The business must grow in all aspects to achieve its success. Share your ideas about your plan that you have planned to implement in your business from 2017…
We are planning to start a web designing services company in Chennai with the help of 3 freelancers. ( 1 Marketing & Customer Interaction, 2 Techie people ). The company which is going to give the following services in this digital world
- Website Designing
- Business Logo Designing
- Web Hosting Services
- Digital Marketing Consultant (PPC, SMO, Email Marketing, SMS Marketing, B2B Marketing)
The goal of this company is that it has to acquire 365 customers for the next 365 days ( 1 Day, 1 Customer ). The targeted consumers of this company are SME Entrepreneurs from various type of industries mainly exporters & importers.
We know that there are so many competitions for this type of business.
Even a freelancer also can do the same service for the users in a cheap cost
Hope our company will be an outstanding from this basket
But apart from the just a website, there are so many factors involved
- Quality * ROI * Communication * Marketing
We are not just developing websites.
We are consulting for their business opportunities.
The 3 member team has to be as 15 member team at the end of 2017.
First of all congratulations on your entrepreneurial journey.
Most entrepreneur’s in India do have a it services wing in their startup organizations in order to boost revenues, collect customers , understand the industry narrative and keep the basic story of the startup running.
This is not exactly rocket science and is a very common business model, managing employee strength with project availability. Recruiting full time webdesigners , webdevelopers is also a challenge keeping the margin from websites in mind.
The challenge here is how to move your customers from shared hosting customers to either their independent server instance , or your VPS installation where you can get some margin, so you get extra revenue and assign specific employees to work on specific customer projects.
It is foolhardy to try and predict the future considering your first statement that you have not yet incorporated the firm.
Your goal should be if you can sign on even one or two customer, keep them happy for 365 days through quality delivery and professional services being offered.
Signing on a customer is very difficult in india, because no one(especially sme) likes contracts.
As an alternative i get email confirmation on most activities before i proceed with the development.
Again in my opinion it is useless to predict the future without a detailed understanding of the present situation.
Your current 3 member team is worth its weight in gold, especially if you are in a relationship of trust with each other.
Explore what talents and potential your team currently has, bring the productivity upto 100% of your current organization and then once you have an idea about how to grow a business, THEN think about hiring freshers / amateurs to delegate work to them. In fact sometimes claiming you are a startup is only going to be a drawback when it comes to hiring, as the candidates you hire will be looking to move on to brighter prospects at a moments notice. They are only interested in the monetary aspect of employment, and you cannot get them excited about working at a startup. This is the reality of the situation you have to deal with.
Thanks for your reply about each points
Will take care of your suggestions before proceed
And as you said, hiring of web designers with full dedication for our business will be more complicate. Because an employee will jump over to their next opportunities at any time. And our intend here is, we don’t want to hire employees.
Instead, we do partnership with the well established firms.
They ll take care of the professional designs in a business attitude,
We ll be a lead generator for them which means we will be a virtual digital marketing agency for them. We will invest in Digital Marketing & brand our self. When it’s time for designing we will outsource the project to the companies. They ll do the professional designs based on the customer requirements & deliver it to ours.
Here designing part is the only outsourcing.
Once they delivered to us, we will present the same in our brand name to the customer.
For the lead, we will charge to our partners either by flat amount or commission basis.
And for recurring business, we will sell the shared hosting (We’re having of Hosting Re seller Account) for our customers with the site hosted.
Which means, the revenue of the Hosting Services will be ours.
We are closing a deal of Rs.5000 (A Static Website - Rs.3500 for Design + Rs.1500 for Hosting)
Now the designer (Partner) will get either Rs.2800 - 3000.
We will get around Rs.500 from designing &Rs.1500 from Hosting
- 60 % for Desinger
- 40 % for Us
Now the next query is, partners won’t do the regular support for small & repeated changes. To resolve these type of problems / queries, already we are having of two techie people. They can do the miscellaneous works in the designed structure.
So maximum of 2 - 3 corrections may be done by our partners before the project delivery
After that our techie people will taken care of support queries.
This is the business model we are having in our mind.
Now the practical challenge here is finding a trusted, real, genuine, low cost partners for us.
Let me know about your suggestion for the above.
Low Cost Website model will not scale in the long run, unless you can generate sufficient ROI for the customer.
A Person who approaches you for such a website is only wanted to do some basic advertisement on the internet for their services and not looking to use the website as a medium to generate revenue.
I would suggest using Low Cost Website Model just to learn coding & design / teach others / understand the business model.
For 3000 rupees, you will not be able to get a quality design is my fear. Of course there are people who can do good design for 3000 bucks also , but the commitment for iterating on the design and revising it to suit (the sometimes illogical) fancies of the customer is going to increase the cost of designing and building the website.
You have to revise the model to make it workable for a top notch designer who charges 15,000 or so (minimum) for a great website design. Of course this is talking about design only and the HTML /CSS / JS portion you can add another minimum charge of 15000 for the development part.
IN a nutshell if you want to have a business model of revenue generation based on websites only , i think a safe limit is to target 30,000 per customer per year (hosting separate).
Until your team of professionals can offer that kind of quality , and until you are able to build that kind of network in India, i think you should continue with your Low Cost Website Model to learn the business , gain credibility as a digital agency and grow your network.
Its amazing you have thought of this, and even more amazing you have two techies to assist you with this.
I think you have the energy to go ahead with this, so if you can sustain yourself by doing websites hats off to you.[quote=“rajamayil, post:5, topic:9408”]
Now the practical challenge here is finding a trusted, real, genuine, low cost partners for us.
I think before registration you should identify one customer , one web designer and one web developer to build a website for dirt cheap. That itself is a challenge in a saturated web design market.
You need to satisfy the customer with your pricing (5000) and find a web designer who can do a design for 3000.
It would help if you / your team can do the web development part yourself and you can pocket the 2000 - your earnings.
PS - I dont think you should make any unnecessary investments like hiring staff, taking office space, infrastructure etc. Work with what you have.
Bottom Line - These are just suggestions from my end , based on experiences i have had in this line of business.
Feel free to learn from them or discard them as each entrepreneur has his / her own take on how to do business.
@Ron Thanks for your suggestion.
Here i have to clarify you something about my business model.
Simply designing a low cost website & deliver the same won’t give us the revenue in long term basis. In our business model, Website Designing is just an entry point for our relationship with the customers. Once we build a good relationship with our customer in a professional manner, we will approach the Digital Marketing segment to them.
Our main focus is to be a Virtual Digital Marketer for our customers in long term basis.
Website Designing revenue will be a just bucket filling. From the approach of Digital Marketing Services only, our business is starting with our customer in a revenue manner.
For the Digital Marketing Services, our pricing model will be as like Rs.100/Day (Just for an example only. Not the actual cost - Contract will be either 6 month or 1 year). Will generate the inquiries for our customers globally & assure the ROI for our customers. Once they satisfied with our services,we hope that they won’t neglect us just like that.
Hope you can get an idea about our business model which is going to be executed.
Expecting your genuine reply (it may be +ve or -ve) for our business model
totally agree with you on this point.
i think there is some amount of speculation involved here .
Your customers must be really pleased with price and quality in order to get back with further business, and as you mentioned you are still checking out people who can partner with you for doing the design.
All the best though, i think your optimism and frank talk is very encouraging and insightful to many entrepreneur’s on this forum.