OpenAI’s DevDay 2023, held at San Francisco’s SVN West venue, marked a significant moment in the field of artificial intelligence. The event began with a keynote by Sam Altman, who highlighted a series of groundbreaking innovations and significant announcements setting the tone for an extraordinary gathering of tech enthusiasts.
During the event, Sam Altman extended a warm welcome to Satya Nadella, CEO of Microsoft, who was present as a special guest. In his address, Nadella acknowledged the strong partnership between Microsoft and OpenAI in developing the ecosystem, with a notable impact on Microsoft’s Azure cloud platform. He passionately emphasized Microsoft’s commitment to ensuring equitable access to top-tier AI models, underscoring, “Our mission is to empower every individual.”
Here are some of the major takeaways from the DevDay:
Assistants API
The new API empowers developers to integrate “agent-like experiences” into their applications. With this tool, developers can craft assistants tailored to perform various tasks, like data analysis and coding, by utilizing generative AI models. This API is complemented by Code Interpreter, OpenAI’s proprietary tool designed to write and execute code seamlessly.
The new API allows developers to create smart assistants for tasks such as data analysis and coding, making their apps more powerful. OpenAI’s Code Interpreter also helps users write and run code with ease, simplifying the development process.
GPT-4 Turbo
The latest GPT-4 Turbo introduces an impressive 128,000-token context window, surpassing Claude 2 by Anthropic, which has a 100,000-token limit. Notably, GPT-4 Turbo has the capability to incorporate images into its prompts and produce high-quality human-like speech as output. This advanced model is available in two versions: one exclusively for text analysis and another that comprehends both text and images.
With this new update, GPT-4 Turbo is like a super-smart assistant for developers and users. It can handle huge chunks of text and even understand images, making it a great help for tasks like content analysis and multimedia interactions.
Text-to-Speech Model
OpenAI introduced a new tool that can turn written text into lifelike speech. It comes with six different voices to choose from. This innovation has the potential to greatly improve interactions between humans and computers.
This announcement comes in as a huge help for users and developers because it enhances human-computer interactions, making them feel more natural. Before this, text-to-speech tech often sounded robotic, so this update bridges that gap for a smoother and friendlier experience.
DALL E 3 Integration
Developers can seamlessly integrate DALL·E 3 into their applications and products using OpenAI’s Images API. It’s as simple as specifying “DALL·E 3” as the chosen model. Noteworthy companies such as Snapchat, Coca-Cola, and Shutterstock have leveraged DALL·E 3’s potential to autonomously generate images and designs for their clientele and marketing campaigns.
With this new update, developers have a user-friendly way to access DALL·E 3 via OpenAI’s Images API, streamlining image and design creation. It simplifies tasks and accelerates content production, making life easier for writers, graphic designers and developers.
Custom Models Program
OpenAI launched the Custom Models program, which fosters collaboration between their researchers and businesses. This initiative is all about creating customized AI models that cater to specific needs. It’s a great way for organizations to leverage AI effectively.
OpenAI’s Custom Models program connects businesses with AI experts to create personalized AI solutions. Before this program, businesses faced challenges finding AI solutions tailored to their needs.
Improved Access
OpenAI recognized the need for better accessibility and efficiency. They’ve doubled the number of tokens their GPT-4 customers can use per minute. This simplifies the process of utilizing AI. Users also have the flexibility to request changes to rate limits and quotas directly through their API account settings.
Prior to this, users faced token limitations that hindered the effectiveness of AI applications, but now they have greater freedom to harness AI capabilities to their full potential.
Copyright Shield
To protect their users, OpenAI introduced Copyright Shield. This means that if you get into any legal trouble due to copyright issues while using OpenAI’s services, they’ve got your back. This protection covers both ChatGPT Enterprise and the API.
This initiative fills a prior gap where users were potentially vulnerable to legal challenges related to copyright issues while utilizing OpenAI’s tools, ensuring peace of mind and safeguarding their interests.
Affordability
OpenAI has made advanced AI models more affordable. GPT-4 Turbo is now considerably cheaper than GPT-4. It offers a threefold reduction in pricing for prompt tokens and a twofold reduction for completion tokens. This move aims to make this powerful technology accessible to a wider range of users.
This update addresses the previous barrier of high costs, making advanced AI models more accessible and encouraging a broader user base to harness the capabilities of GPT-4 Turbo for various applications and innovations.
GPTs and GPT Store
OpenAI introduced GPTs, which allow users to customize ChatGPT for specific purposes. This feature empowers the community to actively participate in AI development by creating tailored models with expanded knowledge and actions. OpenAI is also preparing to launch the GPT Store, a platform where users can list and discover these customized GPTs. This ensures that the best and most popular models are easily accessible to all.
This means now users can create AI models that fit their specific needs, making AI more accessible and tailored. Before this, there were limited options for tailoring AI, but now it’s easy to create and share customized models.
New interface for ChatGPT
The fresh look for ChatGPT is clean and straightforward. It has a sleek dark background, with the OpenAI logo and the phrase “How can I help you today?” This updated interface is designed to make switching between ChatGPT and DALL-E 3 easy. Moreover, ChatGPT will now use GPT 4 Turbo.
OpenAI’s Vision and Collaborative Strength
Above listed are some of the major takeaways from DevDay 2023. OpenAI’s AI service updates reveal their vision for AI as an enabler. “We believe that AI is going to be a technological and societal revolution,” Altman said. “It will change the world in many ways, and we’re happy to get to work on something that will empower you to build so much for all of us.”
While OpenAI hasn’t achieved AGI (Artificial General Intelligence) yet, their chief Sam Altman expressed immense enthusiasm for their collaboration with Microsoft, expressing the strength of their partnership. In a similar tone, Microsoft’s Satya Nadella expressed his sentiments, highlighting their shared mission to empower individuals and organizations worldwide through genuinely transformative AI.
In the modern business landscape, the dynamics of work have undergone a significant shift. Traditional employment models are giving way to a more flexible approach, with companies increasingly turning to freelancers for a variety of reasons. where agility and expertise are prized, the decision of whether to hire a freelancer or collaborate with an agency can be a pivotal one for CEOs and CTOs.
Since the outbreak of the COVID-19 pandemic, the corporate sphere has witnessed a surge in freelancers. As per the 2022 Global Freelancer Income Report, 32% of respondents noted increased demand for their services post-pandemic, with an additional 45% stating that demand remained steady. So, in this article, we will delve into the considerations CEOs and CTOs should bear in mind when making this pivotal choice, and how agencies can prove to be more beneficial than the Freelancer. Dive in to know!
Why do companies outsource work to freelancers?
Companies outsource work to freelancers for their agility in meeting project deadlines, cost-effectiveness by paying only for required services, flexibility to engage talent as needed, and specialized expertise tailored to specific project requirements. Approximately 300,000 positions are offshored from the United States annually. Below are listed some of the common reasons behind companies opting to outsource work to freelancers and they are:
Turnaround Time & Swift Results
One of the prime reasons companies choose to work with freelancers is their agility in delivering results swiftly. Time-sensitive projects demand prompt action, and freelancers excel in this aspect. With no onboarding delays, freelancers can hit the ground running, ensuring that projects progress without unnecessary hitches. Their ability to dive into assignments immediately can often mean the difference between meeting crucial deadlines and falling short.
Efficiency in Costs
Cost-effectiveness is a driving factor for many companies opting for freelancers. Employing full-time staff comes with a range of expenses, including salaries, benefits, office space, and training. Freelancers, on the other hand, offer a cost-efficient solution. Businesses can pay for the specific services they require, eliminating the need for long-term commitments and overhead costs. This economic advantage makes freelancers an attractive option, particularly for projects with finite budgets.
Adaptable Timelines
The freelance model provides a level of flexibility that is often unmatched by traditional employment arrangements. Companies can engage freelancers for as long as a project demands, without being tied to extended employment contracts. This adaptability is particularly valuable for projects with fluctuating workloads or uncertain durations. Whether it’s a short-term project requiring intense focus or a long-term collaboration spanning months, freelancers provide the necessary flexibility.
Specialized Competencies
Freelancers are known for their specialized skill sets. Businesses often seek freelancers who possess the specific competencies needed for a particular project. This targeted expertise ensures that the work is completed efficiently and with a high level of competence. For example, an e-commerce startup seeking a competitive website collaborates with a freelance UI/UX designer. Their tailored expertise in web design ensures swift project initiation, user-centric interfaces, and cost-efficient engagement. This targeted proficiency results in a high-quality, visually appealing website without the overhead of training or hiring full-time staff.
What Are The Possible Pros Of Hiring A Freelancer?
Freelancers present a magnetic appeal for companies, drawing them into a world of versatile talent. Delve into the facets that make freelancers a compelling choice for businesses seeking expertise.
Easy Access to Versatile Talent
Freelancers grant businesses access to a diverse global talent pool. This expansive array of skills is a treasure trove, allowing companies to find the precise expertise they need, regardless of geographical limitations. The digital landscape has transformed the recruitment paradigm, enabling companies to cherry-pick talent from across continents.
Swift Engagement: Quick Hiring, Prompt Results
The allure of freelancers lies in their swiftness. Unlike traditional hiring processes, freelancers are readily available to tackle projects on short notice. With no lengthy onboarding, companies can initiate projects promptly, saving valuable time and resources. Freelancers’ agility ensures that businesses can respond effectively to time-sensitive projects and unexpected demands.
Platform Plenitude: Vast Choices on Multiple Platforms
The digital age has ushered in a multitude of freelancer platforms like Fiverr, Upwork, and more. These platforms offer a spectrum of professionals spanning various domains. Businesses can meticulously filter and select freelancers based on reviews, ratings, and past work, streamlining the hiring process and fostering confidence in their choices.
Cost-Efficiency: Minimizing Overheads and Operational Costs
The freelancer model is inherently cost-effective. Companies bypass the overheads associated with full-time employees – office space, equipment, and benefits. Freelancers operate independently, managing their own overheads, which in turn reduces operational costs for businesses. This streamlined arrangement aligns with a cost-conscious approach, making freelancers an economical choice.
Zero Training Costs: Expertise at Your Fingertips
Freelancers bring specialized skills to the table. Unlike in-house hires, freelancers don’t require extensive training, saving companies time and money. Their ability to immediately contribute and execute tasks with precision enhances project efficiency. This ready-made expertise is a significant advantage, especially for short-term or niche projects.
What Are The Major Pitfalls Of Hiring Freelancers?
