Several years ago, I launched a small web design company
in a rural area of California. Market conditions couldn't
have been better, my skill level was above average,
and I had a large pool of aquaintences to which I could
market.
Within 12 months I went broke.
My business failed because I made some very fundamental
mistakes, and made them consistently.
I now work in the web hosting industry. I have had
the opportunity to interact with numerous self-employed
web designers and have found that the mistakes which
I made are extremely common, and usually fatal.
If you are hoping to make a go of your business over
the long term, you may want to memorize my top 5 mistakes,
and avoid them like the plague.
If, on the other hand, you are determined to run
your web design business into the ground, the following
list may be used as an expeditious roadmap to failure.
1. Underprice your services
This is the most common mistake web designers make.
The temptation is to break into the business by producing
a few cheap websites in order to build a portfolio.
Don't do it!
Remember that you will only be spending about 40%
of your time designing sites. The other 60% will be
spent hustling up the next client. If you think your
time is worth $10.00 per hour, consider asking for
$30.00. This will give you sufficient revenue to pay
for all the non-paying time you spend marketing your
business.
2. Fail to set and enforce boundaries
Everyone loves a nice guy, and the temptation to
be one is a trap which many of us fall into. It's
crucial to remember, though, that you are in business
for one primary reason - to make money.
You will, doubtless, encounter clients who will pay
you for a small website, then end up wasting all of
your time with questions about how to remove spyware
from their computer and requests to add "one
small thing" to an already completed website.
You can avoid this, somewhat, by establishing clear
boundaries with the client from the very start. A
contract is useful here. Make sure that your client
knows exactly what can be expected of you, and what
you expect of them.
If your client asks for extras, and you're amenable
to providing them, give them a quote. Never toss it
in for free. The only thing you have to sell is your
time and expertise. Don't give away either.
Remember, you're in business. Try asking a service
station owner for a little free gasoline. They would
be shocked by your question. Likewise, you should
be shocked when someone asks you to provide free service.
3. View your clients as temporary
Many of us get into this business because we love
creating something new. By the time we finish a website,
we're tired of that site (and sometimes that client)
and we're ready to start a new project, and put the
old project well behind us.
This attitude can cut deeply into your potential
gross.
Over time, your client will need numerous updates
to his or her website. updates are sometimes bothersome,
but can add a significant revenue stream to your business.
More important, a satisfied client becomes one of
the major links in your marketing network.
4. Ignore recurring revenue opportunities
During the best of times, web designers live from
project to project. While finishing one project, you
will be lining up the next.
Every business, however, has slow stretches.
Unfortunately, your own creditors will still expect
payment, even when your own revenue slows down.
A wise web designer looks for ways to provide his
business with some sources of recurring revenue. Even
$400 a month which you can count on can get you through
a dry spell.
There are numerous ways to set up some recurring
revenue. Take a look at maintenence contracts with
your clients, reselling webhosting, etc.
5. Build pretty websites which do nothing
Your best source of advertising is word of mouth.
Nothing generates great word of mouth like a satisfied
customer. You can build the flashiest, prettiest,
most cutting edge websites on the net, but it's all
for naught if your site doesn't perform.
Every website has a purpose. That purpose might be
to sell goods, leverage an advertising budget, disseminate
information, assist in personnel management, or one
of a million other possibilites.
Your first job, as a web designer, is to ascertain
what the web site is supposed to do. Once you find
that "thing" - the thing it should do -
make sure that the site you deliver does that particular
thing like nobody's business! By doing so, you will
ensure a client who will sing your praises at the
Rotary Club, Chamber of Commerce meetings, and to
his or her friends and family. A client like this
is golden, and will bring a steady stream of customers
to your door.
About the author:
John Pierce is a technology writer and the Customer
Service Manager for Gold Zero Web Hosting - http://goldzero.com-and
the Webmaster for Cheap Webhosting Info Guide - http://cheapwebhostinginfo.com
