2. Introduction
• Introduction
• Planning and getting started
• Getting established
• Selling your services
• Running your business
• Growing and expanding
3. What is success?
My version of success
No boss
Business 100% based on free open source products
Work when we choose for clients we choose
Work from home or anywhere in the world
Kids’ educations paid for
Kids moved out
Own our house
Investments
No debt
4. Planning and getting started
• Introduction
• Planning and getting started
• Getting established
• Selling your services
• Running your business
• Growing and expanding
5. Hurdles
Not everyone is suited to running a business
Do you care more about security or freedom?
Freelancer or business?
Freelancers interested in the work itself => resist hiring
Business focus on managed teams => hire best people
High failure rate
Potentially very serious consequences
#1 cause of failure: bad management
#2 cause of failure: undercapitalised
Must have business development and management
skills
Either have them already or …
Be committed to developing them
6. Market research
Research your market and competition
Business volumes
Market rates
Margins
Market segments
Industry segments
…etc
8. Support services
Accountant
Lawyer or maybe legal documents resource
Local business peers or business network
Small business support services
e.g. Business Victoria, AGIMO, MMV
Advisors / mentors
Technical resources to complement your skills
Graphics designers and artists
Photographers
Marketing support
Web developers
9. Set up your business #1
Choose a safe, smart business name
Use ASIC company search
Register your business name
Business structure
Best options: sole trader or single-director company
Limited Liability Company (LLC, Pty Ltd company)
Avoid partnerships, specially with relatives and friends
Register with the Australian tax Office
Register for ABN and GST
Register ACN for an LLC
10. Set up your business #2
Bank account
Consider insurance
Professional indemnity
Public liability
Home and contents
Life insurance
Customer contracts
Employee/contractor contracts, if required
Consider intellectual property risks
Capital and operating funds
11. Start your engines #1
• Reach out to contacts and prospects
• Your network will provide > 80% of your business
• Organise your calendar
• Build your website and your points of presence
• Implement a CRM
• Put serious work into your lead generation and
sales skills
• Budget > 10% of your work week to business
development
• Get used to the discipline of ongoing pipeline
management
12. Start your engines #2
• Work your business
• Treat it like a job, you are the boss and you should view
your work performance as a boss would
• Do unpleasant, boring tasks on a timetable
• Use the UI grid (urgent-important) to manage your time.
• Cash flow is king. Profitability is the state of
grace.
• If your business does not achieve a minimum 10% profit
on top of all direct expenses within your planning
horizon, you would be better off in a job
13. Key success factors
Enthusiasm Spend most of your time doing what you love, and let it
show
Attitude Collaborative, consultative approach
Honesty Be honest with everybody, but especially with yourself
Professionalism Provide customer service that you would expect for
yourself, then do better
Focus Capitalise on your strengths, compensate for your
weaknesses
Action Do it right now! No excuses.
Consistency Be reliable, keep commitments, do what you say you will
do
Persistence Have a solid, validated, adaptable plan, have faith in it,
work it and stick to it
14. Getting established
• Introduction
• Planning and getting started
• Getting established
• Selling your services
• Running your business
• Growing your business
15. Consult and collaborate
• Clients don’t want drills, they want holes
• Judge yourself by your results, not your efforts
• Outputs matter, not inputs
• Don’t build web sites!
• Work with your customers to produce IT facilities that solve their
business problems or grow their business
• Be a good, successful business person
• Model ability and credibility so you can contribute to their business
• Look for problems and solutions
• Put in your best efforts and ideas to improve their business
• Communicate
• Assume nothing: ask questions and listen to the answers
• Report clearly and often, in English and in optimal detail
• Get understanding, agreement and approval
• Never make promises you can’t keep
16. Business processes
• Time recording and billing
• Daily accounting
• Customer relationship management
• Team project management tools
• Benchmarking
• Blogging and social media
18. Selling your services
• Introduction
• Planning and getting started
• Getting established
• Selling your services
• Running your business
• Growing your business
19. Marketing foundation
• Your purpose (vision, mission)
• Your pitch (position statement, slogan, tagline, USP)
• Your focus (specialisations, target markets)
• Your ideal customer profile
• Industries
• Turnover
• Head count
• Operations
• Maturity
• Problems and pains
20. Marketing plan
• Purpose (purpose and pitch)
• Market profile (focus and customer profile)
• Competitors
• Marketing strategy
• Channels and methods
• Pricing and selling
• Project delivery
• Measurement
• Project performance
• Profitability
21. Marketing channels
Free Paid
•Your client base •Sponsorship
•Your peers and network •Advertising
•Interest groups •Mainstream media
•Events •Affiliate programs
•Your website •Joint marketing
•Social media •Co-branding
•Forums and blogs
•Search engine marketing
22. Selling skills
• Your success has much more to do with your selling
ability than your technical skills
• Selling really means providing value to customers
• Get over yourself
• Be good at it
• Not possible to cover selling skills in this workshop
• Find and use a professional IT selling resource, e.g.
