone service have become a thing of the past (we love you Skype!)

You can legitimately take care of all the technology startup costs for a company for about Rs 20,000. Sweet.

#3: Marketing

We can thank Google and Overture for this one. With the rise of cost-per-click and search engine marketing we saw the rise of performance-based marketing that allowed companies to pay for ads that worked, not just for ads that ran. Now a startup can begin attracting customers with a marketing budget of just Rs 10,000 and grow from there.

#4: Development Cost

The days of the HTML programmer making Rs 10 Lakhs and taking his dog to work are over. Now that work can be done for Rs 100 per hour – or less.

#5: The Internet actually happened

The promise of a billion people instantly connected to the Inter
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net sounded like a pipe dream in the mid-90’s, but guess what? It actually happened.

Today over a billion people are connected to the Internet and using it like crazy. Heck, since the Internet took off I can’t even remember the last time I visited my local bank or walked into a movie store to rent a movie. I don’t even know if real live travel agents still exist anymore thanks to MakeMyTrip.com and others…

#6: Viral Marketing

Companies like Napster, PayPal and MySpace have grown to tens of millions of users within just a few years simply by referral. That same rate of user acquisition a decade ago would have cost tens of millions of dollars and would have taken ten ye
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ars.

#7: Speed is King

If the next generation of high growth startup companies has shown us anything, it’s that “speed is king”. Companies like Google, Skype and NetFlix have shown us that it wasn’t about adding more employees and office space as quickly as possible. It was about addressing changing market conditions as quickly as possible with products that could scale big and fast.

Examples

Google

Proved to Microsoft that being the world’s largest software company was useless if you couldn’t respond quickly enough to changing market conditions, like the rise in ad-supported searches. Google is now worth almost half the price of Microsoft.

Skype

Grew to over 50 million users of its voice over IP service before big telecom could ev
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en begin to respond to the opportunity (they still really haven’t). Skype was sold to eBay for over $4 billion dollars after just 3 years in business.

Netflix

Forced Blockbuster to abandon its cash cow – movie rental late fees – to try to stay competitive while NetFlix completely changed the movie rental model on them. NetFlix is now approaching 4 million subscribers and the “dark years” of late fees are now only a horror story told to young children.

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Here are some questions which you must be aware of if you are an entrepreneur…

Are you doing a good job meeting the needs of your small business?
Keeping a good handle on finances?
Doing enough networking?
Do you have a system for organizing your marketing strategy?
Do you even have a marketing strategy?

A jack of all trades is what you need to be if running or starting a new business.

In this blog post, we cover 15 web2.0 applications for entrepreneurs who are looking for simple, cheap, and effective solutions to solve some of the tasks facing their small business or startup. All these have resulted in some way or the other while the making of sukip..
Finances

1. Prosper

Prosper is a new type of peer lending service which brings individual lenders and small business borrowers together. So your loan may come from multiple sources, or a single person. Alternatively, if you already have a group of investors you already know, such as friends and family, Prosper manages the transaction’s lifecycle for you. Regardless of whom you borrow from, Prosper takes a small percentage for managing each loan. For the entrepreneur looking for alternative financing, peer lending can be a great solution.

2. Dimewise

Dimewise lets you record your purchases/expenses and categorizes them. Then, when you’re wondering where the heck last month’s budget went to, you can produce a pretty pie chart showing you exactly what you’re spending your money on. This one has really helped us while working on sukip.

Timesheets & Billing

3. FreshBooks

FreshBooks is an app designed with the web-based entrepreneur in mind. Not only does the program let you bill clients via email with professional-looking invoices, but clients can also pay you online via PayPal, Authorize.net, and other options through FreshBooks.

4. Harvest

If after a long work day you often find yourself trying to wonder what exactly you did with all your time, both you and your small business would probably benefit from some time tracking. GetHarvest offers ten reasons why you should use their time tracking solution, including professional quality reports, Internet-based access, daily data backups, and privacy.

Collaboration

5. Campfire

The much celebrated product company 37 Signals has a suite of award-winning tools for collaboration and productivity: Campfire for group chat, Basecamp for collaboration and project management, and Backpack for organization (calendaring). Among these, the most useful tool for small business owners is Campfire. The application offers password-protected chat rooms to which you can invite clients, vendors, colleagues, and employees. These secured rooms are an excellent place to conduct negotiations that may involve sensitive company data without fear of having that information compromised.

