Some people assume that there is no cost to running a web design business. They think that the income is pure profit. That is because, the product is a digital product, and there is no purchasing of raw materials required in order to produce the product. Moreover, since I’m working from home, they assume that I don’t need to spend money to pay any office rent. And since I don’t drive to work everyday, I save on parking and petrol.

Well, that’s true. I do save on parking and petrol. I also save on traveling time. No need to get stuck in traffic jams or drive one hour to get to the office. Also as a result of not going out so often, I also save money by eating at home most of the time.

But every month I do have to take care of my cash flow and balance things out with my personal expenditure. Working at home also means I have more free time and will spend money on other activities like travelling, compared to last time when I was working full time, I didn’t have time to exercise or travel, so I managed to save a lot. So, actually working at home, if you don’t have the discipline, you will end up spending more money than when you are working full time.

Below is a summary on what I spend on to run my home-based freelance web design service:

• Time – Multimedia and web design work takes up a lot of time. No raw materials, no cost. Just takes time to do some research, come up with ideas, drafts and make changes, and coding and editing the content. Also, since it is a service and I have to deal with clients, there will also be some consultancy work involved, like meeting up with clients and replying emails and answering customer enquiries. Its part of the job. Not all potential customers that I talk to will give me business. Not all quotations that I spend time to draft out will become a sale. So time is money. Quite often, I waste time creating a quote or doing work that will get rejected and helping a client do something that I won’t get paid for e.g. technical support and troubleshooting. Therefore I consider my time to be part of the cost.
• Hardware – Currently using a Dell Desktop computer, which I have been using for about 4 years. Recently spent a few hundred to upgrade the RAM and add a new hard disk for more disk space. Other equipment include scanner, digital camera, printer and fax machine. Also had to buy CD’s and DVDs to backup files. In the future probably need to buy a new laptop.
• Software, Plugin, Fonts, Templates and Stock Photos – These days I have to purchase original software license from the internet. E.g. I had to spend a few hundred to buy the latest Corel VideoStudio video editing software. I also bought the a plugin to get the Flash ‘squares’ effects. Sometimes is better to invest in good software that can get the job done fast. Makes life easier. I also buy fonts and ecommerce template. Some fonts I just can’t find it in the Free Fonts websites, and having a ready made template makes things easier to get started. I also buy stock photos, especially if the client needs high resolution photos for printing. Most of the time I will charge the client for the stock photos.
• Internet, electricity and ‘rent’ – I’m working at home, and I do have to pay for the broadband internet connection, the electricity and contribute to the household expenses. Also I have to pay my mobile phone bill.
• Petrol, toll, parking and car maintenance – Sometimes I have to drive all the way to Shah Alam to visit a client. Also have to pay for parking and toll. The Phileo Damansara parking is RM3 per hour. At one time I had to meet up a client in Bangsar several times in a day. These days, I try to do all the interaction online and my clients come to visit me nearby my house so that its more convenient.
• Staff salary & freelancer fees – My biggest expense is paying my staff salary. Well, so far I only have one person working for me on a part time basis, and I pay her a fixed salary every month. Occasionally, I also hire other freelancers for cartoon illustration and programming. You gotta be careful who you hire. Sometimes the results they produce are not what my client wants, but I pay them anyway for the effort that they already put in. So that’s an expense.
• Web hosting and domain name registration – Need to pay the hosting for my website jamiesoon.com. Sometimes I also have to pay in advance the hosting fees on behalf of my clients. Later on I will get reimbursed.
• Stationery and marketing materials – In the beginning, had to print name cards. I also have to spend time to maintain my website. I consider it an asset. My website is an essential tool in my business and is crucial in marketing my services. It also helps me to get connected with my friends. The cost is more of spending time to update it and once in a while redesign the website.
• Advertising – So far I’ve only spent money to advertise in a printed home-business newsletter. I got some response and got a 2 clients from there. Otherwise I try to look for free ways to advertise my services, e.g. in free forums and free online classifieds. So I don’t spend much on advertising, currently its through word of mouth and recommendations as well providing services to my regular clients.
• Education and Research Materials – Last time I bought a few design reference books. Also have to spend time to research and keep up to date with the latest web tools. Sometimes spending time to guide my assistant. And don’t forget the thousands of dollars and years spent to obtain a Computer Science Degree and a Design Diploma.
• Entertaining clients – Occasionally, someone gives me a referral and I buy them lunch. E.g. my uncle recommended me to his friend to design his website, so took them out for a Japanese lunch when I got my paycheck. It was fun. Normally, my clients buy me drinks / food when I have to meet up with them at a restaurant or café.
• Other costs – Sometimes, I do websites for free or at low cost for friends and non profit organizations. All these discounts I give can be considered as a cost because it takes up my time. Other costs include bank transfer fees, paypal transfer fees, exchange rates e.g. when customers pay me from overseas. In addition, I have to consider customers who don’t pay up on time or decide not to pay up at all. That is also consider a loss and expense.