Unveil the potential challenges that come with hiring freelancers, along with strategies to safeguard business interests.
Real-World Pitfalls: Lessons from the Field
Instances of freelancers ghosting mid-project or delivering subpar work serve as cautionary tales. In a notable case, a freelancer disappeared midway, leaving a marketing campaign in limbo. Another instance involved a developer delivering incomplete code, and stalling a software launch. Such cases highlight the importance of selecting reliable freelancers and setting clear expectations.
Payment Predicaments: A Common Challenge
Payment disputes can arise, impacting project timelines. A freelance writer, for instance, might demand additional compensation for revisions not initially agreed upon. Based on research data from 2020, freelance workers in the United States achieve an average hourly earnings of $20. Setting payment milestones tied to project completion can help mitigate such disputes and incentivize timely work delivery.
Confidentiality Breaches: Safeguarding Sensitive Information
Maintaining confidentiality is crucial. A freelancer accidentally revealing sensitive project details on a public platform is an example of a potential confidentiality breach. To avert this, outline confidentiality agreements within contracts and discuss data security protocols upfront.
The Hidden Costs of Freelancers
While freelancers might seem cost-effective at first glance, hidden costs can accrue over time, tipping the scales in favor of agencies:
1.1. Time Investment: Managing freelancers necessitates a significant time investment in terms of vetting, onboarding, and communication. CEOs and CTOs could spend this time on strategic decision-making instead.
1.2. Project Delays: Coordinating freelancers can lead to communication gaps and misunderstandings, potentially resulting in project delays. These delays can have ripple effects on other parts of the business.
1.3. Quality Assurance: Ensuring consistent quality across various freelancers can be challenging. Investing in quality control mechanisms can add to the overall cost.
What Are Company’s Expectations from Outsourcing Partners?
While there might be a clear surge in freelancing, however, companies hold some expectations from outsourcing partners. Explore the key expectations that companies hold when outsourcing work to external vendors.
Clear Communication: Transparent Collaboration
Companies expect open and transparent communication from their outsourcing partners. Regular updates, progress reports, and prompt responses foster a sense of collaboration and build trust.
Quality Assurance: Delivering Excellence
Delivering high-quality work is paramount. Companies anticipate that their outsourcing partners meet and exceed expectations, ensuring that the final output aligns with their standards.
Timely Delivery: Meeting Deadlines
Timely completion of projects is a fundamental expectation. Outsourcing partners are relied upon to adhere to agreed-upon deadlines, allowing companies to plan effectively.
Flexibility and Adaptability: Responding to Changes
In a dynamic business environment, companies appreciate outsourcing partners who are flexible and can adapt to changing project needs or unexpected developments.
Problem-Solving Skills: Resolving Challenges
Companies look for outsourcing partners with strong problem-solving abilities. The capacity to address issues swiftly and effectively contributes to project success.
Value Addition: Beyond the Expected
Beyond meeting basic requirements, companies value outsourcing partners who bring innovative ideas and suggestions, adding value to projects.
Professionalism and Ethics: Upholding Standards
Professional conduct and ethical practices are essential. Companies expect outsourcing partners to maintain integrity, confidentiality, and ethical behavior.
How Can Choosing Agencies Over Freelancers Help?
Opting for agencies over freelancers can offer significant advantages for businesses. Agencies often provide a diverse range of specialized skills, ensuring comprehensive solutions for multifaceted projects. With a team of professionals, agencies offer reliability, scalability, and consistent project delivery. Discover the compelling advantages of partnering with agencies instead of freelancers for your business needs.
Comprehensive Skill Sets
Agencies bring a range of skills to the table, from design to development and marketing. This comprehensive expertise ensures a holistic approach that addresses multiple project dimensions.
One-stop Shop For Streamlined Collaboration
Collaboration is seamless with agencies, as they house various experts under one roof. This eliminates the need to coordinate with multiple freelancers, saving time and enhancing communication.
Smooth Progress & Dedicated Project Management
Agencies often offer project management services, guaranteeing organized task coordination, deadline adherence, and progress tracking. This proactive approach minimizes delays and maximizes efficiency.
Growth, Innovative Solutions & Scalability
Agencies possess the necessary resources to handle projects of varying sizes. This flexibility ensures smooth scalability, adapting to changing project demands effortlessly. A study by Harvard Business Review revealed that 82% of businesses that partnered with agencies reported gaining access to innovative solutions that wouldn’t have been possible through a freelancer model. This underlines how agencies foster an environment conducive to creativity and cutting-edge thinking.
Assured Security
Agencies often have established protocols for risk assessment and mitigation. This is particularly crucial for projects involving sensitive data or compliance requirements.
Dependable Outcomes With Consistency & Reliability
Agencies pride themselves on delivering consistent project outcomes. Clients can expect reliability that might be challenging to achieve with freelancers.
Established Accountability Framework
Agencies come with established processes and accountability mechanisms that ensure the timely delivery of projects. The State of Project Management report highlighted that projects managed by agencies are 28% more likely to be completed on time and within budget compared to those managed solely by freelancers.
Navigating Modern Business For Success? — Hire Agencies for Optimal Success!
With the ever changing world of business, the choice between freelancers and agencies emerges as a pivotal consideration. Both options present distinct advantages that cater to project requirements. Freelancers bring agility, cost-efficiency, flexibility, and niche expertise, while agencies offer comprehensive skills, streamlined collaboration, and a reliable framework. Recognizing these unique strengths is essential for informed decision-making.
Looking ahead, the future of effective collaboration and sustainable success leans towards agencies. Their ability to provide diverse skill sets, seamless coordination, scalability, and robust project management aligns well with the dynamic demands of modern businesses. As CEOs and CTOs navigate the complex landscape, partnering with agencies emerges as a strategic move to ensure innovative solutions, consistent outcomes, and efficient growth. Get in touch with our team to learn more about agency partnerships to scale your business.
According to Moneyzine report of 2023, 47% of startups eventually fail due to a lack of funding.
These startups struggle to secure funding due to the lack of a compelling business model, insufficient market research, inexperienced team, and an absence of demonstrated traction.
To overcome hurdles and increase chances of success, startups need to effectively strategize their approach for securing investment. This involves accurate forecasting of potential challenges and demonstrating their value to potential investors.
Investors evaluate various aspects when considering a startup, which include the uniqueness and practicality of the solution it provides, market size, growth potential, and industry trends.
The team’s strength and their ability to set their startup apart is key, as is their growth strategy and the technology they leverage. A financially sound business model and clear use of investment funds are also important considerations.
But for tech startups, it’s not just about investing in an idea.
Investors seek proof of a viable market, a robust team, and a scalable business model. A working product that shows the startup’s capabilities is crucial. This is often achieved through MVP development for startup products, and then presented as a Minimum Viable Product (MVP).
While an MVP isn’t directly a selling point, it surely facilitates the process of pinpointing the unique aspects of the product or service. This, in turn, can enhance the startup’s prospects in attracting the required investment.
Is Your Startup Set for Funding? Indicators of Investment Readiness
When it comes to seeking investment for your startup, timing is crucial. You want to make sure you’re raising and utilizing the funds for growth. So, what does it mean to be ready for investment?
Let’s explore some key indicators that can help determine if your startup is prepared to seek funding.
Clear Business Model: Define how your startup will generate revenue, understand your target customers, and outline your cost structure.
Problem-Solution Fit: Validate that there is a real problem to solve and that your solution is appealing to customers.
MVP or Prototype: Showcase a minimum viable product or prototype to demonstrate your capability of bringing ideas to life.
Initial Traction: Show evidence of market interest and acceptance through user sign-ups, website traffic, or other relevant metrics.
Strong Team: Have a committed team with diverse skills necessary for your business’s success.
Scalable Growth Plan: Develop a plan for how your startup can grow and articulate how the investment will fuel that growth.
Financial Projections: Present a financial forecast that outlines expected income, expenses, and cash flow for the coming years.
By considering these pointers and ensuring your startup meets these readiness indicators, you can position yourself for a successful investment journey. Remember, finding the right investment partner goes beyond the funding itself, as they can provide valuable guidance and support for your startup’s growth.
When Is The Right Time To Seek Investment?
Determining the right time to seek investment for your startup can depend on various factors, including the nature of your business, your stage of development, and your specific funding needs. Here are a few scenarios that often indicate a suitable time to seek investment:
Development of a Minimum Viable Product (MVP):
Having a functional MVP or prototype demonstrates that you have progressed beyond the conceptual stage and can showcase your idea’s potential to investors.
Early Traction and Milestones:
Investors are more likely to be interested in startups that have achieved some level of traction. This can include user sign-ups, positive feedback, initial sales, or partnerships that validate your business model and market potential.
Scalability and Growth Potential:
Investors seek startups that have the potential to scale rapidly and generate significant returns on investment. It is crucial to have a well-defined growth plan and strategy that outlines how the infusion of funds will drive your startup’s expansion.
Demonstrable Team Capabilities:
A strong and capable team is a critical factor in attracting investment. Investors look for teams with relevant expertise, industry knowledge, and the ability to execute the business plan effectively.
Financial Preparedness:
Before seeking investment, ensure you have a clear understanding of your financials, including revenue projections, cost structures, and cash flow management. This demonstrates your financial preparedness and ability to effectively utilize the investment funds.
Remember, seeking investment should align with your business goals and growth plans. It is essential to evaluate your startup’s readiness based on these indicators and seek investment when you have a compelling value proposition, demonstrated market demand, a viable product, and a solid plan for growth.
Here’s an example of a popular startup that mentions how an MVP could have changed its fate.
Argo AI serves as a prime example of a tech startup that managed to secure substantial funding early in its life but ultimately faced significant challenges due to a lack of product-market fit and market validation. Co-founded in 2016 by veterans of Google and Uber automated driving programs, Argo AI sought to build software, hardware, maps, and cloud-support infrastructure to power self-driving vehicles.
Argo AI
Service
Development of software, hardware, maps, and cloud-support infrastructure for self-driving vehicles
Problem
Couldn’t monetize their technology effectively. Strategic shifts due to new leadership at key backers. Expensive development and implementation of autonomous vehicle technology. Couldn’t secure a sustainable position in an emerging industry. Absence of a product to validate the market and business model.
