I’m interested to see any web dev contracts available out there. I sell a commercial product including a web development contract and like to see what others are using.
One comment about business plans: my small business has been thriving and growing for a couple of years now, though I’ve never had a formal written business plan. I definitely have specific written goals and plans, and it may be that they are serving some of the purposes a more typical “business plan” usually serves – but I have nothing I would show to anyone else.
This is not to disagree with your advice, but maybe just to point out that there are exceptions. Or, who knows – maybe I’d be drowning in my own success if I did have a formal business plan! :-)
The advice on the business plan is good. But just making a business plan is not enough to aid success. Once you have made a business plan you must check it at least once every two quarters. Are you sticking to your plan? Should your plan be changed to meet the trends of your current business trends and knowledge? By reviewing your business plan, and modifying as necessary, you will help to keep your business on the right track providing your customers with more consistent reliable services and products.
This is an excellent point. Most experts actually recommend reviewing it once every quarter, and revising it if necessary. A business plan is never set in stone; it should be constantly morphing to your business needs and goals. Reading through articles in Inc magazine, its amazing how many CEO’s, CFO’s, etc rely on the business plan, and how they are constantly rewriting them for future growth.
<q>What is even more astonishing is that such offers got bids. Some coders really don’t value ther time.</q>
In our business, you’ve got a lot of teenagers operating out of their bed room in the attic. Nothing wrong with that, but it lowers rates drastically, as they have no expenses and can afford to take largish contracts for free or little money.
I know several one-person companies who share office space. The pros: you’ve got company (working for yourself can get lonesome very quickly), you share the costs, you can perhaps afford a classy looking reception area. Cons: as with a partnership, but with lower risks, of course.
The type of sharing I see most is where one entrepeneur rents the space for growth, and lets part of their office to other freelancers. Another method is to create a legal entity (foundation or some such, ‘stichting’ or ‘vereniging’ in the Netherlands) that rents the office space and lets it to the members.
In the Netherlands, you can deduct an office at home as a business expense, depending on some variables that your accountant will fill you in on.
Keep in mind that all kinds of things you take for granted as an employee and consumer in the Netherlands don’t fly once you’ve become independent. You really will be on your own.
The tax office (‘belastingdienst’) and Chamber of Commerce (‘Kamer van Koophandel’) are your friends, especially the former. Visit them as they’ve got loads of useful advice. The latter will in some cases actually try and discourage you from starting a business as part of their spiel. Make sure you come across as if you mean it.
The Usenet newsgroup nl.ondernemen is NOT there to spam your fellow entrepeneurs with your brilliant product, but DOES provide a place where other entrepeneurs will listen and dispense advice. Read up in http://groups.google.com/groups?q=group:nl.ondernemen before you start posting.
Keep in mind that for several organisations that could spell big trouble for you (belastingdienst, GAK), you need to look like a business: have business cards, stationary, clients (if you rely on one major client, the GAK will conclude that you are their employee and start taxing them accordingly!), spend most of your time on the job, advertize, etc.
Most states have “Business Incubators” run by local economic development agencies that startup companies can make use of. Contact your state’s economic development agency and the National Business Incubation Association (http://www.nbia.org/). They can help with suitable accomodation initially, assistance with business planning, accounting and legal advice, and so on.
Also, your state’s ecomonic development agency – and in some areas, county or similar – often has a lot of assistance for people starting their own business. They can provide lots of valuable advice, often run free seminars, and can be a source of useful grants or low income loans.
Anyone heard or used the Web Design Business Kit from www.sitepoint.com ?
Link: http://www.sitepoint.com/books/freelance1/
Is it worth the $197?
Books that tell you the secret formula to success, usually tell you to sell a book that tells others the secret formula to success.
There are no formulas beyond hard work, talent, business smarts, perseverence, high quality suppliers and heaps of luck. Rest assured that if there were some secret method, the ones that knew about it wouldn’t be selling books about it.
Speaking of high-quality suppliers, what I missed in the article is the importance of outsourcing; you don’t need to have everything done by a third party, but if a third party can make you look better (or make the product better), you’d be foolish to do it yourself.
This is an excellent point. Most experts actually recommend reviewing it once every quarter, and revising it if necessary. A business plan is never set in stone; it should be constantly morphing to your business needs and goals. Reading through articles in Inc magazine, its amazing how many CEO’s, CFO’s, etc rely on the business plan, and how they are constantly rewriting them for future growth.
