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Who should care?
• Freelancers
• Independent consultants
• Small agency owners
• Those aspiring to work for themselves
Talk format
• We’re going to cover a lot
• We’re going to get detailed
• I want your ideas / feedback / input
My Experiences
Opinionated talk based on my experiences:• 15 years in the industry• MBA, PMP• 3 SaaS (failed)• 4 years retail storefront (failed)• 4 years Navy contractor owner (failed)• 2 years running 80|20 (going well)
Lessons Learned 1
• I built it, and they didn’t come• No marketing / sales plan• No path to a profitable company (hobby
yes, but not a company)• I provided services on credit and got
stiffed
Lessons Learned 2
• No passion for the project• Didn’t invest in user experience and
quality control• Underestimated the dropoff rate going
from free to paid subscription
Lessons Learned 3
• No one wanted to pay after years of free access.
• Underestimated the cultural issues with offering a proprietary service to a non-profit organization.
My Experiences
Opinionated talk based on my experiences:• 15 years in the industry• MBA, PMP• 3 SaaS (failed)• 4 years retail storefront (failed)• 4 years Navy contractor owner (failed)• 2 years running 80|20 (going well)
Lessons Learned 4
• Retail sucks!• Restaurant industry sucks!• Always there...very draining.• Physically demanding.• Very complex small business.• Partnering with your wife is VERY
difficult.
Lessons Learned 5
• Client diversification for longevity.• Partnerships are tough.• Ensure company vision aligns between
partners.• Culture issues.
My Experiences
Opinionated talk based on my experiences:• 15 years in the industry• MBA, PMP• 3 SaaS (failed)• 4 years retail storefront (failed)• 4 years Navy contractor owner (failed)• 2 years running 80|20 (going well)
Getting Started
Work rarely drops in your lap!• Networking• Referrals• Reputation• Advertising / online job boards• Consolidate to one persona
Tell everyone you know what you’re doing.
What do you do?
Focus your work as much possible.
Two inches wide and two miles deep
• Work on your tag line• Use your tagline everywhere (website,
business cards, marketing collateral)
Prospecting
• You must establish a relationship with the project owner.
• Intermediaries present challenges. Sometimes required to get the work.
• If you feel uncomfortable or pressured, walk away.
It’s just another deal.Mr. Wonderful
Proposals
• What’s the scope?• Fixed price or variable?• Exclusions? (hosting, etc)• How will you know when you’re done?
Recommend:• Make proposals as through and
presentable as possible, but…• Don’t overinvest in proposals.
Proposed Timeline
What if you’re late?
Recommend:• Schedules are estimates only• No penalty for missed schedules• Allow for delayed starts
Rates
• What’s your rate?• Why?• Identify your lowest rate. Never go lower.• Rate per skill set? • Rate per experience level?
Recommend:• Keep ability to adjust rates when desired
Warranty
• What does it cover? • For how long? • What’s the greatest liability to you?
Recommend:• Bugs, 45-days, rework or refund
What’s your warranty?
Accepted Proposals
• Proposal expiration?• What are the next steps?
Recommend:• Proposals expire in 30-days• Invest in DocuSign
Contracts
Use a contract!
• Avoid potentially unlimited liability• Start with the MSA Template (http:
//msabunde.com)• Have a business attorney modify.• Favor your contract over clients’.• Invest in DocuSign
Deposits
• Always get a deposit?• How much? • Apply deposit to first invoice or last?
Recommend:• 10% from new clients. • Apply to first invoice.
Invoicing Method
• Use FreshBooks or QuickBooks Online
• Create recurring invoices
• Invoice via email
• Automatic late notifications. When? After 1 week late.
Payment Terms
How quick should clients pay? Net 60, 30, 15, 7?
Recommend:• As quick as reasonable• Net 14 (waive selectively)
Getting Paid
• Automate payment reminders.
• Who is your client’s AP person?
• Ask for a larger payment if warranted.
• Accept any payment method they choose.
Late Fees?
Should you charge late fees?
Recommend:• Yes• 18% after 2 weeks late• Waive often for minor offenses
FreshBooks advice: http://bit.ly/1GczzIT
When to go live
Prior to final payment, should you?• Go live with the project?• Release the source code?
Recommend:• Handle it case by case. • Include an IP takeback provision in your
contract.
Extended Warranties
• You possess expertise in their business and IT.
• Clients want a long-term relationship with you.
Recommend:• Offer an extended warranty against bugs
for 10-20% of project cost (per year)• Includes a discount on changes
Referrals
• Directy ask for referrals.
• Existing clients and referrals are your best source of future work.
Questions?Erik OlsonCEO / [email protected] @erikpmp
80|20 :: Software ConsultingNorfolk, VAhttp://8020.co
Slides avaliable at: http://bit.ly/1M0bRaM