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Startup

Guidance for a Web Services Company

Hello Everyone,

We are a web services startup founded in May 2012, based at Indore. After struggling to meet our expenses for the first year, we have finally managed to get into the positives and are doing better from the last quarter.

But, after reaching this stage, we have got more confused with the ‘better’ part.

  • Is the ‘better’, really better!

  • Is the ‘better’, sufficient!

  • Is the ‘better’, helping us towards our goal!

  • Is the ‘better’, an illusion and holding us from the ‘real better’

So, after being silent participants at TheRodinhoods for 1 year (I was present at the March Open House in Mumbai), we finally decide to speak up and ASK our doubts.

 

Let me give you a bit more about ourselves and then jump on to the questions:
We are 2 partners and 2 employees providing web services like Website development, developing technical scripts, API integration, product development mostly using PHP stack technologies, preferably WordPress. We take projects from the various ‘freelancing’ websites and have managed to build a decent reputation there. Our monthly revenues are in 5 digits (Rs) and profitability is around 30 to 35% (after nominal salaries to the founders). Based on the current workload, we plan to hire a couple of more resources by the next quarter.

We seek your kind guidance on the following aspects:

  1. How much should we rely on the freelancing websites. What are the other options to reach out to clients

  2. How to tap the market outside India and acquire more long term reliable clients

  3. What should be our strategy in terms of technical offerings and expansion, considering our current area of expertise (PHP, wordpress)

  4. What are the relevant matrices to measure our growth and forecast the revenues

  5. What are the important financial ratios to keep an eye on, to ensure healthy foundation to our startup and posing ourselves for growth

  6. How much should we focus on processes and matrices compared to doing things (jobs that shall earn us on short-term basis).

  7. What is a good sign/time for expansion and what are the good practices.

  8. For a small team like us – should we look for freshers and train them on our own or hire 1-2 years experience person?

 

Shall be glad to share further details if required. Looking forward to your guidance.

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5 Comments

  1. Hi Kunal,

    I am from Indore and we are about to launch a e-commerce postal related to health devices.Me & my co-founder are MBA’s from a non-technical background and tried 5-6 “good” website vendors wasting around 2 odd months.Finally we tied up with Zepo for a 6 months package and should be launching our MVP soon.

    Being a fellow Rodinhood,I thought we can get in touch with you for website related services. I tried searching your website,but to no avail.

    My suggestion:As a customer i would like to see your work and your website before i trust you with mine 😛 There is a good market out here locally too if you approach the customers where they are.

    P.S.:Nice to know that tier-II city like Indore is also abuzz with start-up activity.Would like to meet other Rodinhoods soon here.

    Cheers,

    Sahil

  2. Betty Bought some Butter, But the Butter was Bitter, So Betty Bought some Better Butter to make the Bitter Butter Better!!!

    😀 Now to put that into perspective!!! Once you read it aloud and repeat without Twisting the Tongue.

    The same thing is applicable in your case with the learnings that you already have and the self analysis that you have done till date for the same too. You already have a good thing going, to make it better you need to keep DOing yet only then would it become what you are tryig to achieve here.

    1. How much should we rely on the freelancing websites. What are the other options to reach out to clients – This would typically depend on what is the work load and what you can cater to, with the additional load to be offloaded to either Freelancers or you can connect with some of the other rodinhoods here doing similar work as well, this ways it would not be a fixed cost too and can be worked upon on a project to project or case to case basis and build a rapport with them for other Strengths  which are not your own core too to add tot he kitty of offerings to your clients as well. For reaching out to Clients that is a never ending story and no one standard might be applicable in any case, it can also change from situation to situation as well, so need to keep working on that on a daily basis.

    2. How to tap the market outside India and acquire more long term reliable clients – Firstly to do this you can either Purchase Qualified or Tentative Hot leads from lead vendors, or Secondly generate your own from quantified and processed leads which can be converted with an outsourced service (We provide this already at Fine Directions Solutionsz) customised as per requirements for the vertical of interest, this is an exercise which needs to be done every month and also keep up with the Demand and supply which gets generated so as not to lose the clients you are able to source and lose costs in doing so.

    3. What should be our strategy in terms of technical offerings and expansion, considering our current area of expertise (PHP, wordpress) –  One of doing this effectively and easily is if you associate and offload work to other players in the field and exercise a shared mode of work culture all would benefit with this arrangement and you can gather and offer a Larger Bouquet of services collectively based on this association of sorts likewise, with a knowledge base which would be pooled and updated every time any of the team members face any issues to resolve internally as required at any time without any waste of time and resources too with no additional costs incurred so to say.

    4. What are the relevant matrices to measure our growth and forecast the revenues – First get to it then measure them with logic, rest is only number crunching when the moolah flows in thats what matters most, still do not forget to save even when its going good for the Winter season and keep playing the Fiddle too 🙂 You can do that whenever you want once you are at ease and have the time to worry and work on these for the fun of it, other times maybe you would like to be busy with what you are starting this conversation for a start !!! 

    5. What are the important financial ratios to keep an eye on, to ensure healthy foundation to our startup and posing ourselves for growth – Curtail expenses and save more, if you can move on to another months of expenses keep doing it, when you are not able to get this done then you need to stop everything and re evaluate the situation with assessments and Team discussions to overcome and reduce what is not necessary and can  be done without for a breather. Always keep a share away for the Future unforeseen and unexpected expenses when even in profit too.

    6. How much should we focus on processes and matrices compared to doing things (jobs that shall earn us on short-term basis). – What you Save is what you  Earn!!! Would say only this here 🙂

    7. What is a good sign/time for expansion and what are the good practices. – Do it NOW!!!  Always a Best practice. 

    8. For a small team like us – should we look for freshers and train them on our own or hire 1-2 years experience person? – Keeping a buffer is never a bad idea, wish the ones moving out Good luck and manage a healthy relationship for the future who knows what turns up later in Life, and keep working on managing the required work force this would give you the chance of a better customised environment which is conducive for your Work Environment and your requirement too, it also build a better Team culture and inhibits the sense of Teamwork within the members too at all times.

    Hope these help you get some pointers and keep doing what you are Good at and make it Better as well to become the BEST!!!

    Need any other information or need to connect for anything, do get back and add me to take things further anytime, my profile has the contact coordinates mentioned for your perusal.

    “The quickest way to Double your Money, is to fold it in Half and put it Back in your Pocket” – Will Rogers

    Cheers!! Good Luck to you and Your Team!!!

  3. Hi Sahil,

    Thanks a lot for your reply. Our website is https://www.gyrix.co . You can also see my freelancing profile here https://www.odesk.com/users/~01dc257487faf7637a , all our work and client feedbacks are present.

    We shall be glad to help a fellow Rodinhooder.

    My contact details are:

    mail: kunal@gyrix.co

    mobile: 9685349036

    Please feel free to connect and we can certainly take it forward.

    Regards.

  4. Hey Darshan,

    Thanks for taking time to reply to our so many queries. We have got good pointers and definitely find value in your suggestions.

    Inline with your suggestion, we are already engaged with few other players and exercise a shared mode of work culture. But our focus is to specialize in a niche segment (like Zend, APIs etc) and gain high value clients for long term basis. Hence the query on ways to- reach out to potential clients outside India.

    We shall get in touch with you to discuss our possible engagement and also learn more from you on various other aspects. 

    Regards.

  5. Sent you an email to connect….

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