This is an excellent point. Most experts actually recommend reviewing it once every quarter, and revising it if necessary. A business plan is never set in stone; it should be constantly morphing to your business needs and goals. Reading through articles in Inc magazine, its amazing how many CEO’s, CFO’s, etc rely on the business plan, and how they are constantly rewriting them for future growth.
I’m assuming that you’re in KC. I too enjoy the local Boulevard brew. While I’m not extrememly local, (Topeka) I thought your article was great.
I’m 23, and I was seriously thinking about starting my own business here in town. I’ve been working at the local University for a little over one year, and am trying to finish up a degree online. The job I currently hold has given me invaluable experience as far as dealing with people. Being so young and instructing faculty is difficult sometimes. I can’t say enough about that part of the article.
I’m glad I read this, because I would have been foolish to dream up starting a business right now. At least I’ll have a guide when I’m ready to continue…
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Rick Bush
In many places you can do business under your own name without having to register the name. You may still need a business license, but you might be able to start out as John Doe, consultant and work that way.
Another thought on partnerships is to form a partner network. You as a great graphic artist can work with a freelance web designer, a network specialist, etc. You hire them to work for you on a work for hire basis and charge the final work through to the client, perhaps with a little markup. That way you can pull in talent for bigger projects and still stay small.
Your article has what [in my opnioin] are valid points. I’m learning firsthand the rationale behind the need for a business plan and how a business partner can provide a good balance. I also know the value of experience, my own and others’, in collaboration with new ideas.
I strongly advise you to schedule regular, say every 6 months or less, revisits to your business plan. Ideally, do this with someone else who will ask you hard questions.
One of the lessons* I carried away with me from running my own one-woman business was that I should have revisited my plan regularly and, when I mentally reworked my strategic direction, I should also have considered what needed to be reworked in my plan. In my case, I changed my product line enough that I really should have repeated some of the initial work I did planning & promoting before first opening the business. Talking over my numbers with someone else would probably have helped identify (and call me on) where I wasn’t walking the walk I’d talked up.
*(along with “don’t plan to pay yourself for over a year” and “consider what to do if what you think won’t happen, happens e.g. separating from the person providing most of your personal financial support)
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Robret
Awesome article! Right from the trenches! However, on searching for those generic forms and contracts on creativepro.com you spoke about, I couldn’t find anything. I wonder if you could find it in your heart and busy day to send me a direct link to these resources? It’d be very much appreciated. Thanks!
The merit of this article is that it summarizes in a quick read most of what you really need to know about starting a business. Even though the business reality and legal procedures here in Costa Rica are drastically different from those of the U.S., I benefited a lot of reading a book called “The Business Side of Creativity” by Cameron Foote, that delves more in depth into all of these true-to-God issues.
I would just add two pointers here for those of you jumping into your own: 1) Make sure you have enough savings to cover at least 6 months’ worth of expenses, both yours and your business’s (you’ll need them – guaranteed), and 2) that networking beats skills every time when it comes to clinch a deal. Or as they say, it is not WHAT you know, but WHO you know, that will get you the big business. You may cry foul, but that’s the way it is…
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Surinder
This was just the information that i was looking for, with this plan set out i hoping in the future of starting my own bussiness although iam still at school is do beleve that you can start at a young age with part time experenice avaiable when your at school.
i would really like to say thanks for writing this article.
Good article, I’d agree with almost all of it except the part about a partner.
If there’s one thing I’ve learned from my business experience – not web related by the way – it’s NEVER, EVER, EVER, UNDERANYCIRCUMSTANCESWHATSOEVER, EVER go into business with a partner. NEVER.
If you feel you need a partner you’re either not ready to go into business or you should think of another of doing it.
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carole
Husband and I are starting up our own one man/one woman computer business. U hit it on the head when u said to get real life expereince before starting a business. When i was 20 i started a business and I was DEFINATELY dumb! It went under and i was left with oweing thousands. So THIS time…26 yrs later..we want to do it RIGHT and will resist the temptation of rushing in and starting. Business plan here we come……..
40 Reader Comments
Back to the ArticlePatty Ayers
I’m interested to see any web dev contracts available out there. I sell a commercial product including a web development contract and like to see what others are using.
