How do you start a small web development agency?

Hey everyone! I’m thinking about starting my own small web development agency. My plan is to find simple projects that I can handle on my own, without needing to hire anyone. I’m aiming to make around $2k-$3k per month to start with, and then hopefully grow from there. I’d really appreciate some advice from those with more experience. How would you suggest I go about it?

Ideally, I’d like to help non-technical startup founders build basic web apps, using my skills in React, Node, and Next. But there are some challenges with that:

  • New startup founders usually don’t have much money.
  • Successful ones have better options available.
  • Big projects might be too much for me to handle alone, and I’m not sure where to find people interested in smaller projects.

So, I’m trying to come up with a more realistic plan. Here’s what I’m thinking:

  1. Find local businesses like gyms, cafes, restaurants, barbers, etc., that don’t have websites, using tools like Google Maps and Yelp. (Do you know of better ways to find clients?)
  2. Reach out to them via email and offer my services. It seems like the most direct way to get started, but are there better approaches?
  3. Build simple websites for them, using tools like WordPress, Squarespace, or Ghost, to make it easy for non-technical clients to manage. (Which tool would you recommend?)
  4. Charge $1000-$2000 per website. Does that price range make sense? Aim to complete 2-3 projects per month.
  5. Offer additional services like setting up Google/Facebook ads to bring in more customers. Is that a good idea?
  6. Build up a portfolio and testimonials from these smaller projects, then use that to attract more interesting clients in the future.

But there are some issues with this plan:

  • I’m not sure if there’s enough demand for this service.
  • I might end up competing on price, since it’s something anyone can do.
  • It might not be very exciting or technically challenging, so I’m not sure if it’ll result in a strong portfolio.
  • I’m not sure how I’d transition from here to my goal of building SaaS apps for clients.

That’s what I’ve come up with so far. Does this strategy seem reasonable for starting a small agency that makes money? Do you have any tips or advice for me?

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Hello @Donna! This is a solid plan to kickstart your agency and make some cash. My advice though is that don’t sweat it if things don’t blow up right away. Stay flexible and keep pushing forward.

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Here’s how I built my successful web design business:

I offer a $0 down, $150/month subscription for custom-coded websites, avoiding platforms like WordPress or Squarespace. I handle all aspects of website management, which small business owners appreciate since they prefer focusing on their business. My service includes hosting, unlimited edits, 24/7 support, and high-speed performance.

For lump-sum projects, my prices start at $3,000-$4,000. I’m currently managing four such projects, each over $3,000, and two were completed in just a few days.

To make and scale my business:

  1. I created 16 hand-coded templates to reuse for new clients, customizing them with specific colors, images, and content. This efficient process takes about 3-5 hours per site.
  2. If a template doesn’t fit a client’s brand, I hire a designer to create a new homepage design for $300, which I absorb as part of the monthly fee, adding value to my service.
  3. I have a starter template with essential pages and features, so I only need to code the new homepage design to finish the site, translating desktop designs to mobile easily.
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I have a friend who’s worked in agencies for years and knows a lot about how they operate. Even though they don’t have their own agency, they have a great idea for one.

We were talking the other day and this was what he had to say:
If they started an agency, they’d focus on selling their development skills to other agencies, not directly to clients. He manages many vendors, and when they find a good one, they give them so much work that the vendors often need to hire more staff.

The advice is simple: let agencies with sales teams find clients, and you focus on doing the actual work for those agencies. That’s where the real opportunity is.

Donna just Determine your niche market, establish business objectives, select suitable web design tools, define service pricing, choose a business name, develop a comprehensive business plan, fulfill legal obligations, and build a portfolio displaying your web design work. and you ready to go

Hi Donna, Create a portfolio showcasing your past work and capabilities. If you don’t have previous clients, consider building sample projects to demonstrate your skills.