Monday, June 28, 2021

15 Stunning Examples of Small Business Website Design

If you’re a small business, your website has a big impact on your success. Research shows that roughly a third of people use the web to find local businesses. Honestly, I’m surprised that number isn’t higher.

As a small business, you might not have the budget to hire a designer, bring in a development team, or pay for a suite of design tools for your new site. A basic brochure site will probably have to do for now, right?

But here’s the thing: You don’t need a design portfolio or a branding team to make an effective website. A lot of what makes websites work boils down to clear and intuitive navigation, well-written copy, and tasteful use of color, typography, and images — no design degree necessary.

Still, it’s one thing to talk about good design, and another to actually build a website that delivers on all design fronts. Lucky for us, there are many fascinating websites that have figured out what works. So, to help in your design journey, we’ve compiled our favorite examples of excellent small business website design to inspire your own.

Free Download: 77 Examples of Brilliant Web Design 

Small Business Website Design Examples

There are, of course, thousands of small business websites you can draw from, but we think these 15 serve as a good starting point whether you’re planning a redesign or wireframing your first iteration. By the way, these are all real businesses, so you can click each link to explore the website yourself. Let’s dive in.

1. Bennett Tea

Starting off our list is a gorgeous example of what you can accomplish with color palettes, animated page transitions, scrolling effects, and creative layouts. The Bennett Tea shop offers just a handful of premium tea options, but each is presented elegantly through this online store’s unconventional format.

Typically, stores display their products as grids with links to product pages. On the Bennett Tea website, however, users scroll down to explore each offering, with a life-sized image of the tea box and descriptions of the taste, aroma, and mouthfeel. It’s the perfect visual palette to complement the company’s variety of tastes.

Also notable is the site’s navigation experience. Upon landing on the website, visitors are shown a splash page stating the company’s mission. They then have the option to continue to the store or go to the About or Contact pages. It may require one additional click to get to the store page, but this choice puts the branding front and center for potential customers.

homepage for the small business website design example bennett tea

2. Aroz Jewelry

Belgium-based jeweler Aroz has constructed an immaculate website to showcase and sell their items. Offering a variety of accessories, Aroz first greets visitors with a full-width image, below which they present their pieces in a grid slider.

As users continue scrolling, the website makes frequent use of zoom-in animation, slide-in animation, and fade-in effects for greater visual impact. Each text section establishes the store’s offerings, capped off with a contact form and a social media CTA.

For those looking to learn more about Aroz, the website also includes a blog featuring new collections as well as customer and designer stories. All of these components work to conjure a professional, sophisticated, and unique brand image — a great example of what an ecommerce site can be.

homepage for the small business website design example aroz jewelry

3. Chicago French Press

If a tea shop can have a fantastic website, why not a coffee roaster? Chicago French Press sells a variety of rotating flavors while donating a portion of its proceeds to nonprofits and charitable organizations.

Like Bennett Tea, this website emphasizes the aesthetics of the product packaging. It also implements color backgrounds to distinguish between flavors, as seen in the full-width image slider on the homepage.

The Chicago French Press store is easy to navigate, as visitors can search by different criteria including flavor, brewing method, and bag size. And, if you want to incorporate their flavors with food, the website’s blog includes recipe posts too.

homepage for the small business website design example chicago french press


4. Wildwood Bakery

Wildwood Bakery’s website incorporates illustrations in small but stunning ways. The Australian bakery has made a simple but captivating website with little more than some delicate illustrations, a nice orange-and-green color palette, and mouth-watering close-ups of their creations.

On the homepage, visitors can learn about the bakery and click away to the website’s online store or sourdough subscription service. The bottom of the page sports a footer with social links and other useful resources. Note that the footer is more prominent than usual — the large text draws the eye to other important aspects of the business like sustainability and wholesale.

Wildwood’s store page is also worth checking out. Customers can filter products by flavors and quickly add anything to the cart. It’s clear that the designers considered everything, as even the card icon itself is a custom illustration. It’s these details that make this site exceptional.

homepage for the small business website design example wildwood bakery

5. AÃRK Collective

The website for watchmaker AÃRK Collective leaves no question as to what it does — from the start, its timepieces are displayed in full-page, aesthetically pleasing images. The whole thing resembles more of a gallery than an ecommerce site and establishes the brand's commitment to simple and elegant designs.

But, this is ultimately an online store, and scrolling down reveals AÃRK’s product lines in a masonry grid style. The presentation is quite minimal, but this lets visitors focus solely on the designs themselves. There’s no other information until you click on an item, which sends you to a product page with all the relevant information, plus many more images to be sure you’re making the right watch purchase.

homepage for the small business website design example aark collective

6. Cleenland

Not all websites have to be visually elaborate — this is proven with Cleenland’s online store. The Boston-based company sells low-waste home care and personal hygiene products, and the site wastes no time nudging visitors to visit the physical location.

Visitors can also shop online in Cleenland’s online store, which lists its product categories with images of each product and information about the supplier. This way, you know products are sourced sustainably. There’s even a “popular products” category serving up the best this store has to offer.

homepage for the small business website design example cleenland

7. Ladies Get Paid

Ladies Get Paid is a membership website that offers financial and professional education courses for women. There are online classes, speaker events, and networking events, as well as job postings and online communities, all to fuel career advancement and financial confidence.

From a visual perspective, Ladies Get Paid does a fantastic job of presenting its variety of benefits in a straightforward manner. Its mission is clear from the start, and the page header lets guests view each offering in more detail.

The website also effectively incorporates hints of color in its interactive items. Its cards and buttons match each other for a cohesive feel and incorporate subtle hover effects for a pleasing user experience. Overall, the website is bold but inviting, a difficult but certainly achievable balance.

homepage for the small business website design example ladies get paid

8. Good Vibes All Purpose Cleaner

Maybe I’m just biased toward sustainable cleaning products, but Good Vibes All Purpose Cleaner presents a simple, effective ecommerce site that manages to convey its philosophy and offerings seamlessly.

Good Vibes has no frill with its product displays — products are shown in a grid format as you might expect. However, the website also prominently features reviews and testimonials from customers below to instill confidence in new buyers.

Each product page includes a description as well as cleaning instructions, ingredients, reviews, and recommended products. It’s enough to make a positive impression without relying on visual gimmicks.

homepage for the small business website design example good vibes all purpose cleaner

9. Wisr

I never expected to have this much fun on a financial services website, but here we are — Wisr offers personal loans, financial planning, and, above all, an incredibly amusing homepage. As you scroll, you follow the path of a simulated marble course from start to end. With each obstacle, you learn more about what Wisr does.

Whether you think this design choice serves as a metaphor for the often unpredictable financial road ahead, or just a cool thing to look at, this website definitely stands out among the rest.