One comment about business plans: my small business has been thriving and growing for a couple of years now, though I’ve never had a formal written business plan. I definitely have specific written goals and plans, and it may be that they are serving some of the purposes a more typical “business plan” usually serves – but I have nothing I would show to anyone else.
This is not to disagree with your advice, but maybe just to point out that there are exceptions. Or, who knows – maybe I’d be drowning in my own success if I did have a formal business plan! :-)
Patty
Adrian
Good article!
Anyone heard or used the Web Design Business Kit from www.sitepoint.com ?
Link: http://www.sitepoint.com/books/freelance1/
Is it worth the $197 ?
Justin
The advice on the business plan is good. But just making a business plan is not enough to aid success. Once you have made a business plan you must check it at least once every two quarters. Are you sticking to your plan? Should your plan be changed to meet the trends of your current business trends and knowledge? By reviewing your business plan, and modifying as necessary, you will help to keep your business on the right track providing your customers with more consistent reliable services and products.
Kevin
This is an excellent point. Most experts actually recommend reviewing it once every quarter, and revising it if necessary. A business plan is never set in stone; it should be constantly morphing to your business needs and goals. Reading through articles in Inc magazine, its amazing how many CEO’s, CFO’s, etc rely on the business plan, and how they are constantly rewriting them for future growth.
Branko Collin
<q>What is even more astonishing is that such offers got bids. Some coders really don’t value ther time.</q>
In our business, you’ve got a lot of teenagers operating out of their bed room in the attic. Nothing wrong with that, but it lowers rates drastically, as they have no expenses and can afford to take largish contracts for free or little money.
Branko Collin
I know several one-person companies who share office space. The pros: you’ve got company (working for yourself can get lonesome very quickly), you share the costs, you can perhaps afford a classy looking reception area. Cons: as with a partnership, but with lower risks, of course.
The type of sharing I see most is where one entrepeneur rents the space for growth, and lets part of their office to other freelancers. Another method is to create a legal entity (foundation or some such, ‘stichting’ or ‘vereniging’ in the Netherlands) that rents the office space and lets it to the members.
Branko Collin
If there are any Dutch readers here:
In the Netherlands, you can deduct an office at home as a business expense, depending on some variables that your accountant will fill you in on.
Keep in mind that all kinds of things you take for granted as an employee and consumer in the Netherlands don’t fly once you’ve become independent. You really will be on your own.
The tax office (‘belastingdienst’) and Chamber of Commerce (‘Kamer van Koophandel’) are your friends, especially the former. Visit them as they’ve got loads of useful advice. The latter will in some cases actually try and discourage you from starting a business as part of their spiel. Make sure you come across as if you mean it.
The Usenet newsgroup nl.ondernemen is NOT there to spam your fellow entrepeneurs with your brilliant product, but DOES provide a place where other entrepeneurs will listen and dispense advice. Read up in http://groups.google.com/groups?q=group:nl.ondernemen before you start posting.
Keep in mind that for several organisations that could spell big trouble for you (belastingdienst, GAK), you need to look like a business: have business cards, stationary, clients (if you rely on one major client, the GAK will conclude that you are their employee and start taxing them accordingly!), spend most of your time on the job, advertize, etc.
Ken Ray
Most states have “Business Incubators” run by local economic development agencies that startup companies can make use of. Contact your state’s economic development agency and the National Business Incubation Association (http://www.nbia.org/). They can help with suitable accomodation initially, assistance with business planning, accounting and legal advice, and so on.
Also, your state’s ecomonic development agency – and in some areas, county or similar – often has a lot of assistance for people starting their own business. They can provide lots of valuable advice, often run free seminars, and can be a source of useful grants or low income loans.
Branko Collin
Books that tell you the secret formula to success, usually tell you to sell a book that tells others the secret formula to success.
There are no formulas beyond hard work, talent, business smarts, perseverence, high quality suppliers and heaps of luck. Rest assured that if there were some secret method, the ones that knew about it wouldn’t be selling books about it.
Speaking of high-quality suppliers, what I missed in the article is the importance of outsourcing; you don’t need to have everything done by a third party, but if a third party can make you look better (or make the product better), you’d be foolish to do it yourself.
