Business partner vs Web developer

[Anna01]

Hello,

I would be most grateful for your wise thoughts and suggestions on this.

I run my own consultancy in the construction and property industry which is going well but has limited ability, at present, to make that large passive income which many people are after.

Over the last year I have been researching and developing an idea for a website/app which I thoroughly believe could go far and ticks the boxes for many of your usual business success formulas.

I recognise my own limitations however, and I have reached a point where I need help to plant this little sapling into ground where it can grow in to a fruitful money tree.

I'm looking for someone who has the knowledge and experience I lack, namely in web development/SEO etc, to advise on and create this business with me. I am fearful that even if I can afford a web developer, once they have finished their commission I will be left with an F1 potential racing car that I have no ability to drive. The business has massive potential and I would love to find someone who can share that vision; with us both bringing our respective skills and experience to the table.

I'm be happy to learn new skills but to do this opportunity justice, it has to be done well. I would be devastated if another company emerged before me, doing just what I'm proposing, but I promise you friends it is just a matter of time.

What do you think ? Am I likely to find this unicornesque business partner and on what terms would you expect that to be ? Or am I better off growing some balls, putting my hands in my pockets and try and steer this humongous baby on my own ? In which case, where do I start ?

The sort of money I would expect it to make, I would be more than happy to have a fair profit split. As the business grows it will inevitably need sizeable investment and growth and it would be good to have someone to take that path with.

Many thanks,
Anna

 

[arnydnxluk]

These kind of things tend to be long term on-going projects and the amount of work required is often underestimated. As such, my general opinion is that you're most likely better off with a technical business partner. However finding a partner who's on the same wavelength and shares the same ambition as yourself may prove to be very difficult.

If you would prefer to retain more control, then you can pay someone to develop a MVP (minimal viable product) to test the waters before sinking more money into the idea. The MVP should be really stripped back to the very core of the idea. If you can gain interest with the MVP, then you can decide whichever route to continue on from there.

That being said, it does really depend on the idea. The more complicated an idea becomes, the more advantage you will have from working directly with a technical business partner.

Don't forget to do your market research before spending on development

 

[Clinton]

The business has massive potential ...

No kidding! In my 35+ years in business I've never heard a pitch that didn't include some such description of how big the potential is. The word "massive" does come up sometimes, but only in about 100% of cases.

... I would love to find someone who can share that vision

Therein lies a problem. This is your vision. Nobody's going to "share" it with you. You might be able to persuade someone to buy into your plan. Might. But, make no mistake, this is your vision and your vision alone.

Of the two options that you suggest, my advice would be to go with the one involving balls.

 

[fisicx]

You don't build houses your self and if someone asked you how to build a valley roof with hip ends you may well be flumoxed. But you know a man who can and will pay them for their knowledge and skills. If in a years time you need the skylight installing you call the roofer.

Web development is the same. You pay for their services and arrange for a maintenance contract look after the website for you. Unless you can pay their wages full time they won't be interested in becoming your partner.

And like @Clinton said, everyone who pitches here says their idea has massive potential. But guess what, most of them fail. They may become moderately successful if you sink loads of cash into the project but most simply fail because people don't have the same passion as you do.

 

[threenine]

A few years ago I wrote a blog post , https://garywoodfine.com/hard-make-money-software/, in which I address this point from the view of developer.

You see in my trade, I get to hear the "Next Big Idea" on average about 3-5 times a month.

In my time I have heard some great ideas, I have even heard the same great ideas pitched at me from 5 different totally disconnected individuals.

The fact is , it surprisingly takes money to develop software. Just the same way it costs money to build a house.

You wouldn't approach a property developer and say I've got this great idea for a house, lets build and see if you can sell it, when we do we'll make money!

The same goes for software. To create a successful application, whether it be a website or mobile App takes a lot more than just writing code. The build it and they will come approach just doesn't work.

I can almost guarantee you that your idea, is already in production somewhere, it may not look exactly how you envision it, but it's out there.

 

[Anna01]

That's really helpful thanks guys. So Mike, the ideal is a technical business partner, but Clinton and Fisicx, it sounds as though they are about as rare as rocking horse shit...and finding one who shares a vision is just dreaming - fair enough.

So let's say I was to grow some balls, pay someone to develop an MVP and pay someone to maintain it - how much might I need to budget ? Basic site with signposting to my clients ? (I don't know what the technical term is for that).

Thanks

 

[fisicx]

It all depends on what functionality you need.

I could build you a site with a homepage and a sign up form for tuppence. But if you wanted a full CRM with project management and support system then the costs to rocket to hundreds of thousands (even as an MVP).