As another cool secondary feature, the website remembers what page you exit from. So, upon a return visit, you’ll see a prompt inviting you back to the page where you left off. It’s a clever use of cookies that can help get prospects back on the conversion path.

homepage for the small business website design example wisr

10. Cafe con Libros

Intersectional Feminist bookstore Cafe con Libros (Coffee with Books) not only offers espressos with your purchase — it also boasts a fantastic website with everything you need under one domain name.

This site manages to pack its book inventory, merch store, event calendar, and mission onto the homepage alone without overcomplicating things. Visitors can also order any book from the store — physical, e-book, or audiobook — for pickup or delivery through the site.

As if that weren’t enough, the website also maintains an active blog with reflections and book reviews, a newsletter, a monthly book subscription service, and a podcast with an on-site player. It’s an excellent balance of quantity of offerings with quality of design.

homepage for the small business website design example cafe con libros

11. Reform Collective

Design agency Reform collective features one of the most cinematic scrolling experiences I’ve seen on a website. It combines fixed scrolling with horizontal scrolling to showcase each section in chunks while keeping visitors on the same page.

Each individual section mentions some piece of the company, be it their design style and philosophy, a case study, testimonials, or a contact form. If you’re looking for a long-scrolling website that presents information to visitors in a specific linear sequence, try emulating this trick — it ensures users see what you want them to and in what order.

homepage for the small business website design example reform collective

12. Sweet Dreams

Sweet Dreams may create CBD and melatonin products for better rest, but don’t sleep on this website. Combining 2D and 3D illustrations, scrolling animation effects, customer reviews, and even interactive graphics, the homepage for this small business does a great job getting visitors in the mindset of their product before promoting the products themselves.

Informational sections are interspersed with product links so that new customers, whether sold or skeptical, know what they’re buying and how these products work. To learn more, the About page includes masterful visuals and copy to put visitors at ease. Given what they’re selling, that seems like the right approach.

homepage for the small business website design example sweet dreams

13. Panache

The graphic design and branding experts and Panache have proven their abilities with their one-page informational website. This is another example of how scrolling can be much more than a way to traverse the page — here, it triggers colorful transitions and animations that leave a strong impression.

Panache makes this list because, rather than including a separate gallery for showcasing the work, it blends its aesthetic approach into the construction of the site itself. This ultimately gets potential clients down to the contact form more quickly. There are also navigational links along the left side of the page in case visitors wish to return to a particular section.

homepage for the small business website design example panache

14. Scott's Cheap Flights

The goal of Scott’s Cheap Flights is to help U.S. travelers easily and cheaply book vacations to domestic and international destinations. Its membership website is suitably simple: Just sign up and start getting daily emails with the latest discounted flight offerings.

Once signed in, the website places its offers front-and-center — each one occupies a card with a colorful image of the destination. Clicking a card takes you to a page with information about the destination, instructions on how to book, and ticket prices by airport. Some cards are premium, and the “Upgrade” button lingers in the top right tempting users to subscribe.

Additionally, this website also provides a ton of extra value to free and premium users in its blog section. In it, there are tips for booking flights, travel advice, and guides for exploring new cities.

homepage for the small business website design example scott's cheap flights

15. Music Audience Exchange

Finally, Music Audience Exchange (MAX) creates partnerships between brands and musical artists for promotional purposes, with a website that conveys class and professionalism.

Since it caters to both artists and companies, it features two pages for both types of clients, with step-by-step guides explaining how the process works. It’s an efficient means to channel both brands and musicians alike toward an application form and a conversion.

homepage for the small business website design example music audience exchange

Big Design Ideas for Small Businesses

Designing a website is, without a doubt, a challenge for small businesses. But after some perusing, you can come up with a list of your favorite inspiration sites and what makes them pop, then incorporate these features into your own site. Plus, you probably spend a good deal of time on sleek sites already and have a good sense of what you’ll want.

Looking for more inspo? Check out all of our website design resources, including our Website Design lookbook — just click below.

examples of brilliant homepage, blog, and landing page design


15 Stunning Examples of Small Business Website Design was originally posted by Local Sign Company Irvine, Ca. https://goo.gl/4NmUQV https://goo.gl/bQ1zHR http://www.pearltrees.com/anaheimsigns

Friday, June 25, 2021

21 of the Best Brands on Instagram Right Now

Contrary to what your friends' photos suggest, Instagram isn't just a social network for selfies and brunch pics. In fact, Instagram has over 200 million businesses that use its platform and 90% of users follow at least one of them, according to 2019 data.

New Data: Instagram Engagement Report [2021 Version]

In a time when visual content remains a crucial part of any brand's marketing strategy, Instagram marketing presents a unique opportunity to showcase your brand identity.

Ready to get inspired? Check out this list of brands that are thriving on Instagram right now, and why their posts set them apart.

Best Brands on Instagram

What makes a brand great on Instagram?

We polled 301 users across the United States, and asked “Which of the following describes the brands you follow and enjoy on Instagram?”

These were their top answers:

What the best Instagram brands have in commonData Source

While this data is from a small sample, it does highlight what we already know about Instagram audiences. They look for:

  • Content that relates to their lives: both personal and professional.
  • Eye-catching, fun content.
  • Product promotions

What you'll see in the next section is that every brand featured meets these needs, earning them high follower counts and high engagement rates.

Psst Want to get a stunning Instagram Story auto-magically created for your brand? Check out StoriesAds.com, a free Story generator from HubSpot and Shakr. Click here to get started.

1. Netflix's Strong Black Lead

Followers: 682k

Here is an example of a brand that has mastered the art of having its own identity while remaining connected to its parent brand.

Strong Black Lead is a sub-brand under Netflix dedicated to amplifying Black stories in media.

The brand's Instagram page mainly features screen grabs and short clips from TV shows, movies, and documentaries available on Netflix that feature Black actors and/or directors. They stay on-trend, posting relevant content based on current events, holidays, and buzzy topics.

In addition to its appreciation posts for widely loved TV characters, Strong Black Lead also promotes content the brand hosts on other platforms, such as podcasts and YouTube content.

2. Califia Farms

Followers: 303k

Warning: If you're hungry, don't head to Califia Farms' Instagram page.

The brand's food photography makes it stand out among the rest, showing users how Califia Farms' products can be used to create dishes ranging from pancakes and nice cream to artichoke dip and fettuccine alfredo. Califia farms instagram page

The brand doesn't shy away from featuring its product in the images either. You can usually find it somewhere in its visual content, whether it's the main subject of the photo or more in the background.

3. Anima Iris

Followers: 33.4k

You probably thought this list would only feature enterprise-level brands, huh?

Well, there are a ton of brands that have found the magic recipe on Instagram and Anima Iris is one of them.

Anima Iris instagram page

What sets this brand apart is the transparency of its CEO.

If you watch one of Anima Iris' Instagram Stories, you'll probably see its CEO, Wilglory Tanjong, showing the behind the scenes of running a luxury purse brand, which helps its audience feel more connected.