Therefore, you can see, not all my income is profit. There are quite a few expenses involved and I have to keep my expenses in check every month and this is only my business expenses. Although there are no ‘raw materials’ to create this product, it is considered a service, and will take up my time. Time is money. So that’s the cost of running my business.

This article will continue where we left off in Where to Find Clients at the Start of your Freelance Career. While the first article deals with the start of your career, this article gives tips on how to get even more clients and maintain the relationship for the long term, so that you get repeat business.

Make sure people like working with you

If you are good, you can get the job done, and the client likes working with you, then most likely they will come back to you for more projects. Sometimes the first job they give you is a small job, but the next project might be more challenging, after they get to know you and they have confidence to give you a bigger task. They will even suggest to work with you on a long term basis, like be their personal assistant to handle all the graphics related stuff for the company.

Caring attitude

In my case, my clients like working with me because I am nice and will do small things for them with no extra cost. Also I take the initiative to recommend them things that they are not aware about, e.g. installing a spam plugin for the blog, or helping them set up their emails. Of course, they also like my designs. Its all about having a good attitude, not a ‘Tidak Apa’ or ‘I don’t care’ attitude.

Building relationships

You have to love what you do and you have to enjoy working with the client. Business is all about building relationships and your client is like a friend. Sometimes they even buy you lunch, give you free gifts and chat with you. Its like a hairdresser that chats with the customers, and that’s why the customer keeps coming back. In my case, my clients will usually ask me about where I’m travelling next or how was my trip etc. (You don’t have to talk to much, mostly just listen to them)

Of course you have to be selective and trust your instincts. When you first encounter the client you can judge whether you like the person and whether you want to work with them on a long term basis. That’s why being self employed is better than working for someone. If you don’t like your boss or don’t like the job that they give you, you still have to do the work. But as a freelancer, you can choose who you like to work with and what projects to accept (of course depends whether you have enough projects or not otherwise you should grab any opportunity).

Be Informal

So, be nice. Actually, just be yourself. No need to pretend to be some professional and be too formal. Its like TGF Friday restaurant waiters, they sit next to you to take your order, smile, recommend food etc. When you write emails, be more human, be informal with the language that you use, like you are talking with the client e.g. say Hi! Or just say a short ‘Thank you’. No need to write a long formal email.

Excellent Service

People come back because they like you and they like your service. Simple things like, answering emails promptly, and picking up the phone, even after office hours or during weekends. All these small things will make some customers so impressed. Also take the initiative to complete the project fast and give some design options for the customer to choose. Also be willing to make changes for them. Some of my clients are just so happy and thankful that they managed to find a designer like me. They give me good testimonials and work with me for years. Makes me wonder how bad are the other freelancers or web design companies?

There are thousands of freelancers and web design companies out there and one way to compete and stand out from them is to provide excellent service.

Get your client to be your business development executive

Here’s how to save money on advertising. Let your clients promote your work.

You don’t have to purposely ask your client to help you to promote your business. If you are good they will automatically recommend you to their friends or clients. In my case, one of my clients who is in the aquarium business recommended me to his supplier and his overseas partner. He is sort of like a Business Development Executive for the company, so he will be meeting a lot of people etc. So if anyone needs a website he will most likely recommend me. I just stay at home and let my clients do the networking.

So you just get a few of these types of clients who love talking and meeting people and you can some free promotion. No need to waste money hiring people.

Say Yes !