One project I worked on (as part of the team) spent 200K just on the business plan before a single line of code was written. It proved not to be viable so was binned.

 

[Gecko001]

Hello,

I would be most grateful for your wise thoughts and suggestions on this.

I run my own consultancy in the construction and property industry which is going well but has limited ability, at present, to make that large passive income which many people are after.

Many thanks,
Anna

Are you sure a partnership is the right way to go? Partnerships generally only work when there is trust and you will not get a partner by disclosing the above motives to them. You can hide your motives of a "large passive income" from them in order to get a partner on board but it is likely they will find out not long into the partnership and that will probably mean the partnership will be short-lived.

If you want a long term business, perhaps just hiring the services of a web developer is the way to go rather than trying to form a partnership.

 

[Anna01]

Thanks Threenine, sounds like you have plenty of experience. Of the businesses you have known who are successful, where are they getting their finances from to sink into the development ? And what is required to get that finance ?

Ref. Property; your right you can't build from nothing, but I'd know what was required and how much would need to be spent to make a deal appetising for an investor and what the would need to justify funding it.

Thanks

 

[threenine]

To answer your question! If I asked you to give me a price build a house?

Is that enough information for you?

In truth, it isn't, you could give some very basic estimates but they would be wildly off. Once you realise that the truth is that, we still have to buy the land for the house, get planning permission, get an architect to design it, and the other million things that need to be done.

The same with developing software. I could give you a rough estimate, that on average it takes at least a team of 3-5 People of varying disciplines to develop software.

On average those people may cost anywhere between £200 - £600 per day. You can develop a basic product in about 2-4 months depending

The basic maths add up £400 X 22 X 3 X 6 = £158 400

I Realise i've got no real idea of what is required and no knowledge of your requirements I have just randomly sucked these figures out of thin air, based on best guesses

The truth is you need a business plan, you don't need a developer

 

[Clinton]

@Anna01, what is this big idea that is going to earn millions in passive income?

 

[Anna01]

Apologies guys, when I say passive income I mean a level of income that is not directly related to my time. I am happy to work on it all the hours, but I am neither talented or beautiful enough to make millions from that.

Thanks Threenine, Clinton, fiscx; it makes sense relating it to the scale of property. For a serious building the costs usually run in to hundreds of thousands before a shovel even hits the ground. Usually when we do a property development we create a development appraisal and feasibility study to see at high level if something stacks up - would this be the same with a business plan ? Where do you guys start when you are preparing a business plan for a web development ?

Obviously I'll be doing all the research I possibly can and your help on forums like this is great to helping me know what questions to seek answers to.

Apols Clinton, I'm sure you can understand I don't want to discuss the idea on an open forum but will be happy to have a chat through Skype.

 

[Clinton]

Apols Clinton, I'm sure you can understand I don't want to discuss the idea on an open forum but will be happy to have a chat through Skype.

Excellent. Sometimes posters are so precious about their Big Idea that they refuse to discuss anything with anyone unless there's an NDA involved.

The reality, of course, is that nobody is looking to steal your idea. The people with the smarts to implement already have a million ideas of their own that they don't have time to implement.

The value in projects like these is not in the idea but in the implementation. 1% idea, 99% execution. So the fact that you're willing to discuss it on Skype is a good sign. I'd love to have a chat on Skype and discuss your idea and, possibly, provide some advice, but my "community time" for the week is now up and I have to get back to work. Maybe some other time.

 

[threenine]

Like @Clinton I am more than willing to spend time and discuss your idea and provide advice.

 

[makeusvisible]

To speak honestly, I think the mistake you may be making is to think that someone skilled and experienced in digital marketing, is going to be able to drive you traffic and sales using their expertise alone. that is mostly certainly not the case.

Generating the type of revenue you are likely expecting is going to require expertise....yes.... but it will also require;

• PPC Funds
• Copywriting skills
• Design skills
• Dev Development skills

All of which are going to incur costs.

Mostly importantly it will require time.....which anyone experienced will not want to give away free (which is essentially what your asking for if you suggesting they should be a partner in a business not yet generating revenue).

Your "partner" may be able to help project manage..... but you are still going to need to pay Google for Adwords, or a coder to develop, or a designer to create content. I'm yet to meet anyone well versed in digital marketing, design, coding, copywriting, PPC and SEO.....all at the same time....and if they were, I doubt they would be seeking joint ventures, for a profit share in a business which isn't yet generating revenue.

I think your right to bring someone more versed on these areas.... but look for someone who can make sure your digital marketing budget is spend in the right place, not someone who can reduce your digital marketing budget to zero.

 

[Anna01]

Thanks Makeusawebsite that's really helpful.