Re:Ask HN: How to get clients for a new, small software agency?
by zefiroi on Tuesday March 15, 2022 @09:38PM
(#30694251)
Nice tips!
> How are you going to split up the money? 20% to each partner? Based on who does the work (with maybe a fixed percentage going to shared expenses like marketing)? Have these conversations sooner rather than later.
Very good point. I've tried partnerships in the past but not really worked out. In my current setup I've got a freelancer soon to be permanent, a friend of mine that has its own consultancy and some trusted developers as freelance.
Structure is more loose but gives the advantage of keeping costs down and having good cashflow.
"I have a close knit team who is looking to develop software on a contract basis. We focus on <sector> and <technology>. We are based in <timezone> and could start <start time>. We built <past project>. Do you know anyone who is looking?"
I have found that the softer sell is easier than "Are you looking for <team>?" because that puts people on the spot.
Questions you want to think about:
* Will you let folks hire just one or two of the team or is it a package deal? The latter is harder to sell, but probably less friction (if only 1-2 folks are doing work, are the other folks getting paid?).
* Will you do T&M or fixed bid? Depends on your ability to control scope and bid accurately. You can lose your shirt "fixed bid" but clients love it and if you have repeatable processes you can make good money.
* What kind of non-labor offering can you sell? Maintenance? Training? Small products like WP themes? Hosting? On-call? This can really help even out revenue ups and downs that are the bane of any consulting practice.
* How are you going to split up the money? 20% to each partner? Based on who does the work (with maybe a fixed percentage going to shared expenses like marketing)? Have these conversations sooner rather than later.
Finally, five folks is a lot to support. I'd have some hard conversations about financial runways and comfort levels for everyone; I doubt the entire team is on the same page w/r/t risk or place in life. Better to have those conversations now than in the future. I like the Nolo Partnership Guide: https://store.nolo.com/products/form-a-partnership-part.html the laws might not apply in Europe, but the concepts and what to think about certainly will.