Startup needs help

**anuragsharma** · 01-20-2008 11:10 PM

Hi Guys,

I am posting here after a long time.

I started my business last July. It is about web designing, web development and graphics based services. I thought I would be able to make considerable progress in 6-8 months but it didn't happen.

There are two major issues that I am facing:
1.) I am getting website orders but I don't have a team working for me. It's nearly like a one man army. So, you can understand that even if I have two website orders with me I cannot deliver it on time. If I refuse them I might lose a probably future business prospect. That fear always makes me take up the work. I am currently operating from home and this is just hand to mouth situation. It is going on like a proper business.

2.) I cannot run a business only with making websites. In this times of competition one has to provide the least price to attract people. But this is not working out good for the business. I can make few bucks on the website but it is not that profitable considering the amount of work I put into designing & development. I don't know if its a good idea to pump up my prices a little.

I sometimes think that I should be the one to get business and have few guys working for me who will do the work. Since, I am a startup I am not really sure how to hire guys since I don't have a regular incoming of funds. One idea was to get in touch with freelancers. I am really getting confused about this. I am hoping that you guys out there might be able to advice me on this with your experience.

Thanks,
Anurag Sharma

**garysomers** · 01-21-2008 01:12 AM

Hello Anurag,

I'm going to say freelance. Having said that make sure you (have a qualified attorney) draft up contracts that meet all your demands and all the freelancers demands. This will make for a smoother money transaction and will help to protect your business, clientele and intellectual properties.

No contract, no deal. Its as simple as that.

I wish you the best of luck.

-Gary

**BusinessAdviser** · 01-21-2008 01:31 AM

I couldn't disagree with the above advice...right up to the point of the advice to draft his own contracts. That should be left to an attorney.

**garysomers** · 01-21-2008 01:41 AM

You are absolutely right jmenq2.

Contracts mean nothing unless they are properly worded, formulated and overseen by legal professionals.

Thankyou for your correction.

-Gary

**anuragsharma** · 01-21-2008 01:51 PM

Yeah I am also thinking on the same lines as above. Thanks for your replies guys.

**rogercbryan** · 01-21-2008 02:19 PM

Take a look at Craigslist... you'll find a ton of contractors you can hire..

**EasyAutoSales** · 01-22-2008 12:24 PM

As someone who has hired different freelancers for a number of projects and have owned a web development firm at one point, here are some things I've learned.

1. Price isn't everything. You can't compete solely on price, you really should compete on the quality of your work. If you compete on price, you will work harder for less money and in the end that will just make you hate your job. On the other hand, if you compete on quality, you will start picking up better paying projects that have cool challenges that will require your programmers to learn new things. For programmers, that makes life worth living and for you, it makes for good business.

2. Web development and design services are a dime a dozen these days. Things you can do to differentiate yourself includes adding web hosting for your clients, maintenance, support, SEM/Search Engine Optimization services if you know or have people that knows those skills. Does your new client need marketing help after the site is up? Consider hiring a designer that specializes in banners and/or email newsletters.

3. Hiring freelancers is probably the best way to grow a business to start. If something doesn't work out, you can always find new ones until you start finding people you trust. Running a one man show is tiring and if you're busy doing support, you won't have time to find new business.

4. Look for good clients, not anyone and everyone you can find. If three jobs came your way and you only have limited resources, pick the one you can do the best on and pick the client that's willing to pay for that work. There's no use establishing and maintaining relationships with bottom of the barrel clients. Not only are they cheap, they nit-pick everything and drain your energy. If by chance they like your work and refer you to their friends, chances are their friends will be in the same category. Why do all the work to get paid for $2,000 when you can do the same amount of work for $15,000?

I'm sure there are tons of other tips out there, but these initial ones will hopefully get you out of the rut.

**anuragsharma** · 01-23-2008 01:39 AM

Thanks a lot easyautosales.

Your points do make sense to me. I do need to focus on competing on quality rather than price. I will surely consider your points while I am trying to formulate a new working strategy these days.

Thanks a ton

.

**allysa** · 01-23-2008 06:01 AM

For manpower issue, I agree with them, hire freelancers or if you have time to train someone, organize a job fair on such universities/schools. There are lots of student designers in your country. You can also organize packages like designing plus basic SEO, in this way, you are more advantage.

**richrf** · 01-23-2008 10:01 AM

Just a quick word on contracts. For small jobs they are practically meaningless, since it often takes much more time and money to enforce them, then they are worth. In the meantime, your customer is blowing a fuse.

So from a practical point of view, you are somehow going to have to figure out how to outsource some of your work to someone that is highly trusted. Otherwise you can get yourself in a bit of a fix.

Working with someone local, is always best. At least you can meet the person face-to-face, if necessary. Going outside your locale, is much riskier, but there are certainly organizations who have located a person, or company outside of their locale, and have been able to develop long and profitable relationships.

The thing to concentrate on is the nature of the relationship, how to approach it (gradually) to ensure you can trust your partners to deliver good quality products/services, on time and within budget. It is perilous until you have found such partners, and contracts will now help one iota - they are broken all the time.

Rich

**EasyAutoSales** · 01-23-2008 10:17 AM

On another note, if you hire a freelancer from the web through guru.com, odesk.com, elance, etc. Usually those freelancers will already have a contract of their own that they've been using.

I know on guru.com, you can place money in an escrow and once the job is done to your satisfaction, you can then release the money. Even though this service shaves a bit off the top for your freelancer, it may be worth using the first couple of times until you guys establish a working relationship.

- Wei

**CiD743** · 01-23-2008 10:19 AM

So, it's hard for me to give you advise, but that's why I'm here. So....

1.) My first project I hired a freelancer, $15/hr, for all of the programming. I did the web design.

2.) I hired lead programmer 5 months before he graduated, $25/hr.

3.) As business grows, he is incharge of finding more help from school. Students are cheap and there are few part-time jobs that pay as well.

As far as services / prices go, you need to offer "montly services." If you make $1000/website, you would need 100 websites/year to hit six figures; if you offer services that make $500/mo plus the $1000 for the website, you'll only need about 15.
Prices do need to be competitive, but you need to be able to "upsell." In most businesses you need this skill. Offer more features to the website "for only $xxx.xx more."

Hope this helps.