I just saw the Jim Carrey movie, ‘Yes Man’. It’s a good movie about having a more positive outlook and taking a chance. Saying yes will lead you to more great things! So, from the freelance business point of view, accepting a project will lead you to another project. For me, even though it’s a small or low budget project I might still accept the job if I think I will enjoy doing the work and if I think it will lead to more contacts in the future. E.g. One of the cake business recommend me to a woman who recommended me to do the Pinglian.com website. And the Pinglian.com website leads me to do The Art Commune website. From one client it can lead to more and more business.

On a more personal note, saying yes and going for the Pakistan trip 3 years ago was a good decision. I didn’t know anyone on the trip but from there I have made new friends and I have gone on even more and more trips with them. One thing leads to another ! Take the chance !

Brand yourself

Instead of having a corporate sounding name e.g. Freelance Website Solutions Sdn Bhd, promote yourself. I use my own name. It gives more confidence to people and slowly builds up your reputation. Its like all the fashion designers like Zang Toi and Versace using their own names on their labels and celebrities like Britney Spears and Donald Trump are marketing themselves as a brand. I think names are easier to remember and you can relate a personality to the name. For instance, I’m using my name Jamie Soon to promote myself, on my website, the domain name, the invoice … everywhere is Jamie Soon. Something that people remember and when people ask who designs your website, they will say Jamie Soon.

Trust

Be honest, be trustworthy. Don’t cheat your customers. They won’t like it if they have been cheated. Again, business is all about building relationships. So like in relationships, you have to honour your commitments. Give quality work, not just making the design look nice. The backend html coding make sure it is according to the latest web standards. Don’t want the customer to find out later that you did a lousy job or give substandard work. Strive to provide the best to your customers e.g. get a good hosting service for them.

Who are you working with

I got my assistant, Lai Meng, who as been working with me for years. Some of my clients like her a lot and say she is nice. So I think we make a great team. In a small business, you and your employees (or freelancers that you sub out the work) will be in contact with the client. So not only you have to be good, the client also has to feel comfortable with working with the other team members.

The hosting company also has to be good. Imagine if the client likes your work and you provide excellent service. But if their emails go down and website is slow, it will also affect you. Your reputation could also be destroyed because of other people’s mistakes because you should also take the responsibility. So choose carefully who you work with. E.g. for me I have been hosting with Hostpro2u for many years because Helen, one of the consultants that deals with me provides good service. I can feel that she cares and tries her best. And just recently I found a new web hosting company that also provides good service and a good price.

So in conclusion, the people around you has to be supportive and be in sync with your style of doing business. You can’t do everything on your own. Also if you have someone to back you up if you are not available, then your customers will be more confident about doing business with you on a long term basis. Not like someone who is there one day but next week goes out of business and decides to do something else.

Master the language

Being good in English helps. Or if you are good in other languages like Bahasa or Chinese you can cater to your target market. Most of my clients like to work with me because my English is good. Because you are dealing with information. The website or any brochures has text and provides information. I sometimes check for spelling and grammar mistakes for my clients or recommend some words to use for the headlines. And I can grab a paragraph from the company profile and insert the website title and description and keywords for the website. All these small things matter, because if there is a big spelling mistake and it will affect the company image. After all, you are the designer and you are dealing with the public image of the company, and if your English is good (or any other language that you are designing your website in) then you can provide an extra service to your customers, and its less burden for them, then you can do the checking, or come up with some good titles e.g. for the banner or advertisement.

What else can you do for the client ?

Think beyond what is required. Think about your clients needs in the future. What other services can you provide. After I complete a website, my clients will ask what else can I do for them, brochure design, banner designs, leaflets and more recently, video editing! The more useful you are, the more people will want to continue using your service. After all, its easier to deal with just one person, who already has all the materials and knows the corporate style. So, learn a new skill and provide other services to your clients besides web design. Propose more services to sell to your clients.

Conclusion

To get repeat business and more customers, you gotta provide excellent service, small things like answering your phone and replying emails quickly, can make a big difference in how the client decides whether to come back to you for more projects or not. Other factors include, making sure the client enjoys working with you by being yourself and not too formal, be nice, be honest, and brand yourself in a way that clients will remember. Let your customers help you to promote your work. Give the client the confidence and the joy of continuing to do business with you.