Funding
Over $3.6 billion from Ford and Volkswagen
Market Validation & Fit
Lack of clear business model for autonomous transportation serviceability to bring a successful autonomous vehicle product to market
Technology
Investment in LiDAR imaging technology Despite advantages in LiDAR technology, unable to leverage it effectively for a successful AV product
Financial Performance
Net loss: Posted an $827 million net loss for the third quarter
MVP Approach and Business Model Validation
It’s possible that an MVP approach could have helped Argo AI better validate its product-market fit and business model. Instead of making massive bets on specific technologies and aiming for a full-fledged autonomous vehicle, a smaller, more focused product offering that targeted a specific customer need or market niche might have helped Argo AI gain the market traction and validation needed to convince investors of its viability.
This is a powerful illustration of the importance of an MVP when raising investment for a startup, as it offers a way to validate a product idea and business model with real market feedback before committing large amounts of resources.
Putting Investment To Work: How Funds Can Be Utilized
By strategically utilizing the investment, startups can fuel growth, enhance operations, drive marketing initiatives, bolster product development, and strengthen overall business capabilities. Understanding how funds are deployed across different areas is key to maximizing the potential impact of investment and setting the stage for sustainable growth and success.
In the ideal scenario, funds should be infused when your startup is in a position to utilize them effectively across the following key areas:
Product Development & R&D
Software and Tools
Talent Acquisition
Prototyping and Testing
Research
Marketing & Customer Acquisition
Advertising
Public Relations
Content Marketing
Sales Team
Scaling Operations
Physical Expansion
Operational Staff
Inventory and Supply Chain
Legal & Compliance
Legal Counsel
Patents and Trademarks
Regulatory Compliance
Working Capital
Day-to-Day Operations
Emergency Buffer
Supplier and Vendor Payments
What Are The Investment Decision Criteria?
When investors evaluate a business for potential investment, they consider a number of decision criteria that help them determine the likelihood of the investment generating substantial returns. Investors assess a variety of factors when considering an investment in a startup, particularly when it’s a technology-driven enterprise.
Here are the key aspects they look for:
Speed of Development:
Investors appreciate teams that can quickly turn an idea into a viable product. The ability to swiftly execute signals a team’s efficiency, dedication, and competence.
Financial Prudence:
Investors want to see effective financial management. They prefer startups that use their funds wisely and can deliver results within a reasonable budget.
Focus on Essential Features:
Investors value startups that understand their target audience’s needs and prioritize features that cater to these needs. A cluttered product with unnecessary features can confuse customers and hamper adoption.
Receptiveness to Feedback:
Startups that are open to constructive criticism and can adapt their product based on user feedback tend to be more successful. Investors seek this adaptability and customer-centric approach.
Market Validation:
Concrete evidence of market demand for a product or service is crucial. Investors need proof that the startup’s offering has the potential for growth and profitability.
Customer Base:
Early traction in terms of a growing customer base is a strong indicator of a startup’s potential. It’s one thing to believe in a product’s potential and another to see customers actually using and benefiting from it.
Risk Management:
Startups that take calculated risks and have plans to mitigate potential downsides are more likely to secure investment. Investors prefer to back ventures that balance ambition with caution.
Now, how can a startup demonstrate these qualities effectively? This is where a Minimum Viable Product (MVP) comes into play.
One example of a well-known startup that successfully utilized an MVP to secure further funding is Instagram:
When Instagram launched in 2010, it started as a simple MVP—an iPhone app for sharing photos with filters and basic social features. The MVP gained early traction and quickly attracted millions of users.
The founders used this initial success and user feedback to secure $500,000 in seed funding from venture capitalists, including Andreessen Horowitz.
The funding helped Instagram scale its operations, enhance the app’s features, and expand its user base. Eventually, Instagram was acquired by Facebook for $1 billion in 2012, showcasing the significant success that stemmed from starting with an MVP.
MVP: Your Secret Weapon for Raising Investment
Investors highly value the market validation that comes with an MVP. By launching an MVP and gathering real user feedback, startups can demonstrate early traction, user engagement, and positive market response. This validation provides crucial evidence of the product’s viability and attractiveness to potential customers.
Investing in a business without a minimum viable product (MVP) is riskier. When there is no MVP, investors have to rely on assumptions and projections, which may not accurately reflect what customers want or how the market will respond. This lack of concrete validation makes it more uncertain and potentially less favorable for investors.
However, building an MVP for startups helps you mitigate this risk by offering a proof-of-concept. It allows investors to see firsthand how the product is received in the market, assess its unique value proposition, and evaluate its potential for widespread adoption. This tangible evidence significantly reduces uncertainty and provides a stronger basis for investment decisions.
An MVP helps startups exhibit these investor-preferred qualities:
MVPs are typically developed and launched within about 5 weeks, but the timeframe can vary based on product complexity.
Developing an MVP is budget-conscious, usually requiring an investment of around $10,000 to $15,000 for digital products like apps or websites.
MVPs focus on delivering essential features that address the primary needs of the target audience, often prioritizing 1-3 key features that solve customer problems effectively.
MVPs gather early user feedback, usually from a few dozen to a few hundred users, depending on the product and market size.
Launching an MVP allows entrepreneurs to validate market demand, aiming for a few hundred to a few thousand active users or customers within the first few months.
MVPs help establish an early customer base, attracting a few hundred to a few thousand initial customers, depending on the product and market.
MVPs minimize resources and time in the initial phase, reducing financial and operational risks. This can potentially save significant costs by validating the product concept before full-scale development.
Investments can be utilized in many areas such as marketing, product development, operations, team expansion, and even research and development. But it’s not just about where the money is used, but also when it’s raised.
One successful example of a startup leveraging its MVP to secure good investments is the story of Slack. Slack, known initially as “Glitch,” began as an internal communication tool for a gaming company called Tiny Speck. However, the founders recognized its potential beyond their initial gaming project and decided to pivot. Take a look at how an MVP was turned to be a successful team communication platform.
Slack
Initial Idea and MVP
Origin: Developed as an internal communication tool for a gaming company, Tiny SpeckMVP Focus: Simplifying team communication and collaboration with channels, direct messaging, file sharing, and integration with productivity tools
Target Audience: Developers and tech community
(Launch and Market Response)Public Launch: August 2013 Sign-ups: Approximately 8,000 within the first 24 hours
User Growth
Reached 1 million daily active users within six months
Funding
Raised over $1.4 billion in several funding rounds
Current Status and Impact
Established as a leading workplace communication platform
User Base
Millions of daily active users globally
Key Success Factors
Market Recognition: Identified a need for an intuitive team communication toolValidation: Swift market validation and user adoption of the MVPInvestment Attraction: Secured substantial investments based on MVP success and potential
Why Investors Prefer MVP Before Investing In Tech Startups?
Investors can gain confidence in the startup’s traction, product-market fit, risk mitigation, scalability, and efficient use of capital. MVPs provide valuable insights that align with investors’ goals of maximizing returns while minimizing risks. Here is the list of specific factors that investors look for when investing in any tech startup:
Evidence of Traction:
Launching an MVP demonstrates early user adoption and market interest.
Provides tangible proof of a product’s potential to attract customers.
Shows engagement and validates market demand.
Validation of Product-Market Fit:
MVPs allow startups to test and validate their value proposition.
Gathering user feedback helps refine the product to meet customer needs.
Reduces the risk of investing in a product that may not resonate with the market.
Risk Mitigation:
MVPs provide real-world data for informed decision-making.
Investors can assess the startup’s progress and market response.
Mitigates uncertainty and reduces risk associated with investing in unproven concepts.
Scalability and Growth Potential:
MVPs offer insights into the startup’s scalability and growth potential.
Showcases repeatable customer acquisition process and positive user feedback.
Demonstrates the startup’s ability to capitalize on market opportunities.
Efficient Use of Capital:
MVP development is cost-effective and optimizes resource allocation.
Demonstrates the startup’s ability to achieve milestones with limited funding.
Shows the startup’s potential for profitability and delivering a return on investment.
Ideal Stages For Kickstarting MVP Development In A Startup
Determining the right stage to kickstart your MVP development for startup is crucial. It sets the foundation for validating ideas, gathering user feedback, and refining the product or service. By identifying the ideal stages to begin MVP development, startups can maximize their chances of success and make informed decisions before seeking external investments. Here are several key stages that are considered ideal for kickstarting MVP development in a startup’s journey.
Idea Validation Stage:
The earliest stage of a startup is where founders have a conceptual idea but need to validate its feasibility. Developing an MVP at this stage allows founders to test their assumptions, gather user feedback, and validate the market need for their product or service. It helps refine the idea and build a solid foundation for further development.
Early Product Development Stage:
Once the initial idea has been validated, startups can enter the early product development stage. At this point, the basic concept and target audience are defined, and the focus is on building a minimum viable version of the product. Developing an MVP helps startups gain early traction, gather user insights, and iterate on the product to refine its features and functionalities.
Pre-Launch Stage:
This stage occurs just before the official launch of the startup’s product or service. Developing an MVP in this phase allows startups to gather feedback from a select group of beta users or early adopters. This feedback can help fine-tune the product, address any potential issues, and create a positive user experience before the full-scale launch.
Market Entry Stage:
Startups that have validated their product-market fit and are ready to enter the market can utilize MVP development to gain a competitive advantage. By launching an MVP with a focused set of features, startups can penetrate the market quickly, gather user feedback, and make iterative improvements based on real-world usage.
Expansion and Scaling Stage:
Startups looking to expand their customer base or enter new markets can leverage MVP development to test market demand and gather insights. By creating a streamlined version of their product tailored to the target market, startups can validate the demand and make data-driven decisions for scaling their operations.
Secure Investment for Your Startup: Build an MVP that Captivates Investors!
For startup founders, early-stage entrepreneurs, and investors seeking insights into startup potential, developing a Minimum Viable Product (MVP) can be a critical step toward securing investment. An MVP allows you to validate your business idea, gather user feedback, and showcase the potential of your startup.
However, it’s important to remember that building an MVP for startups is just the beginning. It serves as a starting point to refine your product, gather market insights, and pave the way for building a successful and sustainable business.
If you’re looking to develop an MVP for your startup, consider partnering with experienced developers and designers who can guide you through the process. Galaxy Weblinks, serves as a full-cycle web and mobile app development company for startups from ideation to launching. We are committed to supporting startup founders and early-stage entrepreneurs at every step of their journey.
Whether you’re creating a social media platform, an e-commerce website, or a mobile app, we have the expertise to transform your idea into a reality. Reach out to us today to discuss your startup aspirations and discover how we can help you bring your MVP to life.
