The digital migration era is imminent. The internet has become a hub of many activities, with e-commerce taking the highest bid. The internet has made it easier for businesses to undertake transactions and reach their clients with websites and other platforms accessible to users.
Some facts on the internet usage currently:
- Approximately 3.6 billion people use the internet
- Last year a total of 1.79 Billion people shopped online
- Projections on global eCommerce sales are expected to reach $4.8 trillion by the end of 2021.
- 64% of startups have a website
For any business, the benefits of having a website supersede any marketing strategy. Customers are more inclined to make purchases from companies that have a designated website. According to research, out of ten people, six people expect to find content about a business online.
Lack of online presence for a business can ruin its credibility.
Based on the above statistics, a profitable venture to consider would be a web development company. With a readily available market for website development, finding clients can be as easy as ABC.
Pros and Cons of a Website Development Company
Starting a website development company can be exciting. Some of the pros are:
Innovation and Creativity
Developing websites for companies can spur your creativity and trickle in the sense of innovation. Your company would aim to create unique websites tailor-suit to your client’s needs.
More so, to set you apart from the competition, there will be instances where you would have to think outside of the box to be innovative.
Starting a web development company requires two things; good internet connectivity and a laptop. You don’t necessarily have to set up an office; you can easily work from your humble abode.
Managing a website is not an easy task. Unfortunately, most companies do not have tech-savvy employees to do website maintenance for them. However, you can include it as part of extra services to earn additional income for your business.
Most website development companies often partner with experts to help grow the website. For example, partnerships with marketing consultants, web developers, SEO experts, and copywriters can be profitable for your business.
As you embark on your web development business, being in the know of the cons can help you navigate through the hurdles better.
The cons of a website development company include:
Knowledge and Skills
Starting such a business requires expertise and technical know-how to build a well-functioning website. Coding standards can be challenging to learn, and it will require considerable time and effort to grasp the set of zeroes and ones.
Working on your computer all day can pose a health challenge to your body. Not only will you be straining your eyes, but being in a sedentary position for too long can affect your body’s circulation.
Getting into this business venture can be costly, owing to the training and software you will require.
Steps to Starting a Website Development Company
Create a Business Plan
Having a clear plan laid out is essential for the success of any business. A plan will help you identify who your target clients are, what you need for your business, what services to offer, and the cost of capital.
With a well-crafted business plan, you can be able to access financing options from investors or lending institutions to get you started.
Your business plan can create a roadmap to determine how much you would charge your customers, your target market, and your business name as well.
Develop a Legal Entity
It would be best if you then established what business structure your company would adopt, whether it’s a partnership, a sole proprietorship, or a limited company corporation.
Researching the pros and cons of each structure can give you proper guidance on which one to select. For instance, a business entity set up as a corporation or LLC shields you from liability in the event your company is sued.
You need to establish a company that is compliant with both federal and state taxes. The type of business structure you select will determine the amount of taxes you pay.
As you research your tax compliance, you also need to find out the necessary permits and licenses you require to operate your business. Again, this should factor in as part of your operational costs.
After getting the prerequisites out of the way, now you can build your brand and promote your work. You can start by creating a website to have an online presence and reach your customers more easily.
It would help if you found potential clients to pitch your work to them as part of marketing. In addition, you can use your networks to scout for novice entrepreneurs who are starting out to create an intriguing website for them.
Finally, as you build your website development company or even an eCommerce development company, it would be essential to include complementary services such as online advertising, content creation, email marketing, or managed web hosting. With such services, you can stay ahead of the competition and earn more by diversifying your business.