Tech • Company
Steps for Creating your Web Design Company
Like the American Dream, digital reality becomes favorable for the most diligent and resourceful. A web studio is a company that develops and designs websites. It is always a group of people where' everyone is responsible for their own part of the work. One person who makes websites is not a web design company yet.
The goals specify the future of the studio. If the goal is to create websites, then you need programmers, designers, sales and customer service managers, a project manager.
When it comes to not only creation, but also promotion, internet marketers are needed.
The regulation on the staff is not important. But if you focus specifically on website development, then you need to take programmers and frontend developers into the team. If the trick of the team is in design, then to design it in the staff of designers. The rest of the work can be outsourced.
Why choose a business like a web studio
Is it worth starting this business? One of the main reasons why it is worth it is the low entry threshold. At the start, you do not risk assets, you do not need to rent an office from the first day or recruit a large team. And that’s a plus. You can start without even quitting your job.
The next reason is the growing market. According to the statistics, the volumes of the mobile web development, contextual advertising, software and Social Media Marketing markets have not stopped growing since 2013.
Digital advertising market volume
At the same time, SMM is the most promising direction. But success, of course, is not guaranteed to anyone: many novice managers repeat the same mistakes without achieving results. For convenience, let’s divide these errors into two categories: myths and facts with example of website design.
A myth is something that doesn’t need to be repeated. A fact is a managerial decision, gained through our own experience, which gives a serious advantage in achieving goals.
Myth number 1
I sold the landing page – there is a studio. At the time of the maximum demand for landing pages, the companies that make them have become too many. And there were guys who decided that if they sold the landing page for 10 thousand rubles, then they have a business.
This doesn’t work today, but there are two strategies that work.
First, you can open an agency that provides two or three services, but it does it very expensively and with excellent quality. The profit from each contract should be of such a size that you can reinvest it in the team.
Second, you can hang one idea “on the flag”. And within the framework of this idea, to expand the matrix of services in order to constantly re-sell something to customers.
Myth number 2
I have to be the main expert. When designers and programmers run a business, they are the strongest experts in the company. As a result, all tasks are closed on them, everyone runs to them for advice.
How to do it right: the leader must first of all be a good manager.
Myth number 3
I can work alone. A freelancer is a craftsman. You work – you have profit. No job, no profit. In business, you can retire, change directors, move to another industry, and the company will not suffer from this.
How to do it right: know how to delegate responsibility and build autonomous structures within the company – departments that function on their own, without your constant participation and control. And this will require people who need to be taught everything and actually entrust them with the company.
Myth number 4
It is enough to copy success. Copying is creative impotence. So you will not gather people, a strong and talented team. And in general, copying is punishable by law, but sooner or later the truth emerges.
How to do it right: every business needs its own USP, idea, style.
Myth number 5
Hypermargus. Have you heard this story? We sell a project for a million rubles, and it will cost 20 thousand, we save on performers, and the client will not notice anything. Forget it! Cheap performers are cheap jobs.
Correctly: the real margin for one project is usually in the region of 15 to 30%.
Myth number 6
Easy Money. We make the first two sites, earn good money, and then we give everything to freelancers! It won’t work that way. Word of mouth is critical in this business.
How to do it right: a successful business always has a professional team, a flow of projects and a good reputation. Now to the facts.
Fact number 1
At some point you will need an office. There is not a single agency in the world without an office that would be successful, large and give out good cases. There are some exceptions, but they are used only in order to prove the rule. The core of the team must work side by side.
Fact number 2
Margin is important. The owners must specify the question of price first of all for themselves. I can do four projects a month. Because an income in any case must be in the center of attention. And it turns out that when you worked for hire, you spent eight hours a day on it five days a week. And here you work seven days a week for 16 hours. 90% of studios close in the first year of operation precisely because they take projects at a loss and do not consider marginality.
There are three main types of expenses in a studio. These are administrative expenses, sales and production costs. If we take the salary and divide it by 160, we only count the cost.
Fact number 3
The customer eats your margin. It is a mistake to think that the sale took place when you received the money from the customer. Sale is when you have shown a result, a completed project. Because edits are killing your margin.
You can protect yourself from this only by internal processes in the studio. If they are not thought out, they will hinder the development of the company. Three key steps that you must implement in your business: brief, concept, project.