How-to to run a software consulting business

Pricing

Fixed vs Hourly Pricing

by shabda on October 10, 2011

You already know what your right hourly price is. However many clients are going to request a fixed price. Some may request this even before they have a specification. You can give a fixed price if The specifications are well defined. You know how to handle change requests. You are good with estimating time You [...]

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How to decide on your pricing

by shabda on October 9, 2011

A year has 52 weeks, a week has 40 billable hours. So say a developer’s yearly salary is X$. Can you do X$/(52 * 40) to come to an hourly rate. Hell no. You need to factor in Downtime when you are looking for clients Cost of infrastructure like servers, desktop and office space Vacations [...]

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Turning customers to repeat customers

The best way to get business is by getting more work from an existing customer. New customers cost money to acquire. They need to be nurtured before they will get trust with you to let you work on the most... »

Turning customers to repeat customers

Moving up the value chain

  If you want to grow the business without growing headcount the only way is the provide higher end services or to sell products. Do you sell services which can be productized? Do you have technology which can be sold... »

Moving up the value chain

Keeping costs low

As you start to scale the business, the overhead costs start increasing. Eg. When you are self employed you maybe doing billable work 90% of the time. As your business grows, you will have to add admin staff, accountants and... »

Keeping costs low

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