56% of startups fail simply because they ignore product market fit or product validation before they skip the process of validating the market and directly proceed to develop a full-fledged product.
The challenge in creating a complete product is that it needs a significant investment of around $50,000 to $100,000. Additionally, it usually takes a few months or even a year to bring it to the market. During this time, your idea may lose its initial advantage of being the first, and its unique selling point may diminish as others may have already launched a similar idea faster than you.
The easiest way to validate the market fit at a lower cost and in a faster time is through MVP development for startups.
But what exactly is an MVP, and why is it so critical?
An MVP stands for Minimum Viable Productdevelopment. It’s the most basic version of your product that you can create while still solving the main problems or meeting the core needs of your target customers.
Think of it as a stripped-down version of your idea, focusing only on the essential features. The goal here is to go to market faster, get real feedback from real users and make iterations to the product to ensure product market fit.
So how should one get started?
Among startup founders, this stage poses a challenge for 67% of them, as they often prioritize rapid growth, market capture, or limited resources, they tend to overlook MVP development. But, understanding the value of MVP validation is important and many founders choose to skip this crucial step due to few complexities and lack of awareness. Our MVP development for startup checklist will help you get started with creating your first MVP and then planning a roadmap to ensure your startup’s success.
Essential Checklist To Prepare For MVP Development For Startups
Whether you are starting with just an idea, or you need to get the MVP developed based on your research, this detailed checklist will ensure that you do not miss out on any crucial step.
The Pre-MVP Development Checklist:
Clearly identify the problem or pain point your product solves
Describe the impact of solving this problem on your target audience
Conduct comprehensive industry research
Identify and analyze competitors in the market
Explore market dynamics, trends, and existing solutions
Understand audience behaviors, preferences, and pain points
Tailor your MVP to meet the specific needs of your target audience
Identify essential core features for your MVP
Prioritize features based on importance
Evaluate feasibility of implementing each feature
Development Team Selection Checklist:
Research the right resources that can provide the technical support and expertise to develop the features you need.
Ensure that you are able to communicate your ideas to them
Get confirmation on the clarity and understanding of the team
Check if they are as motivated and passionate about building the product as you are
Ensure that the engagement is affordable for your startup
Give higher priority to a team that is agile and adaptable to changing trends
Verify the flexibility of their working schedule as per your preferences
Check for the possibility of longer association to ensure the product development team remains the same
MVP Development Checklist:
Create low-fidelity wireframes and interactive prototypes
Check for the user journey & experience in the application
Determine the essential features that align with the MVP’s purpose
Incorporate any current technology updates if applicable
Ensure proper testing of all features with the required stakeholders
Conduct regular meetings with the team for updates and progress
Ensure that you get all the required documentation for future reference
Check if the MVP is ready for marketing and promotions before launching it in the market
Post MVP Launch & Iterations Checklist:
Regularly monitor MVP performance
Establish feedback channels and monitor metrics
Analyze feedback and metrics for improvements
Resolve problems that impact usability, functionality, or customer satisfaction
Prioritize user feedback and identify issues
Plan and execute iterative releases
Plan for scalability as the user base grows
Establish maintenance plans and address user-reported issues
Stay updated with security patches and updates
Consider options for raising investment for scaling the business
Start Your Journey to Becoming a Unicorn with the 2023 MVP Development Checklist!
An MVP development for startups allows them to clearly define the problem they aim to solve, the required functionalities, and the marketing strategy. By avoiding feature creep and delays, an MVP enables companies to create a streamlined, user-friendly product and launch it in the market quickly.
At Galaxy Weblinks, we have a proven track record of delivering customized services that meet our clients’ specific needs and target audience. Our experienced development team is here to help in building an MVP for startups. With over 100 startups utilizing our services, our MVP development for startup checklist has been proven to ensure a smooth and effective MVP development process.
Begin your journey towards your MVP by taking the first step. We specialize in building an MVP for startups and bringing their product ideas to life through the creation of impactful expertise.
Are you among the many business owners who think web accessibility is just a buzzword that doesn’t concern you? Think again! In today’s digital world, having a website is essential for every business, and web accessibility is no longer a luxury but a necessity.
With 1.3 billion people worldwide living with disabilities, businesses cannot afford to ignore web accessibility. Not only is it the right thing to do, but also it ensures your business is inclusive and accessible to everyone. Did you know businesses have faced lawsuits and fines due to their websites’ lack of accessibility?
And that’s not all. If you think giant enterprises are the only ones that are likely to be hit by such lawsuits, you’re wrong. Small businesses are also facing lawsuits because of lack of accessibility. So don’t miss out on this opportunity to learn why web accessibility is necessary for 2023. Take action now, and avoid facing legal issues or missing out on potential customers.
Why Web Accessibility is Crucial: The Growing Number of Lawsuits
The Increasing Number of Lawsuits: There has been a significant increase in web accessibility lawsuits in recent years. In 2022 alone, over 2,000 lawsuits were filed in the United States.
Who is Suing: These lawsuits are typically brought by disabled individuals who cannot access websites due to various barriers such as inaccessible forms, missing alt-text, and lack of keyboard navigation. For example, a blind man sued Domino’s Pizza in 2019 because he could not use their website to order a pizza. He won the case, setting a legal precedent that websites must be accessible to disabled individuals.
The Financial Consequences: Businesses sued for web accessibility violations may face significant financial consequences, including settlements, legal fees, and reputational damage. In 2022, a giant retailer paid $10 million to settle a lawsuit alleging that their website was not accessible to blind users.
No Business is Immune: Web accessibility lawsuits are not just targeting large corporations. Small businesses, non-profit organizations, and educational institutions have also been sued for web accessibility violations.
Investing in Web Accessibility: Low Cost, High Impact?
Many small or medium-sized business owners might hesitate to invest in web accessibility due to concerns about cost and complexity. However, the reality is that web accessibility is a relatively low-cost process that can greatly impact a website’s user experience and brand reputation. Here are some key points to consider when it comes to the cost of web accessibility:
Cost of web accessibility audit: A web accessibility audit is a process that evaluates your website’s compliance with accessibility standards and identifies areas for improvement. The cost of a web accessibility audit typically ranges from a few hundred to a few thousand dollars, depending on the size and complexity of your website. If you’re a small business with a relatively simple website, you may be able to find affordable options for a web accessibility audit.
Cost of fixing accessibility issues: Once an accessibility audit has been completed, you’ll need to take steps to address any identified issues. The cost of fixing accessibility issues for a small website (10-20 pages) typically ranges from a few thousand dollars to less than $5,000. The cost may be higher for larger websites, but it’s important to remember that accessibility improvements can be implemented gradually over time.
Factors that impact the cost: The cost of web accessibility improvements can vary depending on several factors, including the number of pages on your website, the type of content you have, the complexity of your design, and the extent of the accessibility issues identified during the audit. However, it’s important to remember that even minor improvements to your website’s accessibility can significantly impact your users.
Additional Benefits of Web Accessibility and Examples
The rise in web accessibility lawsuits should serve as a wake-up call for businesses to prioritize accessibility. It’s not just about avoiding legal consequences. It’s about creating an inclusive online experience for all users. By ignoring web accessibility, businesses exclude a significant portion of the population and miss out on potential customers and revenue. Here are some additional benefits that web accessibility offers:
1- Increased Reach and Improved User Experience
By designing websites that are accessible to everyone, businesses and organizations can reach a wider audience and provide a better user experience for all users. 71% of users with disabilities will leave a website that is not accessible. Some examples of websites doing this well include:
Netflix: Netflix has made a concerted effort to ensure its platform is accessible to all users, including those with visual and auditory disabilities. They offer closed captions in over 30 languages, audio descriptions for many titles, and customizable subtitles and captions for users with hearing difficulties.
2- Improved SEO and Increased Traffic
By designing websites that are accessible to all users, businesses and organizations can improve their search engine rankings and attract more traffic to their websites. Some studies have shown that accessible websites can rank higher in search engine results. Some examples of websites that have improved their SEO through accessibility include:
IBM: IBM has made a concerted effort to ensure that its website is accessible to everyone, including people with disabilities. As a result, they have seen a significant increase in traffic and engagement on their website.
3- Improved Reputation and Brand Image
By designing websites that are accessible to everyone, businesses and organizations can improve their reputation and brand image, demonstrating their commitment to inclusivity and diversity. Some examples of websites that have improved their reputation through accessibility include:
Microsoft: Microsoft has committed to accessibility across all of its products and services, including its website. They provide alternative text for images, clear and consistent headings, and keyboard accessibility, among other features.
Future Trends In Web Accessibility
The Technical Challenges and Solutions
Ensuring web accessibility can be challenging, as several technical issues need to be addressed. Below are some common technical challenges and solutions for creating accessible websites:
01- Missing or Inappropriate Alternative Text on Images
Alternative text (alt text) for images is one of the most common accessibility issues in web design. A significant portion of home page banners (31.3 percent) were missing alternative texts, according to a study by WebAIM. This has been a known accessibility issue for many years.
Solution – Providing appropriate and concise alternative texts for images is the solution. The alternative text should be descriptive enough so that users with visual impairments can understand what the image is about.
02- Poor Contrast Text
Low-contrast text is the most common accessibility error on websites. Poor contrast makes it difficult for users to identify the edges and shapes of several components. According to WebAIM’s recent analysis, 86.4 percent of home pages have this issue.
Solution – The text-to-background contrast ratio should be at least 4.5:1. To avoid this accessibility error, designers can use color contrast checkers during the web design phase to ensure that all background colors, text, and interactive elements have the perfect color contrast ratio. WCAG recommends 1.4.6 Contrast (Enhanced), 1.4.3 Contrast (Minimum), & 1.4.11 Non-text Contrast.
03- Video Captions Missing
Videos and audio content can be challenging to access for users with hearing or visual impairments and cognitive disorders like dyslexia. Deaf users can view videos by adding captions, while blind users can access content by adding transcripts. Transcripts benefit everyone.
Solution – Providing closed captions and transcripts for videos and audio content can make them accessible to users with disabilities. It’s essential to ensure that the captions and transcripts are accurate, synchronized, and easily accessible.
04- The lack of keyboard navigation
It makes it difficult for users who cannot use a mouse or trackpad to browse a website, limiting their access to the content.
Solution- Ensure that all website components can be navigated using only a keyboard, allowing users to select items using arrow keys and access all interactive elements such as links, buttons, and forms. Use HTML and CSS to create a clear and consistent navigation structure allowing users to move through the website quickly.
