Do you have any business tips you wish you knew when you started out?

almost 7 years ago from Ivan Bjelajac, Co-Founder @ Bien /

  • Aaron SagrayAaron Sagray, almost 7 years ago (edited almost 7 years ago )
    • Don't have one client that is more than 30% of your gross revenue.
    • Any agency, no matter the size, is one quarter from going out of business
    • Scaling an agency past 30-40 people usually requires outside capital
    • Collect 30-50% up front, depending on the size of the project
    • To stay in business, you need to make at least 50% on the project. Try to make more. You are selling value, not time.
    • Have a contract. Fuck You Pay Me
    • Be aggressive about collections. If it isn't paid in the first 45 days, it is highly likely you won't get paid.
    • Never have a contentious conversation over email
    • Treat employees and contractors better than you would treat your children.
    • To that end, pay your bills faster than expected
    • You can scale sort of scale a small design business if you corner a niche – be the web/brand guy for single-physician practices that do LASIK, for instance.
    • Big (or well-monied) clients pay more than small clients and take the same amount of your time, or less.
    14 points
    • Jonas GothJonas Goth, almost 7 years ago (edited almost 7 years ago )

      Regarding the last bit, i'd add that it's easier to build close relationships with smaller clients that can last for years. Theres a ton of benefits working with small companies/start-ups, whereas the some biggest benefits for big clients is the higher pay and the reference for later.

      A good mix of both small and big is the way to go. I have always offered a separate rate for both.

      0 points