You'll probably also see Q&As, surveys, and user-generated content – all strategies that have helped the company build a strong online community and gain brand loyalists.

4. Lorna Jane

Followers: 1M

Lorna Jane instagram page

If your brand were a person, how would you describe its personality? Australian activewear company Lorna Jane has done an awesome job answering this important branding question with its Instagram content.

Spend just a few seconds scrolling through these photos, and you'll quickly be able to name the target Lorna Jane buyer: a young, sporty, twenty- or thirty-something woman who values looking good while maintaining an active lifestyle.

The images posted by Lorna Jane, which often show the brand's clothing and accessories, as well as images of women who embody its target buyer persona, are colorful, playful, and inspirational, which is a perfect representation of the brand's essence.

5. Letterfolk

Followers: 353k

Letterfolk is a small business run by a couple who create and sell beautiful, handcrafted felt letterboards. Each letterboard comes with a full set of characters so people can personalize the walls of their homes, which means endless room for creativity.

Instagram is the perfect platform for them to inspire customers and aspiring customers with real customers' boards, as well as ideas they've come up with and staged themselves. Their Instagram content is funny and relatable – a great recipe for shareability.

Not only is this photo showing a funny and clever message, but it's also very relatable. That's why the comment section is rife with Instagram users saying things like, "No truer words have been said" and "The struggle is real."

6. Apartment Therapy

Followers: 3.1M

Apartment Therapy's Instagram account really is a source of therapy, if you love the sight of cozy homes.

Here are a few recent posts to Apartment Therapy's Instagram feed. Apartment therapy instagram feed

From home decor inspiration to fun challenges like their #SmallCoolChallenge contest and trendy user-generated content (UGC), this brand gives its followers plenty of inspiration to personalize their own space and "live happy, healthy lives at home,” as written in their profile bio.

7. Sunday II Sunday

Followers: 20.1k

Sunday II Sunday is another small business with a robust social media presence.

The brand describes itself as “haircare for active women.” As such, its content revolves around having and managing an active lifestyle.

Sunday II Sunday also does a great job of engaging its followers, asking them questions about their routines, workouts, and hair care habits.

8. Tentsile

Followers: 203k

Tentsile instagram feed

"Stunning" is the first word that comes to mind when I scroll through Tentsile's Instagram photos.

Tentsile sells tree tents, what they call "portable treehouses" to elevate your camping experience. Its Instagram page is full of beautiful lifestyle images of their products in just about anywhere in the world: rainforests, mountains, beaches... you name it.

What the brand does well is leveraging its UGC. This saves time and resources, plus giving the brand some social proof.

9. Desenio

Followers: 1.8M

Desenio instagram feed

The first thing you'll notice when you land on Swedish online art print company Desenio's Instagram page is color blocking.

Every image blends beautifully with the one next to it, creating a cohesive, visually appealing page you never want to leave.

Even when using user-generated content, the brand ensures it fits within its aesthetic. Establishing consistency in your creative assets is key in ensuring brand recognition (i.e., when people see your image anywhere, they know it's you.)

However, from time to time, Desenio will stray away from its usual look, which creates even more intrigue.

The post above was a simple holiday card from Desenio, but it was so dramatically different from the look and feel of the business's usual interior design, followers just had to click through to see more.

Many of the comments included exclamations of how beautiful and evocative the post is. One commenter was inspired enough to describe what winters are like where they live.

10. Bolden USA

Followers: 32.1k

Instagram is all about visuals. This means that within minutes of being on Instagram, a user can be bombarded with images.

So, the question is: How do you make sure your brand stands out and is memorable?

One way is by developing a unique aesthetic and remaining consistent. Bolden USA has done just that.

Bolden USA instagram page

To mirror its green logo, the theme of Bolden USA's Instagram is green. While the brand features other colors in its images, green is always the primary, standout color – an effective tactic to aid brand recall and recognition.

11. Vans

Followers: 17.4M

Vans is known for its stylish shoes and its Instagram business account is no exception.

The maker of the classic checkered slip-on sneakers has a flashy Instagram feed, featuring both standalone product shots and action photos of people expressing themselves in their favorite Vans gear.

One thing that's clear by looking at Vans' Instagram account is that its identity is no longer tied solely to skateboarding. While you'll still see lifestyle images with skateboarders, you'll also see surfers, cyclists, and other young, fashionable kids.

So, as your brand identity and messaging evolve, your content should also follow suit.

One of Vans' most interesting posts was this.

Just because you're promoting an ordinary product launch doesn't mean the social media post supporting the launch should be equally ordinary.

Vans' recent video, above, endorses a line of shoes called ComfyCush, but the video itself is a little, well, weirder. And for a business so dependent on style, the right amount of weird can give Vans an awesome amount of engagement.

12. Grass-Fields

Now, here's a brand that knows how to show its personality.

This Cameroon-based clothing brand isn't playing it safe on Instagram with static model shots and sale promotions.

Instead, Grass-Fields showcases its products through fun, vibrant dance videos, and behind-the-scenes content.

The brand also highlights Black business owners, creators, and artists on its page, which caters to Black women.

The key takeaway here is: Don't be afraid to do things differently than it has been done if that's what your audience responds to.

13. Finfolk Productions

Followers: 316k

Ever wanted to be a mermaid? You can come pretty close, thanks to companies like FinFolk Productions. Believe it or not, silicone mermaid tails you can put on and swim around in are quite trendy.

Finfolk Productions' Instagram feed is full of beautifully shot photos that play into the mermaid fantasy by looking more like mythical art than real people.

One of the brand's most engaging posts had a personal touch.

The post above is two things in one: a new product and a sentimental announcement by the company founder, Bryn Roberts.

For most of Finfolk's followers, the white mermaid fin above isn't just a different color from the typical fins made by the company. It's also emblematic of Bryn's recent wedding, for which she wanted to make a bridal-style mermaid fin that all of Finfolk's customers would appreciate.

14. Shiseido

Followers: 660k

Shiseido started as Japan's first Western-style pharmacy 140 years ago and has since developed into selling high-quality brightening and anti-aging skincare, makeup, and fragrance products.

Its mission is to inspire a life of beauty and culture – a mission it portrays beautifully through Instagram content.

Shiseido instagra, brand

Back in late March 2016, Instagram started rolling out the ability to upload 60-second videos – and we've seen some amazing Instagram videos from brands ever since, like the one below from Shiseido.

The one above lasts nearly all 60 seconds and its product demo is curiously satisfying to watch.

Hot tip: Posts featuring faces, especially for a skincare brand, are ideal for boosting social media engagement.

Don't be intimidated by highly professional Instagram videos like theirs. You can post highly engaging videos on Instagram without a huge video team or a bottomless budget. Here's a step-by-step guide for making great videos on Instagram without breaking the bank.