Final Thoughts
Web accessibility is a moral imperative and a legal and business necessity. By designing websites that are accessible to everyone, we can create a more inclusive and equitable online world.
In 2023 and beyond, advances in technology, increased awareness, legal and regulatory requirements, and a focus on inclusive design will shape the future of web accessibility.
As web developers and designers, it is our responsibility to prioritize web accessibility and ensure that everyone, regardless of abilities or disabilities, can access and use the internet. We can create a more accessible, diverse, and inclusive online community.
Your website is live, the product catalog is all set, and marketing is 100% on point. Now just imagine the horror of people leaving your website without any purchases. Why? Because your website lacks proper configuration.
Scary, isn’t it?
Running an e-commerce website can be a stressful and overwhelming experience, especially for small and medium-sized businesses. You’re constantly juggling managing inventory, shipping products, and providing excellent customer service.
On top of that, you have to ensure that your website is functioning smoothly and your customers have a seamless shopping experience. This can be annoying. After all, you established your online business to offer products or services, not to deal with website management.
But what happens when your website encounters issues like slow loading times, broken links, or payment gateway errors? It can be frustrating for both you and your customers and can ultimately lead to lost sales and damage to your business’s reputation.
According to the stats, 53% of people will stop engaging with a website if images won’t load or take too long to load. Visitors’ patience can last barely 5 seconds, and that’s it. If your website takes more than that to load, poof! They’re gone. And it’s not a good sign for your business.
E-commerce maintenance and why do you need it?
E-commerce maintenance is all about keeping an online store up and running smoothly. It involves a bunch of tasks like adding new products and features to the website, making sure the site is secure from any online threats, improving the site’s performance, keeping an eye on the server, updating payment gateways, managing inventory, and providing customer support. All of these activities are important for the successful running of an e-commerce website, and they ensure that customers can shop on the website without any hassles. So, e-commerce maintenance is a vital part of running an online store, and it’s something that requires ongoing attention and care.
Now let’s talk about why e-commerce maintenance is so important for you as a business owner. Keeping your online store up-to-date and secure, can improve your website performance, increase sales, and offer a better shopping experience for customers. Regular maintenance means the website is less likely to have technical issues that could result in downtime or security breaches. This ensures that the website is always available to customers, which is essential for running a successful online business. All of these benefits can help boost the business’s reputation, attract new customers, and ultimately, increase revenue.
In this blog, we’ll discuss the top 5 tips for ensuring that your website is optimized for performance and providing customers with a seamless online shopping experience. So, let’s get started!
Keep Your Software Up to Date
Software updates can be a hassle, but they are critical for the security and performance of your e-commerce website. Outdated software can be vulnerable to security threats and may not function properly, leading to a poor user experience. Ensure you regularly check for updates to your e-commerce platform, plugins, and any other software you use. Keeping your software up to date also ensures that you have access to the latest features and functionality.
Optimize Your Website’s Speed
In today’s fast-paced digital world, customers expect websites to load quickly. Slow page load times can drive potential customers away, resulting in lost sales. A one-second delay in page response can result in a 7% reduction in conversions, and you don’t want that. Right? To keep your website running smoothly, ensure it is optimized for speed. This includes compressing images, minifying code, and leveraging caching technologies. If you’re unsure where to start, consider using a website speed-testing tool to identify areas for improvement.
Test Across Browsers
It’s not uncommon for your website layout to appear different across various browsers. While it may look excellent in Chrome, it may not be the same in Safari. To ensure a smooth user experience, it’s crucial to test your site across multiple browsers. A broken or confusing layout is likely to frustrate customers, so it’s essential to ensure that your website appears correctly on all browsers. Additionally, checking your site on major browsers on mobile devices is crucial to ensure complete responsiveness.
Monitor Your Website’s Performance
Monitoring your website’s performance is critical to ensuring it runs smoothly. Regularly checking your website’s key performance metrics can help you identify and address issues before they become significant problems. Consider using a website monitoring tool to monitor your website’s performance and receive alerts if any problems arise.
Check Loading Times
If your website takes ages to load or if pages are taking too long to appear, you may need to invest in website maintenance. It’s essential to test your website’s loading times regularly, at least once a month, and especially when you add new content. Failing to do so can lead to slow loading times, which can be frustrating for customers, resulting in lost sales as they abandon the site.
Managing a website in-house can be daunting in today’s fast-paced business environment. Without the necessary expertise, you may find it challenging to keep up with the latest trends and technologies, potentially causing your website to fall behind the competition.
Outsourcing from a company that can help you with e-commerce maintenance can be your way to ensure that your website is well-maintained and optimized for maximum performance. This can lead to better user experience, higher search engine rankings, and increased conversions.
Take the stress-free road.
Remember, your website is the face of your business, and it’s crucial to make a great first impression on your potential customers. Investing time and effort into maintaining your website can improve user experience, boost conversion rates, and increase revenue.
So, take action today and implement these tips to keep your e-commerce website running smoothly. And if you ever need help or support, don’t hesitate to contact experts who can provide the necessary development and e-commerce maintenance services to keep your website in top shape. By doing so, you’ll be able to provide your customers with a seamless online shopping experience and take your e-commerce business to new heights!
We know you need a website that runs like clockwork! But always keeping it up-to-date, secure, and bug-free can be challenging. That’s where Galaxy Weblinks comes in. Galaxy Weblinks is an e-commerce maintenance company that provides top-notch e-commerce maintenance services for your online store, so you can focus on running your business.
Are you aware of the auto-update functionality of GA4?
Before you consider clicking that button, you need to understand the risks involved. Yes, there are risks. GA4 is different from UA in several aspects, especially in the way it is configured.
It is important to carefully weigh the risks and benefits of auto-updating versus conducting a manual migration to ensure accurate and reliable data. When it comes to websites that require multiple attributions and tracking parameters, it is highly recommended to opt for manual migration rather than depending on an automatic upgrade to ensure data capturing operates without interruptions.
Why Choose Manual GA4 Migration Over Auto-Update?
It’s better to do a manual migration when upgrading to GA4 rather than an automatic update because you have more control over the process. This means you can make sure all your data gets transferred accurately and you don’t lose any important information.
Manual migration also lets you customize GA4 to fit your specific business needs, giving you better insights. It also reduces data discrepancies that can happen during an automatic migration, so it’s easier to compare data across both platforms.
A recent survey found that 30% of businesses that did an automatic update had these issues.
Learning how to manually migrate to GA4 can also help you understand the platform better and what it can do. Doing it this way can help minimize the risks of having data discrepancies and problems with data quality.
Benefits Of Choosing Manual Migration Over Auto Update
Manual GA4 migration provides a more accurate, customizable, and informative experience compared to automated migration. Here are 9 benefits for you to understand why exactly Manual GA4 migration is essential over auto-update:
Accurate Mapping of Existing Metrics
UA and GA4 are different in several aspects, especially when it comes to certain properties like views.
Existing properties of UA cannot be completely mapped to GA4 automatically. With manual migration, it is possible to ensure that the required metrics are obtained by using the tracking and reporting mechanism provided in GA4.
Preservation of Custom Tracking Code and Implementation
While GA4 provides enhanced reporting and tracking as compared to UA, custom configuration is always required to track specific events.
For example, if you have an eCommerce site, then you would want a breakdown of user interactions at different stages to optimize the user journey.
Manual migration gives an opportunity to configure custom tracking based on key business objectives..
Better Handling of Cross-Domain Tracking and Subdomain Tracking
With GA4, it is possible to get a consolidated reporting for domains and subdomains with better accuracy.
The data is pulled into the central repository and presented via new reporting metrics which give better indication of user acquisition, behavior, engagement, and retention.
With manual migration, it is easier to ensure proper setup of cross domain and subdomain tracking.
Ability to Define Custom User Properties and Audiences
With GA4, it is possible to define custom user properties that will help in creating different audience segments.
Not only are these segments useful for analysis, but also for initiating retargeting campaigns for re-engaging with users.
Custom property creation and configuration is usually not possible with automatic updates as the process involves mapping existing configurations in the new environment.
Migration of Data from Multiple Sources and Platforms
The biggest change with GA4 is its ability to acquire metrics from multiple platforms (web and mobile), and provide a blended view of data that helps to understand user interaction and user journey better.
Overall, this is crucial for understanding the engagement of target users with the brand through the available digital assets. If a particular brand had separate analytics for the website and mobile platforms, automatic update will not ensure collective tracking setup on GA4.
Implementation of Proper Data Governance and Privacy Settings
Over the last few years, data privacy and consent have gained significance, especially when it comes to acquiring metrics.
With GA4, the implementation of data governance and privacy settings is easier, especially when it comes to monitoring multi-platform analytics. Manual migration ensures that the configuration is done in keeping with the applicable compliances and policies.
Preservation of Data Retention Policies and Data Deletion Settings
Google Analytics provides the option to define the retention time for data that is tracked by the system.
This option is driven by rules or policies that allow auto-deletion of data after a specific time duration. With the auto-update feature, the existing settings will be carried forward.
However, there is a possibility of setting up a new configuration based on the capabilities of GA4. With manual migration, you can ensure that the data deletion protocols are configured as per your business requirements (current and projected).
Better Alignment of Data Collection and Reporting with Business Goals
Whether it be GA4 or UA, the eventual outcome is alignment of data collection and business goals to help key stakeholders make informed decisions.
Automatic updates to GA4 will not be sufficient in aligning things with the current as well as project goals of the business.
This is why it is important to get the migration done by an expert who can understand the metrics required by you and configure the relevant properties to obtain the data.
Implementation of Proper Data Validation and Quality Control Checks
The GA4 auto-update is provided with the intention of assisting business owners migrate quickly to the new analytics environment without losing data. However, this does not guarantee data validation.
It is possible that due to changes in the way GA4 is set up, some data may not come through as intended. With manual migration, you can be assured of validated and tested data collection which is usually done by the person or team undertaking the end to end migration of the analytics tool.
How Does Manual Migration Impact Reporting?
If you have a simple website that uses only the basic or standard parameters of data collection, then it really doesn’t matter whether you opt for manual or automated update. However, even if you have a single custom tracking implemented in the tool, it is important to proceed with manual migration.
Manual migration ensures:
Preservation of existing tracking parameters
Alignment of data collection with current and projected business goals
Setting up of custom tracking events in keeping with the capabilities of the new GA4 tool
Setting up for multi-platform and cross-domain tracking for unified reporting
Ability to get enhanced tracking metrics and insights that can help in making data driven decisions
Assisting in the identification of key areas which require optimization to ensure business progress.
