Setting up a new web development company

[JoyDivision]

I have recently graduated and I am looking for work in web development, I have had a few interviews but 30-40 people are applying to each one so I am finding it hard to get a job.

In my heart I have always wanted to run my own business but people keep putting me off, I am 23 now and I feel I am ready to give running a business a try.

If I was to setup a web development company I would target smaller companies at first and will run it on a sole trader basis until I know the idea is feasible. After this I would form a LTD company and get VAT registered.

So to start off I would need a second phone line, insurnace and some money for advertising, I can use my overdraft for this as its interest free at the moment.

People keep saying its risky but I am not sure, I would also draw up a proper business plan and do everything by the book.

Thanks for any advice.

 

[Jayne]

Hi,

If you feel in your heart you can do it, I say go for it. Lots of people on here to help. People said the same to me and 12 yrs after i'm still doing it.

I wish you all the luck, if you deside to start your own business

Jayne

 

[MarkPearson]

I am not in that type of business, but from what I see its a very over saturated market, with so many people selling their services.

With sites like rentacoder.com outsourcing to india etc...

If you could find a niche...

There is a big market of people looking to buy established website, so maybe you could design and develop and sell on businesses

 

[JoyDivision]

One of the things I want to develop is off the shelf content management systems again the market is crowded but I want to try and find a niche where there is no specific CMS for that sector or industry.

I suppose what I want to do is more of a software company which specialises in the web rather than a web design company.

I also have lots of contacts, I know plenty of very good graphics designers which will work for cheap

Hopefully my niche in web development is I would be local and I would use that as apart of the marketing, i.e if they have problems with their site we are not 200 miles away.

I would run it from home at first as there is no point in getting into massive debt with office space until I can see if there is a market.

 

A friend of mine has just set up a web studio, if you want some advice PM me and I will get him to drop you an email with some advice

 

[Astaroth]

Whilst it is a song I always sing, I personally would seriously look into setting up a limited company from the outset as it is a seperate legal entity to yourself and so your assests and the companies remain seperate.

Web/ software development is a very difficult market to break into due to the number of people coming out of uni or simplying reading HTML For Dummies and thinking it is easy money.

Whilst I was at university (and the market was a lot less saturated than it is now) I did web development to help pay the bills. In my honest opinion what made my operation as successful as it was was to do with business skills and had little or nothing to do with my IT abilities (or lack of as the case probably was).

If you have the time and the money to spare then the best of luck to you. If you want to make a "real go at it" I would recommend linking up (formally or informally - potential issues with both) with someone with more business/ sales experience.

Best of luck

 

[DuaneJackson]

Getting out of bed in the morning is risky. First thing to do is to ignore those people that tell you it's too risky. It may be too risky for them but if you are willing to go for it don't let somebody who has settlled for a job and a salary talk you out of it.

I'm in exactly the same market as you are looking at, and whilst it is rather saturated I still think it's possible to set up and succeed as a new company.

In my honest opinion what made my operation as successful as it was was to do with business skills and had little or nothing to do with my IT abilities.

If you have the time and the money to spare then the best of luck to you. If you want to make a "real go at it" I would recommend linking up (formally or informally - potential issues with both) with someone with more business/ sales experience.

That's very sound advice and something you should seriously consider. Being the best developer in the world wont guarantee your business will suceed.

Where are you based?

 

[JoyDivision]

I am in Manchester, I think I do have good business skills, I have also studied business a lot although I realise what you learn in a lecture theatre as nothing to do with the real world.

My parents run a business as well so I good idea from them. I also have a couple of uncles who are directors of companies, one a butcher shop and the other is a power supply consultant for a very very large company so I should be able to get advice from them.

I think setting up a limited company would be a good idea and it should make it slightly easier to get work as it means the company is less likely to be a fly by night operation.

One of the things which puts me off is commitment, if I start this then I can't walk away from it if I should decide to travel the world (I am 23) but if its a sucess and I really do want to do somthing different in a few years time I could sell it.

I would need to a proper business plan and things, my parents are putting me off at the moment though due to risk, they don't understand the market.

Also if I have a business plan how hard would it be to get finance? I only have access to about £500 (but I have all the equipment needed including licenced software) but I am not sure if this would be enough becuase of advertising.

I can certainly live for a couple of months without any pay so I don't need money to cover my salery.