what to do when you start a biz

1. Start your own agency
10:50am / Ballroom A

2. Start your own agency
How to find, run, and get paid for
your own projects.
Erik Olson @erikpmp

3. What we’ll cover
Finishing projects
Finding work
Starting projects
Running projects

4. Who should care?
• Freelancers
• Independent consultants
• Small agency owners
• Those aspiring to work for themselves

5. Talk format
• We’re going to cover a lot
• We’re going to get detailed
• I want your ideas / feedback / input

6. 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)

8. 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

10. 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

12. 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.

13. 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)

15. 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.

17. Lessons Learned 5
• Client diversification for longevity.
• Partnerships are tough.
• Ensure company vision aligns between
partners.
• Culture issues.

18. 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)

19. 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.

21. 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)

22. 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

23. 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.

24. Proposed Timeline
What if you’re late?
Recommend:
• Schedules are estimates only
• No penalty for missed schedules
• Allow for delayed starts

25. 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

26. 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?

27. Accepted Proposals
• Proposal expiration?
• What are the next steps?
Recommend:
• Proposals expire in 30-days
• Invest in DocuSign

28. 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

29. Deposits
• Always get a deposit?
• How much?
• Apply deposit to first invoice or last?
Recommend:
• 10% from new clients.
• Apply to first invoice.

30. Invoicing Method
• Use FreshBooks or QuickBooks Online
• Create recurring invoices
• Invoice via email
• Automatic late notifications.
When? After 1 week late.

31. Invoicing Frequency
How frequently to invoice?
Recommend:
• Every two weeks

32. Payment Terms
How quick should clients pay?
Net 60, 30, 15, 7?
Recommend:
• As quick as reasonable
• Net 14 (waive selectively)

33. 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.

34. 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

35. 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.

36. 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

37. Referrals
• Directy ask for referrals.
• Existing clients and referrals are your best
source of future work.

38. Questions?
Erik Olson
CEO / Programmer
erik@8020.co @erikpmp
80|20 :: Software Consulting
Norfolk, VA
http://8020.co
Slides avaliable at: http://bit.ly/1M0bRaM