Most importantly, the manual migration process allows the entire configuration to be validated based on different tests that are conducted for all applicable scenarios. This is really crucial for ensuring uninterrupted tracking of data as you move from UA to GA4.
Moreover, with manual migration, you will usually get the option to get a documented backup of the historical UA data that can be stored and used as required.
While this data cannot be integrated into GA4, it is definitely important from a business perspective to be able to evaluate past trends and prepare future forecasts.
Is GA4 Migration Only About Adding The New Code?
Well, at the very basic level, the migration does involve replacing the analytics code. But that will not guarantee proper tracking of required metrics. So, GA4 migration is not only about adding the new code, but also about ensuring that it works as per expectations.
The analytics team at Galaxy has been helping businesses like you migrate from their current analytics tool to GA4. As you read this, 150+ websites have already made a hassle-free migration to the new tool and have received the complete backup of their historical data.
If you are still unsure about clicking the auto-update button or negotiating with the right vendor to help you migrate to GA4, feel free to book a free consultation with our expert to know which option would be a better fit for your business.
One of the most high-profile security breaches in recent years was the Zoom incident in 2020, where personal information of over 2.5 million users was found to be for sale on the dark web due to a vulnerability in the software.
In the same year, Microsoft disclosed that it had suffered a data breach that exposed the personal information of 250 million user service records. The breach was caused by a misconfigured database in one of its customer service systems.
According to a report by Ponemon Institute, the average cost of a data breach is $3.86 million, which includes costs such as business disruption, lost revenue, and legal fees.
Whether it is a custom software or standard software, solutions are prone to security issues, but cost and brand elements can impact the level of security measures implemented. It is crucial for businesses to understand the potential security risks of custom software solution and take appropriate measures to prevent such incidents.
Types of Security Issues In Custom Software Solution
Security issues are not restricted to only malware attacks and viruses, there are other issues equally more critical in nature. Here are some of the most common types of security issues faced by custom software solution:
01. Authentication and Access Control Issues
List of issues:
Weak authentication and access control policies
Insufficient encryption and protection of sensitive data
Inadequate employee training and awareness
Example:
In 2013, Target Corporation, a major US-based retailer, experienced a massive data breach that compromised the personal and financial information of up to 110 million customers. The breach was initiated through a third-party vendor’s compromised credentials and allowed hackers to access Target’s payment systems for several weeks undetected.
Impact:
The breach resulted in significant financial losses, damage to Target’s brand reputation, and lawsuits from affected customers. The incident also highlighted the importance of third-party risk management and the need for strong authentication and access controls in retail businesses.
Cost:
The total cost of the Target data breach was estimated at $202 million, including legal settlements, fines, and other expenses.
02. Data Breaches & Data Loss
List of issues:
Insufficient data backup and recovery procedures
Human error or negligence in handling data
Hardware or software failures
Example:
In 2012, the Knight Capital Group, a US-based financial services firm, suffered a data loss incident due to a software malfunction. The malfunction caused the company’s algorithmic trading system to purchase large volumes of stocks at inflated prices, leading to a loss of over $440 million in less than an hour.
Impact:
The data loss incident led to significant financial losses, damage to the company’s reputation, and a drop in its stock value. It also highlighted the importance of proper testing and monitoring of software systems in the financial industry.
Cost:
The total cost of the Knight Capital Group data loss incident was estimated at $460 million, including trading losses, regulatory fines, and other expenses.
03. Malware & Viruses
List of issues:
Infection with viruses and malware
Lack of system updates and patches
Insufficient antivirus and security measures
Example:
In 2019, the Monroe County School District in Florida, USA, experienced a virus attack that impacted the district’s computer network and forced the schools to shut down for several days. The virus was initially introduced through a phishing email and led to the loss of critical data and disruption of normal operations.
Impact:
The virus attack led to disruptions in the delivery of education services, including cancellations of classes and delays in grading and reporting. It also caused financial losses due to the cost of recovery efforts and legal fees.
Cost:
The total cost of the virus attack was estimated at $600,000, including expenses for IT recovery, forensic analysis, and additional cybersecurity measures.
04. Insecure Coding Practices
List of issues:
Lack of security testing in software development process
Vulnerabilities in code due to poor coding practices
Inadequate code review and testing by third-party vendors
Example:
In 2015, Fiat Chrysler Automobiles (FCA) recalled 1.4 million vehicles after it was discovered that a security flaw in the car’s software could allow hackers to take control of the vehicle remotely. The flaw was due to poor coding practices and lack of proper security testing during the custom software development process.
Impact:
The insecure coding incident led to significant damage to the company’s reputation, a drop in its stock price, and potential safety hazards for drivers and passengers. It also highlighted the importance of secure coding practices and third-party vendor management in the automotive industry.
Cost:
The total cost of the FCA recall was estimated at $105 million, including expenses for vehicle repairs, legal fees, and other costs associated with the incident.
05. Insufficient Encryption
List of issues:
Lack of appropriate encryption techniques for sensitive data
Insufficient protection of data in transit or at rest
Insufficient security measures for online banking transactions
Example:
In 2014, JPMorgan Chase, one of the largest banks in the United States, experienced a data breach that impacted the personal information of 76 million households and 7 million small businesses. The breach was due to insufficient encryption of sensitive data and inadequate security measures for online banking transactions.
Impact:
The data breach led to significant damage to the bank’s reputation, a drop in its stock price, and potential financial losses for affected customers. It also highlighted the importance of strong encryption practices and cybersecurity measures in the banking industry.
Cost:
The total cost of the JPMorgan Chase data breach was estimated at $575 million,
What Security Issues Businesses Ignore In The Initial Stage Of Developing A Custom Software Solution?
When developing custom solutions, businesses often overlook or underestimate the importance of ensuring proper security measures in place for a long run. As they move forward with the custom software product development, the unattended and overlooked security aspects impact the functioning of the solution. This can lead to serious security issues that may not be discovered until it’s too late.
01. Input Validation
If a website fails to clean user input or doesn’t check the data type, it can be very important because it can lead to attacks.
Impact: These attacks can cause problems and allow unauthorized people to access the website or sensitive data.
02. Unencrypted Data Storage
Businesses might ignore data encryption during the initial stages, leaving data vulnerable to theft or unauthorized access in case of a security breach.
Impact: It can lead to loss of confidential data, breaches of security and privacy, regulatory fines, and financial harm.
03. Error Handling and Logging
Both are necessary to identify and fix security incidents. Clear error messages and sufficient logging can make incident response faster and more effective.
Impact: It can result in more significant damage to the business, such as financial loss, reputational damage, and loss of user trust.
04. Third-Party Support
Using vulnerable components and not updating third-party libraries can be of medium importance.
Impact: It introduces vulnerabilities and makes it hard to patch them, risking the website or application being compromised.
05. Secure Configurations
Insecure default settings and unused services or ports that aren’t disabled can be of low to medium importance.
Impact: It increases risk at the attack surface and potentially allows unauthorized access to sensitive data and resources.
Note: The importance levels assigned to each security issue may vary depending on the specific context of the custom solution. It is important to conduct a thorough security assessment to identify all potential risks and vulnerabilities, and prioritize remediation efforts accordingly.
10 Tips For Securing Custom Software Solution
Here are 10 essential security tips for businesses to ensure their custom software solutions’ security.
01. Use Secure Development Practices
Task: Implement secure coding practices and use security testing tools
Importance: High
Implementation: Conduct code reviews for security issues and implement it from the planning stage to the deployment stage.
02. Implement Access Controls
Task: Restrict access to sensitive information and systems
Importance: Medium
Implementation: Access controls such as two-factor authentication and role-based access control to test and validate the controls to ensure they are working effectively.
03. Backup Data
Task: Regular backups of data
Importance: High
Implementation: Use an automated backup system to regularly save copies of important data to secure off-site locations. This ensures that important data is not lost due to hardware failure, cyberattacks, or other unforeseen events.
04. Implement Network Security
Task: Secure network devices and connections
Importance: High
Implementation: Assess the network, select and configure appropriate tools like firewalls and VPNs, and test and update the security measures to ensure their effectiveness.
05. Conduct Regular Security Assessments
Task: Evaluate custom solutions for vulnerabilities
Importance: High
Implementation: Conduct regular security assessments, identify the scope and goals, select appropriate testing tools and methods, analyze the results, and create a plan to address any issues found.
06. Use Secure Third-Party Services
Task: Vet and monitor third-party services for security
Importance: Medium
Implementation: Perform due diligence to assess risks, establish a risk management process, monitor security practices, and create a contingency plan in case of any incidents.
07. Implement User Training and Awareness Programs
Task: Educate employees about cybersecurity risks and best practices
Importance: High
Implementation: Improve cybersecurity, implement a cybersecurity awareness program and conduct training to educate employees on best security practices and potential threats.
08. Implement Disaster Recovery and Business Continuity Plans
Task: Prepare for and respond to cyber incidents
Importance: High
Implementation: Develop and test disaster recovery and business continuity plans by identifying critical systems, testing the plan, and updating as necessary.
09. Conduct Regular Security Audits
Task: Regular security audit
Importance: High
Implementation: Hire a professional security firm to perform a thorough audit and provide you with actionable insights
10. Implement Latest Security Measures
Task: Keep solution up to date with the latest security patches and updates
Importance: High
Implementation: Regularly check and install updates and patches. Consider setting up automatic updates for added convenience and security
Auditing Security Issues
One of the most important steps in ensuring the security of your custom solution is conducting regular security audits. But how often should you conduct these audits, and what should they include?
What Should A Security Audit Include?
A thorough security audit should include a review of your software solution’s source code, configuration files, and network architecture. It should also include a review of your security policies and procedures, as well as any third-party software or services that you use.
01. Purpose Of Each Type Of Audit:
Risk Assessment
This type of audit is designed to identify vulnerabilities in your software solution, such as weak passwords or unsecured ports. The purpose of a vulnerability assessment is to help you proactively address these vulnerabilities before they are exploited by attackers.
Identify Security Flaws
By conducting a thorough check-up of your software solution, you can identify any potential weaknesses that could make it vulnerable to cyber attacks, this process is known as penetration testing. This is a way to test your software’s security by simulating an attack to see how it would hold up against a real-world threat. By doing so, you can ensure that your software is as secure as possible and protect your users’ data.