15. Sephora Collections

Followers: 835k

Sephora Collections' brand personality is playful, colorful, and feminine. It does a wonderful job of characterizing this personality in its Instagram content, using bright colors, patterns, and fun captions.

In addition to partnering with beauty influencers, the brand also promotes content from everyday makeup users, featuring their tutorials and looks on its feed.

16. Clare

Followers: 93.1k

If you're renovating or simply moving into a new home, you're likely looking for inspiration on social media sites like Instagram and Pinterest.

Clare Instagram page

Clare's Instagram features a collection of carefully curated images that meet that exact need. You'll find everything from new product promotions to home decor tips – everything in between.

There's also a beautiful balance of colors on Clare's Instagram page, creating a cohesive profile that's s inviting, warm, and inspiring.

17. HoneyBook

Followers: 82.9k

What we love about HoneyBook is how accessible its content is.

Instagram, like many social media platforms, has been slow to develop and promote its accessibility features.

Thankfully, brands like HoneyBook have taken an active approach to make their content accessible by adding captions to their videos and adding image IDs that describe every image the company posts.

For deaf, hard of hearing, and visually impaired users, these extra steps go a long way.

18. Design Essentials

Followers: 139k

Design Essentials knows that hair is more than just something that grows on your body. It can speak to a community, a culture.

That's why the brand does more than just promote products on its Instagram page. In addition to product shots, you'll find inspirational quotes about hair, playful memes about everyday life, and fun reposts from Design Essentials' audience.

19. Flodesk

Followers: 36.5k

Flodesk's Instagram is everything you want to see on social from an email marketing platform: beautiful designs and inviting content.

When you land on Flodesk's page, you'll gain tips on how to use its platform as well as general tips to optimize your email marketing strategy. With the use of vibrant colors and playful designs, every post is an attention grabber.

What's more, almost every post includes a call-to-action that invites the audience to engage. Whether it's to drop an emoji in the comments or answer a question – engagement done right.

20. Omsom

Followers: 35k

Omsom is another small business that has leveraged its CEOs, two first-generation Vietnamese sisters, to build a community on Instagram.

As you scroll through Omsom's Instagram, yes, you'll find beautifully crafted images showcasing the dishes you can make using the brand's food products. However, that's only one piece of the puzzle.

You'll also see many posts celebrating Vietnamese culture, and debunking Asian-American stereotypes and biases.

This strategy helps consumers connect with the Omsom beyond the delicious food and understand its broader mission and purpose.

21. Chipotle

Followers: 1.1M

Instead of reeling in consumers with food pictures, Chipotle has chosen another route: hilarious memes.  

While you may find the occasional food post, the brand has focused its Instagram strategy on showing its personality. 

Here's why it works: Memes are shareable and tag-friendly, which helps Chipotle reach new consumers as people tag their friends in funny, relatable posts. 

The common thread in all the brands featured is that they had a consistent brand identity that was reflected in their visuals and a deep understanding of what resonated with their audience.

Ready to populate your Instagram timeline with pics and videos that are as captivating as the content above? We believe in you!

instagram statistics


21 of the Best Brands on Instagram Right Now was originally posted by Local Sign Company Irvine, Ca. https://goo.gl/4NmUQV https://goo.gl/bQ1zHR http://www.pearltrees.com/anaheimsigns

38 Fun Corporate Team-Building Activities & Outing Ideas Everyone Will Enjoy

Are you starting to notice some droopy shoulders around the office? It sounds like it's time to plan a team outing.

Team outings are a great way to facilitate bonding with your team members, reduce employee stress, and give them the chance to get to know one another outside of the office.

And, you know, they're entertaining.

But how do you find ideas for a great team outing? Maybe you start with a Google search for "team outing ideas" and stumble upon an article that suggests "field trips" and "professional development activities." It sounds like a starting point, but where's the real excitement?

Download Now: Free Company Culture Code Template 

Next time you plan an outing for your team, cut the trust-falls and get one of these ideas on the calendar instead. We have something for everyone — from perfect activities for remote teams to large or small in-house groups to events that enhance teamwork and events that all team members can enjoy outdoors.

Why should you do team-building activities for work?

Team building activities can be embarrassing for coworkers, and some don’t even add anything that relates to the workplace. For example, while ‘trust falls’ seems like an excellent idea, forcing it doesn’t improve trust among coworkers, and what is worse, it can result in injuries when pairings are not even.

However, not all team-building activities are detrimental to your workers, as you would see from the ideas we highlight in this post.

One of the most significant advantages of the right team-building activities is that it boosts morale among your workforce. Team members get to work together on exciting and challenging activities and can display their skills and talents.

Team-building activities and games that boost morale can break down barriers among employees and create an environment that is nice to work in, which is vital to a successful and well-functioning business.

The ultimate goal of team-building activities is to get your team members to bond and build trust with each other. People with different backgrounds, needs, ambitions, and personalities make up teams.

By engaging in the right team-building activities, you can bring these different people together to build a bonded, trusting team.

When your team bonds, it results in several benefits for the company. Some of these benefits include:

1. Improved Communication Skills

Communication between staff and departments is essential to a company’s success. Team-building exercises put people in a relaxed environment and encourage them to communicate while completing tasks.

2. Improved Productivity

Better communication skills will have a domino effect on productivity levels. When your employees work together and communicate, there is less work duplication and less friction between workers.

3. Identifies Leaders

Another benefit from team-building exercises is that managers can discover leaders within the workforce while engaging in team-building activities.

Regardless of the type of event that you want to enjoy, here are eight essential things to consider:

1. Define your goals.

You must determine clear areas of focus that you want to enhance during team-building events. Only after selecting the activity’s goals can you successfully choose the activities and challenges that would best fit the occasion.

2. Set a budget.

A budget needs to be determined after you have decided on your priorities. With a realistic budget, you can ensure that the price of the event doesn’t run out of control.

3. Set up a planning team.

As you begin planning, you will discover how difficult it can be for one person to organize a team-building event. There are so many things you need to prepare for, and the best way to deal with these things is to delegate responsibilities.

4. Invite and involve the right people.

Sometimes, it is easy to determine who to invite. Some other times, it can be challenging choosing who to invite. To help you, ask yourself (or the planning team these questions):

  • Is it a compulsory event?
  • What is the maximum number of people that the budget and venue can accommodate?
  • Will remote employees be invited?
  • Can anyone attend the event?

Answering these questions can make it easier for you to invite the right people.

5. Select the right activities.

After determining the goals of the team-building event, you should have a clear idea of activities that will align with these goals.

It is best to choose activities that are interactive, engaging and that build collaboration among employees.

6. Choose a great time.

The best time for a team-building event depends on the schedule and personal lives of those you plan to invite. Ensure that invitees are free before you commit to a day and time. You also need to take the weather and season into account when choosing a date - especially if organizing an outdoor activity.

