Launching your own web design agency is a shared dream among designers and coders, yet many don’t pursue it due to the perceived complexity. However, the commencement of this journey is deceptively straightforward.
Declaring yourself as the head of a web design agency is the very first step towards actualizing your dream.
The real challenge lies in ensuring that your agency thrives in the initial stages and continues to do so in the foreseeable future.
In the next few weeks, we will guide you through a daily task list designed to anchor the foundations of a successful web design agency business. Depending on your current situation, these tasks could take anywhere from a few minutes to several hours.
By month’s end, you’ll have a fully operational web design agency. The initial week is dedicated to laying down robust groundwork.
Day One: Legal Preliminaries
The inception of your venture should start on an easy note for the majority. Confirm if you are legally permitted to manage a web design agency.
The right to earn a living is generally unrestricted, but you may have previously agreed to not engage in a web design enterprise.
Review any insolvency agreements like bankruptcy that could limit the types of businesses you can run. Additionally, certain loan agreements may require you not to be self-employed. It’s crucial to understand how initiating a business might affect these agreements, consulting a legal expert if you’re unsure.
Consider employment clauses that might inhibit your capability to take on certain projects.
Employment contracts frequently include non-compete clauses limiting your ability to service former clients or compete. Clarify the extent and duration of such clauses. Also, assess who owns the work you do, as employers, colleges, and universities might claim ownership over your creations even in your personal time.
While legal requirements are often surmountable, being well-informed of your legal standing is crucial.
Day Two: Tax Obligations
If you found the first day’s topic tedious, brace yourself for taxes.
Navigating tax responsibilities is a hefty chore for any business. Income taxes are a given in virtually any part of the world.
Starting out as a non-incorporated freelancer or in a partnership often simplifies tax processes, but increases personal liability.
Engage with your local tax authority; notify them about your web design business to get clarity on your tax duties.
Do not delay this step. Understanding your tax obligations is vital to determine your service rates.
Day Three: Carving Out Your Niche
Identifying a specific market segment is necessary during the early growth of your business.
Choosing a niche should be based on your passions rather than just your capabilities. Loving your work realm keeps you driven, even when challenges arise.
Choose a niche that aligns with your interests. For instance, if you’re a gastronome, specialize in designing for eateries, or if you’re tech-savvy, cater to fintech firms. Your focus may evolve over time, so don’t be too rigid in this decision.
The old saying that picking work you love means never working a day in your life is questionable advice. However, investing in a niche you’re enthusiastic about will undoubtedly make your working hours more enjoyable.
Day Four: Branding Your Agency
Now, the fun begins as you brainstorm a catchy name for your agency. Make sure your chosen moniker isn’t already in use locally and that it won’t lead to any unintended associations.
Once you settle on a fitting name, verify that no other local web design business has claimed it. Choose wisely to avoid names that could be problematic or misunderstood.
Day Five: Setting Your Rates
You’re in this business to do more than break even; you expect to see a return for your efforts.
Determining your service fees is a delicate balance. Your rates must cover expenses (remembering taxes), support business growth, and yield profit. Reflect on the least annual income you would accept.
For a starting point: Estimate 245 working days and 7 billable hours each day, equating to 1715 billable hours per person annually. Divide your desired income by these hours and then multiply by 1.5 to factor in downtime and because many in the industry tend to undervalue their services. This figure is your base hourly rate.
While aiming for per-project billing in the long-term, hourly billing at the outset mitigates risk by accommodating unforeseen task durations. Provide prospective clients with estimates based on this hourly rate for common services you anticipate offering.
Day Six: Financial Foundations
With clarity on what you aim to charge, establish a means to receive payments.
Setting up a dedicated business bank account is non-negotiable; mixing personal and business finances can cause confusion. Online banking options are available for simple business account setups, barring any credit requests.
Consider a digital transaction process. Maintain accounts with services like Stripe and PayPal or seek region-specific alternatives.
Day Seven: Recharge and Reflect
Dispelling the perpetuated myth that success demands constant toil, recognize the value of rest and recuperation.
Top-tier athletes assert the importance of rest as a critical part of their regimen. The same principle applies to intensive mental and creative efforts.
As you embark on your web design agency, commitment to hard work is expected. Remember, however, to preserve a day for rejuvenation to maintain your momentum for the weeks to come.
We will delve deeper into establishing your agency’s identity in the upcoming week.
Featured image via Unsplash.