• IBM PartnerWorld University (IBM business partners only)
• Budget > 10% of your work week to business
development
23. Running your business
• Introduction
• Planning and getting started
• Getting established
• Selling your services
• Running your business
• Growing your business
24. Customer service
•Love the clients you have
• Repeat business
• Lowest cost source of business
• Case studies, testimonials
• Referrals, word of mouth
• Reference sites
• Keep communicating, stay in touch
• See consult and collaborate, key success factors
25. Managing projects
• Track and measure activity and progress
• Can’t improve without benchmarks
• Can’t benchmark without recording activity
• Use shared tools
• Online project management system
• Online PSA (professional services application)
• PSA should also handle time sheets and billing
• Blend waterfall and agile methodologies
• Cannot ‘quote’ for an agile project
• Waterfall project structure around agile work packages
26. Customise SDLC
Customise project method for scope and context
Section Stage Outcome Performed Approved Stage activity
by by
Definition Requirements Specs Account Customer Clarify and document requirements statement, then obtain customer
Manager approval of requirements.
Design Specs Designer Designer Design or model solution. Produce technical specs, revised task
estimates and test scenarios. If required, conduct evaluations and
recommend.
Proposal Project Account Customer Propose solution, adjust requirements and specs if required and ask for
plan Manager approval
Development Construction Feature Developer Developer Construct features and solution. Emphasise quality, flexible function
and maintainability. Unit test assigned features.
Testing Feature Tester Tester Test features and system interfaces based on business process,
boundary conditions and functional specs. Analyse results and control
defect resolution. Sign off system testing and deploy features to
acceptance testing platform.
Acceptance Feature Customer Customer Test features, interfaces and business process in the context of realistic
customer-specific data. Report defects to Psicom and sign off
acceptance testing when satisfied.
Delivery Feature Project Account Publish changed parts to customer's production server, configure, test
Manager Manager and hand over for implementation.
27. Managing production
• Software production management
• Manage a continuous stream of software projects
• Various sizes, multiple clients
• Balance a changing mix of skills and resources
• Within shifting demand
• See Software production management article
28. Complaints
• Complaints are opportunities in disguise
• A customer whose complaint you have rectified is
much more likely to recommend you
• Take responsibility, but not necessarily blame
• Be open, constructive, proactive
• Clarify and agree requirements
• Fix and confirm
• Follow up
29. Difficult customers
• Solutions are not architected, they are shaped
• Most customers can’t express what they want, but they
can help you shape a prototype
• But some clients are not worth having
• Won’t pay (ask for a deposit)
• Ignorant and unwilling to learn
• Arrogant
• Unrealistic expectations
• Unresponsive
• Assumers: ‘I assumed I was going to get x, y or z’
30. Growing your business
• Introduction
• Planning and getting started
• Getting established
• Selling your services
• Running your business
• Growing your business
31. Larger clients
Good Bad
•More demanding
•Long term relationship
•More stakeholders
•Higher rates
•More overheads
•More realistic budgets •More politics
•More professional •More reporting
•Smarter people •More risk
•Bigger projects •Tougher
•More interesting work
32. Pitching to larger clients
• Initially aim for smaller, low-risk projects
• Sales cycle typically 9 – 18 months
• Extensive, professional proposal required
• RFTs are hard work, but can be won
• Need formal legal structure and solid financials
• Need prof indemnity/liability insurance
33. Evolve your business
• Account management
• Project management
• Production management
• Quality assurance
• Technical range and capacity
• Formalise maintenance support
• Formalise tech standards and code reuse
• Specialise market focus and internal roles
• The purpose of a business is to be sold
34. Profitability for freelancers
How to eliminate tax return shock
•Set your income goal for the year
•Set your annual budget
•Calculate your marginal tax rate
•Add 2% to the rate
•Put that percentage of every invoice into a separate
provision account