Forums: Discussions for entrepreneurs and small business.

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

Dunno if this will help, but ...
You sound like a bootstrapper - meaning, you don`t really have the capital to invest in staff and their required resources. So two things. The first is that you need to reinvest a part (significant) of your cashflow into adding capability and that looks like, in your case, staff. Tough to make money as a solo-op. You can make money if you have intellectual assets, or real asssets, but for a bootstrapper, the most common way is through adding people and getting a cut of the value that they provide to your client base.
Second, consider a partner. The increased flexibility and specialization can provide benefits to both partners, and make the operation more viable and sustainable, despite sharing the income. Be careful in your choice of partner though - have a business plan so you are both on the same page, and a decision framework is clearly in place. And yes, you will probably need a partnership agreement.
Third - if this does not work, consider a strategic alliance with another independent. This goes well beyond using freelancers, but stops short of co-mingling business interests.
Try to act sooner rather than later - guessing from the tone of your post, there is a possibility of burn-out on your horizon. Getting control of the situation now might restore your drive and enthusiasm, even if you have to sacrifice a bit in the shorter run.
Good luck

Mike



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Hi Anurag,
I think your better option is to raise your prices, not drop them. You want to compete on product, not on price. If you have something about your personality that produces unusual or different, better or more interesting Web sites, then that`s what you should concentrate on selling---your brand; your personal style.

As depressing as it is to contemplate, coding is basically something anyone can learn. It goes back to that famous line from some movie: "What I know, nobody can teach me. What I don`t know, I can learn."

I`m not saying coding is simple. But it`s like playing a piano: anyone can learn to play a piano---the keys are the same on all piano keyboards. So? Playing the piano is a skill; playing music, on the other hand, is an art and takes talent.

Similarly, in your situation, coding is like playing the piano. Developing interesting and useful Web sites is like playing music. When you have that figured out---your style---then you can hire technicians to put your ideas into practice.

Hi, Anurag,

I suggest building a network of freelance designers that you can pay by project, but they understand that they could have steady work if they do a good job and meet deadlines.  You can pull them in as part of your team without the hassle of paying benefits.  Also, it`s easier to negotiate rates with freelancers.  Just make sure that you`re charging enough to make an hourly profit (example: you charge $100 an hour and pay a contractor $40).  This will give you time to grow and concentrate on running your business than getting wrapped up in the work.  You become more of a project manager and account manager.

Hope this helps. 

Best,

Jennifer

I second Jennifer`s advice. I would recommend going to a site like www.ODesk.com and utilizing those professionals as your staff, however, only on a contract basis. So, maybe you could do the client selling and relationship stuff while you hire these contractors as your staff on a project by project basis.

For instance, you bring in 4 website clients and there is no way for you to accomplish this work on your own. Well, you go to ODesk and hire as needed. All you do is manage the project and the difference between what you charge the client and what the professionals, in total, charge you is your profit. The benefit of this model is that you can service several different clients simultaneously as you are merely managing the workflow, rather than performing the work.

Also, besides ODesk, there are also similar sites such as www.Elance.com, www.RentaCoder.com and www.affordableprogrammers.com

Not sure if this helps, but best of luck!



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J.J. Thomas, JD/MBA

Entrevisor - Entrepreneur Advisory Services

www.Entrevisor.com

Entrevisor@Gmail.com

Hello Everyone,

Thanks a lot for your valuable advice. I have been travelling since last few days and didnt get to check this thread.

I am now getting a feel of what is the general thing I should be looking for. I think I should rather compete on my quality rather than the price. Also, freelancers are the best way to go right now till the time I am capable of hiring people full time.

I am in process of making a strategy for the forthcoming months and, hence, will take care all of your suggestions. Will keep you guys updated about my strategies and their impact on my business.

Thanks a lot again to everyone. I really really appreciate your help :).

Regards,
Anurag Sharma

Sounds like an excellent summary, Anurag.. :-) Of course it always is easier to talk about it than to actually implement it, but that`s life, right? It`s always easier to say, "I`m gonna climb to the top of Mt. Everest" than it is to actually do so.

Just take it one step at a time, and be ready to change The Plan when an opportunity presents itself that looks like a better direction.

Absolutely Craig . Thanks.

Learning to find customers whose primary focus is value and not price can alleviate many a problem down the road, too.

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Rosanna Tussey
Owner
New Mexico Candle Co.
http://www.nmcandleco.com