Planning and Budgeting Your New Business
And Where Domains Fit Into The Mix
When starting a business there are a few mandatory steps to follow, one of which is planning and budgeting. Every business starts with an idea – where the planning stage comes into play and a financial framework that goes hand-and-hand with your business plan. In the start-up phase, you will need to make reasonable forecasting assumptions in order to formulate your budget and this all comes before you even register your business.
Why your business needs a budget
Before you make money, you need to learn how to spend it wisely. Your budget is the roadmap to your business. When you draft a budget, you’re holding yourself accountable and being realistic about goals and expectations.
It’s one thing to say your New Years Resolution is to run more and it’s another to commit to it by tracking your progress in an app. For most of us, we need a plan keeping us on track.
Me: I’m going to save money this week
Me 2 hours later:
Other reasons you need a plan and a budget
Starting a business has a price, so you need to know how you are going to come up with the funds for your business. If you are a startup, are you using a crowdfunding platform like Indiegogo and Kickstarter? If you are a small business, are you getting a loan from bankers and other financiers? Your budget gives your financial backers a clear idea of how much you need to spend, and how much you need to bring in to meet business goals. Your budget should be flexible so it can be updated with actual expenditures and revenues and adjusted moving forward.
How much should you budget for domain names?
Your budget and your selection of domain names depends on who you are and what you are trying to accomplish. There is no one-all magic formula but here are some common scenarios and budgeting solutions.
Scenario 1: You are a tech startup. You have your eye on country code domains which are currently trending as domain hacks in your industry such as .ai – artificial intelligence, .io – input/out or .ly domain. You may also want to consider registering the .com equivalent if it is not already taken.
Scenario 2: The .com domain for your name is taken so you are looking into the new domains. You want to select a domain that makes a statement about your brand or which reflects your industry. If the .com happens to be available this is your first choice.
Scenario 3: You are an international brand. You have the .com for your brand and you are registering country code domains as you go, and as you start doing business in other countries. You may notice you get a lot of traffic from a certain region, or want to optimize your brand for local SEO so you register your domains accordingly. Since certain countries require a local presence, you may need to look into Trustee Services for domains you want to register in which you do not yet have a physical business location yet, or as defensive registrations from cyber-squatting and counterfeiting.
Scenario 4: As a large and well-established corporation you know the value of domain names and online brand protection. You have the .com for your brand and are ensuring you are the only one who can register domains with your brand term. You have your brand registered with the Trademark Clearinghouse, you have purchased DMPL domain blocks, and are familiar with filing UDRP complaints against domain hijacking cases, if any arise.
ALL Scenarios: You are what you register, but no matter who you are, you need to protect your brand and your customers online. Every website is worth securing with an SSL Certificate. Your customers want to know their sensitive information like payments, usernames and passwords are safe on your website. In addition to SSL, another must-have is Private Registration. If you do not add private registration to your domains, your information is available to anyone on the internet, and especially spammers who are looking for it. We never sell your information and customers never believe us until it happens to them. Privacy protection guards your brands information so you don’t get spammed with emails and phone calls when you register your domain.
Starting a business doesn’t happen overnight. Domains are the foundation for building your brand online from selecting the perfect name for your business and planning and budgeting. If you are starting a new business and need some advice, let’s chat!