Web studios, do not climb into a black hole. There is no money

No one has written to this blog for a long time. All work, work, work ... Is it worth it? )
Surely, many web studio managers will agree with me that a business called “website development” is not so difficult. It does not imply a high threshold for entering the market, everything is done under one roof, there are enough specialists in the market, and there is also demand for services. But even more studio leaders will support me in that this simple business has very high risks. The human factor negates all expected and seemingly easy incomes. If you do not choose the right model of work, you will quickly become disillusioned with this business. Let's dig right into the depth of any regular web studio.

It's hard to get a profitable project at market value.

Planning a budget for the development of a corporate website, we estimate the time that needs to be spent on the project and lay the profit. The math is simple until we collect data on completed projects and make sure that most of them are unprofitable, and some are mega unprofitable. Who has not tried to consider profitability - try.

It is impossible to lay down production downtime due to the customer’s fault, additional meetings with the client, multiple improvements, etc., in the project budget. we will receive the budget at which the client never would have signed the contract.
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Difficult to get a satisfied customer

Suppose we took up the project taking into account all the risks and a high probability that the project will be unprofitable (and what to do, the money is needed). In this case, be prepared that the client will be dissatisfied with the studio, and the studio with the client. What is the reason for discontent? The most important is the discrepancy between the progress of the project and the client’s expectations. In most cases, this is delaying the timing. If the project deadlines are tightened (no matter for whose fault and for what reason), the contractor will be guilty in the eyes of the client in everything: as a received product, in poor management, lack of feedback from the site, etc. Accumulated The parties nullify all the advantages that the manager tried to please the client while working on the project. At the same time, the manager wants to complete the project (not to abandon it, after a year of work), which does not allow the company to overcome the break-even gap.

As a result, we come to the fact that if you set the “correct” budget and normal deadlines, then the client, most likely, will not buy the project. If you offer a competitive price in the market, then the risks to go beyond the budget (and, accordingly, the time frame) are very high, which brings to the piggy bank another unhappy unprofitable client.

So what to do?

I hope some of my observations will be useful:

1. Decide on which side of the black hole you will work and clearly explain your policy to the client. Quickly and cheaply (up to 30 thousand rubles), or long and expensive (from 150 thousand rubles). In the middle, in between, are freelancers. There are no studios (should not be). I wrote about this in detail with the article “Black hole in the range of cost of sites” .
If you are ready for the flow of orders of the same type and get a buzz from building an effective production model, rather than from creativity, then your way is quick typical solutions. If creative ambitions do not give rest, then it is worth going the second way. But be prepared to surprise customers, constantly work with the team, live at work, work at home). Both that and other approach makes profit, but not the middle.

2. Provide high-quality customer service at all stages of work with the client, regardless of the cost of projects. Sales, development and follow-up support - at all stages the client must feel caring about himself. This will have an effect not immediately, but after some time you will realize that new customers began to arrive simply on the recommendation. And the price issue for them is already in second place. No one has ever left us because of excessive care, but the lack of such turned the client into a headache.

Such are the conclusions after several years of work in this business sector. Earn it turns out there and there, but not in the middle) Perhaps someone will agree with me, and someone else will not. My experience in managing a studio of exclusive Internet projects and a studio of typical low-cost sites says exactly that. Share opinions.

Vasily Churanov