7. Choose a good location.

The location is one of the factors that can make or mar your event. You need to avoid places that’ll not accommodate enough people or that aren’t suitable for the activities you’ve planned.

8. Market the event internally.

Marketing the event internally will likely build excitement among employees. Developing and distributing an “Event Day Agenda” that highlights all the activities employees will enjoy will increase expectations for the day and get folks excited.

Remote Team Building Activities

1. Virtual Break Room

The simple chats that happen on the office floor are sorely missed. Since most members of your team still work remotely, a virtual break room is an excellent team-building activity.

You can create this via Zoom or some other platform where staff can log in and join over their lunch or break - allowing them to catch up with coworkers as they would in a physical office.

You can also keep water cooler moments alive by encouraging workers to share interesting photos or videos.

2. Virtual Escape Room

Since the pandemic made physical escape rooms impossible to visit, a Virtual Escape Room brings the mystery to your workers right in their homes!

Depending on the Escape Room you choose, team members have to pass through different rooms, solve the puzzles they encounter, solve a murder, and so much more!. It is just as fun as it sounds, and what is more, it builds collaboration and communication among staff.

3. Beer Making

In this team-building exercise, team members become brewers for a day right from their homes. The process does not require prior knowledge as Beer Making Experience walks participants through each step of the journey. Kits are also delivered to interested staff.

4. Virtual Scavenger Hunt

You can quickly organize this team-building activity over a Zoom call. On the call, challenge team members to collect different items from around their homes.

The first person to show all the required items wins the hunt!

host a virtual scavenger hunt for a corporate team-building activitySource: Scavify

5. Set Competitive Challenges

A little friendly competition never hurts any team - on the contrary, it can strengthen the bonds of unity.

Setting up challenges for your teams can give them a goal to work towards. One popular challenge is the fitness challenge. It provides healthy competition between teams and improves their health.

6. Icebreaker Quizzes

These quizzes are an exciting and safe way to do team-building weekly. You can choose an online ice-breaker quiz like Quizbreaker, which sends out a new round of quizzes weekly to the team. It can work wonders to bringing remote teams closer as they learn more about each other while having loads of fun.

7. Visit Paris Virtually

One challenge many HR departments face is onboarding new hires. Virtually visiting new places with tools like Woyago is a unique and exciting ice-breaker. The virtual tour offered by Woyago has real-life Parisian guiding participants while throwing challenges along the way.

visit paris virtually for a corporate team-building activitySource: Woyago

Large Group Team Building Activities

8. Scavenger Hunt

Find a beautiful day, break everyone out into groups, and have a scavenger hunt around the city. You can organize one yourself or use a creative service like The Go Game (which lists companies like Netflix, Facebook, and HBO among clients) or Stray Boots.

Your team members will feel nice and rejuvenated after some fresh air and fun challenges. Be sure to take plenty of silly pictures — you can even have a slideshow when everyone regroups at the end.

Alternatively, you might try a "Random Acts of Kindness" hunt. For instance, Outback Team Building & Training offers this team building activity, which requires teams to split up into groups, download Outback's app, and complete a series of challenges to benefit strangers in the community.

host a scavenger hunt for a corporate team-building activity

Image credit: The Go Game

9. What’s My Name?

You might have seen this game played before. It goes by different names, and the more people who play, the better it is.

What's My Name is an activity where each player is assigned the name of a person — dead or alive — and displays that name on their back, head, or part of their body such that only the other players can read the name. You can write these names on index cards or Post-it notes.

Once team members have been assigned a name, the players mingle with one another, treating their coworkers the way they'd treat the person listed on that coworker's card. They can also ask questions about their own hidden identity until they correctly guess who they are.

What's My Name has no complicated rules or potential for competitiveness. It's simply an empathy-builder — a critical ingredient of good company culture — allowing team members to find out what it would be like to be treated the way someone very different from them might be treated every day.

10. Cook-Off

Here's a culinary team-building activity that could end in dessert or disaster — in a fun way. Creating new dishes together requires creativity and will require everyone to put their team and leadership skills into action.

Divide your team into smaller teams, pick a food category, and challenge each team to whip up something delicious. The category could be anything from ice cream, to salsa, to pizza.

One fun twist you could add? Pick a single ingredient that all teams must use, like maple syrup or Oreos. Or, have each team get creative thinking caps on with the shape of its food — you can make pizzas into almost any shape.

11. Sneak a Peek

What do you get when you add a test of memory to a game of Pictionary? Sneak a Peek. In this game, team members break off into groups of at least four and take turns recreating objects from memory.

Using LEGOs, clay, building blocks, or a similar set of construction items, one game leader will craft an object or structure for every group to recreate. A member of each group then has 10 seconds to "sneak a peek" at the structure (which is hidden), return to their groups, and describe what they saw to the rest of the group so they can recreate it.

Each group has its LEGOs, clay, or building blocks. If it isn’t complete after a minute of recreating the structure, another member of each group sneaks a 10-second peek at the game leader's object and comes back to instruct the group further.

This rotation continues until a group is confident they have recreated the item. The object of the game? Be the first group to recreate it.

Not only does this game help team members practice project management, but it shows you how to accomplish tasks using input from a variety of sources. It's also just a fun way to see how good your coworkers are at retaining information.

12. Board Game Tournament

Here's one way to spark your team members' competitive sides without having to leave the office. Organize a team-wide board game tournament.

Especially if your team is pretty big, it might be easiest to pick a single game, then have one team member sign up for specific time slots when they're free to leave their desks and spend some time playing the game.

Some great games with reasonable play times include Boggle, Jenga, or even games using good ol' playing cards. Don't forget to incentivize with prizes for first, second, and third place.

13. Office Trivia

Who says trivia night only takes place at the bar? Office trivia is the perfect way to bring a large group of colleagues together and challenge the brain in areas that don't necessarily apply to their daily jobs. Break the company into teams of four or more and offer small prizes for the teams who score the most points.

Want to write your own trivia questions? For reference, trivia questions are generally sorted into categories — four or five trivia questions per category — with optional bonus questions at the end of the game.

While you can give each question a point value, you can also assign each team a certain amount of points per category that they can bet, instead. Each team can then bet as many or as few points as they want per question until they've used all their points for that category.

Not prepared to create your own trivia questions? Hire a trivia organization to host a trivia night at your office. There are tons of national trivia companies who'd be happy to host an event right on site — District Trivia, The Trivia Factory, and the Big Quiz Thing are just a few of them.

14. 4-Question Mingle

This activity has each team member moving around and meeting each person individually. It is excellent for teams that have spent some time apart or groups that have just been formed. Armed with four questions, each person gets to know coworkers better.

Small-Group Team Building Events

15. Improv Workshop

Comedy and improv events are fun, interactive experiences that'll have your employees roaring with laughter while teaching them useful communication and soft skills, like focus and trust.

