What are the pros and cons of starting a social media scheduling tool?
A social media scheduling tool has a few pros and cons, which you should be aware of before getting started.
Here are the high level benefits and drawbacks of a social media scheduling tool:
|• Flexibility||• Crowded Space|
|• Ability to start your business from home||• Longer Sales Process|
|• High customer retention rates||• Security Issues|
|• Scalable||• Customer churn|
|• High margins||• Complex development process.|
|• Rewarding work||• Complex maintenance|
|• You are your own boss!||• Be prepared to get out of your comfort zone!|
|• Higher likelihood of getting referrals||• You might struggle financially (at first)!|
|• You can decide who you work with||• Minimal physical activity|
|• You establish yourself as an expert||• Technical issues can be frustrating|
|• You can work from anywhere!|
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
• Ability to start your business from home
It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
• High customer retention rates
Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your social media scheduling tool becomes an integral piece of their every day lives.
With businesses and processes changing daily, there will always be demand for new features, products and services within your social media scheduling tool. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
• High margins
The gross margins for your social media scheduling tool are typically around 75%, which is considerably high and allows you to grow your business and manage costs easily.
• Rewarding work
Starting a social media scheduling tool can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
• You are your own boss!
With starting a social media scheduling tool, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
• Higher likelihood of getting referrals
The social media scheduling tool is all about referrals, which is a very effective way of attracting and retaining customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.
• You can decide who you work with
Gone are the days of working in a toxic work environment with employees that you may not vibe with. As a small business owner, you get to decide who you work and surround yourself with.
• You establish yourself as an expert
Starting a social media scheduling tool helps to establish yourself as an expert in your niche. In return, people are more likely to trust you, refer you to friends/family, and support your business.
• You can work from anywhere!
Not only can you start your social media scheduling tool from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.
• Crowded Space
Competition is high when it comes to your social media scheduling tool, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
• Longer Sales Process
A social media scheduling tool can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
• Security Issues
With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
• Customer churn
With a social media scheduling tool, people can cancel their subscription - which can make income unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
• Complex development process.
The development process for a social media scheduling tool can be quite complex, which may cause delays and challenges when launching and growing your product.
• Complex maintenance
Your social media scheduling tool will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.
• Be prepared to get out of your comfort zone!
Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!
• You might struggle financially (at first)!
If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.
• Minimal physical activity
A big part of starting a social media scheduling tool is sitting at a desk for the majority of the day starting at your computer. Some may enjoy this, but others may struggle with sitting for the majority of your day without much physical activity.
• Technical issues can be frustrating
A big part of starting your social media scheduling tool is the ability to work through technical issues. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.