There’s a lot involved when it comes to building a good website.
You’ve got to start thinking about SEO from the ground up.
It can’t be an afterthought.
The website needs to be safe and secure.
It needs to be fast.
It needs to look good.
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It needs to be responsive so it looks good on a cellphone or a laptop or a tablet.
It’s your bread andbutter of your business.
So you want to haveyour best foot forward.
You’ve got to have a great website.
WEB DESIGN IS BROKEN but it’s okay weare fixing it.
Today we are gonna follow on from the last video and we’re gonnatake you further along down that path to that magical place called budget.
Yeswe’re helping you to create a budget, an appropriate budget for your web designproject.
I’m still not gonna give you some magical figure because it doesn’texist; it’s all relative.
So I’m not gonna talkin terms of X pounds or Y dollars but I will be talking in terms of high medium low investment what that means only you can really know because a large investment for you might be a small investment for the next business: a small investment for coca-cola it’s probably gonna be most people’s annual turnovers! So only you will know what a large versus a small investment actually is.
Soin the last video we laid down some key things that you really need to be aware of when you’re thinking about a budget not just for a web design project but actually for anything and these are these are things, biases that that we all have as people that can really affect how we determine what to invest in things.
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By understanding these biases we actually reduce the chance of over or under-investing in a project just simply by being aware of them.
So in this video, we’re gonna look at two more very key things that are going to give you quite a reliable shortcut to determining whether the investment you make is larger or smaller.
These two things are risk and complexity.
What do we mean by risk and what do we mean by complexity? When we’re talking about risk we’re talking about the impact that it could have on your business.
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Something that is high risk could have a significant impact on your business.
The way I like to think about risk is that it’s whether it goes right orwhether it goes wrong, so it’s not just down side there’s also upside as well.
If there’s significant upside then it’s still gonna be high risk.
Low risk meansthat it’s not gonna make a huge impact on your business,it’s not gonna move the needle as they say.
Complexity is really just about howtechnically difficult it is to actually deliver this piece of functionality soif you look at, I don’t know, take bridge making as an example: if you’re buildinga small bridge across a little stream then that’s probably going to be lesstechnically difficult then if you’re trying to bridge the River Thames.
So it’show technically difficult it is to deliver and again it goes on a scale oflow to high complexity so why risk and complexity well if we plot them on agraph like so, we can see that they create four quadrants.
Now each of thesefour quadrants represents a different type of project: a high risk, highcomplexity project; a high risk, low complexity project; a low risk, highcomplexity project and a low risk, low complexity project.
Now just by exploringthese four different types of projects, these four project characteristics wecan actually start to make assumptions about what that project is going to belike and give you some shortcuts as to how much you invest in that type ofproject.
Let’s jump into it: let’s start off with the easy one low risk lowcomplexity.
So this is what I call the ‘tick box’ this is a website project thatis effectively just a tick box exercise maybe as a part of your business there’sa requirement that you have a web-based resource which goes over a whole bunchof really interesting things.
Maybe it’sjust a regulatory requirement, maybe you’ve gone for some funding and awebsite has to be a part of what you deliver.
It really doesn’t make a hugeimpact on your business if it’s just informational as these things typicallytend to be, then it doesn’t really require groundbreaking programmingskills and cutting-edge design to actually fulfill its need.
So in thistype of project you really want to be investing as little as you possibly canjust as much as you need to to get a reasonable job done.
It’s not gonna makea huge impact on your business; it’s not technically difficult to deliver youjust want something that works and that ticks that box.
So if your project is lowrisk low complexity don’t bet the farm on it there’s no point it’s not gonnabring you the return that you need pay as little as you can to get a goodprofessional job done but don’t go crazy over it.
So now we’ve got low risk highcomplexity.
This is an interesting space and I like to call this quadrant in thistype of project the ‘moderniser’.
With something that’s low risk and highcomplexity typically we’re looking at improving existing systems and processesusing newly available modern technologies.
With this type of projectwhat you really want to be doing is looking at a provider that hasthoroughly solved this problem so I’m thinking online payments companies likePayPal, like Stripe have thoroughly solved this technical challenge.
It’s notnecessarily the type of project that you think is going to completelyrevolutionize your business; it might make things a lot more efficient andyou’ll probably see some uptick in sales, engagement things like that, but ultimatelyit’s not the big game changer for your business.
So you should be lookingto invest a reasonable amount to get some off-the-shelf solutions that canactually bridge this gap and help you modernize.
Let’s jump into my favoritequadrant: low complexity high risk this is what I call the ‘punt’.
So this is myfavorite sector because this is typically where a business has spotted anew opportunity maybe a new part of the market maybe they want to spin off anexisting product or service and they just want to test it out.
They want tosee whether their offering or messaging works.
Why this is high risk is that ifit works well then there could be significant upside.
It might be a wholenew part of their business it might be a new standalone business if it goes badlythen they lose their initial investment.
Now what you want to do when you’reworking in this quadrant you what you want to be doing is thinking aboutmultiple small investments and testing religiously.
Test absolutely everythingbecause what you’re trying to do is figure out if this thing, if this ideahas got the legs to warrant a proper investment.
You want to be thinkinglanding pages; very simple to produce very easy to iterate.
You also want to bethinking about investing in things like pay-per-click advertising as well -literally buying the traffic to test against your multiple service offeringvariations.
Don’t bet the farm on this it’s all about controlling risk at everysingle point every single iteration so be very purposeful be very deliberateabout how you execute when you’re dealing with low complexity high riskprojects.
So the final quadrant is what I call the ‘moonshot’.
This is the stuff ofstartup legend.
This is that entrepreneur space where we are launching newproducts into unknown markets.
This is an area that is very similar to high risklow complexity in its approach but you should really be making significantinvestments in this area: you still need to control the risk andyou still need to test fastidiously but you might be needing to actually investheavier and produce some custom functionality.
You might need to actuallybe producing working prototypes of your product or service offering.
You can’t cut corners when you’re in this quadrant the risk is too high.
Because the complexity is high you’re probably going to be building thingsthat have never been built before; you’re needing to create technical capabilitywithin your business and understand how that impacts the delivery of yourproduct and/or service.
So absolutely never cut corners here.
The key wordsthat you should be listening out to when you’re talking about the project is ‘noone else is doing this’, ‘this has never been done before’, ‘this is brand new’,”here’s why it’s different to the competitors’.
All of these things shouldbe getting you thinking high risk high complexity.
Invest well, don’t cut cornersand test and iterate and measure absolutely everything you can.
So thoseare the four quadrants and hopefully this gets you a little bit closer tounderstanding where your project sits in those quadrants and the amount that youshould invest relative to, well whatever that means to you as a business.
Thus farwe’ve understood things about the biases and the psychology that can affect howwe make investment decisions, we’ve been able to identify where our project sitsalong an axis of risk versus complexity in the next video we’re going to belooking at some pounds and pence examples for how you can start to createthat budget or a range of that budget based on the perceived upside or theperceived savings that you’re gonna make or thatyou’re hoping to make in your web design project.
That was heavy!My name is Aaron Taylor, I’m helping you to make better decisions and have betterconversations when you’re buying a website.
Till next time!.