Depending on your budget, you could do anything from simply playing improv games with your employees to bringing in professionals to run competitive, fast-paced activities.

16. Two Truths and One Lie

This is a classic house party fun activity, but it's also an excellent ice-breaker when integrating coworkers who don't yet know one another.

Two Truths and a Lie is simple: Start by organizing the entire group into a circle and give each person the floor to introduce themselves. In addition to providing their name, however, every team member also says three things about themselves —only two of which are true. It's up to the rest of the group to guess which statement is the lie.

17. Karaoke Night

What better way to get your employees to break out of their shells than to have them get up and sing some karaoke? You can even have a contest for the best group karaoke performance.

Bonus points if there are feather boas and cowboy hats involved. This activity works best for a more extroverted group, so if your team isn't into strutting their stuff on stage, consider an idea on this list that caters more to those personalities.

go to karaoke for a corporate team-building activity

Source: derekgavey

18. The "Suddenly" Story

If you've ever told stories around a campfire, you might have narrated a variation of The "Suddenly" Story. This activity is the choose-your-own-adventure book of team-building.

However, putting activities. You're not just telling a story — you're piecing a story together using the (often hilarious) imaginations of your coworkers.

To tell The "Suddenly" Story, gather your team in a circle, and offer the opening three sentences to a story about anything. At the end of the three sentences, say "Suddenly ..." and pass the story onto the person next to you.

It's their job to take your three sentences and build on the story with another three sentences, followed by "Suddenly ..." Each mention of "Suddenly" allows the story to take a turn. What that turn looks like is up to the next person in the circle.

The "Suddenly" Story helps people find ways of building on existing content while also being creative when all ears are on them. Try it the next time you want to get your department together for a break, and you're sure to get everyone laughing.

19. Go-Kart Racing

There’s nothing like a bit of competition to bond a group together. An adrenaline-pumping activity like kart racing is a great way to get employees to interact with one another in a totally new and fun way. Just make sure everyone pays attention during the safety lecture.

20. Concentration (Marketing Edition)

Here's a professional spin on the 1960s game show. The original game show, called Concentration, put 30 numbered tiles up on a board, each tile with an identical tile somewhere else on the board. What made them similar? They had matching prizes on the back.

Over time, as contestants opened up more tiles, they had the opportunity to select tiles they knew would match up and win the prize written on the back.

Businesses — especially marketing departments — can have a field day putting logos, slogans, and company names on the back of their own tiles and having players match up every piece of the brand.

As your business grows, you can even put the names of your products, employees, and job titles on the backs of your tiles to see how well your coworkers know the company they work for.

21. Sales Exercise

This activity is perfect for your marketing team but can still be enjoyed by all types of teams and encourages creative thinking. In this building exercise, each group is given an item, from the mundane to the strange. The teams each have five minutes to come up with a creative advert. The team with the most creative advert wins each round.

Teamwork Team Building Activities

22. Professional Development Workshop

Want to encourage team bonding while providing each team member with an opportunity to learn and further their career?

Offer a shared learning experience either at your office or at an off-site workshop or conference. The activity could be specifically related to your employees' jobs, or it could be something broader, like a negotiation or leadership skills workshop.

23. Jigsaw Puzzle Race

Jigsaw puzzles can be a tedious thing to put together alone. Maybe you have one set up at home and make progress on it for a couple of hours every weekend.

However, putting your numerous brilliant colleagues on the case makes a jigsaw puzzle an enjoyable problem-solving activity. Break the company into teams for a multi-puzzle race, and suddenly you have a test of teamwork that electrifies the entire office.

Grab several copies of the same puzzle and turn your weekend activity into a contest to see which team can complete the puzzle first. Offer prizes just like you would in a game of office trivia.

Just be sure each team has the same number of people and choose your puzzle size wisely. A 1000-piece puzzle, for example, might be a bit time-consuming for a team of just five or six people.

24. Room Escape Games

Here's a great bonding activity that requires leadership skills, teamwork, logic, and patience. Room escape games — Escape the Room, Puzzle Break, AdventureRooms, etc. — have become a wildly popular team-building exercise for groups around the globe.

Here's how it works: A group of people gets "locked" in a room for one hour. During that time limit, they have to find hidden objects, solve puzzles, and figure out clues to locate the key that will set them free. And it's not easy: Only 20% of players actually make it out before the hour is up.

If you're not sure how to convert your office space into an escape room, you can always hire a service to do it for you. Companies like Outback Team Building & Training host events that turn your office into a team-building escape challenge. And, this can invoke some great, positive memories into a space where your team works every day.

25. The Egg Drop Challenge

Chances are, you played this in school or summer camp. The Egg Drop Challenge is a beloved tradition that challenges teams of kids to create small structures around an uncooked egg to protect the egg from a high fall onto hard ground.

Each group is given specific items to build the structure that protects the egg, but nothing more. So, why not offer the same challenge to your coworkers?

Straws, newspaper, tape, and cardboard are just some everyday items provided during the Egg Drop Challenge — as you can see in the sample egg fortress below. However, consider making it even more challenging for your coworkers and allow them to use simply anything available in the office.

The height of the fall is up to you. But ensure to set an altitude that's consistent with the materials each team has to work with.

egg drop challenge for a corporate team-building activity

Source: Buggy and Buddy

26. Laser Tag

Another great way to get your adrenaline pumping? A good old game of laser tag. Not only is it great fun, it's also an opportunity for employees to exercise their strategy and logic skills, as well as teamwork skills. Bonus: Determine teams ahead of time and have people dress up.

27. Catch Phrase

In this classic party game, players team up and take turns describing words and phrases to their teammates without saying the word or phrase itself. Phrases can include celebrities, expressions, or just simple things found around the house.

If my phrase is "needle in a haystack," for example, a clue I might give to my teammates could be "a pointy object buried inside farm equipment."

Catch Phrase is the perfect way to get your employees together and teach them how to communicate with one another. (Don't worry, everyone will be having so much fun, they won't realize that's what you're doing.)

This game is often played with a basket of phrases on slips of paper, but it became so popular, Hasbro made an electronic version.

28. Game of Possibilities

To play this game, give an object to anyone in each group. Then ask each person to demonstrate in front of their group — without talking — what the object is used for. The rest of the team has to guess what object the person is demonstrating. Demonstrations must be creative and original. It can be played in small groups and only requires random objects.

Outings and Events Team Building Activities

29. Volunteer

Giving time to support a good cause isn't just good for the soul; it's also an excellent way for your team members to bond. Place-based volunteering ideas include volunteering at a local soup kitchen, helping build a Habitat for Humanity house, or delivering gifts to children's hospitals during the holidays.

Skill-based volunteering is a terrific way to stretch your employees' expertise: It's when your team volunteers its time and uses its professional skills — anything from marketing to app development to writing — to help a nonprofit.