How Often You Should Audit Security Issues?
The frequency of security audits will depend on various factors such as the size of your organization, the complexity of your software solution, and the level of risk associated with your business.
As a general rule, it’s recommended to conduct vulnerability assessments at least once a year, and penetration testing (identifying weaknesses) at least once every two years.
A Checklist For Businesses To Maintain Security For Custom Software Solutions
Here a checklist for businesses to implement and ensure their custom solutions remain secure:
Data Encryption:
Is sensitive information kept safe both when it’s stored and when it’s being sent?
Is the way it’s encrypted secure and strong?
Are the people in charge of the encryption key doing a good job?
Is there a backup plan in case something goes wrong?
Access Control:
Is the system only available to people who should have access to it?
Are the different types of users organized well and only allowed to do what they’re supposed to?
Is there a policy for passwords, and are they being kept safe?
Are login attempts limited to prevent unauthorized access?
Code Security:
Are programmers following good practices to make sure there aren’t any security issues in the code?
Are any issues that pop up being dealt with?
Are third-party tools being used safely?
Are updates to these tools being applied quickly?
Network Security:
Is the network set up so that only authorized people can access it?
Are there tools in place to monitor for any suspicious activity?
Is there a secure way to access the network remotely?
Is the network set up in a way that helps keep it safe?
Audit Logging and Monitoring:
Is there a way to track what’s happening on the system?
Are the logs being collected and checked regularly?
Is there a plan for dealing with any issues that do arise?
Is there a way to get notified about any potential problems in real time?
Physical Security:
Is the computer server being kept safe in a secure location?
Is there a plan in place for how to deal with problems that could damage the server?
Are backups being stored in a safe place?
Is the server kept cool so it doesn’t overheat?
Disaster Recovery:
Is there a plan in place to help the company recover if something goes wrong?
Are backups being taken regularly and tested?
Is there a way to restore data if something goes wrong?
Is there a plan for keeping backups safe and keeping them for the right amount of time?
Compliance and Regulation:
Is the software following all relevant laws and regulations?
Is sensitive information being kept safe in accordance with the law?
Is the company following any industry-specific regulations?
Build Trust & Confidence With Reliable Custom Solution
Custom software solution has become an integral part of businesses. It is imperative to maintain their security to safeguard sensitive information from cyber threats.
Galaxy provides custom software development services with top-notch security assistance to protect your user data. With regular security checkups, advanced development practices, and identifying the potential security risks, Galaxy ensures your business is safe from potential cyber attacks.
Contact Galaxy today to secure your custom software solution. Protect your business and your users with our advanced security development services.
The eCommerce industry has seen remarkable growth in recent years, with global eCommerce sales reaching $4.9 trillion in 2021. However, as eCommerce businesses become more prevalent, they also become prime targets for cyber attacks, putting pressure on maintaining website performance and security.
In fact, according to a report by Security Magazine, eCommerce websites are a prime target for cybercriminals, accounting for 22% of all cyber attacks. This means that eCommerce businesses need to prioritize website security to protect their customers’ data.
But it’s not just security that eCommerce businesses need to worry about. Poor website performance can lead to lost revenue and dissatisfied customers. Even a one-second delay in page load times can reduce conversion rates by 7%.
Investing in regular eCommerce maintenance services, updates, and security measures is becoming more crucial than ever for eCommerce businesses to ensure they can maintain their market position and protect their customers’ data.
How To Detect Website Performance & Security Issues
Regular audits can help you identify issues early and prepare the necessary adjustments. But with the combination of a few methods you can try to detect and address performance and security issues in your systems before they become serious problems, and ensure that your systems are optimized for performance and security.
Here are some ways for you to detect performance & security issues and how you can solve them:
Recommended Frequency: Regularly, especially after making significant changes to the codebase.
Impact: Identify performance bottlenecks, memory leaks and security vulnerabilities.
Popular Tools: JetBrains dotTrace, Visual Studio Profiler, and Eclipse MAT for Java.
Technical Proficiency Required: Yes, it requires technical expertise.
Security Scanning:
Recommended for: Ensuring compliance with security standards and regulations
Category: Security scanning and compliance
Priority: High
Recommended Frequency: Regularly, depending on the application’s risk profile and industry regulations.
Impact: Identify compliance gaps that result in data breaches, legal and financial consequences, and reputational damage.
Popular Tools: SonarQube, Veracode, and Checkmarx.
Technical Proficiency Required: Yes, it requires technical expertise.
System Monitoring:
Recommended for: Detecting system errors, ensuring system uptime, and optimizing system performance
Category: Performance optimization
Priority: High
Recommended Frequency: Continuous monitoring, with regular analysis of system metrics and logs.
Impact: Helps to identify system errors, optimize system performance, and ensure system uptime and availability.
Popular Tools: Zabbix, and Prometheus, New Relic and Datadog for application performance monitoring (APM); ELK stack (Elasticsearch, Logstash, Kibana) for log
Technical Proficiency Required: Yes, it requires technical expertise.
User Behavior Analysis:
Recommended for: Improving user experience, optimizing marketing strategies, and identifying user trends
Category: Performance optimization
Priority: Medium – High
Recommended Frequency: Regularly, depending on the frequency of user interactions.
Impact: Understand user behavior patterns, identify areas of the application that need improvement, and optimize marketing strategies.
Popular Tools: Google Analytics, Mixpanel, and Amplitude. Salesforce and Hubspot for customer behavior analysis and Hootsuite and Sprout Social for social media behavior analysis.
Technical Proficiency Required: Yes, it requires technical expertise.
Manual Audit:
Recommended for: Security audit and compliance checks
Category: Security audit and compliance
Priority: High
Recommended Frequency: Periodically, depending on the application’s risk profile and industry regulations.
Impact: Helps identify security vulnerabilities and compliance gaps
Popular Tools: Manual audits are typically performed by security professionals with expertise in the relevant industry regulations and security best practices.
Technical Proficiency Required: Yes, it requires technical expertise.
User Report:
Recommended for: User experience feedback, bug reports, and feature requests
Category: Security audit
Priority: Medium
Recommended Frequency: Regularly, depending on the frequency of user interactions with the application
Impact: Helps to identify user pain points, bugs, and feature requests to improve the application’s user experience.
Popular Tools: Google Analytics, Mixpanel, and Amplitude for web and mobile app analytics; CRM tools – Salesforce and Hubspot for behavior analysis and segmentation.
Technical Proficiency Required: No it doesn’t, it requires technical expertise.
Automated Testing:
Recommended for: Ensuring software quality, improving development efficiency, and reducing testing costs
Category: Quality assurance and testing
Priority: High
Recommended Frequency: Continuous integration and testing throughout the software development life cycle.
Impact: Helps to ensure software quality, reduce testing costs, and improve development efficiency by identifying defects and bugs early in the development process.
Popular Tools: Selenium, Appium, and Cypress for web and mobile app testing
JUnit and TestNG for unit testing. Jenkins and Travis CI for continuous integration and testing
Technical Proficiency Required: Yes, it requires technical expertise.
Ways To Improve Website Performance:
There are a few major factors that can significantly improve the performance of an eCommerce business website. Improving performance leads eCommerce businesses to increase conversions, revenue, and customer satisfaction.
Here are some of them:
Optimize images:
Task: Optimizing website images to improve website performance.
Priority: High.
Recommended Approach: Use a combination of image compression and resizing tools, and choose the right file format for each image.
Industry Standards: 2-3 seconds load time (source: Hubspot).
Impact on Performance: Increased website traffic, improved SEO and search engine rankings, and reduced bounce rates.
Use caching:
Task: Configure caching on your website to improve website speed and reduce server load.
Priority: High
Recommended Approach: Use a combination of browser caching, server-side caching, and CDN caching.
Industry Standards: No specific industry standard, but the faster the website loads, the better.
Impact on Performance: Reduced server load and improved website scalability, increased website traffic, and improved user experience.
Minimize HTTP requests:
Task: Minimize HTTP requests to improve website performance by reducing the number of requests required to load a page.
Priority: High
Recommended Approach: Combine files and resources wherever possible, use CSS and JavaScript frameworks, and optimize images and videos.
Industry Standards: According to Yahoo, reducing the number of HTTP requests can reduce page load times by 20-50% (source: Yahoo Developer Network).
Impact on Performance: Improved website performance on slow network connections and mobile devices, improved user experience, and reduced server load.
Use a content delivery network (CDN):
Task: Improve website performance by using a content delivery network (CDN) to distribute website content globally.
Priority: High
Recommended Approach: Choose a reliable CDN provider, optimize website content for distribution, and configure DNS settings correctly.
Industry Standards: CDNs can reduce page load times by up to 50% (source: Cloudflare).
Impact on Performance: Improved website availability and performance during peak traffic periods, reduced website downtime, and increased website traffic.
Ways To Improve Website Security:
Conducting regular security audits can significantly improve the security of an eCommerce business website. By improving website security, eCommerce businesses can build trust with their customers and protect their sensitive information from attackers. Here are some of the major methods:
Conduct regular security audits:
Task: Identifying and assessing potential vulnerabilities, testing security controls, and developing a plan to remediate risks.
Priority: High
Recommended Approach: Engage a professional security firm or hire an experienced security professional to perform comprehensive security assessments and penetration testing.
Industry Standards: Follow established security frameworks and standards, such as the NIST Cybersecurity Framework or ISO/IEC 27001, to guide the security audit process and ensure compliance with regulatory requirements.
Impact on Performance: By ensuring that your website is secure, you can protect your business and customers from the increasingly sophisticated tactics used by cybercriminals.
Use SSL/TLS encryption:
Task: Implement SSL/TLS encryption to secure data transfer between the server and the client.
Priority: High
Recommended Approach: Use reputable SSL/TLS certificates from trusted Certificate Authorities (CAs) and configure servers to use strong encryption protocols and cipher suites.
Industry Standards: SSL/TLS protocol versions and cipher suites are regularly updated, and industry standards are updated accordingly. The latest TLS 1.3 protocol is considered the most secure and recommended to use.
Impact on Security: Implementing SSL/TLS encryption ensures secure data transmission, protects sensitive information such as usernames, passwords, and credit card information from interception by attackers, and prevents man-in-the-middle attacks.
Use a web application firewall (WAF):
Task: Protection against common web-based attacks such as cross-site scripting (XSS), SQL injection, and other vulnerabilities.
Priority: High
Recommended Approach: Configure the WAF to regularly update and maintain its ruleset to stay up-to-date with new attack techniques and vulnerabilities.
