How Much Money Should I Invest for a New Website?

The first step in getting a new website is admitting that you need one. Congrats! 🎉 The next step in the process is figuring out what you need your website to do, and how much cash flow to set aside for your investment.

While the overall formula may differ from business to business, the one thing we like to advise our clients is that what you put in, is what you’ll get back out. Make sense, right? Another rule of thumb is to invest in a website early. If you’re a seller who opens a brick and mortar without a nod to your e-commerce solution, there’s a chance you could begin using a POS that doesn’t integrate with your e-commerce site when it comes time to build one. It’s a good idea to tackle the online and IRL store together to make sure the two systems are talking to each other when it comes to getting those dollars!

OK, enough with the preliminary stuff, let’s get into it!

When it comes to investing in your website, work towards putting 5% of what your business makes a year into your site. So for example, if your business is bringing in 100K a year, you would want to invest 5K of that in your website each year.

We hear what you’re saying, “really, each year?” The answer is yes. Set aside a yearly budget make sure you’re able to keep your tech up-to-date and on par with new capabilities. Think about it, you don’t want to own the pretty website that doesn’t work right because your plugins are broken! 

We hear your next question too – what if my business isn’t making money yet? Totally fine, you’ve still got options. There are plenty of DIY drag-and-drop website builders – Squarespace, WIX, Weebly, (and coming soon, Mailchimp!) – to help get you up and running. Your main goal here is to do whatever you can to get online. 80% of consumers are online shoppers which means they are researching products on the web before they buy them. You’ve gotta get in there – quickly!

If you’re going to go the DIY route, keep in mind that what you create doesn’t have to be/likely isn’t going to be your final website! As your business grows, you’ll find that you’ll need a website more specific to your business that can better respond to your customer’s needs. That’s when it’s time to start planning the custom website of your dreams! 

Last question – how do I determine my website ROI? The most common metric to evaluate ROI for an e-commerce website is an increase in sales . You can also rack the percentage of website visitors moved to leads, landing page conversion rates, percentage of leads moved to customers, or the number of new customers subscribed to your email list. Check out this article for more ideas on tracking your ROI.

If you’ve set a budget and would like to explore your options, let’s discuss! At Nicely Built, we offer solutions for business owners who are just starting out, those who are looking to migrate from one platform to another, and for those who are looking for custom, bespoke options.

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