Try VolunteerMatch.org for either type of volunteering opportunity and Catchafire.org for skill-based volunteering opportunities.

30. Mystery Dinner

Mystery dinners are one of the most beloved traditions here at HubSpot. On a single night, you send a group of folks from different teams within your company to dinner somewhere in your city (or at someone's house).

The dinner is hosted by one of your company's leaders and paid for by the company. These dinners allow random groups of people from the same company to spend an evening chock full of good food and conversation together.

What makes them a mystery dinner? The only thing participants should know about the dinner ahead of time is the date and time. Send each group an email with the name of the restaurant they're going to and who they'll be going with, so they can arrange transportation together.

Optional: Give every dinner host the name of a restaurant or bar to invite everyone to congregate once the dinners are over.

host a mystery dinner for a corporate team-building activity

31. Kayaking/Canoeing

Nothing says "let's work together," quite like trying not to end up in the water. Want to take advantage of the outdoors? Grab a paddle and head down to the closest river for a great spring or summer outing.

Many public rivers and ponds have boat houses where you can rent kayaks and canoes — and you can encourage folks to rent multi-person ones and pair up with people they don't usually work with.

go kayaking or canoeing for a corporate team-building activity

32. Trampoline Park

Hey, who says trampolines are just for kids? Take your team to a trampoline park for some jumping fun and a chance to work off the day's stress. Many cities have local places with trampoline activities — if you're in the Boston area, check out Skyzone for trampoline dodgeball and basketball games.

33. Something Touristy

Embrace your city! Pick a hot tourist destination and go as a team. You can even do a Segway tour. (Fanny packs: optional.) It'll be nice to laugh at how silly it feels to be a tourist in your own city, and you might even learn something new.

34. Painting Class

If you're looking for a slightly more relaxing activity, take a group painting class. Paint Nite hosts painting classes by local artists at various bars throughout major cities for painting on canvases, wine glasses (like in the picture below), and so on. It's a great way to let your team members unwind, catch up over some drinks, and express their creativity.

go to a painting class for a corporate team-building activity

35. Cooking Class

In the mood for something a little more culinary? Change up the usual outing to a bar or your local restaurant, and try a cooking class. Through a service such as Kitchensurfing, you can hire a professional chef to cook a fancy meal for you in your home or office kitchen.

Between the multiple courses prepared before your eyes, your team will have plenty of time to strike up a conversation and enjoy the delicious aromas.

go to a cooking class for a corporate team-building activity

36. Explore a New Place

Few things are more fun than getting out of the city and exploring for a day. So, why not do it with your team?

For bigger events — maybe every quarter, when you have more budget to use for outings — charter a bus and take your team to a new place. You can all take a historical tour of the new place, grab lunch at a restaurant serving the town's finest, or take in a local attraction together.

explore a new place for a corporate team-building activity

37. Sports Game

Round up the team and head out to a sports game. What a fantastic way to rev up team spirit while combining both competition and camaraderie.

38. Go Camping

Get away from the hustle and bustle of work and city life by heading out to a camping site in your area.

Bond with your coworkers over camp stories, marshmallows, and campfires. Walk into the woods as coworkers and come out as friends!

Bring Fun To The Workplace!

These are just some fun team-building activities that you can use to get the best out of your team. Be sure to use any of the activities listed above to build a firm foundation of trust and purpose between your employees.

Now you're ready to show your team a great time while increasing their happiness and creating a great company culture. And hey, you might just be the "cool boss" now. How cool would that be?

Editor's note: This post was originally published in August 2018 and has been updated for comprehensiveness.

company culture template

company culture

38 Fun Corporate Team-Building Activities & Outing Ideas Everyone Will Enjoy was originally posted by Local Sign Company Irvine, Ca. https://goo.gl/4NmUQV https://goo.gl/bQ1zHR http://www.pearltrees.com/anaheimsigns

Best Goal Setting Worksheet to Help You Plan & Achieve

Accomplishing your goals is an incredibly gratifying feeling.

However, it can sometimes be challenging to get that feeling, as achieving your goals takes time, effort, and a structured process. This is why it’s important to create plans of action for meeting the goals that will help you stay motivated and ensure you’re on the right path.

In this post, we’ll go over a goal-setting worksheet created by HubSpot to help you outline your goals with the SMART framework and create a plan for achieving them. The template is broken down into relevant sections to help you through the process, and if you download it, you can follow along throughout the post.

Download your free marketing goal-setting template here. 

Goal Setting Steps

1. Identify your initial goal.

The first step of the process is to simply identify what your goal is. It doesn’t have to be convoluted, just merely the objective you’re hoping to achieve. For example, if you’re hoping to grow your website, your baseline goal could be “I want to generate more site traffic.”

2.Define your SMART goals.

The second step in the process is to use the SMART framework to elaborate your goals to ensure that they’re clear, measurable and that the process will help you get there. Here are is what each of the element in the acronym stands for:

  • Specific: A specific goal clearly outlines what you’re hoping to improve. If you share your specific goals with your team, it should be clear what your intention is.
  • Measurable: Making your goal measurable means attaching numbers to your objective that will help you understand what you have to meet, track your progress, and see how long it will take you to reach your end goal.
  • Attainable: Making sure that your goals are attainable means that they are realistic and that you have a chance of achieving them. Your goal is not too out of left field or so unrelated to your current practices that you wouldn’t be able to succeed.
  • Relevant: Ensuring that your goal is relevant involves answering the question of “Why are you setting the goal that you’re setting?” Your goal should directly relate to your business’ needs and help your business grow.
  • Time-Bound: The final aspect of your goal-setting process is to set a timeline. It helps you understand what your schedule should be and stay on track in terms of achieving your ultimate goal.

Goal Setting Template

It’s always helpful to have a worksheet guide you through your process, and the image below is an example.

sample goal setting template section for outlining initial goalsDownload Template Here

Once you've finished defining your goals, the next step is to calculate your targets so you know what your final numbers should be and so you can plan your process accordingly, so you’re able to meet those final numbers.

2. Calculate your goal outcomes.

The most challenging part of your plan might be coming up with numerical targets that coincide with achieving your goals. You can just say, “We want to increase blog leads by 25%,” but what would the 25% increase be in numerical form?

When you have these numbers, you can set milestones for yourself and monitor your progress and make changes along the way if necessary.

The image below is an example of a SMART goal calculation.

example template for applying numerical values to your SMART goalsImage Source

3. Evaluate your SMART goals.

The template’s final step is to evaluate your goals, which helps you anticipate possible roadblocks and develop action plans for dealing with them. If you have multiple goals, aim to ask these questions for each one that you have:

  1. What is your SMART marketing goal?
  2. Do you feel that this goal is realistically attainable in the time frame you’ve set?
  3. How many hours per week can you dedicate to achieving your goal/your goal process?
  4. What is the biggest challenge preventing you from achieving this goal? What are possible challenges you may face in achieving this goal? What is the biggest roadblock(s) to achieving this goal?
  5. What three steps can you take to reduce or remove that challenge and succeed in reaching this goal?

