Starting a web development company - request % up front?

Question

After 10 years of web design and development, I want to start my own design and development company.

I tried in the past but with VERY many fly-by-night types, and EVERYONE has a web idea, I insist on having my wages partially paid up front, at least at first.

This is reasonable correct?

What is a good idea or plan to put into place / writing, to get over this very important hurdle?

Lawyers Requires a retainer, Graphics artists also will, can, and do request 50% up front, and 50% on completion.

This is not purely graphics work, I am a "coder" just so happens I do CSS, HTML, JAVASCRIPT and other "DESIGN" up front technologies. As well as all the server-side code and databasing.

Answer 1

There is nothing wrong with asking for money upfront, as long as you can deliver the goods in the end. If you do fixed-price contracts (as you seem to indicate), you can ask for a percentage upfront. Alternatively, you can bill by the hour. This way, no client is ever into you for more than two weeks (or a month, depending on your billing schedule) of work...

Answer 2

For most print/graphic design work, as a client, when I get the quote, I expect to see the scope of work in detail -- ie. website -- 12 pages, message board, et cetera, for this sum within three wks. This is where the conditions come in -- you can specify that the client pay up anywhere from 30% - 50% upfront when they confirm the quote. However, I would not be willing to pay until you showed me something, at least.

Your clientele may balk at coughing up the money so early when they don't have a thing, so you may want to tie the sum to the first draft -- ie., when you submit the first round of drafts, they're expected to pay up the % before you move onto the next round, and the rest to be paid when the product is delivered.

If there's a small business association, you can check with them and see if they provide templates or legal advice on drawing up such contracts.

Answer 3

I owned a pretty successful web development and software engineering house for a while. I required 50% or the estimated costs up front. Just remember when clients call in for stuff not on the original proposal to tell them upfront before you begin the work. Also, try to get some maintenance contracts under your belt. They pay the bills. Another thing, do your work with legitimate brick and mortar companies and not with start ups. After all, business is business and you cannot get caught up in everyone else's great ideas and still be a success. Good luck to you.

Answer 4

Absolutely you should try to do this.

You could spend hours working for someone who never pays you, that is just bad business.

I would think that 25% upon agreement to work together
Then 50% more due upon rough draft and approval
Then 25% upon completion.

Then both you and your customer will be on the exact same page. I always suggest this to my vendors, that way I get exactly what I paid for, and they get paid for the amount of work they do, as they do it. Fair for us both.

Good luck with your endeavor. It takes big ones to attempt to strike out on your own and I greatly respect that.