6. Meebo

If you’ve used any of the text chat IM clients such as AIM, Yahoo Messenger, Google Talk, or MSN Messenger (aka Windows Live Messenger), you’re aware of one fundamental problem: they don’t play nice together. For online companies where an increasing amount of business is conducted over IM clients, making yourself accessible to everyone through a bridging app like Meebo can mean the difference between success and failure.

7. Userplane

Userplane offers a suite of communication and conferencing tools, the most useful of which is called Presence. Presence is the new hot niche tool in telecom, be it over the Internet, cellular networks, or the good old regular telephone system. The technology allows a communication system to “know” where a user is and to reroute calls and messages accordingly to the specific device he is near. For those entrepreneurs who work from home, the office, and the road, this app is really helpful.

Organization

8. Google Calendar

Can we miss google in any list?? I don’t think so, and here comes google calendar with its ease of setup and use. With Google Calendar you can quickly set up multiple calendars for different projects or clients, as well as link up to public calendars which can help you stay synched with your client’s activities. And for the entrepreneur on the go, Google Calendar even lets you check on your schedule from a mobile phone through SMS messaging.

9. Neptune

Neptune is the ultimate in practical planning. This web2.0 application won a spot on this list primarily because of its ease of use and simplicity. It’s a GTD (get things done) type of to-do list application with multiple project folders and drag and drop task reordering.

Networking

10. Linked-in

LinkedIn is the new, hot, de rigueur networking tool for professionals and entrepreneurs. It builds on the concept of six degrees of separation, which says that every human being is connected to every other human being through at most 6 people. Entering into a network means being able to take advantage of business opportunities, asking for, or offering advice, and letting people in your network know about your projects. The best part? You’re connected to everyone that your direct connections are networked with.

Online Office

11. Zoho

Zoho has one of the best-rounded offerings of web-based tools for the entrepreneur/ business person, including an Office Suite (Writer, Sheet, Show, Wiki, Virtual Office), Productivity Tools (Projects, CRM, Creator, Planner, Chat), Polls, and website monitoring. One of the most useful applications, however, is Zoho Challenge, which lets you test and evaluate job candidates using a combination of multiple choice and descriptive questions. Candidates can then be emailed results for one or more tests. Perhaps the best feature is Zoho Writer, a superb web-based replacement for Microsoft Word.

12. EyeOS

If your company would benefit from having multiple employees having access to the same documents, images, and programs, but they’re spread around the world, a shared online operating system might be the answer. EyeOS is Open Source and can either be downloaded and installed to your own server, or run off their public server. Once EyeOS is setup, anyone with the correct username and password can access the “desktop”, no matter where they are located. That means that if you and your employees are frequently working off the same data or tools, EyeOS may be the ideal application for your company.

Promotion and Marketing

13. Veetro

Veetro is designed to be a one-stop organizational and promotional application for small businesses. It offers a wide range of tools from invoicing and project management to customer support. The most useful aspect of Veetro, however, is its emphasis on client development and sales. With built-in lead tracking, email marketing, customer support and direct advertising functions, Veetro is an excellent tool for small businesses that are making a push to expand their client base or break into a new niche.

14. Qoop

Qoop, there it is. When it comes to promotional/advertising efforts for your small business, Qoop is an excellent resource as it allows you to create calendars, posters and other “memorabilia” with your company’s logo added. Qoop goes beyond sites like cafepress by taking numerous web2.0 photo sharing sites and networks including photobucket, webshots, and flickr and mashing them up.

15. YouTube

Don’t underestimate the value of YouTube to a business, especially because of its pseudo-social network and category tagging. Other web2.0 applications in alpha and beta stage post screencasts of their “secret” software to create some buzz. The innovative entrepreneur will come up with some way to utilize YouTube or similar sites such as revver to promote their business.

Being an entrepreneur has always been a high risk / high reward venture. And while you cannot control things like market fluctuations, being smart about how you spend your time and energy can dramatically improve your company’s chances of success.

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