All in all, following this framework makes your goals explicitly clear for yourself and helps you communicate their importance to all necessary stakeholders, so everyone is on the same page. To get started, download our template for free and start achieving your goals.

New Call to action


Best Goal Setting Worksheet to Help You Plan & Achieve was originally posted by Local Sign Company Irvine, Ca. https://goo.gl/4NmUQV https://goo.gl/bQ1zHR http://www.pearltrees.com/anaheimsigns

Thursday, June 24, 2021

Variable Cost Explained in 200 Words (& How to Calculate It)

There’s a frustrating truth that every business deals with early into its growth: More money, more problems.

It seems counterintuitive — if sales and revenue are up, isn’t that a good thing? How are bigger profits a potential problem?

Put simply, it all comes down to the fact that the more you sell, the more money you need to spend. This includes marketing and sales campaigns to reach more customers, the production costs of more goods, and the time and money required for new product development.

Known as variable cost, this sales/spend ratio is something every business owner should understand, but online advice listicles and action plans often assume readers have an intrinsic knowledge of this concept rather than providing a working definition.

In this piece, we’ll clear up variable cost confusion: Here’s what you need to know about variable costs, how to calculate them, and why they matter.

Click here to download 8 free marketing budget templates.

Let’s examine each of these components in more detail.

Variable Cost Per Unit

The variable cost per unit is the amount of labor, materials, and other resources required to produce your product. For example, if your company sells sets of kitchen knives for $300 but each set requires $200 to create, test, package, and market, your variable cost per unit is $200.

Number of Units Produced

The number of units produced is exactly what you might expect — it’s the total number of items produced by your company. So in our knife example above,if you’ve made and sold 100 knife sets your total number of units produced is 100, each of which carries a $200 variable cost and a $100 potential profit.

Variable costs earn the name because they can increase and decrease as you make more or less of your product. The more units you sell, the more money you’ll make, but some of this money will need to pay for the production of more units. So, you’ll need to produce more units to actually turn a profit.

Variable Cost Formula

And, because each unit requires a certain amount of resources, a higher number of units will raise the variable costs needed to produce them.

Variable costs aren’t a “problem,” though — they’re more of a necessary evil. They play a role in several bookkeeping tasks, and both your total variable cost and average variable cost are calculated separately.

Total Variable Cost

Your total variable cost is the sum of all variable costs associated with each individual product you’ve developed. Calculate total variable cost by multiplying the cost to make one unit of your product by the number of products you’ve developed.

Total Variable Cost

For example, if it costs $60 to make one unit of your product and you’ve made 20 units, your total variable cost is $60 x 20, or $1,200.

Average Variable Cost

Your average variable cost uses your total variable cost to determine how much, on average, it costs to produce one unit of your product. You can calculate it with the formula below.

Formula for average variable cost

Total Variable Cost vs. Average Variable Cost

If the average variable cost of one unit is found using your total variable cost, don’t you already know how much one unit of your product costs to develop? Can’t you work backward, and simply divide your total variable cost by the number of units you have? Not necessarily.

While total variable cost shows how much you’re paying to develop every unit of your product, you might also have to account for products that have different variable costs per unit. That’s where average variable cost comes in.

For example, if you have 10 units of Product A at a variable cost of $60/unit, and 15 units of Product B at a variable cost of $30/unit, you have two different variable costs — $60 and $30. Your average variable cost crunches these two variable costs down to one manageable figure.

In the above example, you can find your average variable cost by adding the total variable cost of Product A ($60 x 10 units, or $600) and the total variable cost of Product B ($30 x 15 units, or $450), then dividing this sum by the total number of units produced (10 + 15, or 25).

Your average variable cost is ($600 + $450) ÷ 25, or $42 per unit.

Variable vs. Fixed Cost

The opposite of variable cost? Fixed cost. Fixed costs are costs that don’t change in response to the number of products you’re producing.

Some common fixed costs include renting or leasing a building, utility bills, website hosting, business loan repayments, and property taxes.

Worth noting? These costs aren’t static — meaning, your rent may increase year over year. Instead, they remain fixed only in reference to product production.

To calculate the average fixed cost, use this formula:

Average Fixed Cost formula

Both variable and fixed costs are essential to getting a complete picture of how much it costs to produce an item — and how much profit remains after each sale.

To calculate variable cost ratio, use this formula:

Variable Cost Ratio Formula

Let’s put it into practice. If you’re selling an item for $200 (Net Sales) but it costs $20 to produce (Variable Costs), you divide $20 by $200 to get 0.1. Multiply by 100 and your variable cost ratio is 10%. This means that for every sale of an item you’re getting a 90% return with 10% going toward variable costs.

Combining variable and fixed costs, meanwhile, can help you calculate your break-even point — the point at which producing and selling goods is zeroed out by the combination of variable and fixed costs.

Consider our example above again. If your variable costs are $20 on a $200 item and your fixed costs account for $100, your total costs now account for 60% of the item’s sale value, leaving you with 40%.

Put simply? The higher your total cost ratio, the lower your potential profit. If this number becomes negative, you’ve passed the break-even point and will start losing money on every sale.

So, what’s considered a variable cost to the business?

Some of the most common variable costs include physical materials, production equipment, sales commissions, staff wages, credit card fees, online payment partners, and packaging/shipping costs.

Let’s examine each in more detail.

Physical Materials

These can include parts, cloth, and even food ingredients required to make your final product.

Production Equipment

If you automate certain parts of your product’s development, you might need to invest in more automation equipment or software as your product line gets bigger.

Sales Commissions

The more products your company sells, the more you might pay in commission to your salespeople as they win customers.

Staff Wages

The more products you create, the more employees you might need, which means a bigger payroll, too.

Credit Card Fees

Businesses that receive credit card payments from their customers will incur higher transaction fees as they deliver more services.

Online Payment Partners

Apps like PayPal typically charge businesses per transaction so customers can check out purchases through the app. The more orders you receive, the more you'll pay to the app.

Packaging and Shipping Costs

You might pay to package and ship your product by the unit, and therefore more or fewer shipped units will cause these costs to vary.

Expect the Unexpected

While variable costs, total variable costs, average variable costs, and the variable cost ratio often seem complicated on the surface, these terms are simply ways to represent the changing nature of costs to produce new items as your business grows.

By understanding the nature of these costs and how they impact your current and projected revenue, it’s possible to better prepare for evolving market forces and reduce the impact of variable costs on your bottom line.Business Plan Template


Variable Cost Explained in 200 Words (& How to Calculate It) was originally posted by Local Sign Company Irvine, Ca. https://goo.gl/4NmUQV https://goo.gl/bQ1zHR http://www.pearltrees.com/anaheimsigns