5 Key Considerations on Making Your Digital Signage Business Grow

Without

proper consideration and caution, a digital signage business can be an expensive affair. Relative to static signage (the other branch of the signage industry), digital signage can involve installing expensive hardware and software and maintaining it.

Whereas the options for the devices that digital signage can be used on have expanded beyond LCD, LEDs and projectors to include mobile phones and smart watches, you still need to be very smart about how you implement your signage otherwise you could be out of business very quickly instead of growing organically.

In order to grow your digital signage business, you have to be able to understand the following issues that are common in the industry, in order to foment your business skills and allow for solid growth in the future.

1. Find out your total cost of implementation to calculate a certain ROI

You have to be able to not only know and understand what the cost of implementing a specific digital signage is, but you have to be able to know how the cost will impact your business at different scales.

That is, you need to know how much it will cost you to implement a digital signage in 100 retail outlets as well as in 2 outlets.

You also need to ask yourself:

· Do you benefit from economies of scale by implementing digital signage in more stores as opposed to in a single store?

· Is the cost increase linear? and

· What is your MOQ (minimum order quantity) for a specific job, below which you will be losing money if you implement instead of making money.

These are just a sample of some of the questions that you should be able to examine in order to be able to understand your business better and know how best you can grow.

2. Understand your market segment within the industry

The digital signage business has a value chain that can be quite complex. Some of the segments within the industry include:

· Hardware’s segment including digital displays, media players, network connectivity, internet bandwidth,

· Software including SaaS (software as a service), stand-alone software’s and cloud based software,

· Management of digital signage including project planning and management,

· Installation, maintenance and field service,

· Content creation, and

· Advertising and sales.

This means that you have to know and understand which specific segment of the industry you operate in.

Each of these segments can be a whole business on its own let alone a specific service within each segment. You need to be clear where your strengths lie as a business in order to leverage on that strength and grow your business.

Whether you choose to focus on one specific segment or provide a holistic package, you may need to leverage on the skills, talents and expertise of other professionals, so as not to spread your business too thin and miss on opportunities for doing what you are best at.

You need to have in mind several other key considerations if you want your digital signage business to grow. These include:

3. Understanding your UVP (unique value proposition) that you offer

4. Understanding where to best implement digital signage for most effective use

5. Creating relevant content that resonates with its target audience.

If you carefully give some thought to these key considerations, your digital signage business will surely grow.