Industry Standards: The Open Web Application Security Project (OWASP) maintains a list of the top 10 web application security risks, which can serve as a guideline for selecting and configuring a WAF solution.
Impact on Security: Provide an additional layer of protection against web-based attacks, protecting against common vulnerabilities such as cross-site scripting (XSS), SQL injection, and other web-based attacks.
Regularly review third-party integrations:
Task: Regularly review third-party integrations on your website to ensure they are secure and up-to-date.
Priority: This task is of high priority as third-party integrations can introduce vulnerabilities and weaknesses to your website’s security.
Recommended Approach: Monitor and assess third-party integrations regularly for security updates and permissions.
Impact on Security: Regularly reviewing third-party integrations can prevent security breaches and protect users from cyber threats.
Opportunity & Financial Cost of Ignoring Website Issues
It is important for businesses to regularly assess their performance and security measures and take proactive steps to mitigate these issues. Conducting regular audits and updates to their systems can help minimize these risks and ensure smooth operations. Here we have assessed the major performance and security elements you should consider:
Performance-
Slow Loading Speed:
Slow loading speed can lead to a significant loss of potential customers. According to Google, 53% of mobile users will leave a website that takes longer than three seconds to load.
Example: If an eCommerce website earns $10,000 per day and 53% of mobile users leave due to slow loading speed, the company could potentially lose $5,300 per day, resulting in a significant loss of revenue.
Poor User Experience:
Poor user experience can lead to decreased customer loyalty and missed opportunities. According to Adobe, 38% of users will stop engaging with a website if the layout is unattractive.
Example: If an online retailer has 10,000 visitors per day and 38% of them leave due to poor user experience, the company could potentially lose 3,800 customers per day, resulting in a significant loss of revenue.
Mobile Optimization:
Failure to optimize a website for mobile can lead to a significant loss of potential customers. According to a study by Statista, mobile devices accounted for 54.8% of global website traffic in 2021.
Example: If a website is not optimized for mobile and receives 100,000 visitors per month, the company could potentially lose 54,800 visitors, resulting in a significant loss of revenue.
Security
Data Breaches:
Ignoring website security vulnerabilities can lead to data breaches and financial losses. According to a study by IBM, the average cost of a data breach in 2020 was $3.86 million.
Example: In 2017, Equifax suffered a data breach that exposed the personal information of 143 million people. The company’s initial estimate of the financial impact was $600 million, which later rose to $1.4 billion.
Loss of Reputation:
Ignoring website security issues can lead to a loss of trust and reputation. According to a study by Edelman, 71% of consumers will stop using a brand if they perceive the brand as doing something unethical or illegal.
Example: In 2020, the video-conferencing app Zoom faced criticism for its security vulnerabilities, which led to a loss of trust and reputation among users and investors.
Legal Liability:
Ignoring website security issues can lead to legal liability and financial losses. According to a study by Ponemon Institute, the average cost of a data breach involving more than 50,000 records is $6.03 million, with an average cost of $146 per record.
Example: In 2020, the hotel chain Marriott was fined $123 million for a data breach that exposed the personal information of 339 million guests.
Get High-End Performance & Security Support
Neglecting website performance and security can lead to lost revenue, damage to reputation, and increased vulnerability to cyber attacks. However, investing in website maintenance and security can provide significant benefits, including improved customer satisfaction, increased revenue, and reduced risk of security breaches.
If you are an eCommerce business owner looking to improve your website performance and security, consider partnering with a trusted web development agency like Galaxy Weblinks. With years of experience in eCommerce maintenance services, Galaxy Weblinks can provide expert guidance and support for all your website maintenance and security needs.
Contact us today to learn more about how we can help you with eCommerce maintenance services to maximum performance and security.
Are you compromising on quality to reduce website maintenance costs? Or perhaps you’re overspending on maintenance and wondering if there’s a way to cut it down? Well, we’ve got news for you – there’s a sweet spot in website maintenance, and it’s all about finding the balance between cost and quality.
But how much should you be investing in monthly maintenance to strike that perfect balance?
On average, businesses should aim to invest at least 5-10% of their website development budget into monthly maintenance, which results in improving your search engine rankings by up to 30%.
So, if you’re wondering how to optimize your website maintenance without compromising on quality or overspending on website maintenance services, we’ve got you covered. Let’s find that sweet spot together and keep your website running smoothly for years to come.
How To Calculate The Cost Of Website Maintenance?
Let’s say you run an e-commerce store using the Shopify platform, and you need to maintain the website on a monthly basis. Let’s take a sample metrics to understand the cost better
Factors affecting maintenance cost for e-commerce website:
No. of hours required
Platform expenses
Cost of domain expertise
Let’s take an example to understand the cost calculation with the help of some assumed data.
Average maintenance time required in a month: 9 to 12 hours
Minimum Expense: Maintenance Cost for 9 hours per month
Maintenance time per month (T) = 9 hours
Hourly rate for maintenance (R) = $100 per hour
Domain expertise cost = D
Platform expenses = P
The domain expertise cost can be calculated as:
D = T x R
D = 9 x $100
D = $900 per month
Then, the total monthly website maintenance cost can be calculated as:
Total cost = Domain expertise cost + Platform expenses
Assuming the monthly platform cost is $229
Total cost = D + P
Total cost = $900 + $229
Total monthly website maintenance cost = $1129
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Maximum Expense: Maintenance Cost for 12 hours per month
Maintenance time per month (T) = 12 hours
Hourly rate for maintenance (R) = $100 per hour
Domain expertise cost = D
Platform expenses = P
The domain expertise cost can be calculated as:
D = T x R
D = 12 x $100
D = $1200 per month
Then, the total monthly website maintenance cost can be calculated as:
Total cost = Domain expertise cost + Platform expenses
Assuming the monthly platform cost is $229
Total cost = D + P
Total cost = $1200 + $229
Total monthly website maintenance cost = $1429
Based on the above calculations, we can conclude that the minimum maintenance cost per month would be $1129 and the maximum would be $1429. If you are paying more, then you need to look into resource and task allocation in addition to checking the technology integration for your website.
If you are paying less than the minimum limit, then you should at least consider looking into the details of the maintenance activities and the overall website performance to rule out the possibility of ignored issues.
Factors That Affect the Cost of Website Maintenance
People commonly associate website maintenance costs to be solely attributed to the number of hours required to get the work done. However, there are other factors like the complexity of the issue, the technical expertise required, the priority of the task, etc. It is recommended to take all applicable factors into consideration when calculating or understanding the maintenance cost for your website.
Frequency Of Maintenance Issues
The frequency of maintenance issues can have a significant impact on the cost of website maintenance.
A report by GoDaddy found that small business owners spend an average of 5 hours per month on website maintenance, but this can vary depending on the complexity of the website and the frequency of updates required.
For instance, a website that requires daily updates and monitoring will have a higher maintenance cost than a website that only needs updates once a month.
Extent of Manual Effort Required
The amount of manual effort required for maintenance tasks can also impact the cost of website maintenance.
A study by HubSpot found that small business owners spend an average of 2-5 hours per week on website updates, which can include tasks such as creating new pages, updating content, and testing website functionality.
Websites that require more extensive manual effort, such as custom coding or design changes, will have a higher maintenance cost.
Technology Relevance
Outdated technology can also impact the cost of website maintenance. A survey by W3Techs found that only 2.5% of websites still use Flash technology, which is no longer supported by major web browsers.
Websites that use outdated technology may require additional maintenance to remain compatible with newer web browsers, which can increase the maintenance cost.
High Maintenance Requirement for The Platform
Websites with high maintenance requirements may also have limitations due to their current technology.
For example, a website with complex integrations or customizations may require more maintenance, which can be costly. In some cases, it may be more cost-effective to invest in newer technology that is easier to maintain in the long run.
Recommended Strategies By Experience Website Developers For Reducing Website Maintenance Cost
Yes, it is possible to reduce website maintenance costs by assessing the efficiency of current maintenance practices and exploring technological upgrades. By optimizing current website maintenance services and adopting new technologies, businesses can improve the effectiveness of their maintenance efforts while reducing costs.
Maximizing Efficiency
One way to reduce website maintenance costs is to ensure that maintenance tasks are being performed efficiently.
Regularly Update Website Software
Keeping website software up to date is crucial for maintaining website security and performance.
By regularly updating website software, businesses can reduce the risk of security breaches and minimize the need for manual maintenance tasks. For example, updating to the latest version of WordPress or a website theme can provide bug fixes, security updates, and improved performance.
Outsource Website Maintenance
Outsourcing website maintenance services to a third-party provider can be a cost-effective solution for small businesses that don’t have the resources to hire in-house staff.
According to a survey by Clutch, the average cost of outsourced website maintenance is $100-$149 per hour. Outsourcing can provide access to specialized expertise and resources without the need to hire new staff or purchase new tools.
Technology Upgrades
Another way to reduce website maintenance costs is to explore technological upgrades as newer technologies may also offer additional features and functionalities that can help reduce the need for manual maintenance tasks.
Adopt automation Tools
Investing in automation tools can help reduce the time and effort required for routine maintenance tasks.
For example, tools like Jetpack, UpdraftPlus, and WP-Optimize can automate tasks like backups, updates, and optimization, which can significantly reduce manual effort and lower costs.
Use A Reliable Hosting Provider
Choosing a reliable hosting provider can help reduce maintenance costs and prevent unexpected downtime.
According to a study by the Hosting Tribunal, 1 hour of downtime can cost businesses anywhere from $10,000 to $1 million, depending on the size of the company and the industry. By choosing a reliable hosting provider, businesses can minimize the risk of downtime and reduce associated costs.
By implementing these cost-saving measures, businesses can improve their website performance and functionality while freeing up resources to focus on other aspects of their business.
Achieve Higher Conversion Rate, User Retention, & Performance with Professional Website Maintenance Services
It can be a daunting task for businesses to manage maintenance needs in-house, and outsourcing to the wrong provider can result in higher costs and lower-quality services.
By partnering with a trusted and experienced website maintenance service provider like Galaxy Weblinks, you can ensure that your website is always optimized for performance, security, and functionality.
Our team ensures on-time resolution of issues with proactive audits to prevent minor problems from becoming major obstacles. We have also advised our clients on the best technology to reduce maintenance requirements and also scale their businesses sustainably. Get an in-depth website audit and website maintenance services costs to ensure a high-performing website.