Kevin
This is an excellent point. Most experts actually recommend reviewing it once every quarter, and revising it if necessary. A business plan is never set in stone; it should be constantly morphing to your business needs and goals. Reading through articles in Inc magazine, its amazing how many CEO’s, CFO’s, etc rely on the business plan, and how they are constantly rewriting them for future growth.
Kevin
This is an excellent point. Most experts actually recommend reviewing it once every quarter, and revising it if necessary. A business plan is never set in stone; it should be constantly morphing to your business needs and goals. Reading through articles in Inc magazine, its amazing how many CEO’s, CFO’s, etc rely on the business plan, and how they are constantly rewriting them for future growth.
Dustin Fluke
I’m assuming that you’re in KC. I too enjoy the local Boulevard brew. While I’m not extrememly local, (Topeka) I thought your article was great.
I’m 23, and I was seriously thinking about starting my own business here in town. I’ve been working at the local University for a little over one year, and am trying to finish up a degree online. The job I currently hold has given me invaluable experience as far as dealing with people. Being so young and instructing faculty is difficult sometimes. I can’t say enough about that part of the article.
I’m glad I read this, because I would have been foolish to dream up starting a business right now. At least I’ll have a guide when I’m ready to continue…
Thanks again.
Dustin
Rick Bush
In many places you can do business under your own name without having to register the name. You may still need a business license, but you might be able to start out as John Doe, consultant and work that way.
Another thought on partnerships is to form a partner network. You as a great graphic artist can work with a freelance web designer, a network specialist, etc. You hire them to work for you on a work for hire basis and charge the final work through to the client, perhaps with a little markup. That way you can pull in talent for bigger projects and still stay small.
Terry
Your article has what [in my opnioin] are valid points. I’m learning firsthand the rationale behind the need for a business plan and how a business partner can provide a good balance. I also know the value of experience, my own and others’, in collaboration with new ideas.
Dinah
I strongly advise you to schedule regular, say every 6 months or less, revisits to your business plan. Ideally, do this with someone else who will ask you hard questions.
One of the lessons* I carried away with me from running my own one-woman business was that I should have revisited my plan regularly and, when I mentally reworked my strategic direction, I should also have considered what needed to be reworked in my plan. In my case, I changed my product line enough that I really should have repeated some of the initial work I did planning & promoting before first opening the business. Talking over my numbers with someone else would probably have helped identify (and call me on) where I wasn’t walking the walk I’d talked up.
*(along with “don’t plan to pay yourself for over a year” and “consider what to do if what you think won’t happen, happens e.g. separating from the person providing most of your personal financial support)
Robret
Awesome article! Right from the trenches! However, on searching for those generic forms and contracts on creativepro.com you spoke about, I couldn’t find anything. I wonder if you could find it in your heart and busy day to send me a direct link to these resources? It’d be very much appreciated. Thanks!
Beto
The merit of this article is that it summarizes in a quick read most of what you really need to know about starting a business. Even though the business reality and legal procedures here in Costa Rica are drastically different from those of the U.S., I benefited a lot of reading a book called “The Business Side of Creativity” by Cameron Foote, that delves more in depth into all of these true-to-God issues.
I would just add two pointers here for those of you jumping into your own: 1) Make sure you have enough savings to cover at least 6 months’ worth of expenses, both yours and your business’s (you’ll need them – guaranteed), and 2) that networking beats skills every time when it comes to clinch a deal. Or as they say, it is not WHAT you know, but WHO you know, that will get you the big business. You may cry foul, but that’s the way it is…
Surinder
This was just the information that i was looking for, with this plan set out i hoping in the future of starting my own bussiness although iam still at school is do beleve that you can start at a young age with part time experenice avaiable when your at school.
i would really like to say thanks for writing this article.
Mark
Good article, I’d agree with almost all of it except the part about a partner.
If there’s one thing I’ve learned from my business experience – not web related by the way – it’s NEVER, EVER, EVER, UNDER ANY CIRCUMSTANCES WHATSOEVER, EVER go into business with a partner. NEVER.
If you feel you need a partner you’re either not ready to go into business or you should think of another of doing it.
carole
Husband and I are starting up our own one man/one woman computer business. U hit it on the head when u said to get real life expereince before starting a business. When i was 20 i started a business and I was DEFINATELY dumb! It went under and i was left with oweing thousands. So THIS time…26 yrs later..we want to do it RIGHT and will resist the temptation of rushing in and starting. Business plan here we come……..