As reported on NYT.com earlier
this month, “when deciding whether Google
should spend millions or even billions of dollars in acquiring
a new company, its chief executive, Larry Page, asks whether the acquisition passes the toothbrush test: Is it something you will use once or twice a day, and does it make your life better?”
The author continues to say, “The
esoteric criterion shuns traditional measures of valuing a company like
earnings, discounted cash flow or even sales. Instead, Mr. Page is looking for
usefulness above profitability, and long-term potential over near-term
financial gain.”
While most businesses aren’t
making decisions on the same scale as Google, the toothbrush test is an
important way to gauge making improvements to your company’s own
operation—whether it’s adding services to offer clients, or making changes in
your I.T. space. It also translates to how you make improvements to your website.
In today’s economy, the website
is often the first point of contact for your customer. In the name of
cost-effectiveness, many organizations have begun to lease their website,
utilizing a proprietary Content Management System (CMS). It may seem a good
idea in the moment because the initial cost may be less and the site management
is left to someone else. If the
company then doesn't like the hosting, or they want to go somewhere else, they
can't take the website with them.
When using a
proprietary CMS, the website is developed at a competitive price but the
website will not run unless it can reference that specific CMS. Additionally,
most proprietary CMS systems will have limitations to design and features that
could prevent an online business from growing. Should a company want to move to
another vendor, or make changes to the website, but prefer to have someone else
do it, their hands are tied—it cannot be done unless the site is completely
reinvented, creating more expense.
In the long run, leasing your
website doesn’t pass the toothbrush test. Yes, it’s a useful, short-term
decision; however, on the flip side, it doesn’t improve a company’s bottom
line, instead it creates dependence on an outside vendor that will eventually
get in the way of business growth.
Be sure to weigh all the
options when considering upgrades to your website. To learn
more about web hosting, and a wide array of other services and products, visit www.kinetik-IT.com or follow Kinetik I.T. on Facebook,
LinkedIn
or Twitter.
