10 ideas and trends of the day

business ideas, startups, investments, trends - almost every day

Problem

What was discussed at the online meeting.

Let's say we have a content project / portal for real estate in the Moscow region with an attendance of about 20 thousand per day. The main source of traffic is SEO. The site has a lot of articles, and at one time it was indexed well by search engines. They lived for themselves, they hung all possible places with banners with credit cards and mortgages. Banners were selling for $ 100 - 1000 per banner per month, earning about $ 20k - enough for a living.

But autumn 2021 has come, the search algorithms have changed. More and more influence has come to be given to behavioral factors and useful content. And it turned out that people stay on this colorful site, hung with banners for no more than 1 minute. - do not last longer. Yandex and Google began to regard the content of such a site as low-grade. The traffic dropped by 2 times. Advertisers started to fall off.

The question arose - how to live further?

5 possible scenarios usually come to mind:

  • Make sellers sell crap they don't need at a high price. Charisma works over short distances, but without a value proposition it quickly evaporates.
  • Start writing quality texts and articles. To make search engines love this site again. But it is rather long and expensive
  • Switch to another monetization model. Perhaps instead of selling banners by CPM, it will be easier to participate in affiliate programs and lead generation
  • Switch to a completely different business model. From advertising, for example, to transactional or by-subscription.
  • Dramatically cut costs, fire everyone, or close the project altogether.

parameters by which you can quickly evaluate any business

To begin with, I recommend that you familiarize yourself with the 1st part of the "profit formulas", there are basic definitions.

Let's make a simplified model in excel to evaluate hypotheses

Ideas for business

Business ROI

Every investor is interested in the question of when his investments will pay off and begin to bring sustainable profits. To assess the effectiveness of investments, the "payback period" indicator is used.

Defining ROI

The Payback Period (PP) is the period that is required for the initial investment in the project to be fully reimbursed. That is, this is the period after which the initial investment will begin to generate a stable cash flow and allow the investor to make a profit. The payback period is one of the key parameters for making an investment decision: is it worth investing in a project or not?

The payback period is simple and straightforward to understand and calculate. However, despite its convenience, it has a number of limitations, namely:

  • does not take into account all the risks arising from investment;
  • does not take into account possible pauses that will inevitably arise during the implementation of the project;
  • not Incomes are taken into account that will begin to flow after the moment of reaching the planned sales / production volumes.

There is a way to calculate the payback period:

Simple payback period

Simple payback period is calculated using the formula:

PP (Pay-Back Period) - simple payback period, expressed in years / months;

Business ROI

Every investor is interested in the question of when his investments will pay off and begin to bring sustainable profits. To assess the effectiveness of investments, the "payback period" indicator is used.

Defining ROI

The Payback Period (PP) is the period that is required for the initial investment in the project to be fully reimbursed. That is, this is the period after which the initial investment will begin to generate a stable cash flow and allow the investor to make a profit. The payback period is one of the key parameters for making an investment decision: is it worth investing in a project or not?

The payback period is simple and straightforward to understand and calculate. However, despite its convenience, it has a number of limitations, namely:

  • all risks arising from investment are not taken into account;
  • possible pauses that will inevitably arise during the implementation of the project are not taken into account;
  • Incomes are taken into account that will begin to flow after the moment of reaching the planned sales / production volumes.

There is a way to calculate the payback period:

Simple payback period

Simple payback period is calculated using the formula:

PP (Pay-Back Period) - simple payback period, expressed in years / months;

A business formula is a way to make money. Now there are many options to make money. Each of them requires a different amount of investment, gives a different result and at a different speed. However, there is the most popular formula that most businessmen use, because it is quite cheap and at the same time gives quick results.

At a time when speed is everything and money is needed urgently - it is most in demand. For this reason, most modern businessmen choose her. At its core, it is a modernization of the well-known formula “money - commodity - money” adapted to modern conditions in which the Internet occupies a significant place.

The most popular business formula today looks like this: “money - site - contextual advertising - product - money”. As you can see, there is no need to reinvent the wheel; The essence of the formula is that it makes little sense to invest money in a product or service, because they are not the main thing, the main thing is the customers. Therefore, money must be invested in clients.

Modern business formula

There is no shortage of goods and services as before, on the contrary, supply is greater than demand. In fact, the problem is just how to get an effective customer acquisition scheme. The scheme was developed and proposed above. She says that in order to get customers you need a website first. And not just a website, but an adaptive website.

Even if you have a website, this is not enough

An adaptive website is needed because now from 20 to 50% of traffic goes to mobile phones. Almost all people use the Internet, and many only use it. If you don't have a website, then 95% of clients are not available to you. Even if you have a website, this is not enough. Major search engines are now set up to rank maladaptive sites poorly.

This is understandable, because such sites are inconvenient to use from mobile phones. Visited very often leave them immediately after entering. Therefore, the first thing to do is order a responsive website. However, by itself, without visitors, the site is meaningless. There are different ways to get them, but now the most popular option is contextual advertising.

Ideal Business Formula

Effective contextual advertising is popular because it allows you to quickly and without buildup get targeted traffic to the site. Moreover, these will be 99% ready-made clients, which do not need to be heated for a long time. So, first of all, money is invested in a responsive website, and then in creating clients. As soon as you get customers you can already invest in goods.

This formula has a minus

Well, then everything is clear - I sold the goods to customers, I received money. Moreover, the better the site, the better the contextual advertising, the more customers, and, accordingly, the more sales and, as a result, earnings. The proposed business formula works. Verified both personally and by millions of businessmen around the world who have received customers and sales.

Methods for calculating the payback period

One of the main problems of novice businessmen is the issue of recoupment of a new project. then one of the main criteria when making a positive decision to create a business is to know how long the profit from doing business will only go back on investment.

Two indicators are important here - absolute and relative. This is the absolute result that was obtained from investments and is measured by the increase in profits.

One of the ways to calculate the payback period is the non-discounted calculation method.

But this is a very simple calculation, here you can see by what principle and order you need to calculate.

For a complex and serious project, you need to take into account all the costs incurred in the production and sale of goods, risks, which, ultimately, all together and affect the payback of the money spent.

It is necessary to take into account market factors, what is the demand for the product, at what stage there may be delays in the sale or production of the product. There is a lot of information now, both in books and various sites.

Rental business ROI

It is also important that it does not require the constant presence and involvement of the owner in the process itself. If the premises and the tenant are chosen correctly, then renting it out can bring a constant and stable income. Moreover, such activities can be combined with other businesses.

At first glance, assessing the profitability and payback of a rental business should not be difficult, you need to compare rental income and cost in order to get the payback period, the main indicator of the rental business.

At the same time, sellers, buyers and appraisers can calculate the payback period in different ways. Here the difference will be in what indicator will be considered income when calculating payback.

The seller usually takes the rent for the year and divides the selling price by this amount. If a room with an area of ​​220 square meters is sold, which is rented for 1000 rubles per square meter per month for 22 million rubles, then the calculation will be as follows. In a month, the income is 200 thousand rubles, and in a year 2 million 400 thousand rubles, then the payback will turn out to be 20 million / 2.4 million, 3 years. And when such real estate is sold, this period will be indicated.

We use cookies
We Use Cookies to Ensure That We Give You The Best Experience on Our Website. By Using The Website You Agree to Our Use of Cookies.
ALLOW COOKIES.